German election 2025: what does it mean for environmental regulation?

Only a month after the inauguration of Donald Trump, one of Europe’s most significant economies has swung to the right on a number of issues, including the environment.

The German election has ushered in a new era of conservative governance under Friedrich Merz, marking a stark departure from the climate-focused agenda of the previous coalition government.  

While the final coalition structure is still being negotiated, early signals suggest that environmental policy is poised to take a back seat to economic and security concerns. 

This result confirms the abrupt fall from grace suffered by the Greens as well as a broader groundswell against progressive environmental policy around Europe.  

What does it mean for a number of key environmental issues? 

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What were the results of the 2025 German election? 

With Merz’s Christian Democratic Union (CDU) securing 28.5% of the vote, he is set to form a coalition with the Social Democratic Party (SPD), which finished with just 16.4%. 

The coalition excludes the Greens, whose influence on climate policy over the past four years has been significant but who saw their vote share drop to 11.6%. 

The shift in power away from the Greens means that Germany’s ambitious decarbonization policies, spearheaded under Chancellor Olaf Scholz’s government, are likely to be reevaluated or even rolled back.  

While both the CDU and SPD nominally support Germany’s 2045 climate neutrality target, Merz has been critical of EU green regulations and has pledged to prioritize economic growth over environmental policy. 

Will Germany invest in nuclear energy? 

One of the most contentious potential shifts under Merz is Germany’s stance on nuclear energy.  

While the full-scale revival of nuclear power remains unlikely due to logistical and economic challenges, Merz has expressed openness to revisiting the nuclear debate. 

This could lead to stronger advocacy within the EU for recognizing nuclear as a ‘green’ energy source, aligning Germany more closely with France and other nuclear-friendly nations. 

Meanwhile, Germany’s recent push to expand wind and solar power may slow down as the new government moves to reduce bureaucracy for businesses, a shift that could weaken environmental regulations in the energy sector.  

Additionally, Merz has promised to repeal the Building Energy Law, which aimed to accelerate the transition to cleaner heating systems, citing concerns over its economic impact. 

What is the CDU position on climate change? 

During the campaign, Merz’s rhetoric largely downplayed climate concerns, instead emphasizing economic recovery and industrial competitiveness. 

The CDU’s alliance with the European People’s Party (EPP) in the European Parliament has already been instrumental in pushing back against stricter EU climate policies, a trend that is likely to continue under Merz’s leadership. 

A key signal of this shift is Germany’s expected support for delaying corporate sustainability reporting rules, aligning with broader efforts to simplify regulations for businesses.  

The new government is also unlikely to push for an accelerated coal phase-out, maintaining the existing 2038 deadline rather than advancing it—a policy the Greens had championed. 

How will agricultural regulation change in Germany? 

In the agricultural sector, the new government is expected to reverse some of the environmental policies implemented under the previous coalition. 

The CDU’s stance favors rolling back certain EU environmental regulations and reinstating tax breaks for diesel used in agriculture, a move that will likely be welcomed by farmers but criticized by environmental advocates. 

Similarly, Germany’s transport transition may face obstacles under Merz.  

While the outgoing government had embraced the EU’s 2035 ban on new combustion-engine cars, Merz has been less enthusiastic, and his coalition with the SPD may weaken Germany’s commitment to phasing out gasoline and diesel vehicles.  

Instead, the CDU is expected to focus on reducing bureaucratic barriers for automakers rather than imposing stricter emissions standards. 

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What does the German election mean for global climate action? 

Germany’s influence extends beyond its borders, and a shift away from aggressive climate policies could have broader implications for EU environmental regulations. 

With Germany no longer leading the charge on green initiatives, other European nations may struggle to push forward ambitious climate legislation. 

Despite this, economic realities may still drive some level of green investment. German industry has already begun transitioning toward sustainability, and the business sector may continue adopting cleaner technologies regardless of government policy. 

However, without strong regulatory support, progress may be slower and more uneven. 

The election of Friedrich Merz signals a significant rightward shift in German politics, with environmental policy expected to take a back seat to economic growth and deregulation.  

While Germany remains committed to its long-term climate goals, the urgency and scope of its green transition are likely to be curtailed.  

As coalition negotiations unfold, the full extent of these policy changes will become clearer, but one thing is certain: the next four years will be a challenging period for climate advocates in Germany. 

By Jed Thomas

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