Dual-Benefit Stimulus for Germany – 50 measures for a green recovery

The coronavirus pandemic has impacted nearly every country in the world, and, as of early June, claimed more than 400,000 lives. In an effort to contain the pandemic, governments closed large sections of the economy and as a result, the global economy now faces what is likely the greatest crisis since the Great Depression. Meanwhile, the threat of climate change is still as present as ever. 2020 is shaping up to be one of Germany’s driest years on record and one of the world’s hottest ever.

To confront both crises, Agora Energiewende and Agora Verkehrswende proposed a massive, targeted growth and investment initiative with 50 measures that will provide economic relief and put Germany on the path to climate neutrality by 2050, in line with the European Green Deal. The German government recently released a 130 billion euro stimulus package that includes some of the measures in our proposal that give the dual-benefit of rebuilding the economy and addressing the climate crisis, including a 9 billion euro hydrogen strategy.

While some of the recovery policies in our proposal are specific to Germany, we identify certain mechanisms behind the dual-benefit measures that are applicable to other countries. For a smart recovery, we must invest in climate mitigation now, not later.

On 18 June, Agora Energiewende's Senior Advisor Michael Schäfer and Agora Verkehrwende's Deputy Executive Director Günter Hörmandinger presented key mechanisms of the proposal that can be replicated internationally and discussed the latest policy developments in Germany’s recovery package.