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Merz warns climate policies risk deindustrialisation, backs EU ETS

4/23/2026

Summary

Story summary

Chancellor Friedrich Merz warned climate policies seen as causing deindustrialisation will lose support.
He backed EU emissions-trading system, said Germany will pursue climate action while avoiding measures, and urged rule updates to preserve competitiveness.
He noted clean-energy could triple to $2 billion by 2035 and that Germany’s sector has outpaced the economy by 50 % since 2010.
His coalition urged the EU to relax the combustion-engine ban and build gas-fired power plants.

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Story summary

Chancellor Friedrich Merz warned climate policies seen as causing deindustrialisation will lose support.
He backed EU emissions-trading system, said Germany will pursue climate action while avoiding measures, and urged rule updates to preserve competitiveness.
He noted clean-energy could triple to $2 billion by 2035 and that Germany’s sector has outpaced the economy by 50 % since 2010.
His coalition urged the EU to relax the combustion-engine ban and build gas-fired power plants.