Germany's Incoming Government and Future Energy Policies

This document is a client alert that outlines the coalition agreement reached by the CDU/CSU and SPD in Germany regarding future energy and decarbonization policies. The agreement, finalized on April 9, 2025, addresses various aspects of energy production, including nuclear energy, LNG, coal, wind, hydropower, hydrogen, and carbon capture and storage. It emphasizes the importance of diversifying gas supplies and modernizing the electricity grid to integrate renewable energy sources. The coalition reaffirms Germany's commitment to phasing out coal by 2038 and positions hydrogen as a key element in the energy transition strategy. The document also discusses the establishment of a special fund to support decarbonization efforts and the significance of international energy partnerships. While the coalition agreement serves as a framework for the incoming government, it is noted that its provisions are not legally binding, leaving room for speculation on its implementation.