German climate package disappointing in many areas

The German climate package is trying to achieve the CO2 targets with a “hands-on” approach, i.e. through a variety of measures. This is unlikely to succeed, however, not least because transparency and sustainability are lacking this in this policy. The stimulating effect for the economy that some are hoping for will probably be modest. On the positive side, though, a broad political consensus on a package of measures has emerged. The soon-to-be-issued green German government bonds and green certificates will likely give the green bond market a boost, which in turn should encourage more financing for green investments. For more, watch the video blog by Chief Economist Dr Jürgen Michels.