Germany\u2019s greenhouse gas emissions fell only slightly in 2025, declining by 9 million tonnes, or 1.5 percent compared with the previous year \u2013 less than half the reduction achieved in 2024. <\/p>\n\n\n\n
For the first time, the sluggish uptake of climate technologies in the buildings and transport sectors is visibly reflected in the overall emission balance. That said, sales of heat pumps and electric vehicles are increasing.<\/p>\n\n\n\n
In 2025, Germany emitted 640 million tonnes of carbon dioxide (CO\u2082),* representing a reduction of 1.5 percent, or 9 million tonnes, compared to the previous year. This brings total emissions to 49 percent below the reference year 1990. While Germany met its national annual emission target for 2025, the overall reduction was less than half as large as in 2024. These figures are based on new calculations by Agora Energiewende, published as part of the think tank\u2019s annual review of Germany\u2019s energy year 2025. The report shows that the past year\u2019s emission reductions were driven on the one hand by a fall in production in energy-intensive industries caused by persistent weak demand and strained global market conditions, and on the other hand by record levels of solar power generation. However, emission reductions in the energy sector were smaller than in previous years, largely due to weather-related factors. <\/p>\n\n\n\n
Agora\u2019s estimates reveal that emissions from transport and buildings rose in 2025, following years of insufficient progress, particularly in the transition to electric vehicles and heat pumps. In the buildings sector, increased use of oil and natural gas for heating resulting from a cold start to the year led to a rise in emissions of 3 million tonnes of CO\u2082, or 3.2 percent, compared with 2024. Slightly higher fuel consumption increased transport emissions by 2 million tonnes of CO\u2082, or 1.4 percent year-on-year. As a result, based on currently available data, Germany once again missed the European climate targets set under the Effort Sharing Regulation by around 30 million tonnes of CO\u2082. This means that Germany is using up its European Union emission budget for buildings and transport too quickly. If current trends continue, the country will need to purchase additional allowances from other EU Member States worth up to 34 billion euros by 2030. <\/p>\n\n\n\n
\u201cWind and solar energy remained the backbone of the energy transition in Germany in 2025. However, the power sector \u2013 until now the main driver of emission reductions \u2013 cannot permanently compensate for the shortcomings in rolling out climate technologies in transport and buildings,\u201d said Julia Bl\u00e4sius, Director of Agora Energiewende Germany. \u201cAt the same time, sales trends for electricity-based technologies such as electric cars and heat pumps are rising internationally, and Germany also saw a slight uptick in 2025. The federal government should leverage this tailwind: by strengthening domestic demand \u2013 and with it also industry \u2013 Germany can catch up in climate-neutral technologies.\u201d <\/p>\n\n\n\n
Solar power becomes the second-largest electricity source after wind power<\/strong> <\/p>\n\n\n\n According to Agora\u2019s analysis, the share of renewables in gross electricity consumption rose by one percentage point to 55.3 percent in 2025 compared to the previous year. The modest increase was due in part to weak wind conditions. However, these shortfalls were offset by strong solar power generation, driven by continued rapid expansion of solar capacity and many hours of sunshine. In 2025, solar installations in Germany generated more electricity for the first time than coal, lignite or gas-fired power plants, making it the country\u2019s second most important electricity source after wind power. Thanks to the expansion of renewable capacity as well as lower utilisation of refineries and coke plants, emissions from the energy sector fell by 3 million tonnes of CO\u2082, or 1.5 percent, compared with 2024. Solar expansion remained high in 2025 at around 17.5 gigawatts, while net onshore wind capacity additions increased to 4.5 gigawatts. This trend is expected to continue: record permitting volumes of 17.9 gigawatts for onshore wind point to strong growth in the coming years. By contrast, offshore wind saw little movement: almost no new offshore wind turbines were installed in 2025, and bids were submitted in only one of three auctions. <\/p>\n\n\n\n Despite a global upward trend, the analysis also shows that electricity consumption in Germany in 2025 remained almost unchanged at a total of 528 terawatt-hours (TWh), just 0.8 TWh more than in 2024. Meanwhile, electricity generation increased slightly (+8.2 TWh). As a result, net electricity imports (exports minus imports) fell by 7.5 TWh, or 28 percent, year-on-year, accounting for 3.6 percent of electricity consumption. Stagnant consumption also reflects the continued weak momentum in heat pumps and electric mobility uptake. Sales rebounded from low levels in 2024, with around 300,000 heat pumps sold in 2025 and for the first time exceeding gas boiler sales, and the share of electric vehicles in new registrations in Germany rising to nearly one fifth (about 545,000 vehicles). The increase in new registrations is primarily due to the tightening of European CO\u2082 fleet regulation targets. However, high upfront investment costs continue to slow the roll-out of electricity-based technologies at the pace required to meet climate targets in industry, buildings and transport. \u201cAttractive electricity prices, a reliable carbon price path, targeted support and rapid grid access are key to enabling households and businesses to use renewable electricity for heating, driving and industrial production,\u201d Bl\u00e4sius emphasised. <\/p>\n\n\n\n According to Agora\u2019s analysis, the average wholesale electricity price in Germany in 2025 was 8.9 euro cents per kilowatt-hour \u2013 around 1.0 cent higher than the previous year. This was mainly due to frequently high gas prices determining the electricity price, especially at the beginning of the year. Overall, however, high shares of renewables had a dampening effect on electricity prices. Meanwhile, the average household electricity price fell by 0.6 cents per kilowatt-hour to 39.6 cents per kilowatt-hour, primarily due to the expiration of expensive long-term procurement contracts held by electricity suppliers from the fossil energy crisis years 2021 to 2023. <\/p>\n\n\n\n Upcoming legislative reforms can strengthen growth markets<\/strong> <\/p>\n\n\n\n For the coming year, the German federal government has announced amendments to the Buildings Energy Act (Geb\u00e4udeenergiegesetz<\/em>, GEG). In addition, the Renewable Energy Sources Act (Erneuerbare-Energien-Gesetz<\/em>, EEG) is to be revised. \u201cWith the legislative reforms planned for 2026 in the power and heating sectors, the key is to build on the success of renewables in the energy sector and to extend the positive momentum of 2025 in the demand sectors,\u201d said Bl\u00e4sius. This includes continued government-backed safeguards for operators under the EEG, alongside more market-based financing of renewable energy installations. \u201cThe renewables requirement for new heating systems under the GEG remains central to providing planning certainty for households and manufacturers. Combined with reformed building subsidies, the government can use the same funds not only to reduce more CO\u2082, but also to enable low-income homeowners to switch to climate-neutral heating.\u201d <\/p>\n\n\n\n Industrial emissions fall mainly due to weak production<\/strong> <\/p>\n\n\n\n Germany\u2019s industrial sector recorded the largest emission decline in 2025. United States tariffs, global overcapacity in basic materials such as steel and chemical products and weak domestic demand particularly affected energy-intensive production, which fell by 3.2 percent between January and November 2025. As a result, greenhouse gas emissions in the industrial sector declined by 11 million tonnes of CO\u2082, or 7.2 percent. <\/p>\n\n\n\n \u201cTensions in global markets are intensifying the pressure to act: German industry urgently needs incentives to invest in the climate-neutral modernisation of its production,\u201d said Bl\u00e4sius. \u201cShort-term crisis measures, such as an industrial electricity price, must also pay off in the long term. This includes creating green lead markets \u2013 for example through reliable demand for green steel and low-emission cement financed via funds such as the country\u2019s Special Fund for Infrastructure and Climate Neutrality \u2013 which supports both competitiveness and climate action.\u201d <\/p>\n\n\n\n Although the reductions achieved in the past year allow Germany to stay within the annual emission limit of 662 million tonnes of CO\u2082 set out in the national Climate Change Act (Klimaschutzgesetz<\/em>) for 2025, looking ahead to 2030, the current pace leaves a significant gap. To meet its climate target, Germany will need to cut emissions by an average of 36 million tonnes of CO\u2082 per year from 2026 onwards \u2013 four times the reduction achieved in 2025. \u201cWith an effective climate action programme, the government can regain momentum towards the 2030 target,\u201d stressed Agora Director Bl\u00e4sius. <\/p>\n\n\n\n Agora Energiewende 2026<\/a><\/p>\n\n
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