German Sustainable Development Strategy Update 2025

1. Vision and goal 15

2. Guiding principle – our understanding of sustainability 15

3. Objectives, indicators and governance structure 17 II. Global framework 17

1. SDG Summit 2023: review and impact 17

2. Strengthening multilateral ­cooperation, global partnerships and ­international ­credibility 18 III. Focuses of the 2025 GSDS – ­Shaping transformation fairly together 19 1. For a greenhouse gas-neutral, ­environmentally compatible Germany with an intact and ­diverse ­natural environment 19 a) Greenhouse gas neutrality by 2045 and adaptation to climate change 19 b) Conservation of natural habitats and biodiversity 19 c) Tackling the pollution crisis 20 d) Climate and environmental justice 20

2. Promoting a just Germany where no one is left behind 21 a) Strengthening the social dimension of sustainability 21 b) Social justice 22 c) Equivalent living conditions 24 d) Social cohesion and a robust and strong ­democracy 24 e) Social inclusion and participation 25 f) Social partnerships and opportunities for ­participation in the workplace 25

3. Promoting sustainable prosperity in ­Germany through innovative and ­sustainable economic activities 26 a) Technology, talents and tolerance 26 b) Further expanding sustainable and ­circular ­economic management 27 c) Alliance for Transformation 28 d) Transformation as an opportunity for prosperity 28 2 German Sustainable Development Strategy Update Chapter B. Areas of transformation 29 Transformation teams (TT) 29 I. Human well-being and capabilities, social justice 30

1. Aims 32 a) Challenges 32 b) Focus topics 33

2. Measures taken 36 a) Measures to strengthen individual resources 36 b) Measures to strengthen institutional resources 39 c) Measures to strengthen social resources 41

3. Next steps 44 a) Intensifying interministerial cooperation 45 b) Strengthening social innovation ­promoting ­sustainability 46 c) Strengthening sustainable basic, further and ­continuing training and adult education 46 d) Promoting inclusion for all 47 e) Further objectives and planned measures 47

4. Spillover effects 48 II. Energy transition and climate action 49

1. Aims 49 a) Making effective and efficient contributions to climate action 49

2. Ensuring a clean, reliable and ­affordable energy supply 51 a) Driving a global reduction in GHG emissions 52 b) Strengthening innovation and scaling of ­greenhouse gas-neutral technologies 54

3. Measures taken 54 a) Further developments at EU and national level 54 b) Setting the course for a faster energy transition 55 c) International partnerships for climate action 57 d) Promoting innovation before and ­after ­market readiness 59

4. Next steps 60 a) Further developing EU climate policy 60 b) Promoting and stimulating international ­climate action efforts 60 c) Deliberately promoting and leveraging ­climate ­action innovations 60

5. Taking greater account of the social impact of climate action measures 61

6. Spillover effects 62 III. Circular economy 62

1. Aims 63 Using the circular economy to leverage potential for the economy and environment 63

2. Measures taken 64 a) Foundations for a circular bioeconomy 64 b) Reducing food waste 65 c) Enabling sustainable consumption decisions 65 d) Improving waste avoidance 66 e) Batteries: regulated from design to disposal 66 f) Securing the supply of raw materials 67 g) Using resources efficiently 67 h) Promoting a European circular economy 67 i) Making use of multilateral cooperation 67 3 German Sustainable Development Strategy Update

3. Next steps 68 a) Shaping the transformation to the circular economy 68 b) Implementing the National Circular ­Economy Strategy 68 c) Establishing a right to repair, supporting ­consumers in making sustainable choices 69 d) Increasing public-sector leverage 69 e) Seizing the opportunities inherent in digitalisation 70 f) Making sustainable use of the potential of ­biomass 70 g) Pushing circularity in the construction sector 70

4. Spillover effects 70 IV. Sustainable construction and ­sustainable mobility 71

1. Aims 72

2. Measures taken 72 a) Sustainable urban development 72 b) Sustainable building 76 c) Sustainable mobility 78

3. Next steps 79 a) Sustainable urban development 79 b) Sustainable building 80 c) Sustainable mobility 80

4. Spillover effects 81 V. Sustainable agricultural and food systems 82

1. Aims 82 a) Securing the lasting basis for healthy, adequate and sustainable food and access to it 83 b) Protecting the environment and climate 83 c) Preserving forests and making them ­climate-­resilient 84 d) Improving the economic situation of farmers and strengthening local value chains 84

2. Measures taken 85 a) Climate action and adaptation 85 b) Biodiversity 86 c) Transforming livestock farming 86 d) Bolstering organic farming 87 e) Healthy and sustainable food 87 f) Reducing food waste 88 g) Participation and social mobilisation 89 h) Fisheries and aquaculture 89

3. Next steps 89 a) Sustainable prospects for developing and ­emerging countries 89 b) Multilateral cooperation 90 c) Support for partner countries 91 d) Digitalisation 91

4. Spillover effects 91 4 German Sustainable Development Strategy Update VI. Pollutant-free environment 92

1. Aims 94 Preserving the boundaries of our planet’s resilience 94

2. Measures taken 94 a) International measures 94 b) European level 96 e) National measures 97

3. Next steps 98 a) International measures 98 b) European level 99 c) National measures 100

4. Spillover effects 101 Chapter C. Levers 103 I. Governance 103

1. Institutional structures and processes for sustainability governance 103 a) Organisation and institutions at federal level 103 b) Vertical integration: international cooperation, Europe, Länder and local level 106

2. Monitoring, evaluation and ­administrative action 108 a) GSDS indicators 108 b) Sustainability in legislation 110 c) Sustainable administration 111 d) Governance outlook 112 II. Social mobilisation and ­participation 113

1. Academia, associations, civil society 113 a) Science Platform Sustainability 2030 (wpn2030) 113 b) Dialogue group 113 c) Civil society 114

2. Joint Action for Sustainable Development 117

3. Communications 117

4. Dialogue process supporting the German Sustainable Development Strategy 118 a) Kick-off conference in Berlin on 19 October 2023 118 b) Regional conference in Bremen on 7 ­December 2023 118 c) Participation process with an online dialogue 118 d) Workshop meeting on youth participation 119 e) Workshop meeting on labour and social affairs 119 f) Workshop meeting on gender equality 120 g) Sustainability Forum 120 5 German Sustainable Development Strategy Update III. Finances 120

1. Aim 121 a) A financial policy geared towards stability 121 b) Making Germany a leading international location for sustainable finance 121 c) Strengthening performance budgeting in relation to the SDGs 122

2. Measures taken 122 a) Financial policy geared towards achieving resilient and sustainable public finances 122 b) Investment in the future in the federal budget strengthened 122 c) Spending reviews carried out and the ­implementation of the recommendations initiated 122 d) Improvements of the financing environment for young and innovative companies implemented 123 e) Foundation laid in the sphere of ­sustainable ­finance 123 f) Strengthening international cooperation and ­advancing a needs-based reform of the international fi- nancial architecture 124

3. Next steps 124 a) Continuing to pursue a financial policy geared ­towards stability 124 b) Initiative for Growth – new economic dynamism 124 c) Completing a budget analysis on improving ­performance budgeting in the federal budget, with a par- ticular focus on sustainability 124 d) Implementing a Sustainable Finance Strategy with an international reach 125 e) Working to improve the practicability and ­coherence of sustainable finance regulation at EU level and helping shape work in ­international working groups 125 f) Further developing instruments for mobilising ­private-sector funds 125 g) Remaining a reliable partner – ­using ­multilateral forums 125

4. Spillover effects 125 IV. Research, innovation and ­digitalisation 126 On the road to sustainable development with research, innovation and digitalisation 126

1. Aim 126 a) Research and innovation 126 b) Digital revolution and innovation 127 c) Sustainable digitalisation 127

2. Measures taken 128 a) Sustainable research and innovation 128 b) Sustainable digitalisation 128

3. Next steps 131 a) Energy research 131 b) Sustainable digitalisation 132

4. Spillover effects 132 V. International responsibility and ­cooperation 133

1. Introduction 133

2. Action in Germany: ­Considering ­global connections 133 a) Aims and examples of measures 133 b) Selected initiatives with particular transformation potential 134

3. Driving forward the 2030 Agenda at ­European and international level 135 a) Aims and examples of measures 135 b) Selected initiatives with particular ­transformation potential 139 4. Germany’s global responsibility: ­Foreign-­policy, environmental and ­ development ­cooperation with ­partner ­countries 140 a) Aims and examples of measures 140 b) Selected measures with particular ­transformation potential 143 6 German Sustainable Development Strategy Update Chapter D. Outlook 145 Overview: Content and steering of the ­German Sustainable Development Strategy (sustainability management system) 147 I. Significance, basis and scope of ­sustainability as a steering instrument 147 II. Sustainability management concept 148

1. Management concept 148

2. Principles of sustainable development 148 a) Apply sustainable development as a guiding ­principle at all times and in all decisions 148 b) Assume global responsibility 148 c) Preserving our living environment 148 d) Strengthening sustainable economic activity 149 e) Preserving and enhancing social cohesion in an open society 149 f) Using education, science and innovation as drivers of sustainable development 149

3. Key indicators 149

4. Monitoring 156 III. Institutions 157 IV. Strategy implementation procedures within the German Government 157 Abbreviations and acronyms 159 Figures 165 Tables 165 Publishing information 166 7 German Sustainable Development Strategy Update Foreword The international community’s adoption of the 2030 Agenda Our shared success on the way to a sustainable society needs marks a milestone in international cooperation for a better not only a shared vision for the future but also the neces- future. It represents a shared, positive vision for the future sary societal cohesion on the way to that future. On that of a world without hunger, poverty and discrimination, with depends success. At the various levels of our federal society, fair growth to maintain prosperity while preserving biodi- we must create the necessary infrastructure for energy and versity, the environment and the climate and safeguarding transport, in schools, in the health sector, in our social secu- the prospects and opportunities of future generations. rity systems and on the labour market. The international community has recently faced some ob- Particularly at a time characterised by processes of change stacles on its path towards achieving the global Sustainable and upheaval, there is a need for a clear concept of how we Development Goals (SDGs), owing to wars and crises and an wish to live together in the future. Developing and shaping increasingly polarised global environment in which multi- this concept is our opportunity to ensure a bright future for lateral cooperation and collaboration are coming under all and the core of the German Sustainable Development pressure. We must use the five years remaining to achieve Strategy. the SDGs to make rapid, resolute progress. Germany is working hard at international level to that end. Sarah Ryglewski With the Pact for the Future, we have succeeded at United Minister of State to the Federal Chancellor Nations level in sending a clear signal for multilateralism. The Hamburg Sustainability Conference held last autumn made an important contribution with its ambitious work on concrete solutions for achieving the goals of the 2030 Agenda. The international community rightly expects a great deal from Germany’s contribution to the attainment of the SDGs. At national level, the update to the German Sustainable De- velopment Strategy provides the political framework for im- plementing the 2030 Agenda. It describes the path towards sustainable, economically strong, socially equitable and en- vironmentally sound development in Germany. Among other things, this updated Sustainable Development Strate- gy strengthens the important social dimension of sustaina- bility, which is integral to the 2030 Agenda, and puts more emphasis on inclusion, participation and education. 8 Summary Summary The German Sustainable Development Strategy (GSDS) is Only if we preserve the natural resource base on which life the roadmap for sustainable development in, with and by depends – for example, an adequate supply of clean water, Germany. It is aligned with the goals of the 2030 Agenda – clean air, fertile soils and, in particular, a stable climate and an important milestone in international cooperation and a resilient ecosystems – will we also preserve the preconditions strong commitment to multilateralism. The 2030 Agenda for human development, health, well-being and prosperity offers a positive vision of a better future with liveable cities, and contribute to security and peace. The goal is therefore a clean air and rivers, affordable energy and mobility, good greenhouse gas-neutral, environmentally sound Germany jobs, fair wages and less inequality. Implementing the goals with an intact, diverse natural environment. Sustainable of the 2030 Agenda before the end of this decade is crucial infrastructures, digitalisation and sustainable circular eco- to ensure a good life for all people on this planet for the long nomic management are crucial for sustainable prosperity in term. Sustainable development offers the opportunity to Germany. To maintain its prosperity, Germany must remain tackle the many different challenges at national, European a strong industrial centre. and international level in such a way that democracy, peace, prosperity and our environment are safeguarded for the In order to achieve sustainable development by 2030, we long term. need to step up and speed up our efforts. With this aim in mind, the further development of the GSDS looks at central The GSDS was further developed in a comprehensive dialogue areas of transformation and so-called levers. These describe process with all sections of society. The 2025 GSDS focuses the measures necessary for the transformation. particularly on the social dimension of sustainability. This integral aspect of the 2030 Agenda pledges to leave no one behind. On the basis of a strong foundation of the welfare state in Germany, one key aim of the GSDS is to further Six areas of transformation strengthen the social dimension of sustainability in all areas of transformation and to shape processes of adjustment in a The “Human well-being and capabilities; social justice” area socially equitable way. One way to reduce inequalities is to of transformation concentrates on the social dimension of implement measures to improve education opportunities, sustainability. The priority is to focus on the well-being of ensure fair working conditions and reduce discrimination. all people. Health, education, equality and social justice play Social justice requires that education opportunities and a key role. The aim is to provide people with key skills in the earnings potential are not dependent on social background. transition to greater sustainability. The approach followed Gender equality and the social participation of young people, is oriented to people’s differing everyday realities, needs older people and people with disabilities are vital aspects of and interests and takes these into account when planning the further development of the GSDS. Inclusion and univer- services. A host of measures strengthen individual, institu- sal participation are an important basis for social cohesion – tional and societal resources. Education plays a central role something that needs to be preserved more than ever. in enabling people to lead a self-determined, conscientious life and should not be dependent on social background. The current ecological and economic challenges confront us with the realisation that we can no longer put off the Health is a fundamental prerequisite both for individual necessary measures to strengthen and tie in this dimension freedom and for social participation. Human and animal of sustainability. The ecological dimension of sustainability health are closely linked to the state of ecosystems and the is crucial in that it makes a positive contribution both to the climate. Thus the One Health approach aims to ensure the social and to the economic dimension of sustainability. improved health of people, animals and ecosystems. It is also 9 Summary a matter of ensuring that health promotion aspects are given build a network of states and institutions. The National considerably greater attention in all policy fields, as envis- Circular Economy Strategy (NCES) provides the strategic aged in the World Health Organization’s (WHO) Health in All framework for enhanced coherence between the various Policies (HiAP) approach. This also serves to reduce negative measures and initiatives. It is thus intended to shape the impacts on health. transformation to a circular economy and to address the various target dimensions of circular economic manage- The energy transition and climate action pose central ment in a coherent way. Particular priorities are to ensure challenges to humanity, as human-induced climate change broad acceptance and participation by society and to pro- is already having marked effects. Germany has therefore vide employees with skills. speedily dismantled obstacles to the expansion of renewable energies and the necessary grid infrastructure, in order not The “Sustainable construction and sustainable mobility” only to ensure nature- and environmentally-friendly climate area of transformation covers the built environment, its action but also to ensure an affordable, secure supply of planning, construction and use, and its impact on the envi- energy and maintain prosperity. In order to keep the goal ronment and climate. The way in which towns and cities are of limiting global warming to 1.5°C within reach, there is a planned and built has an influence on people’s quality of life need for measures that are more binding, greater ambition as they live alongside each other, as well as on their health, and more joint endeavours at international level. Germany productivity and well-being. Building, housing, transport, has pledged to be greenhouse gas-neutral by 2045. Important green spaces and urban development, with all their different steps to that end include the Fit for 55 package, the expan- utilisation requirements, must be considered as an ensemble sion of renewable energies, the associated modernisation of if we are to make a necessary contribution towards achiev- the energy system and grid expansion. At global level, too, ing the SDGs. The Federation provides support to towns Germany is committed to establishing more ambitious in- and municipalities working for sustainable development ternational climate action goals. At the 29th Climate Change and creates legal and financial frameworks. Measures to cut Conference (COP29) in Baku it was possible to prevent the greenhouse gas emissions, promote climate-friendly con- milestones already reached from being flung into jeopardy. struction and develop circular construction methods have At national level, the precautionary Climate Adaptation been taken in order to reduce greenhouse gas emissions and Strategy presented in December 2024 contains for the first make existing building stock climate-resilient. The aim is for time measurable targets for adaptation to the effects of cli- the existing building stock to be greenhouse gas-neutral by mate change in the areas of responsibility of the Federation. 2045. Integrated mobility planning, systematic networking It is also necessary to support partner countries in decarbon- of transport operators and a close mesh between individual ising their economies and to promote international coop- and public mobility can make a key contribution to sustain- eration. In this connection, Federal Chancellor Olaf Scholz able mobility. Socially equitable, greenhouse gas-neutral and said at COP28: “In 2022, Germany already exceeded its goal environmentally sound mobility planning is a prerequisite of making available at least six billion euro of international for sustainable development in Germany and crucial for climate finance each year.” quality of life and prosperity. The transition to more circular economic management is a The aim of the sustainable transformation of the agricul- decisive lever for a life and economic activity within planetary tural and food systems is to ensure future-proof, crisis-re- boundaries and for the achievement of the goals of the Paris silient agriculture, food production and forestry that guar- Agreement as well as the 17 Sustainable Development Goals antee adequate, sustainable and healthy food for all people (SDGs) of the 2030 Agenda. The circular economy is a holis- worldwide for the long term and at the same time protect tic approach that shapes the entire value creation cycle in a the environment, animals and the climate. The priorities are sustainable way, thereby helping to overcome ecological crises to protect biodiversity in keeping with the goals of the Kun- and reduce dependence on imported raw materials. Measures ming-Montreal Global Biodiversity Framework and the such as the introduction of the single-use plastics fund, in- National Strategy on Biological Diversity 2030, and to sup- creased waste reduction and encouraging consumers to make port organic farming. In this context, the economic possibil- sustainable choices work to that end. Germany is also active ities of farmers are to be taken into account. Regional value at international level, working, for instance, for an interna- creation chains are to be strengthened in order to ease the tional and legally binding instrument to end plastic pollution effects of global supply chains. Measures for sustainable food and for the circular economy to be integrated into the most systems also include the away-from-home catering sector, important international environmental forums (including the reduction of food waste and the promotion of gender the United Nations Framework Convention on Climate equality, the interests of young people, engagement and vol- Change – UNFCCC); Germany is driving work on this within untary work. the G7/G20 and is working with international partners to 10 Summary The “Pollutant-free environment” area of transformation other things, to put a nationwide gigabit infrastructure in is focusing on the pollution crisis as one of the three major place using modern cable-laying methods. Initiatives to planetary environmental crises of our age. The aim is to promote green information and communications technology better recognise the impact of harmful materials, to identify (ICT) and to regulate artificial intelligence (AI) systems are risk measures and to reduce pollution. Chemicals are omni- being taken at EU level. Civil society must be strengthened present and have both positive and negative effects on the when it comes to shaping the framework conditions for the environment and on human health. Many substances can digital transformation, gender equality and diversity in sci- have dangerous properties and can be harmful to the environ- ence. Long-term cooperation and close dialogue with inter- ment or to health if they are used or disposed of in excess or national stakeholders from partner countries are important improperly. Preserving the boundaries of our planet’s resil- with a view to understanding and responding to the positive ience requires precautionary action and the elaboration of and negative impacts of innovation at an early stage. integrative, just, cross-border solutions. International, Euro- pean and national chemical safety measures and the further Key priorities in the area of international sustainability development of the relevant regulations are needed. This policy are the commitment to implementing the 2030 Agen- includes, among other things, improved scientific fundamen- da at multilateral level and strengthening global and bilateral tals, programmatic approaches and regulatory measures. alliances and partnerships. Focuses here include combating Cooperation with private institutions, too, serves to enhance the climate and environmental crisis and its impacts, alleviat- chemical safety. ing humanitarian emergencies, strengthening global health and global food security and reducing poverty and inequality within and between countries, in addition to maintaining peace and security. With a view to combating the climate and Three policy areas with environmental crisis, Article 2 (1) (c) of the Paris Agreement ­considerable leverage and targets 14 and 18 of the Global Biodiversity Framework contain statements regarding a climate- and biodiversity-­ A sustainable and intergenerationally equitable financial friendly approach to financial flows. Germany’s development policy plays an important role as a lever. What is needed is a policy addresses the causes of crises and conflicts. With its financial policy geared to stability that acts in a sustainable, priorities, it makes an important contribution to a global efficient and transformational manner, ensures the sustain- structural policy that promotes a socially just and environ- ability of the Federation’s explicit and implicit liabilities with mental sustainability transformation. Negative spillover sound state finances and invests in a high-performance in- effects of internal policies must be identified and avoided. frastructure, high-speed internet, roads and rail networks, a Policy measures must be designed in such a way that positive reliable energy supply and an agile and digital state. Germany interrelationships are taken into account not only at national is to become a leading international location for sustainable level, but also across borders. Education to promote sustain- finance. The necessary framework conditions for mobilising able development and global learning is also being supported private investment are to be created and the financing envi- with a view to involving young people and increasing accept- ronment for young and innovative companies improved. ance for a comprehensive sustainability transformation. Objective- and impact-oriented budget management and dovetailing of SDGs with the federal budget are key priori- Germany is working to improve the dovetailing of the 2030 ties of sustainable fiscal policy. Germany is a reliable part- Agenda with other global processes. Support is provided, ner in international development and climate finance and for example, for the convening of and ongoing preparatory supports a needs-based reform of the international financial process for the 4th United Nations (UN) International Con- architecture. It is also striving in the EU and international ference on Financing for Development, which addresses key working groups to promote climate-related aspects and to issues such as the global debt architecture, international tax develop suitable financing instruments abroad. cooperation, private-sector mobilisation and the future of international development cooperation. Germany supports Research, innovation and the digital transformation are key the United Nations System-wide Strategy for Water and levers for achieving the SDGs. The potential of innovation Sanitation launched in July 2024, in addition to monitoring and progress is to have a greater focus on sustainability. of SDG 6, the UN Secretary-General’s Special Envoy on Water, Moreover, systemic and mission-oriented approaches are the UN Water Conference scheduled for 2026 and a partici- to be used in research and innovation policy, the agility of patory preparatory process. It will also lend its support to the innovation policy is to be increased and the promotion of appointment of a UN Special Envoy for Future Generations. innovation transfer improved. The digital transformation is Illegal financial flows, money laundering and terrorist financ- to be used as a transformation accelerator for greater sustain- ing must be combated and the capacity of global, regional ability. It is shaping our society to an increasing degree and and national partners to tackle illicit financial flows must be poses both opportunities and challenges. The aim is, among strengthened. 11 Summary Governance and monitoring Sustainability governance in Germany encompasses the structures within the German Government for governing, implementing, monitoring and evaluating its sustainability policy. This also includes continuously improving the assess- ment of the impact of laws and regulations on Sustainable Development Goals. Sustainability governance ensures the participation of the various stakeholders and ongoing dia- logue with the scientific community. The political targets and indicators for measuring the Sustainable Development Goals of the 2030 Agenda are a key component of govern- ance. They will be reviewed and adapted once again in line with current developments, taking the social dimension into particular account. At the same time, the GSDS acknowledges the need for a further review and adaptation of sustainability governance. Sustainable development is a task for society as a whole and requires the participation of all of society’s stakehold- ers. Social mobilisation and participation contribute to a robust civil society and a vibrant democracy. Within the fed- eral structures of the Federal Republic of Germany, the Länder (federal states) and the municipalities play an important role in planning and implementing sustainability activities. All levels of government bear joint responsibility for achieving the goals of the 2030 Agenda both in and with Germany. Furthermore, civil society engagement is important, as is the work of associations and the contribution made by science. Shaping just sustainable development together is an oppor- tunity for us to lay the groundwork for a better future and is the core objective of this GSDS. 12 Introduction Introduction In November 2022, the German Government took up the In order to ensure a systemic policy analysis and design – German Sustainable Development Strategy (GSDS), which i.e. a policy that takes into account the interrelationships, was last adopted in 2021, with a Policy Decision and is now dependencies and dynamics arising from the interconnect- comprehensively updating it under the lead responsibility ed nature of political institutions, social groups and natural of the Federal Chancellery in collaboration with all of the resources – the GSDS also describes governance with refer- ministries. ence to five levers that are crucial to accelerating the trans- formation in all areas (cf. chapter C.). The further development of the GSDS sets out the objective, guiding principle and global framework for Germany’s path This focus helps to strengthen the GSDS in its capacity as towards sustainable development (chapter A.I. and A.II.) an overarching guiding principle for policies promoting and provides an overview of the priorities of the GSDS – sustainable development and jointly shaping the transfor- Shaping the transformation fairly together (chapter A.III.). mation in an equitable manner. The areas of transformation highlighted by the Global Cross-border impacts of our national actions on the rest of Sustainable Development Report (GSDR) for achieving the the world, also known as spillover effects, are integrated in- 17 global Sustainable Development Goals (SDGs) set out in to the GSDS as a cross-cutting approach and are therefore the 2030 Agenda require particular action in the form of an addressed in a separate section in each chapter. integrated and holistic approach. The areas of transformation are therefore the focus of the efforts to further develop the Last but not least, information is provided on the next steps GSDS. The six areas of transformation (chapter B.) clearly (chapter D.) in addition to an overview of the content and highlight synergies and conflicts within the SDGs and focus governance of the GSDS (Sustainability Management System), on concrete needs for change. including a summary of the targets and indicators used to measure progress.1 1 The further development of the German Sustainable Development Strategy does not prejudice public budgets or the budgets of social security schemes. Any additional funding requirements stemming from the measures listed or from future measures arising from the same may, as a matter of principle, only be covered by the German Government if it has the requisite legislative and administrative authority. Moreover, these requirements must be covered by the cor- 13 responding departmental budgets within the applicable budgetary allocations and within the staffing plan when the respective federal budget is drawn up. Chapter A. Sustainability as an opportunity Chapter A. Sustainability as an opportunity The handprint is a relatively new metaphor in the global discourse on sustainability. It emerged at a time when the environmental footprint, i.e. the pressure of industrial and consumer society on ecosystems, was on everyone’s lips. The originator of the new term was Srija from India, who was a ten-year-old girl at the time. During an environmental education event for children that took place in Hyderabad, India, in 2005, Srija found the constant talk about footprints to be tremendously negative. She spoke up and voiced her objections to this. In the ensuing discussion, the participants con- cluded that we should not only focus on the negative, destructive footprint, but should also turn our attention to the creative and constructive handprint. […] This new metaphor aims to strengthen self-esteem. Yes, you are part of the problem. But you are also potentially part of the solution. The choice is yours. Save the planet! Ulrich Grober, journalist, publicist, author; district of Köpenick, Berlin, on 2 September 2023 Living in a time of change – it’s up to us As the international community faces intensified conflicts in the context of the fundamental challenges posed by cli- We are living in a world that is undergoing profound change. mate change and low economic growth, and as increasing While this change cannot be stopped, it must be shaped fairly inequality in the distribution of social opportunities and a together. Doing this is literally up to all of us. more pronounced polarisation of the democratic debate in Germany become apparent, social cohesion is playing an The aim is to set the political and social course for sustainable increasingly vital role in bringing about a successful trans- development, i.e. economically, environmentally and socially formation. viable development, for all generations and all genders in Germany and around the world. The challenges facing us in This transformation process depends on our ability to lev- this context are not only technical and economic in nature, erage the potential to influence developments in all areas but this is also a tremendous social, cultural and societal task. of society – from civil society to business and science. If we With the 2030 Agenda, the international community set manage to do this, then the transformation will also have itself common goals for the transformation to sustainability. integrative power. Entitled “Shaping the transformation fairly together”, this To achieve this, everyone must pull in the same direction updated version of the German Sustainable Development with courage, strength and confidence. This applies to the Strategy (GSDS) takes into account all three dimensions of Federation, the Länder (federal states) and the municipali- sustainability: economic, social and environmental. In this ties, as well as to the European and international levels. context, the GSDS places a particular focus on the social di- Germany is well placed to manage this key transformation mension, i.e. issues relating to social justice, social inclusion task and to use it as an opportunity to enhance prosperity, and universal participation. progress and innovative capacity. 14 Chapter A. Sustainability as an opportunity I. Vision and guiding principle of the existence in the long term and to steer the world towards a German Sustainable Development more just, more climate-friendly and more inclusive coex- Strategy istence. A key part of this is the universal, whole-of-society approach and the promise to leave no one behind. The GSDS is the roadmap for a sustainable society in Ger- many. It was first presented at the United Nations (UN) World Quote from the dialogue: Summit on Sustainable Development in Johannesburg in “The UN Committee (on the Rights of the Child) has 2002 and has since been regularly updated every four years. affirmed that every child has the right to a clean, healthy Since its update in 2016, the GSDS has been aligned with the and sustainable environment. This applies to children common goals of the international community as set out and young people all over the world, and must there- in the 2030 Agenda for Sustainable Development in 2015. fore also be a guiding principle for a sustainable child The further development of the GSDS has been supported and youth policy in Germany.” across all legislative terms. UNICEF A revised version was adopted in 2021 and confirmed in November 2022 with a Policy Decision. Its objectives were updated in line with the content of the coalition agreement With this basic consensus of the international community, for the 20th legislative term, “Daring more progress: an alliance states have committed since 2015 to take concrete steps to for freedom, justice and sustainability”. This GSDS was updated resolve global and national challenges on the path towards as part of a comprehensive dialogue process with all sections sustainable development. The 17 global SDGs are therefore of society (cf. chapter C II.4.). This process strengthened the the benchmark against which all political decisions should effectiveness and binding nature of the GSDS. be measured – whether at the global, European, national or local level. These goals apply not only to governments around the world, but also to civil society, business and science.

1. Vision and goal Sustainable development offers the opportunity of a good 2. Guiding principle – our understanding future for all. Since 2016, the GSDS has been based on a of sustainability positive and comprehensive vision for a sustainable future in Germany and around the world with this in mind. In order to define the framework for action and the strategy’s objectives, this GSDS – building on the 1987 report by the Brundtland Commission – is based on a clear definition of Vision sustainability. A “sustainable” Germany must be a progressive, inno- A sustainable policy will meet the needs of present and future vative, open and liveable country. generations in equal measure – in Germany and in all regions of the world – and enable them to lead fulfilled and dignified It is characterised by a high quality of life and effective lives. environmental protection. It is integrated, inclusive and excludes no one. Moreover, it creates opportunities for the equal participation of everyone in all areas and at The Federal Constitutional Court – all levels and fulfils its international responsibility. ­intergenerational equity German Sustainable Development Strategy, In its landmark decision of 24 March 2021 on climate new edition 2016, p. 18 protection legislation in Germany, the Federal Consti- tutional Court emphasised the aspect of intergenera- tional equity. Referring to the national objective of In order to achieve this vision, the GSDS is consistently environmental protection as laid down in Article 20a aligned with the 17 global Sustainable Development Goals. of the Basic Law, the Court underscored the duty of the These goals, summarised in the 2030 Agenda, represent a state to ensure that burden-sharing between generations shared vision for a better world. They are based on universal is not solely to the detriment of future generations. human rights obligations and endeavour to secure the social, economic and environmental foundations for peaceful co- 15 Chapter A. Sustainability as an opportunity Sustainability increases resilience to crises, i.e. the ability of Figure 1: The guiding principle for sustainability systems and infrastructures to withstand pandemics, climate change and the many other challenges we face. A circular Guiding principle economy, for example, makes us less dependent on imports of raw materials while the expansion of renewable energies strengthens Germany’s energy sovereignty also in times of global conflict. Strengthened resilience can prevent new crises from arising or help to overcome them. Economic Definition of resilience Social affairs relations Resilience is the ability of a defined system to remain Measure “undamaged” and stable in response to external disrup- tion or to be able to resist (“crisis-proof”). The areas most Relative limits/ often discussed in the context of resilience are antici- optimisation requirement pation, shock management and recovery, in addition to the protection and preservation of human development Environment gains. Alongside the precautionary principle, democratic participation, and respect for environmental bounda- ries and human rights, resilience is thus often regarded as an important element of the guiding principle of sustainable development, and one that is currently Absolute limits: becoming more prominent. Conservation of the natural foundations for life in a global perspective Based on this understanding of sustainable development, the A life in dignity for all guiding principle for sustainability policy is to harmonise the three dimensions of sustainable development consistently in all areas. Successful sustainable development must be A number of planetary boundaries have currently been exceeded. • economically efficient, Climate and environmental justice play an important role in • socially balanced and ensuring a life in dignity. They ensure that the burdens and opportunities of climate and environmental protection are • environmentally sound fairly distributed and that particularly affected vulnerable groups are supported. • for present and future generations The impacts of our national policies on the rest of the world, • in Germany and around the world. which are also known as spillover effects, are also being inte- grated more closely into the GSDS as a cross-cutting approach. The ultimate external constraints in this regard are Our trade, consumption and production patterns, as well as our financial markets, can have negative or positive im- • planetary boundaries and pacts on partner countries. One example is the destruction of nature caused by our demand for palm oil. It is therefore • a life in dignity for all (i.e. without poverty and hunger, important to design measures from the outset in such a way with equal opportunities for the full development of that they do not hinder but strengthen the implementation one’s own potential). of the global Sustainable Development Goals in other coun- tries, especially those in the Global South. 16 Chapter A. Sustainability as an opportunity

3. Objectives, indicators and governance Sustainable development can only be achieved if all people structure are able to participate equally in social, political and economic life. However, despite progress in recent decades, people The implementation of the Sustainable Development Goals around the world still remain in poverty or are systematically of the 2030 Agenda can be measured thanks to a system of discriminated against – be it because of their gender, age, targets and indicators that is used to monitor the achievement religious affiliation or other characteristics. Marginalised of – for the most part quantified – targets with indicators. groups suffer disproportionately from the impacts of current This increases their binding nature as well as transparency conflicts and crises due to structural discrimination. They and thus supports political governance and corrective must be key players in shaping and participating in the im- ­action (cf. chapter C.I. and, for a current evaluation of the plementation of the 2030 Agenda. The Federal Foreign Office achievement of objectives, dns-indikatoren.de/en/). and the Federal Ministry for Economic Cooperation and Development have therefore developed their own guidelines The guiding principle of reconciling the three dimensions and strategies for a feminist foreign and development policy. of sustainability – economic, social and environmental sus- Moreover, Germany is hosting the third Global Disability tainability – requires an integrated and systemic approach Summit in Berlin in 2025 together with Jordan and the In- that connects policy areas and considers them as a whole. ternational Disability Alliance. As a unifying consensus, the This must also be taken into account in the GSDS governance 2030 Agenda has contributed to the successful conclusion of structure. Particular emphasis is therefore placed on inter- many multilateral agreements – such as the Kunming-Mon- ministerial cooperation. During the 20th legislative term, the treal Global Biodiversity Framework in 2022 and the High German Government strengthened this by setting up seven Seas Treaty in 2023. interministerial project teams, known as transformation teams (cf. chapter B and chapter C.I.1.). Further groundbreaking agreements are to be concluded in the next few years. The aim is to strengthen the protection of nature and biodiversity, for example in land use, the use of pesticides and environmental impact assessments for marine II. Global framework use. Our economic systems and societies are embedded in the biosphere and depend on its conservation. We are undergoing a period of multiple and mutually rein- forcing crises that pose considerable challenges for Germany and the international community. These challenges do not 1. SDG Summit 2023: review and impact stop at borders. The global nature of these crises makes the need for the Sustainable Development Goals (SDGs) of the At the SDG Summit in September 2023, at the mid-term of 2030 Agenda even clearer. the 2030 Agenda, which was attended by more than 100 high-ranking government representatives, the international Addressing these challenges requires a systemic, holistic community took stock in a Political Declaration. It found that approach, as set out in the 2030 Agenda. The SDGs provide the implementation status of the SDGs is critical and that concrete starting points for responding and at the same 85% of the measurable sub-targets are not “on track”, i.e. their time pursuing long-term development goals. achievement is too slow, stagnating or even regressing. The simultaneity of these crises makes addressing them at the Multiple challenges, such as climate change, biodiversity loss political and societal level more difficult and helps to boost and the COVID-19 pandemic, are making it more difficult to simplistic views that peddle a narrative that sustainability achieve the SDGs, also with a view to Europe. A large number is about loss and frugality. In these times, more than ever, of armed conflicts are undermining the implementation of the 2030 Agenda offers a positive vision for Germany and the SDGs around the world. In particular, this includes Rus- the entire international community. It shows us the way to sia’s illegal war of aggression against Ukraine and the resulting a better future with cities that are worth living in, clean air exacerbated energy and food crisis. and rivers, affordable energy and mobility, good jobs and fair wages and less inequality. Preamble to the 2030 Agenda: The 2030 Agenda presents an opportunity to develop solu- “There can be no sustainable development without tions to these common challenges of the international peace, and no peace without sustainable development.” community in order to facilitate sustainable development and therefore a dignified life for all people – including future generations – on the planet. 17 Chapter A. Sustainability as an opportunity The progress made despite numerous challenges shows that The 2030 Agenda is and remains a milestone of multilater- change is possible, however. In the Political Declaration from alism. It strengthens multilateralism as it offers a common the 2023 SDG Summit, the international community com- vision for the future of our world. The 2015 consensus on mitted to accelerate the implementation of the SDGs by 2030. the 2030 Agenda is a central foundation of multilateral co- Forty-one countries – including Germany – have already operation and a starting point for solving global problems, followed the UN Secretary-General’s call to present national especially in today’s international political landscape. commitments for transformative action for a “rescue plan for people and planet”. This shows that the international Germany is committed to strengthening the multilateral community is continuing to stand by the 2030 Agenda and system in international organisations and forums in a tar- thus its promise for a common and better future. It also un- geted manner. This is all the more important given the fact derscores the key importance of sustainable development that the previously accepted understanding of the interna- financing for this purpose. tional order based on international law, the UN Charter and universal human rights is being called into question by a The Addis Ababa Action Agenda, the framework for sustain- number of countries. able financing adopted by the UN at the same time as the 2030 Agenda, underlines the importance of sustainable de- At the same time, a number of countries of the Global South2 velopment financing as a lever for implementing the 2030 are criticising multilateral decision-making structures and Agenda. Its goals are therefore an important multilateral international climate and development financing, which benchmark for achieving the SDGs. The forthcoming fourth they consider to be insufficient. They are particularly hard international conference on financing for development is hit by the impacts of various crises, which is why the full therefore of great importance. implementation of the 2030 Agenda is particularly important for these countries.

2. Strengthening multilateral Germany is therefore focusing all the more on alliances and ­cooperation, global partnerships and partnerships based on trust, global dialogue and cooperation ­international ­credibility founded on respect and the balancing of interests. Germany needs stable partnerships in order to be economically suc- Solving global challenges requires not only strong national cessful. Together with the European Union, Germany ad- commitment, but also multilateral cooperation in particular. vocates human rights, democracy, sustainability and social standards, as well as gender justice and equality. It also actively The UN Summit of the Future held in September 2024 laid participates in international negotiation and dialogue pro- the groundwork for ambitious reforms in the coming years cesses together with the other EU member states. Examples with the UN Pact for the Future. The pact provides important of this include the aforementioned UN Summit of the Future impetus for improving the structural conditions for accel- and the Hamburg Sustainability Conference. After all, credi- erating the implementation of the SDGs and strengthening bility is fostered by coherent action, assuming international the UN’s ability to act as well as the multilateral order. In 56 responsibility and continuously working towards fulfilling actions, the UN member states commit to greater cooperation objectives, e.g. with respect to development, climate and in almost all areas of multilateralism. Together with Namibia, biodiversity financing. Germany played a decisive role in negotiating the Pact for the Future. Chancellor Olaf Scholz, United Nations Summit of the Future 2024, New York: “A very important decision has been reached in the United Nations today. Multilateralism, the cooperation of the world’s nations on important issues for the future, has once again proved itself to be the real way to live together well.” 2 To date, German development policy has assigned those countries to what is known as the “Global South”. They are part of the list of developing countries and territories of the OECD’s Development Assistance Committee (DAC) and may therefore receive public funds for official development assistance (ODA). Furthermore, the term “Global South” may also include other countries, depending on the context. 18 Chapter A. Sustainability as an opportunity III. Focuses of the 2025 GSDS – periods of drought and a heightened risk of heavy rainfall ­Shaping transformation fairly together and flooding. With regard to the purely economic impacts of climate change, the evidence for structural losses in value added on a global scale in the double-digit percentage range

1. For a greenhouse gas-neutral, of gross domestic product (GDP) is growing. ­environmentally compatible Germany with an intact and diverse natural environment The Climate Adaptation Act (KAnG), which entered into force in July 2024, now obliges the Federation, Länder and a) Greenhouse gas neutrality by 2045 and adaptation municipalities to address the impacts of climate change to climate change across the board and to identify adaptation measures. The According to the World Economic Forum’s Global Risks precautionary Climate Adaptation Strategy adopted in Report 2024, climate change and its impacts pose the greatest December 2024 presented for the first time a strategy with threat to prosperity and well-being as well as to social stability measurable targets for adaptation to the impacts of climate over the next ten years. change in its area of responsibility. A key part of the fight against climate change is the reduction b) Conservation of natural habitats and biodiversity of greenhouse gases on the path to greenhouse gas neutral- In addition to climate change, the progressive loss of biodiver- ity by 2045. Significant changes to our energy system – with sity is the most serious and most far-reaching environmental respect to generation/production, storage, distribution and change worldwide. consumption – are required to this end. Electricity generation from renewable energy sources must be further developed and integrated efficiently. The supply of renewable energies Biodiversity also requires an expansion of the corresponding infrastruc- ture. A sustainable energy mix continues to comprise the use The biodiversity crisis affects a number of SDGs – in of green hydrogen.3 However, the building, transport, indus- particular SDGs 14 (life below water) and 15 (life on trial and agricultural sectors also offer significant potential land) – as well as various areas of transformation and for reducing greenhouse gas emissions. levers. References to biodiversity can therefore be found throughout the 2025 GSDS. In addition to reducing greenhouse gas emissions, it is essen- tial to keep natural CO2 sinks in working order and, where Biodiversity encompasses the diversity of animal and necessary, to restore them. Our forests, soils and moors, river plant species, including intra-species diversity, as well meadows and wetlands – as natural resources that convert as the diversity of forms of community and biotopes. It and store CO2 – are vitally important here. Without the nat- is not only an invaluable asset in itself, but a necessary ural sink functions of intact ecosystems and their conserva- condition for human existence. About 75% of global tion and strengthening, we cannot achieve our greenhouse food crops rely on animal pollination, for example. gas reduction targets – neither at the national level, nor in Without clean air, filtered water and healthy soils, we Europe, nor internationally. Recent studies by the German could not survive. Economic activities would be impos- National Forest Inventory have shown that German forests sible without building materials and many other natural in particular were no longer able to fulfil their important sink raw materials, and without rest and recreation in nature function in the years 2018 to 2022, but have instead become and natural medicinal products, healthy life and well-­ a source of carbon emissions. The consistent strengthening being would be inconceivable. Moreover, intact nature and regeneration of natural sinks is therefore of great impor- in all its diversity in marine, coastal, freshwater, forest tance for climate action. and agricultural ecosystems provides natural climate protection and can protect us from natural events such As emphasised by the Intergovernmental Panel on Climate as droughts, floods and landslides. Change (IPCC) in its Sixth Assessment Report, technical solutions for removing CO2 from the atmosphere can also With the loss of biodiversity, natural ecosystem services contribute to the necessary continuous counterbalancing are irretrievably lost. Preserving, restoring and sustain- of residual emissions and, in addition, to the reduction of ably managing nature and its diversity is therefore not “overshoot” (e.g. direct air carbon capture and storage – only an end in itself, but a form of life insurance for us DACCS) as negative emissions technologies. and our duty towards future generations. The German Government is strongly advocating this at international, In the future, all regions of Germany will be affected by a European and national level. It is therefore committed further rise in temperatures, an increase in heatwaves and 3 In order to facilitate the necessary rapid ramp-up of hydrogen production, the Import Strategy also includes low-carbon hydrogen and its derivatives in the effort to meet demand. 19 Chapter A. Sustainability as an opportunity to taking biodiversity protection sufficiently into ac- sides of the same coin, to find joint solutions, and to ensure count in the respective areas of transformation as an that the measures taken to combat them do not contradict original component of sustainability. each other. Nature-based climate action measures can develop synergies to a particular extent here. With the Kunming-Montreal Global Biodiversity Frame- work, new global targets for biodiversity protection have The National Biodiversity Strategy (NBS) has been the key been in place since December 2022, which the German nature conservation strategy and instrument for implement- Government is implementing at the national level with ing international and European agreements since 2007. With the National Strategy on Biological Diversity 2030 (NBS the updated version of the NBS for the period up to 2030 (NBS 2030). At the same time, the NBS 2030 is contributing 2030), which was adopted by the cabinet on 18 December to the implementation of the EU Biodiversity Strategy 2024, all key issues relating to biodiversity protection will be for 2030. NBS 2030 is the German Government’s key pooled under one strategic roof and the polluters respon- nature protection strategy, pooling objectives and sible for the ongoing loss of biodiversity will be addressed. measures at federal level and thus forming the strate- In addition to new objectives, the focus of NBS 2030 is on gic framework for the German Government’s nature improved implementation. conservation policy. Our water resources are also coming under increasing pres- The biodiversity and climate crises are closely related, sure as a result of climate change. In Germany, water man- mutually reinforcing and must also be tackled together. agement faces major challenges with respect to modernising The Federal Action Plan on Nature-Based Solutions and adapting its infrastructures and as far as watercourse for Climate and Biodiversity, adopted by the German protection is concerned. Water is the basis of all forms of life. Government in March 2023, aims to improve the con- The National Water Strategy systematically ensures a more tribution of ecosystems to climate protection while conscious approach to this irreplaceable resource for nature protecting biodiversity. The German Government will and humanity, so that water remains safe and affordable invest more than 3.5 billion euro in protecting and re- everywhere in the future. storing nature by 2028. c) Tackling the pollution crisis The German Government also supports partner coun- The impacts on humans and the environment of the global tries in the development and implementation of pollution crisis caused by pollutants and waste is putting their national biodiversity strategies and action plans our natural heritage at risk. The present update of the GSDS (NBSAPs), for example via the NBSAP Accelerator Part- therefore devotes a separate chapter to a “Pollutant-free nership. In total, the German Government provided environment” (cf. chapter B.VI.). Patterns of trade, production 1.36 billion euro for the conservation of species and and consumption also contribute to environmental pollu- ecosystems in developing and emerging countries in tion, which is known as the third planetary crisis (alongside

2023. Germany is therefore a reliable partner in the climate change and biodiversity loss). area of international biodiversity financing. The EU Regulation on Nature Restoration, a milestone for Sustainable, circular economic management, innovation nature conservation in Europe, entered into force in and sustainable consumption, as well as sufficiency, are key August 2024. In order to achieve the objectives of the to combating the pollution crisis and the other environmen- regulation in Germany, the German Government will tal crises. Measures facilitating sufficiency greatly reduce now draw up a national recovery plan based on the energy and resource requirements. At the same time, they contributions of the Länder and will develop further can improve the quality of life in the region (e.g. by redesign- measures for marine, coastal, freshwater, forest and ing public spaces and with repair and loan infrastructure agricultural ecosystems in order to restore our natural in neighbourhoods) and reduce economic dependencies on environment in Germany. raw materials and energy sources. d) Climate and environmental justice Climate change exacerbates the vulnerability of ecosystems The objective of environmental justice, which is actively and reduces their resilience to existing human influences. pursued by the German Government as well as by the Länder Intact ecosystems are needed more than ever – also as a and municipalities, is to create healthy environmental and buffer against the impacts of the climate crisis, for example living conditions for all across the various ministries and thus by absorbing floods and cooling temperatures during heat- to promote climate action, health protection and social justice waves. That is why it is so vital to think of both crises as two together. 20 Chapter A. Sustainability as an opportunity Climate and environmental justice takes into account the • People should be empowered to act sustainably in emergence of climate and environmental damage, as well as everyday life (“food consumption in nursing homes”). the extent to which individuals and countries are affected. On average, people with low incomes have been shown to • Meaningful participation on the ground (“in gymna- contribute less to environmental damage than wealthier siums”) is required in order to reach different walks individuals. The greenhouse gas emissions of households of life. rise on average with increasing incomes. Households whose incomes are among the highest ten percent cause about • Continuity of measures is essential in order to build two and a half times more harmful emissions in Germany confidence and deliver tangible results (“Living well than households whose incomes are among the lowest ten in Germany”, which was discontinued at the time). percent. Similarly, countries’ contribution to climate change depends on their level of industrialisation and economic strength. The impact of environmental pollution, on the other Germany has strong foundations for sustainable development hand, is more likely to affect people with lower incomes, who with its social security system. These foundations must be have poorer access to health-promoting environmental re- preserved and further developed. The citizen’s benefit was sources and measures to adapt to climate change. The extent introduced in 2023 with this in mind (cf. chapter B.I.2.b), to which they are affected is due, for example, to the location thereby strengthening the social dimension of sustainable of apartments on noisy streets or in very densely developed development. residential areas, which heat up particularly strongly during heatwaves and have a lack of green spaces. This housing sit- At the same time, in times of multiple and interconnected uation reduces residents’ quality of life and can have a neg- crises, the social impacts of these crises must be taken even ative impact on their physical and mental health. Children, more into account. After all, losses of prosperity as a result pregnant women, people with disabilities and those with of crises impact lower-income households in particular. These pre-existing medical conditions, i.e. vulnerable groups in and other socially disadvantaged groups have reduced ability particular, which may include older people depending on the to adapt, which is a key prerequisite for coping with trans- situation, are in need of protection. Environmental pollution formation processes. The main priority is therefore to make also has a strong impact on the rights of children to play, free these adaptation processes socially just. This objective is time and recreation. achieved, for example, by introducing a social monitoring system for climate protection (cf. chapter B.II.). Also around the world, marginalised groups suffer dispropor- tionately from the impacts of current conflicts and crises, as Improved structural integration of the sustainability dimen- well as from the impacts of environmental degradation and sions is crucial. The social dimension of sustainability has climate change, as a consequence of structural discrimina- therefore been taken into consideration consistently in all tion. They must be involved in helping to implement the areas of transformation – and not only in “Human well-being 2030 Agenda as key stakeholders in line with the principle and capabilities; social justice” (cf. chapter B.I.). Strategies, of “leaving no one behind”. funding guidelines and measures of the German Government are to be consistently designed in a socially compatible man- ner that ensures intergenerational justice and gender equality.

2. Promoting a just Germany where no one is left behind The increasing need to reduce inequalities in the spirit of SDG 10 and to take the social dimension into consideration a) Strengthening the social dimension of sustainability in all areas in equal measure does not end at national borders. The social dimension is an integral part of the Sustainable Germany is also working at the international level to reduce Development Goals of the 2030 Agenda, which seeks to social inequalities both within the framework of German find solutions that leave no one behind. This international development cooperation and with international partners. postulate is also a benchmark both for and in Germany. For instance, Germany is supporting various initiatives taken by Brazil during its G20 Presidency to tackle extreme inequal- ity and to combat hunger. One focus, among other things, Stand concerning the social dimension at the Sustain- is on the fair design of progressive tax systems, the greater ability Forum – key priorities of the participants: involvement of highly wealthy individuals and global tax cooperation. • Sustainability should be made tangible (“clothes swap at the library”). 21 Chapter A. Sustainability as an opportunity b) Social justice Quote from the dialogue: An important principle of social justice is equal opportunities. “It is now becoming clear that acceptance of these It is important to compensate for unequal opportunities for change processes is becoming increasingly strained. starting out in life and to give people the necessary opportu- This is particularly the case where there have been no nities to fulfil their potential and offer them a good quality noticeable improvements in living and working con- of life. ditions, where existing injustices are deepened and uncertainties are intensified. In addition to equal fundamental rights, social justice there- fore addresses access to education, healthcare and the labour Against this backdrop, the promotion of social participa- market, as well as democratic participation and the distri- tion, social cohesion, gender equality and international bution of income and wealth. solidarity is more important than ever. In order to promote social justice, it is important to break Reliable and sustainable prospects are required, as well down the persistently strong correlation between education- as proactive, forward-looking and innovative policies al and earnings potential and social origin in Germany. For before value chains break down irretrievably. To this example, only half as many children from non-academic end, strengthening industrial value added is just as households as from academic households gain a university important as enhancing and expanding good services entrance qualification certificate. and organising unpaid care and housework in a gender-­ equitable manner.” In addition to the parents’ educational background, income and wealth distribution in Germany also create unequal German Trade Union Confederation opportunities. Both the provision of learning materials and support in the form of tutoring, participation in cultural programmes and sports clubs and their nutritional and free Social justice includes eliminating all forms of discrimination time circumstances have a bearing on their mental, social and inequality of opportunity, for example on the basis of and physical development and thus their participation in gender, health restrictions or affiliation with ethnic, religious education. Since wealth is primarily inherited, it cannot be or cultural minorities (cf. also the following section e) on assumed that this inequality will be reduced in the future. social inclusion and participation as well as chapter B.I. and chapter C.II.). A range of measures to strengthen formal and informal education at all stages of life and also in basic, further and This requires committing to and working towards the ob- continuing training has therefore been launched (cf. chap- jective of gender equality (SDG 5). Gender equality should ter B.I.). be integrated into all policy areas in the development and implementation of measures in order to tackle gender dis- Thanks to the Federal Training Assistance Act (BAföG), those crimination, (cf. chapter B.I. and chapter C.II.). in training, i.e. students and school pupils, can pursue (initial) training in accordance with their skills and interests, regard- The supreme federal authorities themselves serve as a model less of their social and economic background. Moreover, the in this regard. With “Plan FüPo 2025” (leadership positions Startchancen programme was adopted, which is aimed at 2025 plan), the Federal Ministry for Family Affairs, Senior schools with a high proportion of socially disadvantaged Citizens, Women and Youth launched an interministerial individuals (cf. chapter B.I.2.). The programme seeks to de- process that is intended to advance the equal participation couple educational success from social origins. of men and women in the public service of the Federation. With the laws seeking to increase the number of women in Income structure also has a bearing on social justice. The management positions (the Gender Equality (Management minimum wage was increased to 12.82 euro (from 1 January Positions) Act and the Second Act of the same name – FüPoG 2025) following a proposal by the Minimum Wage Commis- and FüPoG II), the Federation also makes provisions for sion. Raising the minimum wage also has a positive impact increasing the proportion of women in management levels on the size of the low-wage sector as a whole. In April 2023, and in private-sector bodies as well as companies in which there were 1.1 million fewer low-wage jobs than one year the Federation holds a direct majority stake. Women continue previously. Improving collective agreements is also an impor- to be underrepresented in supervisory and executive boards. tant lever with a view to strengthening fair and good wages A paradigm shift is required in companies, and women must (cf. section f on social partnerships and chapter B.I.). be promoted and encouraged in a targeted manner. 22 Chapter A. Sustainability as an opportunity Germany approved the EU Directive improving the gender In addition to the Job-Turbo initiative and integration cours- balance among directors of listed companies and related es, counselling services for migrants and diverse projects in measures in 2022. The aim of the Directive is to substantially various social areas (e.g. the Integration through Sport pro- increase the proportion of women in the management levels gramme together with the German Olympic Sports Confed- of listed companies in the EU. The objective is to achieve the eration, cf. also chapter C.II.) strengthen the sense of belong- target of 40% women in supervisory boards or a total of 33% ing and participation of the people coming to our country. in supervisory and executive boards. Comprehensive measures to reduce irregular migration are The expansion of all-day schooling and daycare for children, in place on the basis of the Global Compact on Refugees and with a view to introducing the legal right to all-day care the Global Compact for Migration. Moreover, the aim is to from the school year 2026/27, as well as further improving increase the number of repatriations of persons who do not the compatibility of family, nursing and employment, is also have protection status in Germany. This includes drawing up intended to improve equal opportunities. migration partnerships in compliance with human rights standards that aim to achieve long-term, comprehensive The worldwide enforcement of the rights of women and girls cooperation with the countries of origin. This encompasses is a major lever for sustainable development (cf. chapter C.V.). cooperation in the field of repatriation as well as the promo- tion of the migration of skilled workers. People with disabilities must also have the same opportunities to participate equally in social life and to be able to help shape Comprehensive measures such as the Civic Coding initiative the social transformation. The sentence “No person shall be (cf. chapter B.I. and chapter C.II., as well as the transfor- disfavoured because of disability” was added to Article 3 of mation report of 23 August 2023) help to strengthen inter- the Basic Law 30 years ago. Moreover, Germany ratified the generational equity and to give people of all ages the same UN Convention on the Rights of Persons with Disabilities opportunities to fulfil their socioeconomic needs and ensure 15 years ago. their involvement in participatory processes and social life. Integration assistance for people with disabilities has been gradually refocused since 2018 with the Federal Participation Example: Civic Coding – Innovation Network Act (BTHG). Under this reform, integration assistance is to ­Artificial Intelligence (AI) for the Common Good be systematically provided on a people-centred basis in order to enable people with disabilities to lead even more The Civic Coding – Innovation Network AI for the autonomous lives. The Accessibility Reinforcement Act (BFSG) Common Good initiative is spearheaded by the Federal also improves the equal and non-discriminatory participa- Ministry of Labour and Social Affairs, the Federal Min- tion of people with disabilities and restrictions and older istry for the Environment, Nature Conservation, Nuclear people. It is achieving this, for example, by requiring online Safety and Consumer Protection and the Federal Min- products to be designed in an accessible manner effective istry for Family Affairs, Senior Citizens, Women and and from June 2025. This ranges from computer hardware to Youth. Among other things, it works to strengthen the e-books and banking services. A great deal remains to be data and AI skills of civil society and promotes a social, done, however, such as the reform of the Act on Equal Op- participatory and sustainable technology. It strengthens portunities for Persons with Disabilities (BGG). Inclusion the digital skills of society so that all people can use AI and accessibility must be seen as cross-cutting issues that technology independently and safely. affect all areas of transformation and all of the SDGs. Everyone should have the same opportunities and obligations Measures must take individual conditions and circumstances in our society. Education and employment are therefore also into account in order to be targeted. important components of successful integration. Important components therefore include the active involve- In October 2023, for example, together with the Federal ment of target groups in the design and implementation of Employment Agency, the Job-Turbo initiative was launched measures, an active approach to individuals via what are in order to increase support for refugees receiving citizen’s known as “proactive measures”, participatory approaches in benefit in taking up employment swiftly and in the long term. research, and a communications strategy that increasingly Around 200,000 of the refugees addressed by this initiative addresses target groups in a cross-sectoral and networked have started work since then. manner. 23 Chapter A. Sustainability as an opportunity c) Equivalent living conditions Federal Chancellor Olaf Scholz, presentation of the Economically strong regions that are worth living in German Dream Award on 30 November 2023: throughout Germany are indispensable pillars not only for “Our common ‘we’ does not differentiate between a sustainable growth, but in particular also for secure jobs, person who has or does not have an immigration economic prosperity, social cohesion and a robust democ- background, and our personal appearance and our racy. That is why it is important to strengthen equivalent beliefs also do not matter. I firmly believe that this ‘we’ living conditions in all regions, as well as to safeguard these represents the vast majority of people in our country in the long term. Against this backdrop, the first report on who are committed to our liberal order and espouse the convergence of living standards was published in 2024. its values.” It uses a broad set of indicators and a survey of the popula- tion’s views on this issue to assess current living conditions and track the development of living conditions at town, city Even though we have a broad social consensus in Germany – and district level in Germany. In addition, the report on the across many social groups, generations and personal circum- convergence of living standards contains the results of the stances – efforts must be made time and again to maintain first overall impact analysis and evaluation of the Federal and foster this consensus. Funding System for Structural Development Regions, which comprises all of the Federation’s funding programmes for We must therefore firmly oppose positions that are exclusive, the regions. extremist and inhumane – in Germany and throughout the world. Promoting civic education and fostering education The central component of this support system is the joint for democratic citizenship, among other things, play a key task of the Federation and the Länder of improving regional role here. Social cohesion and trust in the state and democ- economic structures, which was overhauled in 2022. This racy can also be strengthened through other political ini- reform has, among other things, adjusted the objectives set, tiatives: measures to reduce social inequality; the provision placed a stronger focus on regional value chains, created of high-quality, regionally comparable public services; well-­ additional incentives for climate-friendly investments and functioning public institutions at federal, Land and municipal expanded funding opportunities. level with appropriate human and financial resources; reli- able political and financial support for civil society structures d) Social cohesion and a robust and that are dedicated to promoting democracy and sustainability, strong ­democracy including in youth work. Social cohesion comes under pressure when social justice is not sufficiently guaranteed (cf. chapter A.II. and chapter C.II.). Social cohesion in a society, and thus the resilience of democ- Social cohesion is essential for jointly shaping the economic racies, depends not only on perceived social justice (especially and social task of development towards a sustainable com- with regard to the distribution of wealth and incomes), but munity. also on citizens’ sense of security. This includes economic fears as well as fears relating to internal and external security. Stakeholders that promote cohesion are not only entities at If the feeling of shared security decreases, this brings with state and municipal level. Social stakeholders, including in it not only a decline in trust in the military, police and the the spheres of science, sport, culture, community associations judiciary, but also a lowering of general trust in state institu- and volunteers, are also of great importance (cf. chapter C.II.). tions and the rule of law, which in turn results in less social They can serve as a bridge and act as a counterweight, for cohesion. example with regard to closed-off echo chambers on social media. They bring people together – also across borders – as The fact that populist parties are seeking to reframe the well as strengthen cohesion and mutual understanding. discourse on displacement and migration so that it is no longer viewed as a humanitarian or political challenge, but Cohesion in society is also about the fair treatment of mi- instead as a threat to internal security, has played a major norities; it is therefore necessary to support people’s active role in increasing fear and uncertainty. participation in our liberal democracy, as they help shape it and stand up for it as a whole above and beyond their per- In fact, Germany is one of the safest countries in the world; sonal interests. Social cohesion in Germany depends not least it protects citizens from violence, crime and terrorism, and on cultivating shared democratic values and engaging in it protects our constitutional order. On 14 June 2023, Germany knowledge-based, open and respectful democratic debate. adopted its first National Security Strategy, entitled “Robust. 24 Chapter A. Sustainability as an opportunity Resilient. Sustainable. Integrated Security for Germany”, people from all backgrounds, including young people and which serves as Germany’s overarching security policy docu- groups that are less likely to participate, more intensively and ment. Its aim is for the country to become more robust in all at an earlier stage in all areas of sustainability policy, with areas of life and to ensure that we can live in peace, freedom the help of citizen participation. Formats of youth partici- and security also in the future. pation must be implemented in a structured manner and in accordance with the quality standards for child and youth Capable diplomacy and defence policy, crisis prevention, participation. stabilisation, peace building, humanitarian assistance and development cooperation are each important for integrated At the same time, voluntary and civic engagement is needed security in different ways (cf. also chapter C.V.). The prime in order to address the current societal challenges. Particularly objective is crisis prevention. In addition to deterrence and in disadvantaged and rural regions, volunteer networks and defence by the Bundeswehr, effective and verifiable arms engagement structures are sometimes underdeveloped and, control, non-proliferation and disarmament also contribute what is particularly important, threatened by demographic to our security. change. e) Social inclusion and participation With a view to promoting volunteering, the German Founda- The promotion of social participation seeks to improve active tion for Civic Engagement and Volunteer Work was created participation by all people in Germany in social life and the in 2020 to serve as a central point of contact at federal level. democratic community. Increased social participation also It provides specific assistance for all questions relating to the leads to more social justice. A prerequisite for people making practical issues of volunteering, implements various funding meaningful use of improved life opportunities is the provi- and advisory programmes, and actively supports the network- sion of appropriate social security. Conversely, using one’s ing and professionalisation of volunteers. life opportunities, for example by securing qualified employ- ment, also strengthens the stability of social security systems. f) Social partnerships and opportunities for The above-mentioned reduction of all forms of discrimina- ­participation in the workplace tion and inequality of opportunity is another prerequisite for An important opportunity for people in Germany to par- social participation by those affected (cf. previous sections ticipate directly in the workplace is employee participation. b and c, as well as chapter B.I. and chapter C.II.). This core element in the system of worker representation has a long history in Germany and allows employees to actively Greater social participation promotes the development of address and initiate change. Employees initiate important individual potential in dignity and enables us to make the transformation processes in their companies and thus help best possible use of this potential. This strengthens all areas to shape and drive forward innovation. of social and economic life. Example: Transformation Guides Kick-off conference on the further development of the German Sustainable Development Strategy The Transformation Guides (Transformationslotsen) on 19 October 2023: project is based on a joint initiative of trade unions “What we also need here is, so to speak, implementation and employers. Thanks to support from the Vocation- at the level of society, by each and every one of us. We al Training School of the Lower Saxony Business Asso- need changes in behaviour – 80 million of them. And ciation and the Education Association for Work and for this change in behaviour to be worth it, I need a Life, employees are provided with the means to inde- motivation that I can understand. Why should I change pendently train themselves to become specialists in the my previous behaviour that I’ve grown accustomed to?” field of digital transformation and change management. After attaining this qualification, they can further devel- Gunda Röstel, Deputy Chair, Council for op processes in their respective companies and serve ­Sustainable Development as points of contact for colleagues in matters relating to digitalisation and transformation. Improved participation also strengthens citizens’ commit- ment to shaping the transformation. Citizens who play an Being able to help shape your working environment also active part in shaping a sustainable community thereby lay helps strengthen democratic society and promote coopera- the social groundwork for the transformation (cf. chapter tion across generations, bringing benefits beyond the specific B.I. and chapter C.II.). To this end, it is important to involve 25 Chapter A. Sustainability as an opportunity workplace. It has been shown that commitment and em- such as more durable products that could certainly ployee participation lead to greater acceptance of a diverse become a business model (“quality rather than workforce in companies. quantity”). Social partnership and participation are genuine success • An impact assessment of reporting obligations under factors for Germany as a business location. They have con- the Corporate Sustainability Reporting Directive tributed to significant social achievements and to a fairer (CSRD) should be carried out. Do the advantages distribution of wealth. A strong, functioning social partner- outweigh its disadvantages (administrative burden)? ship, harnessing and strengthening the possibilities for employee participation and more collective agreements, especially also in eastern Germany, are needed in order to successfully shape Germany’s future, as well as to success- a) Technology, talents and tolerance fully tackle future crises. Thanks to collective agreements, Solutions for sustainability require experimental spaces, in- working conditions can be guaranteed permanently, in a frastructures and technological innovations. Good framework future-proof way and through worker participation (cf. conditions and an even stronger focus on sustainability with chapter B.I.). The importance of collective agreements for the precautionary principle in mind are vital. sustainable development is reflected by the new relevant indicator in the strategy (indicator no. 8.5.c.). IT, data and transport infrastructure are important frame- work conditions and at the same time multipliers for sustain- Participation, cohesion and justice must be implemented able development. They help to make Germany attractive jointly as the social dimension of sustainability. Each and as a location for business. Their design has a direct impact every individual plays a role in shaping these developments. on the achievement of the SDGs. In terms of climate and Sustainable development can therefore only succeed if it is resource conservation, for example, digitalisation by means shaped with the involvement of citizens. of intelligent control of devices, facilities, processes and net- works means contributing to saving energy; at the same time, energy and resource consumption is continuing to rise as a

3. Promoting sustainable prosperity result of this. It is important to identify these interrelation- in ­Germany through innovative and ships, to exploit potential and to keep on reducing adverse ­sustainable economic activities impacts, including through research and innovation. Sustainable development also means creating sustainable An excellent research landscape, broad-based funding for growth and thus prosperity in the future. Ensuring that innovation and start-ups and innovative spirit are important Germany is a strong centre of industry, with well-qualified springboards for forward-looking technological develop- and well-paid workers, is an important prerequisite to this ments that facilitate greater sustainability (cf. chapter C.IV.). end. The potential of research and innovation policy across sci- entific fields must be exploited to an even greater extent in order to promote sustainability. The goal that the state and Stand concerning the social market economy at the the economy combined spend 3.5% of GDP on research and Sustainability Forum – key priorities: development remains crucial for the expansion of future-­ oriented investments. Universities and non-university re- • Prosperity indicators outside GDP should be commu- search institutions play an important transfer function in nicated to the public to a greater degree. these processes between research and business. • Guidelines are needed for the approach to environ- Key technologies are vital to value added and employment mental services in cost-benefit analyses. opportunities in Germany. They must be continually devel- oped and new technologies added to the mix. Good frame- • A greater emphasis on taxes is required as an instru- work conditions are required to this end. Targeted techno- ment of control for avoiding environmental costs logical advances in the decarbonisation of industry, such as (and redistribution of revenue). the development of and investment in innovative climate protection technologies, are therefore required (chapter • There must be a greater emphasis on sufficiency B.II.2.b). Furthermore, the research and development activi- measures that are not a question of “frugality”, as is ties of companies are supported via the further improvement often claimed. There are also sufficiency measures of the tax research allowance implemented by the Growth Opportunities Act and by testing innovative technologies 26 Chapter A. Sustainability as an opportunity and business models. In this way, the expertise and applica- Spillover effect: brain drain tion of important key technologies can be retained in Ger- many and new technologies acquired. Germany is thus being In other countries, the emigration of skilled workers strengthened as an attractive location with good jobs. All of can also have development-related impacts such as a these efforts increase the technological sovereignty of Ger- loss of human capital, staffing shortages and a deteri- many and the European Union. oration in the quality of care. In order to avoid what is known as brain drain, the Skilled Labour Strategy takes It is also crucial for Germany’s innovative capacity and per- into account international principles and guidelines for formance to safeguard and expand its excellent pool of the ethically responsible recruitment of skilled workers. skilled labour (cf. chapter B.I.2.a). Options for basic and fur- One example of this is the Triple Win programme, which ther training have been improved considerably with the promotes a holistic approach that benefits both host implementation of the Skilled Labour Strategy. With basic countries and countries of origin as well as the migrants and further training, we are qualifying skilled workers for themselves. In the interests of a sustainable and fair pro- the currently changing requirements and preparing them cess, we cooperate with countries that have a surplus of for future qualification requirements. Particular attention trained care workers. Since 2013, some 5400 nursing is paid to digital and data skills within the framework of the staff and 430 trainees have travelled to Germany and a digital transformation. further 2600 people are attending language courses in the partner countries. The National Skills Strategy pools vocational and work-related training measures to maintain and expand employability and In addition, the Federal Ministry for Economic Cooper- to safeguard individual development and career prospects. ation and Development advises partner governments Lifelong learning and further training are becoming ever on shaping a development-oriented migration policy more important as a changing world increasingly requires in line with the needs of the respective country (e.g. adaptation and new skills. With Lebenschancen-BAföG (Life professions experiencing shortages, the profile of the Chances BAföG), a new funding instrument is being assessed unemployed population, growth sectors, the use of that supports self-determined continuing education. The remittances, protection against precarious working Continuing Education Act introduces a training guarantee conditions, fair and ethical recruitment, the protection and the funding instruments of labour market policy for of people in vulnerable situations) and how they can the further training of employees are being strengthened create incentives to avoid brain drain and to harness considerably once again. Beyond career development, life- the economic benefits of regular migration for their long learning up until old age is being promoted in the economic development. European Social Fund Plus (ESF Plus) programme Lifelong Learning and Volunteering (Bildung und Engagement ein Leben lang, BELL). b) Further expanding sustainable and Scientific (continuing) training is particularly important as ­circular ­economic management it enables graduates to deal with an uncertain future and to Corporate statutory due diligence contributes to the social come up with innovations as well as to engage in critical and environmental dimension of sustainability. Statutory reflection on the basis of scientific principles. human rights and environmental due diligence in accord- ance with the Supply Chain Due Diligence Act (LkSG) and the Increasing participation in the labour force and improving Corporate Sustainability Due Diligence Directive (CSDDD) the quality of work are further areas of action of the Skilled are mandatory for the registered companies along their Labour Strategy. It is important to make better use of domes- supply chains in all regions of the world. This approach is a tic potential in the light of labour market needs. direct contribution to achieving the SDGs around the world (cf. chapter B.I.). Moreover, further immigration of foreign skilled workers is required. Only as a cosmopolitan society will we be able to The key challenge is to design the implementation of due safeguard our prosperity and quality of life. The Act and the diligence obligations in practice to be as unbureaucratic Regulation on the Further Development of Skilled Immigra- as possible and to promote this in such a way that entre- tion expanded the legal scope for skilled workers from abroad preneurial philosophy continues to give rise to responsible to take up employment once again considerably. The aim now business conduct (RBC). This also applies to sustainability is to continue to cut red tape, digitalise and accelerate still reporting within the framework of the EU’s new Corporate further the procedures that this involves. A genuine culture Sustainability Reporting Directive (CSRD). of welcome and recognition at all levels as well as anti-dis- crimination work is also required with a view to the immi- gration of skilled workers from abroad. 27 Chapter A. Sustainability as an opportunity The German Sustainability Code, an initiative of the Sustain- in conserving resources and protecting the landscape and able Development Council, helps companies to get started mitigates the current pollution crises. It is thus vital to the with sustainability reporting. The objective is to significantly conservation of biodiversity and to the path to greenhouse reduce the time and effort required, especially for small and gas neutrality. Implementing a circular economy is therefore medium-sized enterprises. It is necessary to pursue funda- one of the most important challenges and at the same time mental processes to reduce bureaucratic burdens without poses an opportunity for sustainable development, which is jeopardising the objectives of the regulation. why it has been identified as one of the six important areas of transformation in Germany (cf. chapter B.III.). With its large procurement volume, the public administration can make an important contribution to the social-ecological c) Alliance for Transformation transformation of the economy. By adhering to and calling In the Alliance for Transformation (cf. also chapter B.III.) for corporate due diligence obligations, it is intended to set as an overarching dialogue format, leaders from industry, a good example and to generate momentum for more sus- trade unions, associations, science and civil society will hold tainable supply chains on the part of companies. discussions on the key areas of transformation and joint measures to ensure that the transformation is successful. The economic dimension of sustainable development also benefits from this transition and from the implementation Focuses include, for example, shortages of skilled workers, of corporate due diligence. Sustainable corporate governance, the circular economy and the acceleration of planning and including the implementation of human rights and environ- approval procedures, as well as the expansion of renewable mental due diligence obligations, is not only intended to energies. respect human rights and preserve natural resources, but it can also increase the resilience of companies and thus con- The alliance is designed as a cross-sectoral dialogue under the tribute to their own future viability. The vulnerability of umbrella mission “Our prosperity in 2030: working together supply chains in our economically interconnected world, for sovereignty, value creation and resilience”, which takes which is also exposed to geopolitical changes and crises, has into account current developments and combines the results been clearly demonstrated in recent times. Social and envi- of other government and dialogue formats. The aim is to ronmental responsibility along the supply chain, which is jointly design the necessary transformation processes that focused on preventive risk management and comprises in- are intended to make Germany greenhouse gas-neutral, ad- ternal structures and processes to minimise risks and provide vance the digital transformation and enhance the country’s support, can help to reduce these vulnerabilities. Responsible resilience. entrepreneurial actions must be embedded in a structural policy geared towards achieving social balance to facilitate d) Transformation as an opportunity for prosperity the transformation to increased sustainability for companies, Sustainable development is an important aspect of the long-­ industries, regions and households affected by particularly term response to the current crises and adaptation needs that high adjustment costs (“just transition”). Germany faces. It offers an opportunity to address social, environmental and economic challenges in a way that is Circular economic management that conserves resources forward-looking and balanced, thus creating good conditions and keeps them in circulation helps to reduce dependen- for long-term sustainable prosperity. cies on international supply chains. The circular economy (cf. chapter B.III.) offers new potential for added value and The necessary change processes can be designed in an opti- employment and strengthens the economic dimension of mal manner through the collaboration of all stakeholders. sustainability. At the same time, it plays an important role 28 Chapter B. Areas of transformation Chapter B. Areas of transformation The six areas of transformation of the German Sustainable Transformation teams (TT) Development Strategy (GSDS), derived from the 2019 Global Sustainable Development Report, shed light on Germany’s In order to promote active, targeted control of the transfor- priorities in the area of sustainable development. The levers mation processes, transformation teams (TT) were set up for that have been identified (cf. chapter C.) provide further the areas of transformation and the “International respon- points of departure for tangible government action. sibility and cooperation” lever in the form of temporary in- terministerial project groups (cf. table 1 and chapter C.I.). The areas of transition clearly highlight synergies and con- flicts within the SDGs and focus on concrete needs for change. The project group work of the transformation teams is a As announced in the Policy Decision on the German Sustain- concrete implementation of the whole-of-government ap- able Development Strategy of November 2022, the areas of proach, which considers holistic and interministerial action transformation are the focus of work within the framework to be the key to successful transformation. In the 2023 Global of the GSDS during this legislative term. Sustainable Development Report (GSDR, p. 48), the TTs were highlighted as a good practical example for strengthening internal government capacity in the areas of transformation. Table 1: Overview of the transformation teams TT Topic Lead ministries Further members FFO, BMZ, BMFSFJ, BMJ, BMEL, TT1 Human well-being and capabilities, social justice BMBF, BMAS, BMG BMUV BMDV, BMEL, BMBF, BMAS, TT2 Energy transition and climate action BMWK, BMUV, BMZ, FFO ­BMWSB, FFO BMZ, BMBF, BMEL, BMI, BMJ, TT3 Circular economy BMUV, BMWK ­BMDV, BMWSB TT4 Sustainable construction and sustainable mobility BMWSB, BMWK, BMUV BMDV, BMBF, BMEL, BMZ, BKM TT5 Sustainable agricultural and food systems BMEL, BMUV BMBF, BMZ, AA, BMG, BMWK TT6 Pollutant-free environment BMUV, BMEL BMBF, BMZ, BMWK TT7 International responsibility and cooperation BMZ, BMUV, FFO BMWSB, BMEL 29 Chapter B. Areas of transformation Involving different social actors and what is known as the I. Human well-being and capabilities, dialogue group (cf. chapter C.), the work of the transforma- social justice tion teams has given rise to seven transformation reports. These reports were adopted by the Cabinet and have been The area of transformation “Human well-being and capabili- incorporated into the following chapters of the GSDS as part ties, social justice” deals, in particular, with the social dimen- of the further development process. sion of sustainability. Transformation team 1 (TT1) prepared a transformation report to this end, which was adopted by The following chapters on the areas of transformation address the Federal Cabinet on 10 August 2023 (Bundestag printed both the current challenges and the measures taken. Figure 3 paper no. 20/8050). below (p. 31) identifies some of the key measures. The figure also shows the indicators falling within the respective area of Sustainable development focuses on the well-being of all transformation whose targets would be missed in the light people both today and in the future. With this in mind, the of previous developments (known as off-track indicators). The fundamental rights of each and every person and the fulfil- indicators of the GSDS aligned with the SDGs (cf. chapter ment of their basic needs must be ensured. Furthermore, they C.I.) are the basis for monitoring with a view to measuring must be protected from existential threats, their prosperity progress towards the goals of the 2030 Agenda. The regular must be promoted and they must be enabled to act sustain- (off-track) indicator reports form the basis for a targeted ably. This task needs to be addressed in a wide range of policy follow-up to achieve the sub-objectives that have been set. areas. An integrated and systemic perspective on sustaina- bility is therefore required. In this context, our actions are guided by the “leave no one behind” principle enshrined in Figure 2: SDGs of particular relevance for TT 1 the 2030 Agenda – the principle of enabling active, self-de- termined participation in society for everyone. Human well-being is essentially linked to personal health, which supports a self-determined life and participation in education, economic and social life (SDG 3: healthy lives and well-being). An intact environment is essential for well-being and health in this regard. Sports activities make an important contribution to this. Health is therefore one of the keys to the sustainable development of society and the economy. Education is the basis for a self-determined and responsible life with a view to strengthening human capabilities (SDG 4: quality education). It is a major factor in the prosperity and participation of each and every individual and promotes social cohesion and progress. Education for sustainable devel- opment (ESD) in all areas of education (SDG 4.7) is the central driver for the implementation of the SDGs as a whole and for the development of a culture of sustainability. Universities have a key role to play in this process through the training of teachers as multipliers of ESD. In order to promote social justice, the German Government is pursuing the goal of limiting social inequality in the best possible way by creating an environment that promotes active participation in the transformation to sustainability. To this end, sociocultural aspects of sustainability are to 30 Chapter B. Areas of transformation be taken more strongly into account and social cohesion manner that is tailored to their needs, as well as empowering strengthened (SDG 10: reduce inequality). This requires, them to play an active role in shaping the transformation to among other things, addressing different social groups in a sustainability in the best possible way. Figure 3: Areas of transformation, off-track indicators (as of 2024) and measures4 Strengthening the assessment of environmental impacts in the revision of European legislation Updating the Supporting the on medicinal products for implementation of the human use National Biodiversity Global Framework on Strategy (NBS 2030) Chemicals (GFC) Removing pollutants by Expanding human closing materials cycles as biomonitoring Supporting the part of the NCES implementation activities in the Federal accessibility Promoting multilateral of the European K ey measures PARC project at EU level initiative cooperation and the right Green Deal to adequate food at National action plan international level Nitrate in IN FORM – initiative to Phosphorus groundwater Nitrogen promote healthy diets The Food and Nutrition Strategy in flowing input into and physical activity (6.1.b) of the German Government waters the Baltic (6.1.a) Sea (14.1.aa) Mortality German Government Protection of biodiversity avoidable through strategy to counter loneliness and expansion of organic prevention and agriculture tr ac k in dica tors Off- Organic farming treatment (3.1.a) Reform of the Federal Transforming livestock (2.1.b) Early school leavers (4.1.a) Centre for Health Education farming All-day care provision for Pollutant-free 0- to 5-year-olds (4.2.a/4.2.b) Agenda for Decent Targeted forest Obesity rate among environment Work Worldwide conversion to ensure Gender pay gap between adults (3.1.f) biodiverse forests Human women/men (5.1.aa) Action Programme Sustainable well-being and Proportion of fathers for Natural Climate Moorland soil protection receiving parental Protection and peat reduction agricultural capabilities, Biodiversity and allowance (5.1.d) and food social landscape quality Expenditure on R&D (9.1.a) Initiative for National Strategy for (15.1) systems justice Excellence in Food Waste Reduction Foreign school graduates Vocational Training Areas of (10.1.) transformation Climate-neutral and Final energy Revision of the resource-efficient road Rollout of Sustainable productivity (7.1.a) Renewable Energy transport, expanding broadband (9.1.b) Energy Sources Act construction charging station transition and Share of electricity infrastructure and sustainable climate action from renewable energy Revision of the Expansion of mobility sources in gross Energy Industry Act Promoting climate- settlement and electricity friendly and affordable transport area consumption (7.2.b) (11.1.a) Circular Offshore Wind housing construction economy Raw material input Energy Act Modernisation of the productivity (8.1) Energy Climate action building stock consumption in International climate agreements goods transport finance (13.1.b) Strengthening (11.2.a) Products CO2 emissions EU Emissions Trading mixed-use inner cities with official of commercially Scheme for buildings, and town centres sustainability EMAS Eco- available vehicles road transport and labels Management in the public additional sectors Climate-resistant, resilient (12.1.a) and Audit sector (12.3.b) cities and buildings Scheme Multi- and plurilateral (12.2.a) energy and climate Promoting multiple partnerships land use Strategic framework in the form of the Prevent Waste Alliance National Circular Facilitating Economy Strategy sustainable Seizing the opportunities consumer inherent in digitalisation Regulatory level playing decisions field for primary and Pushing circularity in the secondary raw materials Increasing construction sector public-sector leverage 4 The off-track objectives/indicators presented here are based on the set of indicators at the time of publication of the 2022 indicator re- port (with any numbers and names that differ from the new set of indicators for the 2025 GSDS, cf. table 2). The off-track assessment is based on data as of September 2024. 31 Chapter B. Areas of transformation Kick-off conference on the dialogue concerning the systematically observing and dealing with the interrelation- German Sustainable Development Strategy on ships between different policy areas and sectors at federal, 19 October 2023: Land (federal state) and municipal level, and strengthening “Social engagement is not an end in itself. This is about public participation. people not feeling powerless but about them having the opportunity to shape developments. School and a) Challenges education are a key part of this. We need to focus on Challenges in area of transformation 1 exist in particular enabling people to develop their own vision of how with regard to inequalities and multiple crisis situations. they want to live, but also of how we want to live as a Demographic change poses challenges in addition to this. society at the end of the day.” Inequality can prevent individuals from realising their poten- Sarah Ryglewski, Minister of State tial with dignity and thus stand in the way of sustainable development. Inequality has increased worldwide in recent years. In Germany, wealth is more unequally distributed than Social justice requires that educational and earnings poten- income. Gender-specific and regional imbalances also persist. tial are not dependent on social background, that equivalent Social mobility plays an important role in the assessment living conditions are established in Germany, that unequal of inequality. A society can be considered to be more equita- treatment due to discrimination is reduced and that fair ble in terms of performance and opportunity if a person’s working conditions and opportunities for equal participa- position is less dependent on pre-existing circumstances tion are ensured (cf. also chapter A.III.2. on social justice). and background (Sixth Report on Poverty and Wealth of Employee participation plays an important role in this con- the German Government, 2021, p. XVI). text. Collective agreements ensure working conditions on a permanent and co-determined basis, thus strengthening Social inequality also exists in healthcare, access to nature sustainable development. Collective agreements in Germany and education, for example in terms of lower average life are currently regressing, however. In order to better address expectancies of people with a lower socioeconomic status. the importance of progress in this area for sustainable devel- The reduction of social inequality in school careers remains opment, a new indicator “Employment covered by a collective a major challenge (Education Report Authoring Group 2024). agreement’ (no. 8.5.c) is being introduced as part of the GSDS Health-related opportunities and risks also continue to be (cf. also chapter C.I.2.a). unequally distributed across social lines. This applies, among other things, to health risks associated with environmental The improvement of working conditions and access to de- pollution (such as air pollution, noise and heat islands) and cent employment around the world promotes sustainable to opportunities for physical and mental health that result economic development (SDG 8: decent work). from access to environmental resources (e.g. urban green and natural recreational spaces). In particular, a holistic view of Companies also bear responsibility for sustainability and the social and economic conditions under which young social justice along supply and value chains. The implemen- people grow up is necessary in order to identify risk factors tation of human rights and environmental due diligence for young people’s mental health and to have a positive in- by companies has a direct impact on the achievement of a fluence in this regard by means of preventive approaches. number of SDGs. In addition, in times of multiple and interrelated crises, their The focus of this area of transformation is on SDGs 1, 3, 4, 5, social impacts must be taken into account. The increasing 8, 10, 11, 12, 13, 16 and 17. However, due to the numerous proportion of older people in the population must also be interrelationships and links between the SDGs, this area can- taken into account due to the far-reaching impact that this not and should not be considered in isolation from the other has on the financing of social security systems (Sixth Report SDGs. Dealing with conflicting objectives is and remains an on the Sustainability of Public Finances). Disproportionate ongoing task. burdens on individual population groups should be avoided. In all measures, it is important to assess whether crisis-related losses of prosperity place a greater burden on lower-income

1. Aims households. After all, these households, as well as other social- ly disadvantaged groups, have reduced adaptive capacities, The main goal in this area of transformation is to achieve which are the basis for coping with transformation processes. further progress with regard to the social dimension of sus- tainability as a cross-cutting issue of the GSDS. This is being As a socially disadvantaged group, people with disabilities achieved on the basis of a common vision by, among other are also disproportionately affected by climate change. For things, further strengthening interministerial cooperation, example, depending on their disability, they suffer in particu- 32 Chapter B. Areas of transformation lar from heat waves, water shortages and other health risks, objective is to improve the quality of medical care for patients as well as conditions that are exacerbated by climate change, while avoiding cuts to the services provided to citizens by such as allergic asthma due to heightened pollen levels. the system. In order to address the challenges in this area of transforma- The COVID-19 pandemic in particular showed that interdis- tion, it is important to take a holistic approach to the differ- ciplinary and interministerial approaches to policymaking ent walks of life of all people in our society. This approach are becoming increasingly important with a view to main- aims to enable everyone to participate equally in the life of taining high standards of healthcare and to strengthening the society. It strengthens people’s self-determination and per- quality of life and general well-being of people in Germany sonal responsibility by helping them to actively shape their into old age. In view of demographic change, health promo- living conditions. tion and prevention in particular should not only be taken into consideration and organised efficiently across all areas It is necessary to address different levels in order to imple- of the health system, but also to a greater extent in social, ment this successfully. economic, labour market, family, transport and environmen- tal and climate policy, as well as in urban development. The Health in All Policies approach (cf. chapter B.I.3.a) to inter- Quote from the dialogue process: ministerial cooperation in health policy is particularly effec- “In order to tackle the challenges of the transformation tive in this regard. Interprofessional research approaches are at the individual level, it is important [...] to motivate and required in order to provide a sound scientific basis for empower people. This involves, among other things, health promotion and prevention relating to sustainability. promoting lifelong motivation to learn, strengthening Care professionals can also play an important role in im- individual health literacy [...] and stepping up efforts to plementing sustainable processes, for example in relation impart key skills required for the future. Opportunities to climate-induced health problems. for participating in political decision-making processes and the provision of health education and education for Strengthening public health is of particular importance in sustainable development throughout the entire edu- view of existing and future health policy challenges in Ger- cational trajectory of all people, as well as the targeted many. Building on existing tasks and structures within the promotion of social innovation, will be a crucial part remit of the Federal Ministry of Health, a triad of health pro- of this.” motion, prevention and care has therefore been expanded, deepened and broadened in terms of content. The first step German Council of Nursing to this end was to initiate a process to further develop, mod- ernise and consolidate the content, methods and structures of the Federal Centre for Health Education and parts of the Cultural stakeholders play a particularly important role Robert Koch Institute in an efficient manner. With a view to in this context because they reflect social developments, combating non-communicable diseases such as cancer and develop narratives, open up new perspectives and are able diabetes, as well as cardiovascular and respiratory conditions to promote cohesion. even more effectively in the future, the Federal Cabinet adopted a bill to strengthen public health with the health b) Focus topics policy goal of establishing a new federal institute for Within the broad range of topics in the area of transfor- public health. mation, the following four key topics are emphasised in particular: Further examples include strengthening the public health service through the pact for the public health service and the A networked approach to health National Prevention Initiative (NPI) launched by the Federal Health is a prerequisite both for individual freedom and for Ministry of Health under the heading “Healthier in the future” social participation. Being healthy makes it easier to partici- (In Zukunft gesünder). The aim of the initiative is to increase pate in social life. The health of individuals and the popula- the efficiency and effectiveness of existing prevention activi- tion must be protected and promoted. At the same time, ties in Germany and to harness synergies by means of a dia- health risks must be reduced by creating healthy living and logue and networking process between experts from science, environmental conditions for all people. politics and the field. The German healthcare system guarantees all members of Another important aim is to take early preventive action in the public needs-based, comprehensive and easily accessible the field of health in order to minimise the adverse impacts medical care of a high standard. The German Government’s of climate change and harmful environmental influences 33 Chapter B. Areas of transformation on human health, as well as the loss of biodiversity, while at insights into the health impacts of pollutants on the popu- the same time placing a stronger focus on the positive im- lation and forms the basis for regulatory measures in a range pacts that an intact environment has on human health. of areas. Furthermore, this can help to reduce the economic burden of healthcare costs. A networked approach is required to this Furthermore, the National Strategy on Biological Diversity end. Intact nature, for example in forests, protected areas 2030 (NBS 2030) includes an area of action relating to health and cultivated landscapes, promotes human well-being and and biodiversity. In accordance with the strategy, the German capabilities – as a place for informal learning (sensitisation to Government will work at the national and international nature, ESD) and as a place for experiencing nature, exercise level to restore the environment and nature to a state that is and (nature) sports, which are considered to be key elements conducive to human health by 2030. The aim is to ensure fair for building resilience and maintaining physical and mental participation in the environment and nature and its health-­ health, especially in times of crisis or more challenging ex- promoting effects for this and future generations. ternal influences. Basic, further and continuing training The Federal Ministry of Health, together with partners from In order to exploit the social and economic innovative poten- leading organisations in the healthcare sector, the Länder tial of the transformation towards sustainability, appropriate (federal states) and the municipal umbrella organisations, has key skills, as well as access to education and further education initiated the climate pact for health (Klimapakt Gesundheit). pathways, are required. Programmes concerning sustaina- Important stakeholders in the healthcare sector are jointly bility in formal, non-formal and informal education in all tackling the challenges of climate change and agreeing to phases of life and in basic, further and continuing training pool existing initiatives and activities and actively address should be expanded and skills required for the future devel- the manifold challenges of climate adaptation and climate oped and promoted through education for sustainable devel- action. In order to reduce mortality and the disease burden opment. These skills enable people to overcome the complex caused by hot temperatures, the Federal Ministry of Health challenges that lie ahead. We are qualifying urgently needed launched the Heat Protection Plan as part of a concerted skilled workers and managers with innovative, diversity- and effort in the summer of 2023. The aim is to firmly establish future-oriented basic, further and continuing training. heat protection at the federal level in the medium and long term and to establish a structured and coordinated process The legal framework for the targeted and managed immi- of heat protection planning based on the French model. gration of skilled workers from third countries has been The Heat Protection Plan is an integral part of the German further simplified with the Act and the Regulation on the Government’s heatwave action planning, which takes into Further Development of Skilled Immigration in order to account overarching intersectoral environmental and cli- strengthen the German labour market and Germany as a mate-related adaptation measures, for example in the area of business location, thereby contributing to sustainable social health-oriented urban and regional planning at the municipal prosperity and to safeguarding the social security system. level. The first heatwave action plans have been implemented in some cities in a practical, interministerial manner since In November 2023, the Qualification Pillar entered into force, 2020. including a reduction of the salary threshold for the EU Blue Card for highly qualified workers and an amendment according to which skilled workers are now allowed to take Quote from the dialogue process: up any qualified employment in non-regulated professions, “It is important to think about the environment, climate regardless of their specific qualifications. and health as interrelated issues. After all, environmental factors have been shown to have an impact on human In March 2024, the Experience Pillar entered into force, health. It is therefore important to inform the popula- enabling third-country nationals with extensive practical tion, especially vulnerable risk groups and their families, professional experience in non-regulated professions with about health risks and possible prevention options.” a sufficiently high salary to immigrate if they have an employ- ment contract without first having to formally recognise AOK Baden-Württemberg their professional qualifications. If the salary threshold is not met, suitable companies may employ people with foreign university or vocational qualifications as part of a recogni- The German Environmental Specimen Bank and the German tion partnership if they undertake to initiate the recognition Environmental Survey on Health including human biomoni- procedure subsequent to entry and, in the context of the toring have created instruments to investigate the occurrence employment, to enable them to close any gaps that have of pollutants in the population. This provides important been identified. 34 Chapter B. Areas of transformation With the Potential Pillar, a new residence permit for job-­ In addition, the active participation of citizens in decision-­ seekers (opportunities card) was introduced on 1 June 2024 making processes is intended to strengthen the acceptance for skilled workers in addition to a points-based system for of political decisions and trust in political institutions. In this people with a university or vocational qualification acquired context, it is particularly important to create opportunities abroad. Moreover, the German Government is supporting for socially disadvantaged and non-participating groups, such measures to make the recruitment of skilled workers more as people with disabilities, to participate in planning and efficient by, among other things, digitising, accelerating and decision-making processes. Involving those affected in the staggering procedural steps. design and development of measures and services makes it possible to tailor measures more effectively to specific needs. Strengthening inclusion for all as well as participation This sub-area is primarily intended to promote the objective In this context, outreach measures are needed in order to of strengthening social participation and empowering reach socially disadvantaged and non-participating target everyone to help shape it. groups in particular in a relatable and low-threshold manner. Furthermore, a user-centred approach to the (further) devel- This requires not only gender equality as a cross-cutting issue opment of state services is important, in addition to a cross-­ (which is to be more strongly incorporated into all affected sectoral and networked approach to addressing target groups policy areas in the future, cf. chapter B.I.3.e) in line with in order to promote the participation of all. The use of syn- the principle of “leave no one behind”, but also taking each ergies and maximally uniform external communications on and every individual into account, especially particularly the part of the German Government is helpful to this end. In disadvantaged and hard-to-reach population groups. These this context, not only the context and requirements of the groups are to be empowered to participate more fully in transformation should be explained, but also the opportu- society, to actively shape the transformation in a self-deter- nities and advantages for the population that this entails, mined manner and to benefit from its results. whether for this or for future generations. This objective also includes taking the interests of people with disabilities more strongly into account and ensuring digital inclusion with Key priorities from the stand concerning inclusion barrier-free access to digital information and technologies at the Sustainability Forum for all people. In this context, it is important to bear in mind that structural barriers, such as the higher risk of poverty for • The importance of inclusion and accessibility in all people with disabilities, should also be taken into consider- areas of social and private life was emphasised. This ation and addressed. would also benefit older people and families, for example. Accessibility therefore has advantages for In order to enable the participation of all, appropriate insti- all generations and should be perceived as a quality tutional, structural and social conditions – such as access to criterion. With this in mind, “accessibility” should social security benefits – must be developed alongside active also be the standard, for example in the area of hous- empowerment. ing and mobility. Social mobilisation and participation are particularly impor- • There is also a general need for more opportunities tant with regard to the five levers of the GSDS, which are for people with disabilities to participate in decision-­ intended to support the six areas of transformation. Interna- making. Likewise, the desire was expressed that the tional responsibility and cooperation are also of particular German Disability Council also be represented in the importance, since, in addition to interrelationships within Council for Sustainable Development (RNE). one’s own country, the impacts of one’s own actions in other countries must also be taken into account. • The need to consider intersectionality was also men- tioned, with women with disabilities, for example, Sustainable supply chains being exposed to a higher risk of violence. Sustainability and social justice are also the responsibility of companies. By observing due diligence along the supply • More specific measures and absolute figures were chain, standards are promoted not only in Germany but requested as targets in the area of inclusion and around the world. accessibility in the GSDS. The GSDS should also be translated into easy read and simple language. In line with the UN Guiding Principles on Business and Human Rights and the National Action Plan for Business and Human Rights, a “smart mix” of mandatory and voluntary measures is expedient. 35 Chapter B. Areas of transformation Voluntary due diligence is defined in various international Over 100 projects have been launched to date. The Alliance frameworks (in particular the UN Guiding Principles on has updated its agenda in the Health Literacy Roadmap 2024 Business and Human Rights, the OECD Guidelines for Mul- with the aim of further strengthening health literacy in both tinational Enterprises on Responsible Business Conduct, the population and in organisations in Germany. and the ILO Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy). Quote from the dialogue process: Mandatory measures are the subject of legislative and negoti- “In addition to adequate and good treatment options ation processes at national, European and international level. for the entire population, special attention must be paid In Germany, the Supply Chain Due Diligence Act (LkSG) has to the conditions in which people live. The promotion been in force since 1 January 2023. At the EU level, the Corpo- of health literacy is also directly bound up with the rate Sustainability Due Diligence Directive (CSDDD) entered sustainability of other measures. Equal opportunities into force in July 2024, making it necessary to amend the in the area of healthcare are also a necessity here.” Supply Chain Due Diligence Act (LkSG; cf. also section 2.c) – Corporate responsibility for sustainable supply chains). Association of German Cities Back in 2016, the German Government formulated its expec- tation in the National Action Plan for Business and Human Rights that all German companies, regardless of their size, Targeted measures are required to this end. For example, voluntarily comply with due diligence requirements set out multilingual information services facilitate access to health- in international frameworks. The German Government also care for people with a migrant background and promote supports preventive protection measures for victims of forced the development of health literacy. The Federal Ministry of labour, labour exploitation and human trafficking. As part Health provides publications and materials on a range of of the negotiation of EU trade agreements, it advocates the health topics in over 40 languages on the multilingual portal binding nature of the core labour standards of the Interna- www.migration-gesundheit.bund.de. tional Labour Organization, which set universal minimum standards for decent work. In an ageing population, health promotion and prevention play an increasingly important role in general as good health is a prerequisite for independence and active participation

2. Measures taken in social life, also at an advanced age. In the face of increasing life expectancy, the goal is to spend any extra years of life in a) Measures to strengthen individual resources the best possible health and with a high quality of life. In the interests of strengthening individual resources, the German Government aims to use the measures to impart The German Government is also pursuing the goal of improv- relevant key skills, thereby empowering citizens to help ing the early detection and care of cardiovascular diseases shape sustainability. and their risk factors, thereby strengthening cardiovascular health in the population. Cardiovascular diseases are, after Promoting healthy and sustainable lifestyles all, the most common cause of death in Germany, accounting Wherever people live, learn and work in Germany, they for one third of all deaths and generating the highest medical should be supported in using their health-promoting re- costs in the healthcare system. To this end, the Federal Cabinet sources and in being aware of and reducing their health risks. passed a bill promoting heart health (the Healthy Heart Act – With this in mind, health literacy – the ability to search for, GHG) in August 2024. With MOVE for HEALTH, the Federal find and evaluate health-related information and to apply it Ministry for Family Affairs, Senior Citizens, Women and Youth to one’s specific situation – is a fundamental prerequisite for funded a campaign by the German Sports Youth that moti- a healthy lifestyle and a high quality of life, especially in the vates children and young people to exercise more while at the digital age. The Alliance for Health Literacy, for example, is a same time supporting them in looking after their mental partnership between the Federal Ministry of Health and the health. Standing Conference of the Ministers of Health of the Länder and all relevant umbrella organisations in the healthcare The Federal Ministry for Family Affairs, Senior Citizens, system, including self-administration, and is committed to Women and Youth provides 51 million euro annually via the strengthening health literacy in all walks of life, such as day- Federal Foundation for Early Childhood Intervention (cf. the care centres, schools, companies, leisure and adult education Child Protection (Cooperation and Information) Act – KKG, centres, as well as healthcare and senior citizens’ facilities. in German) to promote low-threshold and voluntary services 36 Chapter B. Areas of transformation for families with young children in difficult circumstances. Quote from the public participation process: The Foundation seeks to strengthen parents’ relationships [...] For many, vocational training is still worth less than with their children as well as their child-raising skills. An a university degree, and a great many pupils have the important priority here is shaping everyday family life with goal of studying at university at an early age. […] But we a view to promoting a healthy lifestyle. don’t just need people who can plan things; we especially need people who can execute them – and that goes for A sustainable lifestyle also affects the general state of eco- all areas. Training must become more normal and more systems in Germany. The Federal Ministry for the Environ- widespread once again and should not be seen as infe- ment, Nature Conservation, Nuclear Safety and Consumer rior, which unfortunately is often the case. This image Protection funds educational measures relating to nature-­ must change radically. [...]” based climate action with activities and projects in early childhood, school and vocational education via the Action florian2351 – Klimabildung e. V. Programme for Natural Climate Protection (ANK). Adult and older target groups are also addressed in the context of lifelong learning. Furthermore, the citizen’s benefit introduced in 2023 will create additional financial incentives to take up further train- Furthermore, the funding priority “intervention studies for ing geared towards obtaining a vocational qualification, for healthy and sustainable living conditions and lifestyles” of example by introducing a further training allowance. This the Federal Ministry of Education and Research makes an facilitates long-term integration into the labour market. important contribution to strengthening health-promoting as well as environmentally and socially just living conditions With the European Social Fund Plus (ESF Plus) federal pro- and lifestyles. Funding is provided for intervention studies gramme “Shaping the changing world of work through that address health promotion and environmental sustain- social partnership: continuing education and training and ability in equal measure. promoting gender equality” (ESF Social Partner Initiative), the Federal Ministry of Labour and Social Affairs is working with The complex, interlinked systemic challenges of planetary the Confederation of German Employers’ Associations and health (as a concept that aims to systematise the links between the German Trade Union Confederation to establish sustain- human health, political, economic and social systems and able further training structures in companies and strengthen the natural systems of the planet) are also addressed in the the equal, living-wage participation of women in the labour funding measure Junior Research Groups “Climate, Environ- market. This will contribute to the SDG 5 and SDG 8 in ment and Health” initiated by the Federal Ministry of Edu- addition to SDG 4. cation and Research. One of the junior research groups, for example, is investigating the promotion of and facilitation of The German Government promotes greater equal opportu- a healthy, climate-friendly and environmentally compatible nities and participation in education by providing funding diet for all. As part of the national action plan “IN FORM – for training under the Federal Training Assistance Act (BAföG). German national initiative to promote healthy diets and Students and school pupils who lack financial resources can physical activity”, the Federal Ministry of Food and Agricul- receive financial support under the Federal Training Assis- ture and the Federal Ministry of Health are working together tance Act for their living and training costs. to promote healthy nutrition and exercise in all phases of life in order to encourage the population to adopt a healthier A vocational training grant is available to enable young peo- lifestyle and thus improve health opportunities in the long ple to undergo in-company or external vocational training term. in a recognised training occupation. Trainees are, as a rule, supported if the necessary funds are not otherwise available Further measures to promote healthy and sustainable nutri- to them, they do not live with their parents during their tion are presented in area of transformation 5 (chapter B.V.2.e). vocational training and the training institution cannot be reached from their parents’ home within a reasonable period Imparting knowledge and skills of time. The costs that may be covered include, for example, The Continuing Education Act aims to strengthen the pro- necessary travel expenses, childcare costs and other expenses. motion of further training for employees, to avoid unem- ployment caused by structural change and to retain skilled In addition, the Career Development Act (AFBG) provides workers in companies through qualifications or to train financial support for participants in further training meas- new skilled workers. The Act also implements the training ures offered by public and private institutions that prepare guarantee agreed in the coalition agreement. students specifically for over 700 further training qualifica- 37 Chapter B. Areas of transformation tions. Moreover, the Federal Ministry of Education and Re- Quote from the public participation process: search has funded 17 innovation clusters since 2020 with “It is not enough to simply create add-on educational the federal competition “InnoVET – Shaping the Future – opportunities; these must also be integrated into the Innovations for Excellent Vocational Education and Training”. education system. The comprehensive introduction of In these clusters, regional and industry-specific stakeholders ESD further training for teachers in educational insti- develop and test innovative basic, further and continuing tutions is a concrete step in this direction that, in line training programmes that are geared to the needs of com- with the “train the trainer” approach, can incorporate panies and create incentives for young people with differ- ESD into the system already today. […] This is not just ent opportunities for starting out in life to enter vocational a question of schools or universities, but of all areas of training. The new InnoVET PLUS competition, which was education, which must be linked up with each other in launched at the end of April 2023 as part of the Initiative for order to facilitate lifelong learning.” Excellence in Vocational Education and Training, addresses the ever-shorter development cycles and associated skills Comment by Phillip Gutberlet – youpaN, and qualification requirements in the field of digitalisation youth ­forum of the National ESD Platform and the environmental and technological transformation. People must be taught relevant skills for the future in order In higher education, ESD has the important role of providing to give them the opportunity to participate in the transfor- future leaders and teachers with the knowledge and skills mation of society. Education for sustainable development they need in order to act as multipliers in advancing the so- plays a key role here. ESD stands for a form of education cial transformation. The broad-based integration of ESD in that enables people to think and act sustainably. In order to the higher education system is supported, among other implement the UNESCO Global Action Programme on ESD things, by the Federal Ministry of Education and Research’s in a binding manner, the National Action Plan on Education funding guideline “Transformation pathways for sustainable for Sustainable Development was adopted in 2017 under the universities”. leadership of the Federal Ministry of Education and Research. The National Action Plan makes specific proposals for how ESD is also funded within the framework of more subject-­ ESD is to be embedded in structural terms at all levels of specific programmes such as the Federal Biological Diversity the German education system. This applies to both formal Programme – for example with projects that impart knowl- education (curricula, higher education agreements) and to edge about species and ecological contexts, thus contributing non-formal and informal learning (sports, museums, club to the protection of biodiversity. work). Furthermore, ESD is to be integrated in educational institutions in a holistic manner in line with the whole insti- Skills in mathematics, IT, natural sciences and technology tution approach. With a view to implementing the current (MINT, or STEM in English) are essential for a sustainable UNESCO programme ESD 2030, the National ESD Platform, future. With the MINT Action Plan 2.0, the Federal Ministry the highest body in the ESD process, has adopted a discus- of Education and Research is promoting access to STEM at sion paper that identifies seven levers for accelerating the all levels of education, for example in early education with integration of ESD in all areas of education. As part of the the Stiftung Kinder forschen (Little Scientists Foundation), National Action Plan on ESD, the Federal Ministry for Eco- extracurricular education (the MINT-Cluster, which fosters nomic Cooperation and Development is working together STEM skills), initiatives to support STEM stakeholders (MINT- with the Standing Conference of the Ministers of Education vernetzt and MINT-Campus) and STEM research. The Data and Cultural Affairs of the Länder in the Federal Republic of Literacy Toolbox, on the other hand, provides a learning Germany to integrate such skills for the future in curricula environment for data literacy in a targeted manner. in a structural manner. To this end, a curriculum framework for lessons in global development has been created that shows In a (knowledge) society of increased life expectancy, learn- in a practical way how topics of sustainable development can ing and education are the key to equal social participation be integrated into all school subjects at the lower secondary and an asset for individuals and society, also in old age. In level. The Federal Ministry for Economic Cooperation and order to take greater account of the educational needs and Development and the Standing Conference of the Ministers interests of an increasingly ageing society in all its diversity of Education and Cultural Affairs of the Länder in the Federal and provide older people with a wide range of options for Republic of Germany are currently working with civil society accessing educational opportunities and digital participa- and the academic community to expand this framework to tion, the Federal Ministry for Family Affairs, Senior Citizens, include the upper secondary level. The latest recommenda- Women and Youth, together with partner organisations from tion by the Standing Conference on ESD in schools of June the federal level, Länder, municipalities, business and science 2024 provides an important basis for further development. communities and civil society, is funding the nationwide 38 Chapter B. Areas of transformation Digital Pact for Old Age initiative and the Digitaler Engel Plus Senior Citizens, Women and Youth has established an inter- project. It is also lending its support to the project Künstliche ministerial process with “Plan FüPo 2025”. A central compo- Intelligenz für ein gutes Altern, which promotes the use of nent of this is the expansion of part-time leadership, as this artificial intelligence among the elderly, and to Bildung und is still the exception. In June 2024, the Ministry concluded the Lernen im Alter, a service centre for education and learning in project “part-time leadership at the supreme federal authori- later life. The Digital Pact for Old Age supports older people ties” (Führen in Teilzeit in den obersten Bundesbehörden) with in developing and expanding their digital skills, for example the publication of a recommendation for action. Monitoring with local low-threshold learning and experience opportu- of women in leadership positions in the subordinate area of nities. The mobile advisory teams of the Digitaler Engel Plus the supreme federal authorities was also expanded. Figures project provide older people on the ground throughout Ger- on developments throughout the public service of the Fed- many with digital skills that are relevant to their everyday eration, and also in the private sector, the committees within lives. The Künstliche Intelligenz für ein gutes Altern project the remit of the Federation, public companies and among strengthens the AI skills of older people in a targeted manner social insurance providers are published (in German) at by training multipliers and testing relevant technologies at www.bmfsfj.de/frauen-in-fuehrungspositionen. a number of locations in Germany. Bildung und Lernen im Alter, a service centre for education and learning in later life, The Gender Equality (Management Positions) Acts also set also supports the desire of many older people to learn, includ- binding targets for greater gender equality at the management ing in the areas of health education, civic education, cultural level of German companies. The fixed gender quota of at least education and volunteering. The internet portal Wissens- 30% of women on supervisory boards has proven effective. durstig.de is a central information platform and point of The minimum participation requirement for executive boards contact for multipliers working with senior citizens and in with more than three members in large German companies education, as well as for older people, on the subject of edu- is also an effective tool. cation and learning in old age. The European Union’s Gender Balance on Corporate With regard to the priority area “inclusion for all”, the Partic- Boards Directive stands for a more balanced representation ipation Opportunities Act should be mentioned in particular. of women and men in management positions. Women are The Act aims to facilitate social participation through longer-­ still underrepresented in the management levels of private term publicly funded employment (“social labour market”). companies throughout the EU. Binding standards are intend- The medium- to long-term goal is to transition to unsub- ed to ensure that they participate equally in economic life in sidised employment. The social labour market was made all member states. The aim of the Directive is to substantially permanent with the Citizen’s Benefit Act. increase the proportion of women in the management levels of listed companies in the EU. The objective is to achieve the The approximately 500 youth migration services support target of 40% women in supervisory boards or a total of 33% young people with an immigration background between the in supervisory and executive boards. Member states in which ages of 12 and 27 throughout Germany by providing coun- effective measures have already been taken may suspend the selling and educational and leisure activities. One focus is on implementation of these requirements. In Germany, exten- providing long-term, individual support to young people on sive measures already apply as a result of the provisions of the their educational and professional paths. The aim is to foster Gender Equality (Management Positions) Acts, with the result young people’s social inclusion and improve their prospects. that the country has availed itself of the suspension clause. More women in senior positions b) Measures to strengthen institutional resources With the Second Gender Equality (Management Positions) A key component of successful transformation processes is Act (FüPoG II), the German Government has enshrined the the provision of needs-based services for all members of the goal of equal participation of women and men in leadership public that are tailored to their specific circumstances. More positions in the federal civil public service by the end of 2025 than ever, this requires cross-cutting policy measures and in the Federal Act on Gender Equality. The tried and tested thus a new culture of cooperation in public administration. fixed quota for supervisory boards pursuant to the Gender The institutional and structural framework conditions are Equality (Management Positions) Act is supplemented by a a prerequisite for enabling all people in our society to live minimum participation requirement for executive boards sustainably and should therefore be strengthened. under the second Act of the same name (FüPoG II). Listed and fully co-determined companies must appoint at least The German Government has taken the following measures, one woman to their executive boards if they consist of more among others, to support people in different phases and than three people. The Federal Ministry for Family Affairs, circumstances of life. 39 Chapter B. Areas of transformation The healthcare system, for example, is particularly important The reform pursues the following key objectives: ensuring here, especially in the digital age. The Federal Ministry of and improving the quality of treatment, guaranteeing com- Health, for instance, has developed a comprehensive Digi- prehensive medical care for patients, increasing efficiency in talisation Strategy for Health and Care together with more hospital care and cutting red tape. than 500 stakeholders, which was published in spring 2023. The strategy takes a holistic, people-centred approach, and In addition, with the Hospital Transparency Act, the German people and their needs are consistently placed centre-stage. Government has laid the groundwork for all members of In particular, the Act to Accelerate the Digitalisation of the the public, irrespective of their income and education, to be Healthcare System (Digital Act) and the Act on the improved better informed about inpatient care. Since May 2024, data Use of Health Data (Health Data Use Act) seek not only to on the range of services and quality aspects of inpatient care improve everyday care, but also research opportunities in in Germany has been published by the Federal Ministry of Germany with digital solutions. For example, electronic Health in a transparency directory, the Federal Clinic Atlas, patient records, which will be introduced for all people with in a way that is easy to understand and accessible to all. The statutory health insurance from 2025, will promote the ex- Federal Clinic Atlas is updated on an ongoing basis. change and use of health data and provide targeted support for the care of citizens; in addition, health data will be made Last but not least, the Federal Ministry of Health has devel- more easily usable for purposes geared towards the common oped an action plan for a diverse, inclusive and accessible good. This is in line with the European Health Data Space, healthcare system in a participatory process with stakeholder which will enter into force in 2025. The European Health organisations. This is intended to make a significant contri- Data Space promotes the exchange and use of health data bution to reducing barriers to care for people in all their di- across EU borders, leading to more efficient health services versity. The action plan was published on 2 December 2024. and the improved use of resources. The Federal Ministry for the Environment, Nature Conserva- In addition, the German Government’s National Pharma tion, Nuclear Safety and Consumer Protection supports social Strategy has developed a plan of action to improve the frame- institutions in adapting to the impacts of climate change work conditions for the manufacture and development of with the Climate Adaptation in Social Institutions (AnpaSo) medicinal products, to examine incentives for the establish- programme. ment of manufacturing sites in Germany and to promote innovation projects in the pharmaceutical industry, which The German Government continues to pursue the goal of contribute to achieving SDG 9 in particular (promoting in- eradicating homelessness in Germany by 2030. As a first step, dustrialisation, innovation and infrastructure). This is also in it is presenting a National Action Plan to Tackle Homelessness line with the objectives of the Act to Combat and Improve that identifies key measures in the various legal and policy the Supply of Medicines (ALBVVG), which entered into force areas that will be addressed jointly with the Länder and local on 27 July 2023 and is intended to help avoid shortages of authorities at the respective level. One key measure to coun- medicinal products and to create framework conditions that teract homelessness is increasing the supply of affordable will make Germany more attractive as a market for medicinal housing (cf. section “Promoting sustainable and affordable products once again. The aim here is to safeguard the supply housing construction” in chapter B.IV.2.b). of medicinal products to members of the public in the long term. Institutional support for children and young people With a view to strengthening early-years education, the Fed- In order to ensure that high-quality, comprehensive and eral Ministry for Family Affairs, Senior Citizens, Women and needs-based hospital care can continue to be provided in Youth has launched five investment programmes since 2008, Germany in the future, the hospital reform aims to divide with a total volume of 5.4 billion euro, to finance childcare, hospital treatment services into service groups, for each of leading to the creation of more than 750,000 additional places which quality criteria will be defined. In addition to improv- for children up to school age. ing the quality of treatment, a key part of the reform is the introduction of basic funding for maintaining essential ser- The Federation provided the Länder with a total of around vices and infrastructure – this is intended to ensure that the four billion euro in 2023 and 2024 through an amendment provision of necessary hospitals is largely independent of to the distribution of VAT revenue under the Daycare Quality the provision of services to a relevant extent in the future. Act (KiQuTG) so that they can implement measures to further Moreover, cross-sectoral and integrated healthcare is to be develop the quality of childcare and to relieve the burden with strengthened. The concerns of rural and deprived areas are respect to parental contributions. The further developed given special consideration in the context of the reform. Daycare Quality Act is intended to provide the Länder with 40 Chapter B. Areas of transformation a further four billion euro in additional VAT funds in 2025 The impacts of climate change are already endangering the and 2026 to support their efforts to improve quality. This is health of employees and value added in Germany. Together also intended to contribute to equal living conditions and with experts from various disciplines, the Federal Ministry more equal opportunities. of Labour and Social Affairs is analysing and evaluating the impacts of climate change on the labour system in its policy With the Startchancen programme, the Federal Ministry of workshop “Klima wandelt Arbeit” (climate changes work) with Education and Research is helping to break the correlation the aim of creating new framework conditions promoting between social background and educational success at around a humane and climate-friendly working environment. 4000 schools with a high proportion of socially disadvan- taged students as early as from the 2024/25 school year. To this end, investments are being made in climate-friendly, Opinion from the Science Platform Sustainability accessible schools with a modern learning environment. The 2030: programme’s opportunity budget for needs-based school “That is why key skills are important, enabling people and teaching development measures, as well as more staff to deal with new challenges, changing life situations for multi-professional teams, will also enable innovations and accelerated change.” in education to be applied directly. This ten-year programme aims to create more equal opportunities and to strengthen Prof. Gerhard de Haan the performance of the education system as a whole. It pro- vides impetus for sustainable school and teaching develop- ment at the individual, institutional and systemic levels. A particular focus here is on strengthening basic skills, i.e. core Institutional support for older people skills in German and mathematics, and also in the socio-­ Of the approximately 40 million active employees, around emotional area, as well as on empowering young people to 36 million have a mandatory pension insurance scheme. participate in democracy. The statutory pension fund is the most important form of retirement provision for almost 33 million employees. For The digital platform Schultransform funded by the Federal several years now, funds from the federal budget have cov- Ministry of Education and Research supports schools ered around 30% of the expenditure of the statutory pension through self-checks, potential analysis and recommendations fund. for action in their individual school development process towards a culture of digitality. In the second funding phase The aim of the basic pension is to ensure that those who (2023 to 2026), the project will focus on education for sustain- have paid into the pension insurance scheme for decades able development and equal opportunities with Schultrans- are better off in old age. The basic pension supplement can formNEXT. be received by those who have worked for at least 33 years and earned below average, raised children or cared for rela- Institutional support for people of working age tives. Around 1.3 million pensioners benefit from the basic Basic cover for jobseekers was fundamentally overhauled pension and receive an average of 92 euro (gross) more per with the introduction of citizen’s benefit. Citizen’s benefit month. This contributes, among other things, to achieving ensures the livelihoods of people of working age and their SDG 10. families if they cannot provide for themselves alone. In ad- dition, citizen’s benefit aims to help people of working age c) Measures to strengthen social resources to find qualified employment on a permanent basis so that In addition to strengthening the individual and institutional they can support themselves again. Among other things, levels, it is necessary to involve and strengthen social resources this contributes to SDGs 1, 8 and 10. for the transformation towards sustainability. Measures aim to promote the participation of society as a whole in the Since participation in working life in our working society transformation towards sustainability and to counteract the makes a significant contribution to social participation, the fragmentation of society. The following measures, among Act to Promote an Inclusive Labour Market, for example, others, have been initiated or established to this end. includes numerous legal amendments seeking to get more people with disabilities into regular employment, keep more Strengthening social cohesion people with health impairments in work and provide more In order to strengthen social cohesion, the Federal Ministry targeted support for people with severe disabilities. of Education and Research has supported the development of the Research Institute for Social Cohesion, a decentralised, 41 Chapter B. Areas of transformation multidisciplinary humanities and social science institute with ing with civil society organisations from 2025 and develop- 11 locations, since 2020. The institute pools expertise and ing these further with current societal challenges in mind. potential for research into social cohesion and strengthens This is intended to continue to promote our democracy, cooperation and exchange between research and practice. shape diversity and prevent extremism. Moreover, with the ESF Plus programme Bildungskommunen In December 2022, the Federal Cabinet approved the bill (“educational communities”), the Federal Ministry of Educa- for a Democracy Promotion Act. The bill aims to strengthen tion and Research promotes participation in analogue and democratic civil society. To this end, the German Government digitally interconnected municipal educational landscapes is to be given a legal mandate for the first time to, in particular, for lifelong learning, thus strengthening, among other things, support civil society projects that promote democracy, shape education for sustainable development at the local level. diversity, prevent extremism and provide civic education, but also to take appropriate measures itself. With its Förderprogramm Entwicklungspolitische Bildung (“development policy education funding programme”), the The bill of the Democracy Promotion Act, which is currently Federal Ministry for Economic Cooperation and Development going through parliament, is intended to enshrine uniform supports civil society organisations that implement educa- funding requirements in the areas of democracy promotion, tional measures on global sustainability issues, strengthen shaping diversity, extremism prevention and civic education skills for sustainable engagement and bring various societal in legislation and to create the conditions for implementing groups into contact with each other. corresponding funding measures that are independent of age, longer-term and more needs-oriented than has previously With the federal programme Mehrgenerationenhaus. Mitein- been the case. ander – Füreinander(“Multigenerational centre. With each other – for each other”), the Federal Ministry for Family As part of the federal programme entitled Gesellschaftlicher Affairs, Senior Citizens, Women and Youth supports around Zusammenhalt – Vor Ort. Vernetzt. Verbunden (“Social cohe- 530 multigenerational centres throughout Germany as meet- sion – Local. Integrated. Interconnected”, BGZ) the German ing places for people of all ages and backgrounds. With the Government funds projects that create spaces for civil society help of almost 30,000 volunteers, the multigenerational activities and for the development of intercultural friendships centres strengthen social interaction and cohesion between and communities. This programme aims to strengthen and generations, thereby contributing to the creation of oppor- consolidate the social cohesion of all people living in Germa- tunities for good development and fair participation and ny, regardless of their social, ethnic or religious background thus to equal living conditions. or sexual orientation. The target group of these projects are adult and young (newly arrived) immigrants as well as adults In the area of communal and intergenerational living, the and young people with German citizenship from the age of Federal Ministry for Family Affairs, Senior Citizens, Women 12. Approximately 80 new projects are included in the fund- and Youth supports projects promoting self-administration ing programme each year. The focuses can vary from year to and participation, for example in building groups and coop- year and include, for example: “Leading by example – raising eratives. Examples include the AGIL pilot project for age-ap- awareness of successful integration work”, “Ways out of iso- propriate, communal and inclusive living (AGIL – Alters- lation – promoting encounters and participation” and “For gerecht, gemeinschaftlich und inklusiv leben, 2024–2027) and diversity and tolerance – against discrimination, racism and the advice and information platform Wissen, Informationen, antisemitism”. Netzwerke – WIN für Gemeinschaftliches Wohnen. Strengthening the participation of older people In order to strengthen civil society engagement, the Federal In order to strengthen the participation of older people, the Ministry for Family Affairs, Senior Citizens, Women and Youth German Government is promoting voluntary work, self-­ supports the project work of people who are committed on organisation and association work by and for older people, a daily basis to fostering democratic togetherness with the also across generations. In order to prevent and alleviate federal Live Democracy! programme. Since 2015, the pro- loneliness in the transition from working life to the post-­ gramme has supported projects at all levels of government professional phase, the funding programme Stärkung der throughout Germany that strengthen social cohesion, pro- Teilhabe älterer Menschen – gegen Einsamkeit und soziale Iso- mote democracy and diversity, and counter all anti-demo- lation, which seeks to strengthen the participation of older cratic tendencies. These include discriminatory attacks, hate people and tackle loneliness and social isolation, promotes speech online and all forms of extremism. In line with the socially innovative measures with the help of the ESF Plus coalition agreement, the German Government is strength- programme for people aged 60 and over. ening tried and tested approaches in funding and cooperat- 42 Chapter B. Areas of transformation Strengthening young people’s participation With the programme Culture is Strength. Education Alliances, and ­involvement opportunities the Federal Ministry of Education and Research funds pro- Greater opportunities for young people to participate are a jects in extracurricular cultural education that are aimed key priority of the German Government’s policy. The age for at children and young people who are at risk of educational participating in the elections to the European Parliament disadvantage and are thus restricted in their educational held on 11 November 2022 was therefore reduced to 16. opportunities. The projects are implemented by local edu- cational alliances. To date, around 1.4 million children and The Child and Youth Plan of the Federation is the key fund- young people have been supported in more than 49,000 ing instrument of child and youth welfare at the federal level projects. and is based on section 83 (1) of Book VIII of the Social Code. The support that this provides helps to safeguard, strengthen Youth participation is part of education for sustainable de- and further develop child and youth welfare and advances velopment. As part of the ESD process, 30 young people are the objectives of giving all young people equal opportunities, participating in the ESD youth forum youpaN to implement reducing disadvantages and addressing risks in a preventive the National Action Plan on ESD. manner. The Federal Ministry for Economic Cooperation and Devel- Since 2022, the German Government’s Youth Strategy has opment’s school competition on development policy “all been further developed with a National Action Plan (NAP) for for one world for all” (alle für eine Welt für alle) is aimed in Child and Youth Participation. The objective of the NAP is to particular at young people. It is intended to help them to strengthen the involvement of young people in Germany. engage with issues of sustainable development and to raise Recommendations for effective child and youth participa- awareness of options for action and opportunities for getting tion are being developed in formats up until 2025 as part of involved. a temporary dialogue process. These formats involve young people as well as representatives from civil society, the Euro- The Federal Ministry for Family Affairs, Senior Citizens, pean Union, the Federation, Länder and municipalities. Women and Youth supports projects by and for children and young people with the federal Future Package for Sport, Over the last few years, youth participation formats have been Culture and Health (Zukunftspaket für Bewegung, Kultur und established at many federal ministries to enable young peo- Gesundheit). The focus here is on the participation of young ple to participate in consultative political processes, e.g. on people. In 2023 and 2024, around 470,000 children and young climate and environmental policy (Federal Foreign Office, people took part in over 2800 projects and activities planned Federal Ministry for Economic Affairs and Climate Action, and designed by over 54,000 young people. Federal Ministry for the Environment, Nature Conservation, Nuclear Safety and Consumer Protection, Federal Ministry for Corporate responsibility for sustainable supply chains Economic Cooperation and Development, Federal Ministry The Supply Chain Due Diligence Act (LkSG) establishes legally of Food and Agriculture). The federal competence centre for binding provisions regarding businesses’ responsibility for children and youth participation (Bundeskompetenzzentrum upholding human rights in their supply chains for the first Kinder- und Jugendbeteiligung), a project funded by the Fed- time. The Act requires businesses to exercise adequate due eral Ministry for Family Affairs, Senior Citizens, Women and diligence in respect of human rights and certain environ- Youth, advises the German Government on the implemen- mental considerations in their supply chains. Risks covered tation of youth participation formats. by the law arise if there is a risk of a violation of one of the prohibitions listed by the Supply Chain Due Diligence Act (LkSG) – including, for example, the prohibition of child Involving young people in all ministries: labour, slavery and forced labour and the prohibition of “It is essential for the German Government to involve withholding an adequate wage. Directive (EU) 2024/1760 of young people in national and international processes the European Parliament and of the Council on corporate for shaping the sustainability transformation at all sustainability due diligence, the Corporate Sustainability Due ministries.” Diligence Directive (CSDDD), entered into force on 25 July

2024. The member states have two years to transpose the Decision of the Federal Cabinet of 13 July 2023, directive into their national legislation. Care must be taken Transformation report on international responsibility to ensure that the administrative costs associated with due and cooperation, p. 7 diligence and reporting obligations are kept within limits. In the interests of the economy, particularly the SME sector, it 43 Chapter B. Areas of transformation is important that due diligence obligations be implemented offer guidance to companies in sectors facing particular pragmatically and that disproportionate burdens on busi- human rights challenges and to offer them adequate support nesses be avoided. in implementing human rights and environmental due dil- igence. They thereby contribute to improving the human The German Government therefore adopted a cabinet deci- rights situation across global supply and value chains. The sion on 17 July 2024 in favour of transposing the CSDDD by first sectoral dialogues are taking place with the automotive amending the Supply Chain Due Diligence Act one to one, and energy industries. generating as little red tape as possible. This will reduce its scope to fewer than 1000 businesses – only around one in three of those to which the Supply Chain Due Diligence Act 3. Next steps currently applies. All obligations under the CSDDD, including the provisions on civil liability, will become binding only at In order to bring the social dimension of sustainability the latest date prescribed by European law. even more strongly to bear in all areas of transformation, it is necessary to achieve a “culture of sustainability”. With regard to global supply chains, the German Government is also playing a constructive role in discussions concerning the development of an international instrument at UN level Quote from the dialogue process: to improve the protection of human rights and establish a “This includes, in particular, questions such as where level playing field with regard to corporate due diligence ob- new, different or growing inequalities threaten to arise ligations. In so doing, it is emphasising its commitment to in the course of the transformation. How should these the social and environmental dimension of sustainability at inequalities be tackled? And which groups of people the international level. are affected and how?” The concrete fulfilment and implementation of human Catholic Family Association rights and environmental due diligence by companies are supported by various measures by the German Government. A key instrument in this context is target group-specific com- The Federal Office for Economic Affairs and Export Control munication about sustainability. To this end, information has been working since 2022 to create the substantive, organ- must be communicated in an attractive and easily compre- isational and technical conditions to fulfil the legal mandate hensible way in order to reach as many people as possible to control and enforce the Supply Chain Due Diligence Act. and to enable them to become involved. A broad-based and To this end, it has, among other things, developed effective, vibrant discourse about sustainability, which involves as unbureaucratic and resource-saving solutions and published many people as possible, is required. An important measure guidelines to help companies comply with the statutory due in this context is the Joint Action for Sustainable Develop- diligence requirements. To bolster businesses, the Federal ment platform (cf. chapter C.II.2.; for more about commu- Ministry of Labour and Social Affairs and the Federal Min- nication, cf. chapter C.II.3.). istry for Economic Affairs and Climate Action launched an immediate action programme for sub-legislative measures Future developments and potential crises must be better for the practical implementation of the Supply Chain Due anticipated so that they can be addressed in a timely manner Diligence Act also in light of the CSDDD’s requirements. The and managed adequately. The ministries need to increase the Directive contains a number of provisions geared towards use of strategic foresight methods to this end. Here, recourse the practical and business-friendly implementation of due can be taken to an existing interministerial strategic foresight diligence obligations. The Supply Chain Due Diligence Act group under the direction of the Federal Chancellery, to in its current form offers scope for already putting some of existing working units in the ministries, and to the services these evaluation criteria into practice at a sub-legislative level, offered by the Federal Academy for Security Policy. A key as immediate measures, in the procedures of the responsible task of strategic foresight is to identify topics and issues that inspection authority, namely the Federal Office for Economic are or could become of great importance for political opin- Affairs and Export Control. These steps directly and tangibly ion-making in the future. This creates opportunities for the ease the burden on businesses. timely and structural discussion of future developments and can increase the capacity for prevention and resilience. Implementation is also supported by funding information and advisory services as well as organising and supporting It is crucial here that visions for the future are developed and multi-stakeholder partnerships. The latter include, for evaluated not only at the level of experts. Instead, it is impor- example, the sectoral dialogues of the Federal Ministry of tant to enter into dialogue with members of the public and Labour and Social Affairs. The aim of these dialogues is to various social groups, be it in the form of citizens’ dialogues, 44 Chapter B. Areas of transformation expert workshops, conferences or digital discussion formats. Interministerial cooperation in health policy The aim is to integrate the perspectives of members of the Biodiversity loss, climate change and pollution have a major public into government action in the area of the social dimen- impact on human health. They increase, for example, the risk sion of sustainability to an even greater extent than previous- of developing infectious diseases with pandemic potential. ly and to shape policy together with people on the ground. The German Government is taking on this important polit- One example of public participation by the German Bundes­ ical task with the Health in All Policies (HiAP) approach to tag is the Citizens’ Assembly entitled “Nutrition in transition: holistic and interministerial action. The WHO’s Health in All between a private matter and governmental responsibilities”. Policies Framework for Country Action is an approach to political governance that aims to maintain and improve the However, it is also important to improve the German Govern- health and well-being of the population in terms of an over- ment’s ability to respond to crises in order to reach citizens arching health promotion policy by taking into account the in a needs-based manner. Both the challenges of the 2022 health effects of political measures in all sectors from their energy crisis and the 2021 COVID-19 pandemic highlighted inception onwards. It is also important to create synergies be- the need for a flexible, legally secure and unbureaucratic way tween sectors and to avoid harmful impacts on public health. to disburse payments to private households. Burdens are to be The German Government aims to strengthen this approach expected also in the future – for example, in particular crisis in the work of all of the ministries. An interministerial Health situations and as a result of increases in the carbon price. Such in All Policies working group under the leadership of the extraordinary burdens can affect some population groups Federal Ministry of Health is to develop proposals to this end. more than others. In order to provide faster and, where ap- plicable, more targeted support in the future, the German The lessons learned from past infectious diseases of zoonotic Government is continuing its work to establish a mechanism origin, such as Ebola, influenza, COVID-19, etc., must also be for direct payments to private individuals that can also be taken more into account at the global level in order to avoid used to disburse a climate allowance. The reduction of inef- future pandemics. It is crucial to recognise that humans are ficient subsidies that are harmful to environment must also biologically part of the animal kingdom and share the envi- be promoted in the interests of the social and environmental ronment with it. The One Health approach acknowledges dimension of sustainability and as part of a commitment to these interrelations and pursues a cross-sectoral, integrative a socially just transformation. understanding and management of health risks. The human-­ animal-environment interface is vital to understanding the In order to strengthen the social dimension, it is vital that causes of health risks and the health effects of climate change state support addresses not only technical and economic and the destruction of nature. One Health means working barriers, but also the social preconditions for success and together across disciplines, making better use of knowledge provides targeted initiatives to promote the necessary individ- available in different areas and taking joint preventive action. ual, institutional and social resources. To this end, the various Accordingly, research and measures in line with the One social actors, from science and industry to civil society multi- Health approach must be strengthened, pooled, coordinated pliers and administration and policymakers at the federal, and further developed in an interministerial manner and Land and municipal level, must be brought together to solve across borders. The interministerial informal One Health key sustainability challenges. The cultural sector can also network has been tasked with examining which measures contribute to a reflected, self-determined and engaged way are suitable for significantly advancing the implementation of life. This requires the coherent and systemic integration of the One Health approach. of various funding instruments, in particular the removal of barriers to access. The German Government is committed to the successful conclusion of the negotiations for the International Pan- a) Intensifying interministerial cooperation demic Accord and the revision of the International Health In order to establish which structural and institutional Regulations at the WHO, which was successfully completed framework conditions must be in place so that all people in in June 2024. It will also support permanently funded pan- society can lead a sustainable life with a high level of well-­ demic prevention, preparedness and response, building on being, an important building block is what is known as the existing structures including the Pandemic Fund. whole-of-government approach, i.e. holistic and interminis- terial action. With this in mind, measures with co-benefits for Interministerial cooperation in other areas health, education, culture and social justice, social cohesion An example of holistic and interministerial action, alongside and a healthy environment are needed in order to achieve the HiAP, is the federal accessibility initiative, which initiates all of the SDGs. interministerial measures to promote accessibility in both 45 Chapter B. Areas of transformation the public and private sectors in Germany. The overarching The concept of social innovation legislation on accessibility, as well as mobility, current and future housing and construction, health and digital affairs, “Social innovations primarily embrace new social ap- form the focus of the initiative. This makes it a prime example proaches and organisational models which contribute of a cross-thematic and networked approach to target groups to viable and sustainable solutions for the challenges that serves to promote the participation of all. A further exam- facing our society.” ple is the German Collaborative Network for Equity in Health, in which 75 cooperation partners from various ministries German National Strategy for Social Innovations collaborate to reduce health inequality. and Social Enterprises, Federal Cabinet decision of 13 September 2023, p. 4 Quote from the online participation process: “Accessibility is a key to social participation and ­benefits all members of a society.” c) Strengthening sustainable basic, further and ­continuing training and adult education bezev Further efforts are also required in the field of basic and further training in order to enable everyone in our society to lead a good life. Environmental protection and climate action and adaptation measures must also be designed to be more socially equitable With Lebenschancen-BAföG (Life Chances BAföG), a new than in the past. Limiting global heating prevents social in- funding instrument is being assessed that supports self-­ equalities from being exacerbated as climate change causes determined continuing education. The Federal Ministry of the greatest suffering to people with little money. Neverthe- Education and Research is currently working on possible less, with SDG 10 (less inequality) in mind, the climate action implementations with the support of the European Commis- measures chosen must not themselves lead to a further in- sion and the OECD. The National Platform on Education for tensification of inequalities. The links between quality of and Sustainable Development (NP ESD), chaired by the Federal access to the environment, social factors and health impacts, Ministry of Education and Research, will also address con- including in cities (cf. chapter B.IV.) and in the workplace, tinuing and further training and adult education as a new must be taken into account. Furthermore, measures taken priority. In this context, the question as to how ESD content in accordance with the polluter-pays principle (cf. also chap- is taught in vocational basic, further and continuing training, ter B.II.1.a) must most strongly address those who contribute as well as in general further education, and how skills for the most to global heating. future are taught to employees, particularly in the federal administration, to managers and decision-makers, and to b) Strengthening social innovation teachers and pre-school teachers, but also through informal ­promoting ­sustainability educational opportunities, for example for older people, and Social innovation also plays an important role in the trans- the question as to how to implement the whole institution formation towards sustainability and can be used for the approach in public institutions should be discussed. This focus proactive and innovation-driven design of change process- has also been adopted by the future and key skills working es towards sustainable development (cf. e.g. chapter B.IV.2.a group of the National Skills Strategy. Extracurricular places about experiments in planning, building and forms of par- of learning and informal learning are accorded an important ticipation). role in this context (including (sports) clubs, adult education centres and museums). The German National Strategy for Social Innovations and Social Enterprises defines seven guidelines for promoting Within the framework of the funding guideline “Transfor- social innovation across all federal ministries. These include mation pathways for sustainable universities”, the Federal “Act sustainably”, “Recognise the impact” and “Think inno- Ministry of Education and Research is funding research and vation holistically”. best-practice projects to enable universities to further devel- op ESD and sustainability in line with the whole institution approach and to act as role models for the future of society. 46 Chapter B. Areas of transformation Under the umbrella of the Initiative for Excellence in Voca- a declaration of commitment between the Procurement tional Training, the Federal Ministry of Education and Re- Office of the Federal Ministry of the Interior and the industry search is strengthening the entire vocational training system association Bitkom e. V. relating to compliance with labour with targeted measures ranging from legislation and funding and social standards in public ICT procurement. programmes to improvements in individual support. The Initiative for Excellence thus ensures the necessary increase The Federal Ministry of Labour and Social Affairs is also com- in attractiveness and modernity in vocational education and mitted to upgrading and expanding good services. With this training. The aim is to increase appreciation in society for in mind, we have, for example, initiated the removal of the vocational training and to make dual vocational training time limit on subcontractor liability for social security contri- more attractive for all young people. butions in the courier, express and parcel delivery industry. Moreover, the Federal Ministry of Education and Research’s The National Action Plan — New Opportunities for Children ESF Plus programme “Sustainability at work – future-oriented in Germany aims to provide disadvantaged children and training” (NIB) strengthens vocational training for sustainable young people with better access to care, education, health- development. The funding priorities include training relating care, nutrition and housing by 2030. In so doing, Germany is to sustainability for trainers, optimising framework condi- implementing the Council Recommendation establishing a tions for vocational training for sustainable development European Child Guarantee, which aims to break the cycle of (VETSD), and innovative approaches from the perspective disadvantage and prevent children growing up in poverty of operational change. from becoming adults at risk of poverty. The National Action Plan was adopted by the Federal Cabinet on 5 July 2023 and d) Promoting inclusion for all comprises approximately 350 measures spearheaded by the It will be important also in the future to design measures in Federation, Land and municipalities, as well as civil society a more targeted and needs-oriented way in order to actively organisations. The NAP Committee, established in Septem- involve the affected target groups in their design and imple- ber 2023, is the first body in Germany to facilitate a regular mentation. and coordinated exchange at the federal level on the poverty and social exclusion of children and young people between Last but not least, it is also important in the future to make stakeholders from all political levels and areas of responsibil- greater use of international forums as well as forms of co- ity, as well as civil society organisations and academic experts. operation and peer learning. The Committee is chaired by Ekin Deligöz, Parliamentary State Secretary at the Federal Ministry for Family Affairs, e) Further objectives and planned measures Senior Citizens, Women and Youth, who was appointed The issue of gender equality in the social-ecological transfor- National Child Opportunities Coordinator. The first progress mation is to be strengthened by taking gender equality into report on the implementation of the European Child Guar- account across all relevant policy areas, supported, among antee was prepared at the end of 2024 and will be sent to the other things, by the Fourth Gender Equality Report of the European Commission in early 2025. German Government, which will be published in 2025. The opinion on the Fourth Gender Equality Report is intended to provide recommendations for action for a gender-oriented Quote from the dialogue process: design of transformation processes and thus contribute to “Growing up in poverty leads to reduced opportuni- greater gender equality and a sustainable policy. The recom- ties for development, in addition to social exclusion mendations of the report and other important parameters and deprivation.” such as the regulatory impact assessment for gender equal- ity should be taken into consideration together in order to Working group – achieve a common leverage effect for gender-equitable sus- Child and Youth Welfare Association tainable development. The consideration of human rights due diligence in public The All-Day Support for Children of Primary-School Age Act procurement is to be further strengthened. The Federation’s (GaFöG) will gradually introduce a legal entitlement to all-day large procurement volume makes the consideration of care for children of primary school age from 1 August 2026. human rights due diligence obligations an effective lever for After the completion of the investment programme for the the implementation of due diligence obligations by poten- accelerated expansion of infrastructure for all-day care (2020– tial suppliers. The Federation procures particularly large 2022), an investment programme for the expansion of all- volumes of textiles (e.g. uniforms) as well as information day care was launched in 2023. With both programmes, the and communications technology (ICT). In addition, there is Federation is providing a total of 3.5 billion euro in financial 47 Chapter B. Areas of transformation assistance for investments in quantitative and qualitative Citizens, Women and Youth therefore took the lead in launch- expansion for the Länder until the end of 2027 in accordance ing the development of a German Government strategy to with the All-Day Education and Care Funding Act (GaFG) and counter loneliness, which was adopted by the Cabinet on the All-Day Childcare Financial Assistance Act (GaFinHG) 13 December 2023. The focus is on all age groups with the via the special fund for the development of all-day education objective of addressing the issue of loneliness in a more stra- and care for children of primary school age set up in 2020. tegic manner in Germany. The strategy addresses the issue With these funds, school providers (including independent of loneliness in Germany for the first time in a comprehen- organisations) and child and youth welfare organisations sive manner and with a wide range of measures. Using the can convert, expand, renovate (in terms of energy efficiency) GSDS transformation lever “Social mobilisation and partic- or rebuild and then equip their premises. It is conceivable, ipation”, the strategy contributes to achieving SDG 3 (good for example, that kitchens and canteens will be built and health and well-being). equipped in primary schools, and that after-school care prem- ises, schoolyards, recreation rooms and sports halls will be modified in terms of their structure and equipped with fur- 4. Spillover effects niture and play and sports equipment. In addition, the All-Day Support for Children of Primary-School Age Act stipulates A number of examples of spillover effects from area of that the vertical distribution of VAT revenue be amended to transformation 1 are set out below. benefit the Länder in order to offset the additional operating costs incurred by the expansion of all-day care. From 2026, Value added is often created across borders. Laws and these funds will be distributed in stages, rising by a total of regulations in the labour and economic spheres often 2.49 billion euro between 2026 and 2029, and then by 1.3 bil- lead to spillover effects as a result. The Supply Chain lion euro annually from 2030. Due Diligence Act and the EU Directive on corporate sustainability due diligence, the Corporate Sustaina- The implementation of a comprehensive programme of all- bility Due Diligence Directive (CSDDD), deliberately day care for children of primary school age will help to im- use this lever to contribute to SDGs 1, 8 and 10 with prove the compatibility of work and family life and support positive spillover effects in mind and to avoid nega- the equal participation of women and men in working life. tive spillover effects, e.g. in the form of human rights In addition, all-day educational and childcare programmes violations along global supply chains. can help to reduce inequality in educational opportunities. All-day care can thus contribute to improved social partici- In the international discussion on the UN SDGs, no pation for parents and children in the medium term. spillover effects are currently mentioned in the area of human capabilities and education (source: Sustainable Alongside the expansion of needs-based childcare services Development Report 2023). Negative and positive spill- and the introduction of a legal entitlement to all-day care over effects may occur in this area, however. for primary school children, a family-friendly working environment is essential for improving the compatibility of Positive synergies are to be expected, particularly in the work and life and for sharing responsibilities as parents. With area of international tertiary education networks for the Success Factor Family corporate programme, the Federal sustainable development. Ministry for Family Affairs, Senior Citizens, Women and Youth, together with the central associations of German business The migration of qualified professionals to Germany (the Confederation of German Employers’ Associations, the may lead to a reduction in the human resources avail- German Chamber of Commerce and Industry and the Ger- able in the country of origin, a phenomenon known as man Confederation of Skilled Crafts) and the German Trade “brain drain”. In order to avoid this, the German Gov- Union Confederation, supports HR and corporate managers ernment’s Skilled Labour Strategy takes into account in the (further) development of their family-friendly corporate international principles and guidelines for the ethically culture. With around 9000 members to date, the network is responsible recruitment of skilled workers, such as the the largest platform in Germany for all employers who are WHO’s Global Code of Practice on the International interested in or already committed to the issue of balancing Recruitment of Health Personnel in the health sector. work and family life. A holistic approach in a spirit of partnership is thus pur- sued in order to promote the interests of host countries, Several million people suffer from loneliness in Germany. countries of origin and migrants in equal measure. Loneliness primarily denotes retreating from society, thus Common approaches are being sought at EU level in threatening social and democratic cohesion in particular. addition to this. In June 2022, the Federal Ministry for Family Affairs, Senior 48 Chapter B. Areas of transformation II. Energy transition and climate action SDG 13 (climate action) promotes measures to combat climate change and its impacts and in terms of GSDS indicators is Human-induced climate change is endangering natural re- measured on the basis of “Greenhouse gas emissions” and sources and livelihoods worldwide and is one of the greatest “International climate finance”. SDG 7 (affordable and clean challenges facing humankind. energy) aims to ensure access to affordable, reliable, sustain- able and modern energy for all and is measured on the basis of various indicators demonstrating the share of renewable Figure 4: SDGs of particular relevance for TT 2 energy and energy consumption.

1. Aims a) Making effective and efficient contributions to climate action The central framework for climate policy in Germany is set at European level. With the 2021 European Climate Law, the EU committed to more ambitious climate targets for 2030 The consequences of a global failure to meet the 1.5 degree (an at least 55% reduction in GHG emissions as compared to target in the Paris Agreement range from increased extreme 1990) and 2050 (greenhouse gas neutrality). The EU Emissions weather events, creeping climate change, destruction of Trading System (EU ETS) has been a key instrument of EU habitats, loss of biological diversity and adverse effects on climate action since 2005. It covers greenhouse gas emissions agricultural and food systems to structural change in econ- from energy-intensive industries, from parts of the energy omies and labour markets, and to increased social inequality sector and, since 2012, from intra-European aviation, and thus and other dangers. This impacts in particular on women and originally covered about half of the greenhouse gas emis- girls in all their diversity as well as on already marginalised sions in Europe. By setting caps, the EU ETS I specifies the sections of the population, including, for example, children, total amount that these installations subject to emissions members of indigenous communities, people who suffer from trading rules are allowed to emit. As a result of above-aver- gender-based discrimination and people with disabilities. age reductions in emissions, the EU ETS I now only covers approximately 40% of GHG emissions. Major emitters of greenhouse gases (GHGs) – like Europe and the United States, but also emerging economies such as China, European climate legislation also provides considerable in- Brazil, Saudi Arabia and India – bear a particular responsi- centives for climate action in the member states. The EU ETS I bility to support the global transition towards sustainable in particular influences companies’ and households’ invest- economic systems and sustainable lifestyles. Successful de- ment and consumption decisions in keeping with the climate carbonisation must be one element of a broader process of targets. In addition, with the Effort Sharing Regulation (ESR) social-ecological transformation and development. This to reduce emissions in sectors not covered by the EU ETS I process of transformation aims not only to respect environ- and to preserve and expand natural carbon sinks in the land- mental boundaries but also to sustainably secure our prosper- use sector, all EU member states have committed to attaining ity through national and global burden-sharing in a spirit national targets through adequate national measures. The of solidarity and to protect our freedom and security. Federal Climate Action Act (KSG) adopted by the German Bundestag commits the state to the goal of greenhouse gas neutrality by 2045 and has established a cross-sector, multi-­ Quote from the dialogue process: annual adjustment mechanism for the reliable achievement “Not even the idea of allegedly preserving prosperity by of this goal. By attaining these goals, Germany will also be maintaining the status quo can be allowed to hamper making a contribution to the achievement of the EU climate ambitions to reduce greenhouse gases and transform targets. In the past few years, the German Government has the economy. If the world heats up by more than 1.5 taken crucial steps towards attaining the 2030 climate target: degrees, which is the current trajectory, it will be consid- whereas at the beginning of the legislative term the forecast erably harder to preserve our current prosperity. This was a reduction of only 49% in greenhouse gases, current also needs to be borne in mind when communicating projection data suggests a much bigger fall of nearly 64%. the progress made.” Anonymous 49 Chapter B. Areas of transformation Figure 5: Emission of greenhouse gases covered by the UN Framework Convention on Climate Change Million tonnes of carbon dioxide equivalents 0 200 400 600 800 1,000 1,200 1990 475 278 163 210 83 42 1991 460 252 166 208 75 43 1992 436 241 172 190 72 44 1993 426 231 177 197 72 43 1994 420 235 173 186 72 42 1995 407 237 176 188 72 41 1996 413 226 176 211 74 39 1997 391 230 176 198 71 36 1998 391 213 179 190 71 33 1999 380 203 185 173 72 31 2000 391 203 181 167 70 30 2001 401 192 177 187 71 28 2002 401 190 174 174 69 26 2003 416 190 165 161 68 24 2004 410 190 160 153 66 22 2005 401 188 156 157 66 20 2006 402 192 160 164 65 18 2007 405 200 152 122 65 16 2008 386 197 157 147 66 15 2009 360 172 152 137 66 13 2010 371 185 150 143 66 12 2011 367 183 152 125 66 11 2012 379 178 151 130 67 11 2013 382 178 155 139 67 10 2014 362 177 154 120 69 9 2015 349 185 162 126 69 8 2016 344 189 164 122 68 8 2017 325 194 165 121 67 8 2018 311 187 165 116 66 7 2019 258 181 164 122 65 7 2020 219 174 146 123 64 6 2021 246 182 144 119 62 6 2022 257 168 147 110 61 6 2023 205 146 155 102 60 6 2030 target 438 2045 target Greenhouse gas neutrality Energy industry Industry Transport Buildings Agriculture Waste and waste water The figures are from November 2024 and may have changed with subsequent updates since then. Source: German Environment Agency. 50 Chapter B. Areas of transformation The projection data from 2024 shows that achieving the Statement from the dialogue group: 2030 climate targets will be within our grasp if the energy “Social climate policy and transformation policy must transition and the transformation of the heating and trans- be considered in tandem right from the outset. The aim port sectors are systematically continued. On the basis of should be to create good jobs and ensure good value the reduction roadmaps for the individual sectors relevant creation.” for monitoring pursuant to Annex 2a of the revised Federal Climate Action Act, the energy and industrial sectors in par- German Trade Union Confederation (DGB), ticular will be more than meeting their targets in the period Jan Philipp Rohde 2021 to 2030. The agricultural and waste management sectors are also more than meeting their targets. In the building and transport sectors, the emissions stipulated in the Federal Climate Action Act for the period 2021 to 2030 will probably 2. Ensuring a clean, reliable and be exceeded. Measures in the building and transport sectors ­affordable energy supply are addressed in area of transformation 4 (cf. chapter B.IV.). Further action is needed if we are to attain the 2030 targets A secure supply of affordable and increasingly greenhouse (Federal Climate Action Act, Effort Sharing Regulation). gas-neutral energy is a key prerequisite for maintaining pros- perity in Germany. In principle, openness to all technological It is agreed in the German Government’s 2030 Climate Action possibilities and the harnessing of constant progress are Programme that the German Government will present a re- important preconditions for the success and efficiency of the form concept for phasing out climate-damaging subsidies or energy transition. redesigning them in such a way that they are less harmful to the climate. The German Government is lobbying for the Shifting the energy system from fossil fuels to regenerative phasing out of inefficient subsidies for fossil fuels, as pledged energy sources poses different challenges in urban and rural in the G7 and G20 frameworks and at COP27, to be driven areas. Owing to the availability of raw materials and land out- forward at international level, too. All subsidies in the 2023 side settled areas in rural regions, for example, this is where 29th Subsidy Report are for the first time being subjected to a many renewable energy facilities and much of the installed mandatory review with respect to their impact on the climate. capacity are to be found. In light of building structures and the need for mobility, there are also huge differences be- Specifically, this review takes the form of identifying state tween the challenges faced by rural areas and conurbations subsidies which are harmful to the climate, assessing their in switching to greenhouse gas-neutral heating and mobility. negative impact on the environment and climate and com- It will be vital to take account of and acknowledge the chal- ing up with possible reform options. In each case, the decision lenges and contributions of rural areas in appropriate ways, to phase out a subsidy is a matter of weighing up different also with regard to urban areas. The transition towards more interests. The social repercussions are also taken into account. decentralised energy production also affords rural areas tremendous opportunities, especially to increase regional As well as ambitious targets, sustainable climate action re- value creation. To that end, we must ensure that the trans- quires the transformation to greenhouse gas neutrality to formation is to the benefit of rural areas as well. take place in an economically viable as well as socially and environmentally acceptable way. The amount of electricity generated by renewable energies has increased 7.5 times over in comparison with the figure Limiting global warming generally helps to prevent social in 2000. In 2023, renewable energies accounted for 52.5% of inequalities from worsening even further. After all, poor and gross electricity consumption. The 2023 Renewable Energy less well-off people suffer most as a result of climate change. Sources Act stipulates that the share of renewable energies In addition, when shaping climate policy instruments, dis- in gross electricity consumption be increased to at least 80% tribution effects and the polluter-pays principle must also by 2030 and that after the phase-out from coal has been com- be borne in mind. For instance, the polluter-pays principle pleted, the aim should be a greenhouse gas-neutral electricity is important in carbon pricing. The distribution effect is an supply. The fact that a high proportion of electricity con- important aspect in the Carbon Dioxide Cost Sharing Act, sumption in Germany is already met by renewables makes which divides the costs of carbon pricing between building the country more independent of fossil fuel imports and owners and tenants, with their respective shares depending their rising price on the global market. Alongside the rapid, on the building’s energy performance. environmentally friendly and cost-efficient expansion of 51 Chapter B. Areas of transformation renewable energies, we need to develop and expand all the Orange hydrogen is hydrogen produced on the basis relevant infrastructure. On both the generation and the of waste and residues. demand side, there is a need for greater flexibility; energy efficiency must be increased, and the electricity system and Turquoise hydrogen is made using a process called related incentives must be adapted. Given the weather-related methane pyrolysis, in which methane is broken down fluctuations in energy generation from wind and photovol- at high temperatures. This produces solid carbon, which taics, a mix of various renewable energy technologies will be does not escape into the atmosphere, unlike CO2. The required for a functioning energy system. Basically, in order methane pyrolysis process is currently still being devel- to overcome daily and seasonal fluctuations in wind and solar oped. energy production as well as in the demand for energy, it will in future be crucial not only to continue to expand renewa- EU regulation, meanwhile, merely covers renewable bles, expand the grid and strengthen the EU internal market, and low-carbon hydrogen. Grey hydrogen is created but also to expand storage facilities and other climate-friendly mainly from fossil natural gas using steam methane technologies, such as pumped storage, large battery storage reformation. This process produces around ten tonnes systems or hydrogen conversion and storage, as well as con- of CO2 per tonne of hydrogen. The CO2 is released into trollable loads (e.g. electrolysers) and production capacity the atmosphere. This form of hydrogen must be replaced (e.g. hydrogen power plants). by climate-friendly hydrogen. Further, the updated National Hydrogen Strategy envisages hydrogen and its derivatives becoming established more quickly and to a greater extent as energy sources and raw a) Driving a global reduction in GHG emissions materials in Germany. The aim is to meet the expected, dy- In its most recent report of March 2023, the Intergovernmen- namically growing demand in Germany and thus to realise tal Panel on Climate Change (IPCC) urgently reiterates that the technological switchover to hydrogen. In addition, the in order to limit global warming to 1.5°C by the end of the development of international hydrogen value chains is to be century in line with the Paris Agreement, immediate and driven forward. One major field of action is the expansion, deep greenhouse gas emission reductions are needed in all funding and regulation of the hydrogen infrastructure, in regions of the world and in all sectors. Continuing climate particular a hydrogen core network, but also other infrastruc- change will lead to the loss of vital natural resources and en- ture such as ports, import terminals and storage facilities. danger entire ecosystems, for instance through the exceeding The German Government aims to ensure a reliable supply of of tipping points and their feedbacks in the Earth’s system. green and permanently sustainable hydrogen for Germany. For efforts in Germany and the EU to be reflected in mark- In order to ensure the rapid development and ramp-up of the edly falling greenhouse gas emissions globally as well, greater hydrogen market and meet the expected level of demand, emphasis must be placed on international climate policy. particularly during the transition phase, and thus facilitate the technological shift to hydrogen, at least until an adequate One big challenge posed to international climate policy is the supply of green hydrogen is available, other hydrogen colours cost of ambitious climate action measures at national level. will also be used, in particular low-carbon hydrogen produced Even if they do not implement measures of their own, actors from waste or natural gas combined with carbon capture and benefit from the efforts of others. However, the amount and storage (CCS). distribution of transformation costs on the path to green- house gas neutrality influence decisions on where businesses choose to invest, and thus also emissions trends in other Colours of hydrogen countries. For example, without comparable pricing of GHG emissions, there may be an uneven playing field in interna- Hydrogen is generally always a colourless gas. De- tional competition and therefore carbon leakage – in other pending on how it is produced, however, different words, a relocation rather than a reduction of GHG emissions, colours are attached to its name. e.g. from Germany and the EU to trading partners. Green hydrogen is produced by electrolysing water The prime goal of international cooperation on climate using electricity from renewable energy sources. action – namely to drive the implementation of the Paris Agreement so as to keep the goal of limiting global warming Blue hydrogen is grey hydrogen in whose production to 1.5°C within reach – requires measures that are more CO2 is a by-product, but some of it is trapped and stored binding, a greater level of ambition and more joint endeav- in the ground (carbon capture and storage, CCS). ours by the countries represented in the international forums. Effectively avoiding carbon leakage and enhancing dialogue 52 Chapter B. Areas of transformation on decarbonisation measures, e.g. in the industrial sector, in was reached on a Loss and Damage Fund and other funding the Climate Club, and in the energy and building sectors, will instruments for responding to loss and damage caused by help make this goal achievable. climate change. Germany played a crucial role here as one of the first donors. In order to raise international ambition for the goal of limit- ing the global temperature increase to 1.5°C, Germany is At the 29th session of the Conference of the Parties to the engaged at international level for ambitious agreements to UN Framework Convention on Climate Change (UN Climate reduce GHG emissions (“pursuing efforts to limit the tem- Change Conference, COP29) in Baku, Azerbaijan, in Novem- perature increase to 1.5°C above pre-industrial levels”, Paris ber 2024, the Parties agreed on a new climate finance goal Agreement, 2.1a). for 2035. Following difficult negotiations, it was decided to triple the previous target for international climate finance In Dubai in 2023, the need to transition away from fossil fuels for developing countries from 100 billion US dollars per was recognised and further global targets to reduce emissions year to 300 billion US dollars by 2035, including publicly by 2030 were agreed, notably tripling the use of renewables mobilised private financing. Furthermore, agreement was and doubling energy efficiency, reducing methane emissions reached on setting the goal of mobilising a total of 1.3 tril- and other non-carbon emissions, and accelerating low-emis- lion US dollars per year by 2035, including private finance. sion and net zero technologies, especially in areas that are Countries which have seen strong growth in their economies difficult to decarbonise. There were also calls for enhanced and emissions since the conclusion of the Framework Con- efforts to halt or reverse deforestation by 2030. Following de- vention on Climate Change in 1992 will now also be called on mands from vulnerable countries over many years, agreement to report and make their contributions to climate finance. Figure 6: Relative development of Germany’s GHG emissions and real GDP 160 150 149 152 147 134 139 140 130 133 121 123 1991 = 100 (Indexed value) 118 118 120 108 113 100 101 105 100 100 95 93 80 91 87 88 85 82 80 75 75 77 75 73 60 66 63 40 56 20 0 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 GDP, price-adjusted GHG emissions Source: Federal Statistical Office, German Environment Agency Decisions on the further implementation of the decisions on It will be vital, for example, for the next UN Climate Confer- reductions made at COP28 failed in the face of resistance ence in Brazil in 2025 to agree specific approaches to imple- from a few Parties. Thus the necessary breakthrough on the menting the targets agreed in 2023. phase-out of fossil fuels did not happen; the findings of the previous year’s Global Stocktake, however, were confirmed. In this connection, Germany is making an ambitious con- tribution to achieving the targets and is supporting partner The priority now is to resolutely implement the decisions countries in their own endeavours. In the context of devel- taken at COP28 and COP29 through concrete measures. Fu- opment policy, too, Germany is campaigning consistently for ture climate conferences must, however, send much stronger the attainment of the goal of clean, reliable and affordable signals for cuts in emissions. energy for all. 53 Chapter B. Areas of transformation b) Strengthening innovation and scaling of 3. Measures taken ­greenhouse gas-neutral technologies Since 1990 the German economy has seen continuous growth a) Further developments at EU and national level with decreasing GHG emissions in absolute terms and has The German Government contributed constructively to thus succeeded in substantially decoupling its absolute negotiations on the European Commission’s Fit for 55 pack- GHG emissions and its real gross domestic product (GDP). age. European climate and energy legislation was adapted In concrete terms, the real value of domestically produced to the EU’s ambitious climate targets for 2030, accelerating goods and services rose by around 53% between 1990 and the transition to a greenhouse gas-neutral, competitive 2023, whilst GHG emissions – measured in carbon dioxide economy envisaged in the European Green Deal. The bulk equivalents – fell by about 46%. Thus the GHG intensity of of the legislative proposals entered into force in 2023. the value chain was cut by 60% over that period. Within the scope of the Fit for 55 package, a comprehensive The transformation has become markedly more dynamic, revision of the European Emissions Trading Scheme was but must become even more so if the targets are to be reached. agreed. Among other things, the reduction of the emission In this context, the focus in the coming years will increasingly ceiling in the EU ETS I was increased (EU ETS I: –62% in 2030 be on innovations and the scaling of technologies that en- as compared to 2005, previously –43%); the Market Stability hance energy and materials efficiency, replace fossil fuels and Reserve – the instrument to address historical surpluses of raw materials with regenerative energy sources, and enable allowances – is being continued in an ambitious manner, and the use of sustainable resources within the framework of the share of emissions in international shipping accounted sustainable availability in all areas of use. This goes hand in for by the EU will be integrated into the existing EU ETS I. hand with the fundamental restructuring of production processes and applications, often using electricity-based The German Government also lobbied for the Emissions technologies. Trading Scheme to be extended to buildings, road transport and small industrial installations (EU ETS II). The EU ETS II Against this background, the importance of advances in inno- is a milestone in European climate policy: from 2027 it will vation in the context of greenhouse gas-neutral technologies apply an EU-wide uniform carbon price to fuels. The national is key to a successful transformation for three reasons: fuel emissions trading system that has been in place in Ger- many since 2021 is to be integrated into the EU ETS II as part • In a system of capped GHG emissions, such as exists in the of an act adapting the Greenhouse Gas Emissions Trading EU thanks to the emissions trading scheme, the accelera- Act in line with the amendment of Directive 2003/87/EC. ted spread of greenhouse gas-neutral technologies and Together with the ETS, this means that up to around 75% processes reduces the costs associated with the transition of all EU GHG emissions will in future be tied to ever fewer to greenhouse gas neutrality, for both the economy and emissions allowances. Via the Social Climate Fund, some of individual consumers. the income will be used to cushion the social impact of car- bon pricing on the most affected vulnerable groups, e.g. low-­ • In the current system with a “flexible cap” for a large pro- income households, households in transport poverty and portion of the GHG emissions, national measures to pro- microenterprises. Care will be taken to ensure that this social mote innovation in the relevant sectors in Germany are support is implemented in a transparent manner with a also helping to ensure larger emissions reductions in the minimum of red-tape. EU as a whole. In order to prevent carbon leakage, i.e. the relocation of • Not least by stepping up investment in research and de- emission-intensive production to countries outside the EU, velopment and through market scaling in the field of green- the system has so far provided for the particularly affected house gas-neutral technologies, Germany is making an energy and trade-intensive industries to receive free emis- effective contribution to worldwide cost degression and sions allowances. At the same time as it was decided to grad- thus to the international availability and applicability of ually introduce a Carbon Border Adjustment Mechanism, it greenhouse gas-neutral technologies. Initiating cost reduc- was also decided to gradually phase out the system of free tions through innovation and technological advances can emissions allowances. in this connection have a positive impact on international coordination problems and climate action measures of Alongside the reform of the ETS, the Fit for 55 package other countries. contains a host of other goals and measures. The Effort Shar- ing Regulation (ESR) obliges member states to implement 54 Chapter B. Areas of transformation measures at national level to cut emissions in the transport, In November 2022, the German Government adopted the buildings, agriculture, waste and small industry sectors (–40% National Moor Protection Strategy. It outlines the current in total for the aforementioned sectors across the EU by 2030 state of moorland soil protection in Germany and contains compared with 2005, –50% for Germany). In parallel, the numerous targets and measures designed to protect moors, member states must ensure they maintain and improve car- rewet previously drained moorlands and moorland soils, and bon capture and storage in ecosystems, especially in forests ensure their sustainable use. and natural moors (Regulation on land use, land use change and forestry – LULUCF). The EU Regulation on nature resto- The Federal Action Plan on Nature-based Solutions for ration and national restoration plans are intended to secure Climate and Biodiversity (ANK) adopted by the German sink capacities and natural resources in the long term and Government in March 2023 combines climate action with contribute to the goals of the EU Green Deal and the EU Bio- nature conservation and is intended to make a fundamental diversity Strategy. The revised EU Renewable Energy Directive contribution to significantly improving the general state of (RED) stipulates that 42.5% of gross final energy consumption ecosystems in Germany and thus strengthening their resil- should come from renewable energies by 2030, an increase ience and their role in climate action. Nature-based climate from the previous target of 32%. The EU Methane Regulation action measures aim to preserve and, if possible, enhance the was adopted in order to sustainably reduce methane emis- impact of terrestrial or marine ecosystems in climate action, sions from the fossil energy sector. In future, methane emis- while preserving biodiversity. sions generated by energy imports into the EU will also have to be taken into account and from 2030 there will be a binding b) Setting the course for a faster energy transition ceiling on them. The agreement on the Energy Efficiency Since the start of this legislative term, the German Govern- Directive (EED) sets a target for EU energy consumption to ment has very rapidly reduced obstacles to the expansion of be reduced by 11.7% by 2030 compared to a reference sce- renewable energies and of the necessary grid infrastructure nario. Moreover, for the first time, uniform criteria are laid and has laid the foundations for markedly speedier processes. down for the member states, from which the national contri- Initial successes of this approach can already be seen in the butions towards implementing this EU target are derived. accelerating expansion of power generation from renewable sources. Given the realisation periods, particularly in the case In addition, the Fit for 55 package comprises further legis- of onshore and offshore wind energy, the full impact will be lative instruments, providing among other things for more seen in the coming years. ambitious standards for buildings (EPBD) and transport (fleet standards), as well as revised requirements for the develop- The Federation-Länder Pact for the Acceleration of Planning ment of a climate-friendly transport infrastructure in the EU and Approval adopted in November 2023 has also helped to (AFIR) and measures in the maritime and aviation sectors speed up procedures for the development of electricity grids (Fuel EU Maritime and ReFuelEU Aviation). for renewables. The Pact provides for more than one hun- dred measures designed to streamline processes, modernise With the 2023 Climate Action Programme (KSP), the German legislation and make processes more digital. Government adopted a substantial package of measures in Cabinet. The 2023 KSP also contains the immediate action The System Development Strategy (SES) sets an overall programmes for the building and transport sectors necessi- framework for the coordination of interconnections in tated by the failure of these sectors to meet their targets in energy transformation, consumer sectors and energy infra- 2022 in accordance with the Federal Climate Action Act. With structures. In July 2022, the Bundestag and the Bundesrat the 2023 KSP, the climate action gap is likely to shrink by adopted the biggest energy policy legislative package for about 900 million tonnes – i.e. by up to 80%. The projection decades, the energy emergency package (also known as the data from 2024 shows that attaining the 2030 climate targets “Easter package” and “summer package”). The revised Renew- will be a tangible possibility if the German Government sticks able Energy Sources Act (EEG) (which envisages, inter alia, to its course in implementing the measures. So ambitious and that 80% of requirements be met by renewables by 2030; consistent implementation is necessary if the intended reduc- 2023 Renewable Energy Sources Act entered into force on tion is to be achieved. On the one hand, national measures 1 January 2023), the Offshore Wind Energy Act (WindSeeG, help to meet mandatory national targets. On the other, they which raises targets for expansion and redesigns the bid- can help to limit the expected increase in European carbon ding process) and the revised Energy Industry Act (EnWG, prices – depending on the field in question, in the EU ETS I providing inter alia for accelerated expansion of the grid) and/or the future EU ETS II – and thus also reduce the are intended to considerably speed up the expansion of need for accompanying social and business location policy renewable energies. measures in all member states. 55 Chapter B. Areas of transformation Further measures have also been decided upon in the Within the scope of the Onshore Wind Strategy and Photo- Bundestag: voltaic Strategy, the Federal Ministry for Economic Affairs and Climate Action has developed further packages designed • Onshore Wind Act with the Wind Energy Area Require- to help reach the targets for the expansion of renewable ener- ments Act to implement the 2% designated areas target gies. Some of the measures in these packages (measures to for onshore wind energy (regulations in the Federal Buil- expand ground-mounted and rooftop PV installations, make ding Code (BauGB) on legal consequences of failure to landlord-to-tenant electricity more accessible, speed up grid meet the designated areas target, on the simplification of connections and generally reduce red tape) have been im- planning processes and on the “Länder opening clause”, as plemented with Solar Package I. The German Government well as regulations on the monitoring of the designated aims, moreover, for all suitable rooftops to be used for solar areas target in the Renewable Energy Sources Act) energy in future. The bill approved by the Cabinet to imple- ment the third Renewable Energy Directive (RED III) in the • Amendment of the Federal Nature Conservation Act spheres of onshore wind energy and solar energy is intended (BNatSchG) to accelerate the ecologically compatible to speed things further. expansion of onshore wind energy (simplified approval procedures) The expansion of the transmission and distribution grids is a key prerequisite for the success of the energy transition. • EU emergency regulation (2022/2577) and its implemen- In 2022, the German Government improved the conditions tation in the framework of the amended Spatial Planning for anticipatory grid expansion in order to take account at Act to speed up planning processes an early stage of grid planning of the connections needed by new consumers and renewable energy installations. The • In addition, numerous obstacles were removed, for exam- German Government is continuing to work on speeding up ple through support for community energy (funding pro- planning and approval procedures in particular and thus to gramme for community energy companies for onshore advance expansion on all grid levels in good time in line wind energy). with demand. Figure 7: Net installed capacity additions for power generation from renewables 20 18 Newly installed electricity capacity 16 14 12 10 15.12 in thousand megawatts 8 1.32 1.61 6 8.16 1.19 7.51 4.45 7.91 1.46 1.25 7.44 2.63 2.29 0.87 2.87 5.71 4 0.49 3.71 5.54 0.26 0.04 0.24 0.34 0.84 1.27 0.11 0.08 4.65 4.89 0.99 2 1.95 2.90 0.05 3.68 3.99 3.03 0.32 2.23 1.64 2.19 2.26 1.70 2.15 1.16 1.63 2.11 0.68 1.13 0.86 1.07 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Onshore wind energy Offshore wind energy Photovoltaics The figures are from September 2024 and may have changed with subsequent updates since then. Source: Federal Network Agency 56 Chapter B. Areas of transformation Through various legislative proposals, support mechanisms stones reached at COP28, despite counter-movements by and strategies, the German Government is driving the nation- some states. The decisions taken in Dubai form an important al and global market ramp-up of hydrogen and its derivatives basis for the new nationally determined contributions (NDCs) as well as the related rapid, anticipatory development of for the period 2030–2035, which have to be presented in 2025. the necessary transport and storage infrastructure. Explicit They are to cover all sectors and greenhouse gases and be in hydrogen agreements have already been concluded with line with the 1.5°C pathway. numerous partner countries outside the EU, and coopera- tion within the scope of existing energy partnerships and Another key outcome of COP27 and COP28 was the estab- dialogues is being stepped up with a number of yet other lishment of a Loss and Damage Fund – thus responding to partner countries. decades of calls from the particularly vulnerable countries. The fund aims, through programmatic approaches, to sus- The Energy Efficiency Act (EnEfG) serves to implement the tainably strengthen the way in which loss and damage caused revised EU Energy Efficiency Directive (EED) and for the first by climate change in the most vulnerable countries is dealt time establishes a cross-sectoral framework to enhance en- with. ergy efficiency and sets specific energy savings targets. The Energy and Resource Efficiency in Commerce programme Further, COP28 anchored the role of nature in climate action has played a large role in reducing final energy consumption – in the form of the protection of terrestrial and marine in commerce and industry since 2019. ecosystems – as a central approach, closely linked to the goals of the Kunming-Montreal Global Biodiversity Framework. The increasing share of decentralised renewable energies, It was also agreed at COP28 to stop global deforestation and their integration into the electricity supply system and the forest degradation by 2030, and to resolutely advance the increasing demand for electricity are posing new challenges circular economy. The decisions taken at COP28 acknowledge to the electricity system. The German Government is work- the special needs of the developing countries and the need ing intensively, as it did in the negotiations on the reform of to support them, including through technology transfers, for the EU electricity market design, on the issues and challenges a socially just energy transition. surrounding the electricity market design of the future. While COP28 was taking place in Dubai, the German Govern- c) International partnerships for climate action ment adopted its first Strategy on Climate Foreign Policy, In order to raise international ambitions on climate action which will guide its international climate action. The focus with the aim of achieving the 1.5°C target, Germany is en- is on the following six action areas, which involve concrete gaged at international level for ambitious agreements to priorities, goals and activities (chapter B.II.3.b): reduce greenhouse gas emissions.

1. Drastically reducing greenhouse gas emissions by 2030, At COP28 in Dubai, the German Government lobbied with accelerating the global energy transition the EU for a sincere Global Stocktake of the world’s efforts to address climate change. The COP declaration reaffirms 2. Making the economy competitive and fit for the future that global efforts to date are not enough to stabilise global and ensuring climate justice warming at 1.5°C above pre-industrial levels by 2100. The international community confirmed the reduction pathways 3. Solidarity with the most vulnerable: preserving our needed for 1.5°C with a reduction of 43% by 2030 and 60% natural resources and protecting health by 2035 as well as net zero CO2 emissions by 2050. These are linked with specific reduction measures up until 2030 to 4. Protecting, restoring and promoting the sustainable use which all Parties are to contribute: the gradual transitioning of ecosystems away from fossil fuels with the aim of restricting global warming to 1.5°C, together with the global targets to triple 5. Strengthening resilience, peace and security the use of renewables and double the annual rate of improve- ment in energy efficiency worldwide by 2030, the reduction 6. Making international financial flows consistent with a of methane emissions and other non-carbon emissions and 1.5°C-­compatible pathway and climate-resilient devel- the acceleration of low-emission and net zero technologies, opment particularly in areas that are difficult to decarbonise. The highlight of COP29 in Baku was the decision on setting It is true that no agreement was reached at COP29 in Baku on a new collective quantified goal on climate finance (NCQG). concrete steps to implement the aforementioned measures. This decision on a new goal by 2035 marked a new approach However, thanks to a broad-based coalition of ambitious to climate finance. At the same time, although COP29 did states, it was possible to prevent a weakening of the mile- not reach agreement on concrete steps to implement the 57 Chapter B. Areas of transformation goals of COP28 – primarily tripling the rate of expansion of capacity-building measures. In this context, Germany is renewable energies, doubling energy efficiency and transi- making a substantial contribution towards supporting indus- tioning away from fossil fuels in energy systems – there was trial decarbonisation in emerging economies and developing no weakening of these milestones, thanks to a broad-based countries via the International Climate Initiative (ICI) and coalition of ambitious states. After years of negotiations, through its payments to the multilateral Climate Investment COP29 finalised the remaining outstanding guidelines on Funds (CIF). voluntary carbon markets – the last part of the Paris Agree- ment rules that remained open, and one which is of signifi- The German Government supports partner countries in cance especially for companies and for cooperation between decarbonisation efforts in numerous other formats, too. With industrialised and developing countries. The renewal and the plurilateral Just Energy Transition Partnerships (JETPs), extension of the Work Programme on Gender and Climate the G7, along with other international partners, assists the Change was another success. Progress was also made on the partner countries in accelerating their socially just energy Indicator Work Programme towards adaptation. transition. To finance the ambitions of the JETP goals, the donor countries mobilise funds in cooperation with multilat- The international Climate Club was set up during Germany’s eral development banks and the private sector. The German G7 Presidency in 2022. The Climate Club – which now num- Government further promotes bilateral energy partnerships bers 43 members, industrialised countries, emerging econ- with more than 30 countries, as well as ten bilateral and one omies and developing countries from around the world – regional climate and development partnerships (P+) world- began working actively following the full launch at COP28. wide. In this way, the German Government supports partner It has established itself internationally as a central forum for countries important in terms of climate action with decarbon- the ambitious decarbonisation of industry and has, within a isation and with adaptation to the effects of climate change. very short space of time, come to play a key role in the inter- national discourse at the interface between climate action, At international level, the German Government is a reliable green economic growth and industry. The Climate Club aims partner in the provision of climate finance. Federal Chan- to be an inclusive, intergovernmental forum that contributes cellor Olaf Scholz recently made this clear again at COP28. to the ambitious implementation of the Paris Agreement in Alongside market funds mobilised by public funds and pri- the field of industrial decarbonisation. The Climate Club Work vate-sector investment, Germany made a major contribution Programme 2024 adopted by members includes activities to (9.9 billion euro) towards achieving the collective goal of mak- promote ambitious, transparent climate action policies and ing 100 billion US dollars available annually for international measures as well as the transformation of industries. Interna- climate finance. With bilateral climate finance, Germany’s tional cooperation and partnerships with emerging econo- contribution to the multilateral development banks and the mies and developing countries to decarbonise their industries multilateral climate funds, and support for international are actively promoted. The discussion of common framework programmes and initiatives such as the NDC Partnership and conditions, such as standards for green industrial products, the ICI, the German Government is promoting solutions in is intended to ensure investment in sustainable industrial developing and emerging countries to help them implement technologies, the expansion of demand for green products and further develop their NDCs in an ambitious manner. and the avoidance of climate-damaging lock-in effects in This also includes measures to adapt to the effects of climate fossil production processes in upcoming investments. change, to preserve biodiversity, to protect forests and to preserve and rebuild natural carbon sinks, taking into account Key Climate Club deliverables in 2024 were presented at environmental, economic and social concerns. COP29, including a joint understanding of carbon leakage, support for the IEA principles on the definitions of green In addition, the German Government has drawn up a climate steel and cement, and the recognition of convergence on strategy for the guarantee instruments of foreign trade and threshold values for low-emission and emission-free steel investment promotion with which the range of instruments and cement production. In addition, the Global Matchmak- is aligned with the pathway set forth in the Paris Agreement. ing Platform began its work as a central support instrument The aim is to strengthen green exports and investment for emerging economies and developing countries. Activities through simplified underwriting processes. planned in 2025–2026 include the establishment of a scien- tific expert body on industrial decarbonisation, the contin- The gradual termination of the existing measures to protect uation of the strategic dialogues on carbon leakage and other against carbon leakage (in particular free allocation) and spillover effects, the further development of work on defi- the transition to the Carbon Border Adjustment Mechanism nitions and standards for green steel and cement, of a joint (CBAM) in the EU strengthen the polluter-pays principle approach to demand- and supply-oriented measures such as not only internally but also externally. The incentives for green public procurement and lead markets, and the further producers in non-EU countries to increasingly decarbonise development of the Global Matchmaking Platform and their production for import into the EU will be enhanced, 58 Chapter B. Areas of transformation thereby reducing the costs of CBAM. In addition, trading man Government and the relevant Länder plan to contribute partners also have an incentive to reduce the cost of CBAM approximately 4.6 billion euro to the German IPCEI Hydro- for their exports to the EU by introducing carbon pricing and gen projects. The projects approved by the European Com- at the same time to generate income for themselves from mission in 2022 as part of the Hy2Tech and Hy2Use waves are carbon pricing. When it comes to the further development already being implemented. The IPCEI Hydrogen projects of the CBAM, a particular priority will be to take account of range from the production of green hydrogen to infrastruc- the risks of carbon leakage for individual product groups and ture and the use of hydrogen in industry and for mobility. the administrative burden for authorities and companies. By giving support for the high initial investment costs, the Via the Climate Club, emerging and developing countries state is hedging the investment risks at the start of the market are supported as they seek to decarbonise their economies. ramp-up in order to overcome hurdles and promote “learning by doing” and cost-effective market scaling via private-sector d) Promoting innovation before and investment. ­after ­market readiness The German Government’s climate and energy policy The German Government has also adopted key principles for measures address innovation potential and the scaling of a Carbon Management Strategy, to outline areas of applica- technologies in various respects. The German Government tion as well as the legal, ecological and economic framework is promoting technological progress in the decarbonisation conditions for carbon capture and utilisation (CCU) and car- of industry through various programmes. The “Decarboni- bon capture and storage (CCS) and to enable the technology’s sation in Industry” programme and the “KlimProIndustrie” ramp-up. The revised Federal Climate Action Act sees the funding measure support energy-intensive (primary) indus- introduction of a target for technical sinks like bioenergy tries (including steel, chemicals, cement) in developing and with carbon capture and storage (BECCS) or direct air carbon investing in innovative climate-friendly technologies for the capture and storage (DACCS). In this connection, the German avoidance of greenhouse gas process emissions. Furthermore, Government is elaborating a long-term negative emissions up until 2027, the German Government is promoting applied strategy intended to ensure that the role of negative emis- R&D projects under the Lightweighting Technology Transfer sions is taken into comprehensive account in German climate Programme, which is open to all technologies and sectors. policy up until 2060. The principles for the long-term nega- tive emissions strategy were published in February 2024. In The carbon contracts for difference (CCfDs) funding pro- order to realise the necessary levels of negative emissions in gramme helps companies from emission-intensive sectors good time, the German Government is, among other things, to invest in climate-friendly production facilities. CCfDs shield funding research into land-based and ocean-based carbon companies against price risks (e.g. of hydrogen or carbon dioxide removal. dioxide), thereby creating secure investment conditions in Germany and advancing the transformation of industry. As a strategic element of energy policy, the German Govern- At the same time, however, the state also benefits from the ment’s support for energy research – from basic research to economic opportunities afforded by a shift to climate-friendly applied research – is consistently geared towards the realisa- technologies, as companies pay money to the state on the tion of the energy transition and, in the spirit of preparing basis of the CCfD to the extent that green production is for the future, the time beyond. For the field of applied ener- profitable without state support. CCfDs are intended to give gy research, the mission-oriented 8th Energy Research Pro- impetus to the transformation of industry in Germany. gramme for Applied Energy Research, which, with its five Technology learning curves for climate-friendly production missions (energy system, heat transition, electricity transi- processes are to be sped up by means of transitional fund- tion, hydrogen and practical transfer), is consistently oriented ing for first industrial applications, to ensure wide-ranging towards energy policy goals, provides the framework for ef- market-driven applications. Thus, in the medium term, state fectively supporting the transformation of the energy system. support will become superfluous. In particular, the funding is intended to spark and accelerate technology development and transfer by furthering the Greenhouse gas-neutral primary industry is inconceivable transformation to a greenhouse gas-neutral energy sector by today without the use of hydrogen. Further support meas- 2045 and to create a favourable environment for innovation. ures such as those under the Important Project of Common European Interest (IPCEI) Hydrogen programme promote With its Future Research and Innovation Strategy, the Federal the market ramp-up of hydrogen technologies along the Government is placing research and innovation policy on a entire value chain. The 24 projects submitted by Germany new footing in order to improve the conditions for research that were part of the “infrastructure wave” (Hy2Infra) and and innovation. The key aim of the Future Research and that were given the go-ahead by the European Commission Innovation Strategy is to tackle the global challenges as on 15 February 2024 have received their funding approval innovation policy goals and to implement this in a mission-­ notices and can now embark on implementation. The Ger- oriented manner across all ministries. With the creation of 59 Chapter B. Areas of transformation interministerial mission teams, the Future Research and Belém, Brazil), ambitious agreements on reduction will be Innovation Strategy is making a crucial contribution to estab- crucial, participants in Baku having agreed only to adhere lishing new forms of interministerial cooperation and to to the decisions from the previous year. Here, too, the focus breaking down the oft-criticised silo mentality. As an inde- must be on the conditions for implementing the global en- pendent advisory body, the Forum #Future Strategy observes ergy transition in an environmentally friendly, socially just the implementation and further development of the Future manner. The focal point of COP30 will be the new, ambitious Research and Innovation Strategy and is in direct contact nationally determined contributions (NDCs) for 2030–2035, with the interministerial mission teams. The six missions which must be submitted in 2025 and which cover all sectors of the Future Strategy reflect various connections to the and greenhouse gases and must align with the 1.5°C target. transformation teams. To this end, it is vital that the necessary halving of global emissions by 2030 be realised. The objectives set during the The Federal Agency for Breakthrough Innovation (SPRIND) COP negotiations, especially those of the Global Stocktake, established by the German Government has been promoting must be implemented via specific measures in all sectors. innovation with disruptive potential since 2019. SPRIND aims The German Government, together with the EU, will make to find solutions to social, ecological and economic challenges additional efforts to incentivise and drive the attainment of in order to create new value added and new jobs. SPRIND the targets by the international community. works agilely and flexibly, is more open to taking risks than traditional funding programmes and is far more autonomous. Germany will continue to engage, both at the international To date, SPRIND has supported particularly promising ideas level in the G7, G20, OECD and Climate Club and in its sup- with breakthrough potential within the scope of innovation port for developing countries building relevant instruments, contests (“Challenges”) and in subsidiaries. The new SPRIND for the development and expansion of effective carbon pric- Freedom Act will enable SPRIND to expand its financial ing and emissions trading systems that are socially just. Here, instruments and will lead to speedier funding decisions and Germany aims to establish internationally compatible emis- increased budgetary flexibility. sions trading and pricing systems with the medium term goal of ensuring an appropriate carbon price which is as uniform as possible. In a dynamic environment with differing levels

4. Next steps of ambition on climate policy in different parts of the world, constant efforts must also be made to strengthen protection a) Further developing EU climate policy against carbon leakage. In this context, the agreed EU-wide The legislative proposals realised as part of the Fit for 55 pack- carbon leakage rules must be further developed. It must be age are intended to implement the Green Deal and the target ensured that the instrument remains WTO-compatible and of transitioning to a greenhouse gas-neutral, competitive administratively manageable. The long-term goal should be economy contained in it. It is vital that we continue along for unilateral protection against carbon leakage to become this path with a high level of ambition and in a socially com- unnecessary, thanks to international efforts to align climate patible and competitive way. This will also be a major task for policy ambitions and to decarbonise economies. the newly elected European Commission. The revised Emis- sions Trading Directive, for example, provides for a review COP30 will in addition focus on preserving and restoring of the future inclusion of further emissions in the EU ETS, natural carbon sinks and in particular on protecting tropical in particular from waste management. rainforests. Following the Global Stocktake at COP28 in Dubai, the Euro- c) Deliberately promoting and leveraging pean Commission is also called upon to submit a proposal for ­climate ­action innovations the EU climate target for 2040, which must then be decided on Innovations and the scaling of technologies for avoiding by the member states. The new EU NDC (the EU’s nationally greenhouse gases are important levers to align the trans- determined contribution) for the 2030–2035 period, which as formation process with other SDGs. In order to drive the per the Paris Agreement has to be presented ahead of COP30 necessary innovations in a targeted manner, both government in 2025, will be derived from this. expenditure on investment in innovation cycles before market readiness and incentives for the use of available technologies b) Promoting and stimulating international are required. While the latter promise more concrete GHG ­climate action efforts reductions in the short term, investment to bring innova- According to the UNEP Emissions Gap Report 2024, the inter- tions to market is of great importance in the long term. national community’s current policy measures are leading to Examples: the development of new battery storage technol- a world that is between 2.6 and 3.1°C warmer than pre-indus- ogies or approaches to hard-to-abate emissions in industrial trial levels. Therefore international climate policy needs to processes. The promotion of “green” innovations avoids or be stepped up. At the 2025 climate negotiations (COP30 in reduces negative environmental externalities, contributes 60 Chapter B. Areas of transformation to the necessary reduction of productivity gaps due to path Thus the social effects of climate action and environmental dependencies, and makes use of the above-average spillover protection measures must be better anticipated so that the effects of green innovations into other technology areas. The related burdens and unavoidable social hardships can in Future Research and Innovation Strategy focuses on steering good time be minimised, compensated, or at least equitably research and innovation activities towards societal and global distributed. Taking account of the social repercussions of challenges. The goal is for its mission orientation to be even climate policy ex ante in this way can be a crucial building-­ more strongly anchored. With resources becoming more and block to accelerating climate policy and improving society’s more scarce, this mission orientation aims to support the acceptance of climate action measures. With this in mind, prioritisation of future-oriented investments. At the same the German Government decided as part of the 2023 Climate time, mission orientation does not conflict with the technol- Action Programme to introduce a social monitoring system ogy neutrality approach. for climate protection which will in future analyse the social distribution effects of climate action measures even when As before, climate policy must increasingly involve leverag- these measures are being elaborated and which will plan ing private investment. CCfDs and other measures mentioned measures in as socially equitable a way as possible. The newly above help to ensure investment and planning certainty and established Social Climate Fund aims to help households provide companies with incentives to invest and innovate in and micro-entrepreneurs especially affected by European technologies to reduce greenhouse gases. carbon pricing in the building and transport sectors from 2027 with decarbonisation and in the long term to protect In the medium and long term, however, secure demand them from increasing carbon costs. In order to be able to can support private investment in these technologies and access the finance available to Germany from the Social innovations. With procurements totalling hundreds of bil- Climate Fund from 2026, the German Government must lions per year, the public sector has a direct lever to create draw up a national social climate plan by mid-2025 and incentives for climate-friendly innovations. The German present it to the Commission for approval. Government makes use of this leverage and, with the Com- petence Center for Sustainable Procurement, supports pub- lic contracting bodies in applying sustainability criteria in Quote from the dialogue process: procurement processes. By instituting appropriate procure- “The municipalities play a decisive role in implementing ment rules, the state can create green lead markets for certain the energy transition. They not only plan, coordinate commodities produced in a greenhouse gas-neutral way, for and steer implementation at local level. They are the instance “green” steel or cement. Possible levers here are vital interface to the public and create the necessary labels, product standards and public procurement quotas degree of acceptance among members of the public.” and criteria. Association of German Cities

5. Taking greater account of the social impact of climate action measures There exists considerable potential for involving local stake- holders in the energy transition. As the energy transition Advancing climate change brings with it great changes. In directly affects various aspects of people’s lives, involving this context, it must be remembered that high-income sec- local actors can improve acceptance of climate action. Mem- tions of the population make a substantially bigger contribu- bers of the public, municipalities and companies locally tion to climate change through their consumer behaviour can play an active part in the transition by investing in and than low-income groups. They can shoulder price increases operating their own renewable energy installations. There caused by the transformation more easily than low-income are also other ways for local stakeholders to become involved. households. At the same time, low-income sections of the The provisions of section 6 of the Renewable Energy Sources population are often disproportionately hard-hit by the costs Act allow municipalities to benefit financially from local of the transformation. In the interest of the social-ecological operators’ returns on their renewable energy installations. transformation, solutions must therefore be found that Many Länder have in the meantime established binding rules combine climate action with social justice and take due on financial participation, some of which include participation account of the social, ecological and economic dimensions by members of the public. of sustainability. 61 Chapter B. Areas of transformation

6. Spillover effects Beyond the energy sector, comprehensive attention must be given to strategies and plans in other sectors, There are a few examples of spillover effects of the specific geographical and demographic features and energy transition, too. the (possibly negative) effects of short- and long-term solutions. For example, given rising demand for raw The energy transition comes with a significant increase materials and land, stopping deforestation and pro- in the demand for certain raw materials, which are tecting and restoring forests and ecosystems here at often found predominantly in countries of the Global home may lead to deforestation and damage to forests South: e.g. copper for the expansion of power grids, in other countries. Strengthening the national frame- lithium and cobalt for electric mobility and iridium for work and improving monitoring will prevent activities electrolysers. Consequently, the German Government from merely being shifted elsewhere and will help to supports the clean, environmentally friendly extraction quantify the effects on the climate. For agricultural and processing of raw materials in partner countries, products imported into the EU, the EU Regulation on taking account of environmental, social and human Deforestation-Free Supply Chains addresses the danger rights aspects. Further, it is committed to the expansion of deforestation through the call for traceability all of the circular economy with a view to reducing demand along the supply chain. for primary raw materials. The German Government’s endeavours to ramp up hydrogen are contributing to the sustainable transfor- mation of both the German and the European economy. III. Circular economy In accordance with the Import Strategy for hydrogen and hydrogen derivatives adopted by the German The tangle of ongoing environmental crises, in particular the Government in July 2024, the German Government is climate and biodiversity crisis and the littering and pollution supporting the establishment of and compliance with of ecosystems, is at its core the result of the overexploitation joint ambitious and workable sustainability standards of natural resources. This goes hand in hand with social and criteria and is working to update and harmonise challenges: in many countries, the exploitation of raw materi- these where necessary. It takes care to ensure that green als involves precarious working conditions as well as social hydrogen projects in partner countries support the conflicts that might be further inflamed as a result of direct expansion of renewable energies and the improvement and indirect consequences of the use of raw materials, such of the local energy supply, in order to avoid negative as extreme weather events and continuing scarcities. More- impacts on local ecosystems, public health and incomes. over, the vulnerability of supply chains has increased in recent Overall, the growing demand for hydrogen affords years owing to the emergence of new geopolitical trouble marked economic opportunities for exports and devel- spots. Demand for raw materials that, given these challenges, opment, also for many countries of the Global South. cannot be met from local primary commodity production The availability of natural resources, such as water, is can be tangibly reduced by transitioning to a more circular not to be significantly impaired by hydrogen production economy. in the producer states; in particular, hydrogen produc- tion must not cause water scarcity in the producer states. The transition to a circular economy addresses precisely these In decarbonising the transport sector, the benefits and challenges. The circular economy is a holistic approach that risks of biofuels must be carefully weighed in order to shapes the entire value creation cycle – from raw materials avoid negative spillover effects. The sustainable, climate-­ production to product design, manufacture and usage, to the friendly biofuels, with their limited availability, are an return of materials at the end of the product’s life cycle – in option for sectors that are difficult to decarbonise, such a sustainable manner. as aviation and shipping, or for special uses, for example in the military sphere. In principle, the production of biomass for the manufacture of biofuels can lead to Figure 8: SDGs of particular relevance for TT 3 more intensive land use and thus to negative, cross-­ border effects on biodiversity, water, the climate and food security. Biofuels should therefore be produced primarily from residues and waste. 62 Chapter B. Areas of transformation At the same time, the circular economy affords an opportu- current market prices for raw materials, transport and waste nity to manage the economy in a future-proof way by pre- disposal, linear production processes often cost less than serving natural resources for future generations and reducing circular processes. the German economy’s critical dependence on imported raw materials: products are used more intensively and for longer, To that extent, non-internalised external costs are a major recyclates are increasingly used instead of primary materials, hurdle in efforts to spread circularity. and thus raw materials imports are replaced by secondary raw materials. Furthermore, the circular economy strengthens regional economic cycles, thereby additionally fostering 1. Aims opportunities for growth and good jobs locally. Using the circular economy to leverage potential for Circularity is an important element of a future-oriented value the economy and environment creation process in Germany. Through circular economic An effective circular economy will make a significant contri- management, waste can be avoided and, in combination bution to climate action. The recycling and reuse of materials with resource-saving technologies, new value creation and means that fewer natural resources are needed; at the same employment potential can be opened up in Germany and time, the greenhouse gas emissions produced in the transpor- Europe; a substantial contribution can be made to easing tation, processing and disposal of raw materials are reduced. problems of scarcity and dependence; biodiversity can be According to the most recent study by the International preserved; and an ambitious approach can be taken on the Resource Panel, greenhouse gas emissions could be cut by pathway towards climate neutrality. Germany can establish more than 80% compared to today’s levels by 2060 in line itself as a pioneer in circular technologies and circular pro- with the Paris Agreement, alongside an absolute reduction duction processes and thereby open up new value creation in energy consumption, agricultural land use and other potential. According to the EU’s Circular Economy Action detrimental impacts. Plan (CEAP), the circular economy optimises the value of products and the raw materials they contain by focusing on The German Government aims to set the course for a circular their entire life cycle. The example of the circular economy economy, working together with the business community demonstrates how outstanding research in Germany can lead and civil society. Digitalisation plays a decisive role here – to products and business models that will make sustainable because digital information is the absolute essential for indi- growth possible worldwide. vidual parts of the circle to mesh together. And: digitalisa- tion and new data spaces are drivers of technology. In this The idea of the circular economy can thus contribute to all framework, a resource-saving circular economy makes a vital dimensions of sustainability – climate action and the pro- contribution to climate action and to preserving biodiver- tection of resources as well as competitiveness, economic sity. At the same time, it can help to resolve the problems security and good jobs. of scarcity and dependence by ensuring resource security. Technologies such as lightweighting play an important role Since the 1990s, Germany has made huge advances in waste here, as they help to cut primary raw materials consump- and circular management and now has one of the highest tion and greenhouse gas emissions and at the same time recycling rates in the world. strengthen the economy’s competitiveness and innovative capacity. Lightweighting thus offers a very good chance to Viewing products or materials at the end of their life cycle as align climate action and the conservation of resources with once again being raw materials is key to hastening the trans- a sustainable increase in competitiveness. It is necessary to formation to a circular economy. The aim is to strengthen and, make use of the huge value creation potential for digitalisa- wherever possible, expand and further develop established tion, new technologies, innovations and enhancing compet- and effective systems, but also to come up with new processes. itiveness, not least in the SME sector. Despite relatively high recycling rates, there is nonetheless Positive note should be taken of the growing public interest considerable potential to optimise the circularity of the in the issue, among both businesses and consumers, and German economy: according to the EU Circular Economy of new optimised processes within individual stages of the Monitoring Framework, for example, the proportion of re- value chain. cycled raw materials used in domestic industry in Germany, at 13%, is only slightly above the EU average. At the same time, greater efforts are needed to spark a far-­ reaching innovation dynamic. Policymakers are called upon In addition, there is at present a lack both of circular business to provide the right framework. This may involve incentive models and of product design approaches oriented more systems and steering and/or price mechanisms along the towards circularity. Particularly against the background of value chain, so that the most ecologically favourable solu- 63 Chapter B. Areas of transformation tions win through in competition. In order to ensure a suc- The transition to a circular economy pursues an innovation cessful circular economy, it is necessary also to look beyond agenda that combines technical advances, innovative business Germany and Europe to global supply chains. That is where a models and a supportive regulatory market environment. In large proportion of raw materials extraction, production, but this context, Germany can build on excellent basic research in many cases also end-of-cycle disposal takes place. The rel- in many areas. The aim now is to position corresponding evant countries must be considered part of the material cycles innovations on the market and then scale them successfully, if German and European targets are to be met successfully. this latter being particularly challenging in the ramp-up phase. It is therefore necessary to What is needed, for example, is meaningful support for in- • continue to lobby at international level for the integration novation transfers, increased cooperation between research of the circular economy into the nationally determined and industry, and tailored support for circular innovative contributions under the Paris Agreement; start-ups. One key factor here is consistent dovetailing with the digitalisation of value chains. • drive the implementation of the Berlin Roadmap adopted by the G7; Collecting the relevant data along circular value chains, for instance via a digital product passport, is a prerequisite for this. • work with international partners to establish a network of It is also important to ensure low-threshold yet high-quality states and institutions dedicated to making increased use data collection on the participation of less digitalised market of the potential for emissions reductions harboured by the players while preserving commercial secrecy. conservation of resources; Given its strong market position in Industry 4.0, Germany has • take regulatory measures to ensure a level playing field a chance here to establish the subject of Design4Circularity for primary and secondary raw materials in Germany and as a defining issue for products, processes and value creation the EU; networks. The circular economy will then also contribute to strategic digitalisation and the digital readiness of the • help ensure a level playing field for improved access to German economy. Thus the circular economy and digitali- sustainable financing possibilities for companies in the sation can have a positive effect on each other. circular economy and to improved incentive structures for investments in the circular economy, e.g. via depreciation modalities – these could furthermore increase the compe- 2. Measures taken titiveness of German industry and thus the attainable tax revenue in the medium and long term; In recent years, raw materials consumption in Germany has been decoupled from economic value creation. This is • drive the dismantling of market-distorting subsidies and demonstrated by the development of indicator 8.1 Raw regulatory obstacles which in principle undermine econo- material input productivity. The average annual increase in mically profitable circular business models and thus prevent total raw materials productivity in the period 2000–2010 of the scaling of the circular economy; around 1.6% is to be continued up until 2030. The increase from 2010 to 2018 was about 1.0% per year. This shows a • lobby for an equitably organised global circular economy – relative decoupling of economic growth and raw materials this might happen, for instance, through overarching co- input, but not as much as desired. Palpable changes can be operation all along the value chain, from raw materials seen in the raw materials group “ores” in particular. extraction to product design to the development of appro- priate capacities and secondary raw materials markets and Germany has launched numerous initiatives at national, additional value creation on the ground; European and international level to strengthen the circular economy. They are programmatic and regulatory in nature • orient research funding to harnessing potentials along and relate to specific source streams, sectors and product the waste hierarchy that improve waste avoidance, e.g. groups. circular product service systems; a) Foundations for a circular bioeconomy • support and strengthen digitalisation initiatives in the Biogenic raw materials, i.e. sustainable raw materials (agri- circular economy to exchange necessary data in order to cultural and forestry raw materials of plant origin) and raw close material cycles – to this end, consideration is being materials of animal origin that can be used outside the food given to creating regulatory sandboxes in the circular sector (foodstuffs and animal feed) as materials or energy are economy, too, in order to promote innovation. only available to a limited extent in Germany and worldwide 64 Chapter B. Areas of transformation and are already being used largely beyond planetary bound- and commercial associations, and one with associations of aries. The National Bioeconomy Strategy (NBÖS) therefore the away-from-home catering industry. Further measures, in aims to establish a biobased circular economy. According to particular for private households and the interfaces between the German Environment Agency’s Resources Report, namely, sectors, are planned. biomass accounted for more than 15% of Germany’s raw materials consumption in 2019 (386 million tonnes). c) Enabling sustainable consumption decisions It is important that consumers can decide to buy more envi- The bioeconomy has huge potential to contribute to sustain- ronmentally and socially sustainable products and services. able, competitive and resilient economic management. It can In 2016, the German Government presented the National play a part in overcoming global challenges such as food Programme for Sustainable Consumption (NPNK), an inter- security, climate change and environmental and resource ministerial scheme intended to take sustainability from niche protection. to mainstream. This programme was revised in 2021 and further measures were added. Through research and innovation, e.g. optimised production processes and the use of by-products, work is ongoing to find These include cutting per-capita GHG emissions by half by ways to use biomass more efficiently. Bio-based products 2030, a target confirmed by the Government in the National and their residues are integrated into materials cycles and Circular Economy Strategy adopted by the Federal Cabinet cascades in order to reduce resource consumption and en- on 4 December 2024. In 2024, the ministries approved the sure that materials can be used for as long as possible. Where indicators for measuring sustainable consumption devised different uses find themselves in competition, food security by the German Environment Agency in collaboration with always has priority. the Centre of Excellence for Sustainable Consumption. A report was compiled on the status of implementation of the There is still a great need, particularly in the chemical indus- now 110 measures of the 2021 National Programme. It said try and construction sector, to replace fossil and other raw that half of the measures had been implemented, or were materials, for example with sustainable raw materials such well advanced in implementation, so far. In the case of at as wood, natural fibres or mushroom mycelium, or with least 40 measures, however, there were severe obstacles to residues and bio-waste. Waste and residues in particular can implementation (for an overview, cf. German Environment in many cases be processed into higher quality materials. Agency text 92/2024, in German). As the natural foundations for biomass production, especially The challenges for sustainable, secure consumption can agricultural land, are limited, one key aspect is to use biologi- also be seen in online commerce. Market monitoring agen- cal resources along the entire value chain efficiently and with cies and customs authorities have found that traders often care. Attention is also paid to ensuring sustainable produc- do not adhere to existing environmental, health, consumer tion and to preserving and restoring natural habitats, biodi- protection and product safety standards or import regulations. versity and natural carbon sinks. In order to better enforce the law, particularly in relation to traders and platforms from third states, the German Govern- With the National Bioeconomy Strategy, the German Govern- ment is currently drawing up an action plan on e-commerce. ment has already set forth the framework, principles, strategic The European Commission, too, has taken action: in light of and operational goals and areas of action for measures. possible violations of the Digital Services Act, it has requested information from the platforms Temu and SHEIN, and on b) Reducing food waste 31 October 2024 opened formal proceedings against Temu. Similarly, with its National Strategy for Food Waste Reduc- Among other things, it is assessing whether there have been tion, the German Government has since 2019 already been violations in connection with the sale of non-compliant pursuing the goals of the 2030 Agenda, in particular SDG 12.3, products, addictive designs or problematic recommendations. and indeed going beyond it: in Germany, food waste is to be Moreover, it is vital that the market monitoring agencies halved by 2030, not only in private households and commerce, of the Länder can take firmer action against e-commerce but along the entire food supply chain, and food losses are to platforms in order to ensure the distribution of safe, non-­ be reduced. harmful products. The National Strategy is continuously being updated. To In order to further develop fair trade standards in partner this end, all available options are examined and legislative countries of German development cooperation, Germany measures considered. In a participatory process, appropriate participates in the KfW Fairtrade Access Fund, which sup- approaches were identified and effective measures developed. ports Fairtrade or similarly certified cooperatives in Latin One target agreement has been concluded with companies America and Africa through loans. Fair trade organisations 65 Chapter B. Areas of transformation in Germany, too, receive support, for instance via the devel- uct quantities sold in the 2024 calendar year. The Single-Use opment policy education funding programme for broad- Plastics Fund is designed to help clean up public spaces and to based information and education on supply chains and the reduce environmental pollution caused by single-use plastics. importance of fair trade for fighting global poverty. Nevertheless, enforcement of existing regulatory law remains another fundamental strand of efforts to reduce the careless disposal of waste in the environment. Statement from the dialogue group: “Deliberate consumer decisions can make a decisive e) Batteries: regulated from design to disposal contribution to climate action. What is needed above Batteries are a key technology in being able to achieve the all alongside political measures is the information energy transition and climate action targets and at the same element: surveys show that with the huge number of time in leveraging new economic potential. It is therefore all quality labels, etc., consumers cannot judge the actual the more important that the design of the batteries is oriented benefit for the environment.” to subsequent comprehensive recycling and that the products have as small a carbon footprint as possible, are long-life and Federation of German Consumer Organisations (vzbv), safe, and at the end of their cycle can be disposed of correctly Jochen Geilenkirchen in such a way that the raw materials they contain can be reused. The Regulation of the European Parliament and of the Coun- d) Improving waste avoidance cil concerning batteries and waste batteries, which entered The Government has also enhanced Germany’s leading role into force in August 2023, harmonised these aspects across in waste avoidance. With the Waste Prevention Programme Europe. It regulates, for the first time, the entire life cycle of (AVP) set up by the Federation with the participation of the a battery, from manufacture to disposal. In future, the car- Länder in 2013 and its revision in 2021, programmes have bon footprint of electric vehicle batteries and rechargeable been put in place highlighting the relevance of waste avoid- industrial batteries is to be declared. ance and pointing to specific measures that stakeholders at various levels can take in order to prevent the generation In addition, performance classes and probably also maximum of waste in the first place. The aim is to decouple economic limits on the carbon footprint are going to be introduced for growth and the impact of waste generation on people and these batteries. From 2031, the Regulation sets forth mini- the environment. mum levels of recycled content for specific substances (e.g. lithium and lead) for electric vehicle batteries, large industrial The Single-Use Plastics Fund transposes the EU Single-Use batteries and starter batteries. Furthermore, it fixes minimum Plastics Directive into national law. Specific measures of the requirements in terms of life cycle and performance of in- EU Single-Use Plastics Directive had already been imple- dustrial batteries, batteries in light means of transport such mented, including bans on single-use plastics for which there as e-bikes and portable batteries of general use. The Regu- are already environmentally friendly alternatives, or rules lation also introduces rules on the replaceability and easy on labels telling consumers that products contain plastics, removability of portable batteries and LMT batteries. This which waste disposal methods must be avoided and what is intended to make a fundamental contribution towards the environmental impact of incorrect disposal would be. extending the life cycle. There is also an obligation to make The Single-Use Plastics Fund makes manufacturers more batteries available as spare parts for at least five years. This responsible for certain single-use plastic products. The aim is an important step to extending appliances’ useful life and is to involve manufacturers in the cost of municipal waste strengthening consumers’ rights. The Regulation concerning disposal of certain single-use plastic products, as these prod- batteries and waste batteries further stipulates corporate due ucts are frequently discarded in public spaces or casually diligence obligations in a particular way: for the first time, tossed away. corporate due diligence obligations are to be regulated along the supply chain for a specific product group. In particular, The legal basis is the Single-Use Plastics Fund Act (EWK- environmental aspects in international raw materials supply FondsG). Manufacturers of the single-use plastic products in chains are to be given considerably more attention than in question pay a levy into the Fund each year. The Fund will existing legal instruments in the field of raw materials. More- reimburse public waste disposal authorities for the costs they over, ambitious collection and recycling targets at EU level incur through collection and cleaning activities in public are to ensure that waste batteries are collected and recycled spaces and through awareness-raising measures. Up until in a reliable manner. The collection and recycling targets are now, these costs have been met by the taxpayer. The levy to be raised gradually in the years ahead. must be paid for the first time in 2025 on the basis of prod- 66 Chapter B. Areas of transformation The battery passport is the first digital product passport to be Economic growth is to be decoupled as far as possible from introduced at European level. Important information will the use of resources, and the related environmental pollution be collated and made available digitally throughout the life is to be reduced. cycle of electric vehicle, industrial and LMT batteries. At in- ternational level, Germany is working in the Global Battery Another aim is to strengthen the German economy’s re- Alliance multi-stakeholder initiative for more sustainability silience and competitiveness and thus to promote stable and a circular economy along the battery supply chain. employment and social cohesion. f) Securing the supply of raw materials Voluntary measures and incentives play an important role In its Raw Materials Strategy, adopted in 2020, the German here. The Programme outlines measures to increase resource Government undertook not only to step up exploitation of efficiency along the value chain and in each update takes domestic primary raw materials, but also to increase the role account of current challenges. Thus ProgRess III is the first to of secondary raw materials in security of supply. In a dialogue address the part played by resource efficiency in achieving with industry, the scientific community and the administra- the climate targets and to consider the potentials and risks tion, options for action have been developed in the Recycling for resource efficiency that come with digitalisation. Raw Materials dialogue platform since September 2021 with the aim of improving the sustainable and thus also secure h) Promoting a European circular economy supply to German industry of metals and industrial minerals The new Circular Economy Action Plan (CEAP) adopted by from secondary raw materials. This two-year process involv- the European Commission in March 2020 is one of the pillars ing representatives of the business and scientific communities, of the European Green Deal. The CEAP comprises 35 legisla- the administration and civil society has been concluded, tive and non-legislative measures, some of which have already coming up with some 100 options for action from a total of been adopted and some of which are still moving through the eight sub-working groups. The resulting recommendations legislative process. These include, in addition to the measures for action will also play a part in the National Circular mentioned above, the Packaging and Packaging Waste Reg- Economy Strategy. ulation, the Directive on the Europe-wide right to repair, the delegated acts in the framework of EU Taxonomy (including Beyond this, the German Government supported the adop- sale of second-hand goods, re-use of textile and shoe prod- tion of the EU’s Critical Raw Materials Act (CRM Act), which ucts and components in the circular economy), the review of strengthens Europe’s sustainable supply of raw materials and the EU Construction Products Regulation, the proposal for attaches particular significance to the circular economy, a comprehensive review of the End-of-Life Vehicles Directive, including through the increased provision of secondary raw the proposal for an amendment to the Waste Framework materials. Directive in relation to food waste and waste in the textiles sector, and the Directive on substantiation and communica- The raw materials fund set up in October 2024 aims to further tion of explicit environmental claims (Green Claims Directive). the goal of supporting sustainable supply through secondary raw materials. As well as projects in the fields of extraction In its Political Guidelines for the 2024–2029 term, the Euro- and processing, the fund can also support recycling projects pean Commission announced a new Circular Economy Act via KfW financing. intended to help to create market demand for secondary materials and a single market for waste, notably in relation g) Using resources efficiently to critical raw materials. Commitment to shaping these In adopting the German Resource Efficiency Programme measures in an ambitious way will help to attain the targets (ProgRess) in February 2012, Germany was one of the first of the German Sustainable Development Strategy. countries to set forth targets, principles and approaches for the protection of natural resources. The German Government i) Making use of multilateral cooperation is obliged to report to the German Bundestag every four years At international level, too, the priority is to promote the circu- on the development of resource efficiency in Germany and lar economy, not least in the context of the United Nations to update the Resource Efficiency Programme as necessary. Environment Assembly (UNEA) and international environ- The first revision (ProgRess II) was published on 2 March 2016. mental agreements such as the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes The German Resource Efficiency Programme III was adopted and their Disposal, in the negotiations on an international by the Federal Cabinet on 17 June 2020. The overarching and legally binding instrument to end plastic pollution goal is sustainable extraction and use of natural resources. (ongoing negotiations in the Intergovernmental Negotiating 67 Chapter B. Areas of transformation Committee, INC), and in the G7 and G20. The central guide- membership, the wide-ranging expertise of its members and line here is to be the research of the International Resource their experience of project development and implementation, Panel (IRP), in particular the recently published Global the Alliance has grown into a globally recognised international Resources Outlook 2024. network in the field of the circular economy. Successes and recommendations for action are published, and pilot projects In each case under a German Presidency, the G7 Alliance on have been implemented in more than 15 countries. Resource Efficiency (2015) and the G20 Resource Efficiency Dialogue (2017) were established as central forums for dia- In order to keep materials in global circulation and to retain logue on resource efficiency and the circular economy. During the value of products, materials and resources for as long as Germany’s G7 Presidency in 2022, the G7 also adopted the possible, the German Government cooperates closely with its Berlin Roadmap, which is intended to strengthen coopera- partner countries and supports them in their transformation tion within the G7 on the circular economy in the coming to a sustainable and just circular economy. Disadvantaged years. Moreover, the 2022 G7 Ocean Deal takes up the subject groups are a particular focus. One major priority is not to shift of increasing marine plastic pollution as one of the three negative environmental impacts and social repercussions to prominent planetary crises. Active support must also be given countries of the Global South. Only through strong global to the G7 Action Plan and G20 activities to combat marine partnerships can a real circular economy be established. For pollution. As one of the largest donors to the World Bank this reason, the German Government has announced in the ProBlue fund, Germany is supporting the transition to a sus- National Circular Economy Strategy its intention to build tainable marine economy, with a special focus on avoiding recycling and technology partnerships (“just circular econ- marine litter and on integrated maritime spatial planning. omy partnerships”). At the resumed fifth session of the United Nations Environ- Furthermore, partner countries are given support to strength- ment Assembly (UNEA-5.2) in Nairobi in March 2022, it was en their digital capacities for the circular economy and to agreed to launch negotiations on an international legally make better use of financing possibilities for the circular binding instrument to end plastic pollution (INC negotia- economy. Moves to strengthen financing mechanisms that tions). Germany is working successfully with like-minded are established in Germany (e.g. extended producer respon- states to realise this important, globally coordinated goal to sibility – EPR) at global level are key. combat plastic pollution. The Intergovernmental Negotiating Committee (INC), which is mandated to draw up the future agreement, has met five times to date. In early December 2024, 3. Next steps the negotiations, which are due to be concluded in 2025, were postponed. A High Ambition Coalition chaired by Norway a) Shaping the transformation to the circular economy and Rwanda is particularly strongly committed to the suc- In order to align the many different initiatives and measures cess of these negotiations; Germany is one of the founding and ensure that they, on the one hand, enable a life and eco- members of the Coalition. The goal is to end environmental nomic activity within planetary boundaries and, on the other, plastic pollution by 2040. coherently address the various target dimensions of a circular economy – from resource protection and climate action to competitiveness and securing the supply of raw materials and Quote from the dialogue process: ensuring prosperity – there needs to be a strategic conceptual “Plastic pollution knows no borders. We need binding framework. international agreements and enhanced cooperation in order to fight plastic pollution worldwide. Germany b) Implementing the National Circular should assume a leading role in this and lobby for ­Economy Strategy stringent global standards.” This framework is provided by the National Circular Economy Strategy (NCES), which was adopted by the German Govern- Ocean. Now! ment in early December 2024 and which forms the basis for a structured process for the transition to a circular economy. The NCES is oriented to the principles and key focuses of the Many of the everyday products we use are not manufactured EU Circular Economy Action Plan (CEAP). It is designed as the or disposed of here in Germany. Supply chains are global. German Government’s framework strategy to tie together Global alliances are needed to promote the circular economy existing raw materials strategies, such as the Raw Materials worldwide. The PREVENT Waste Alliance founded by the Strategy and the National Bioeconomy Strategy, and to create German Government in 2019 promotes cross-sector coop- the conditions for sustainable circular supply chains for Ger- eration for a global circular economy. With a strong rise in many. Specifically, the NCES pursues four main strategic aims: 68 Chapter B. Areas of transformation

1. Reducing the use of primary raw materials must be provided for this transformation and for the nec- essary training of employees. A sustainable circular econ-

2. Closing materials cycles omy must develop corresponding education, training and awareness-raising programmes. Education for sustainable

3. Cutting dependence on imported raw materials development (ESD) plays an essential role in this context.

4. Preventing waste c) Establishing a right to repair, supporting ­consumers in making sustainable choices It also makes clear the circular economy’s contribution to Product reparability promotes sustainable consumption, so climate action. In essence, therefore, the NCES contains strengthening consumers’ right to repair is a major compo- a set of binding, ambitious targets and concrete measures nent. Between March 2022 and March 2023, the European designed to advance the circular economy by 2045. It also Commission presented four proposals for legislation relating envisages a roadmap to support and monitor the implemen- to consumer communication and consumption in the spirit tation process. of the 2030 Agenda for Sustainable Development: the pro- posal for a Directive as regards empowering consumers The measures anchored in the NCES are intended to improve for the green transition through better protection against the market conditions for secondary raw materials in order unfair practices and through better information (Empowering to substantially increase their share in raw materials utilisa- Consumers, EmpCo, entered into force on 26 March 2024), the tion, improve resource efficiency and advance product design proposal for a Directive on substantiation and communica- oriented to durability, reparability and circularity. This cre- tion of explicit environmental claims (Green Claims Directive, ates the necessary environment for the transformation to be still the subject of negotiations), and the proposal for common effected in an unbureaucratic, fair and socially equitable way, rules promoting the repair of goods as a draft for a Right to so that sustainable consumption is and remains affordable Repair Directive (in force since 30 July 2024), as well as the for all consumers. draft of a new Ecodesign for Sustainable Products Regulation (entered into force on 18 July 2024). Attaining the goals pur- The NCES looks at interplays with the international and EU sued by these pieces of legislation, in particular ensuring levels and with the Länder and municipalities. The business the transparency and comprehensibility of sustainability and scientific communities, civil society and the Länder and labels and countering misleading business practices, is crucial. municipalities are to be involved in implementing the Strat- Product reparability also promotes sustainable consumption, egy in order to grow broad-based social participation in and so designing products in such a way that they can be repaired acceptance of the foreseeable processes of comprehensive and strengthening consumers’ right to repair are major com- change. Circular aspects of global supply chains will also be ponents. Enhanced consumer rights can increase competition considered and tackled in collaboration with partners. for durable products and allow consumers to have faulty goods repaired for longer. At European level, the labelling Mobilising society to see the opportunities presented by of products with a reparability index is to be extended to the circular economy, as well as the need for it, is vital. Public additional suitable products. The first step was a mandatory interest in the topic is growing, but as yet rarely leads to reparability index on smartphones and tablets. concrete action. So there is a need for better orientation and for appropriate consumer information on how the circular d) Increasing public-sector leverage economy can be reasonably and effectively integrated into As a role model and market power, the public sector has a everyday life. In a similar spirit, the members of the Alliance special role to play. The German Government has therefore for Transformation – representatives of the business com- agreed to try to simplify, accelerate, professionalise, digitalise munity, trade unions, the research community, policymakers and sustainably shape public procurement procedures. Public and civil society – have agreed to be ambitious in driving procurement and tendering is to be organised in a more the realisation of the huge potential of the circular economy economical, socially compatible, environmentally friendly within their remit. Research and development plays a special and innovative way and made more binding, without en- role here in evolving existing processes and methods and dangering the legal certainty of procurement decisions or finding innovative solutions. making it harder for SMEs to participate. One priority is to strengthen socially just, environmentally compatible and With regard to social participation, the challenge lies in the climate-friendly procurement. necessary shift of experience and qualifications. If Germany’s economy is more strongly oriented towards the circular With the procurement transformation package adopted by economy, certain areas of the traditional linear economy Cabinet on 27 November 2024, the German Government might dwindle in importance, while other, circular aspects launched the first comprehensive revision since 2015/2016. become markedly more significant. Support and assistance 69 Chapter B. Areas of transformation The aim of this procurement transformation package and f) Making sustainable use of the potential the National Circular Economy Strategy is to strengthen of ­biomass sustainable, climate-friendly procurement. Another measure The limited availability of sustainable biomass contrasts with intended to strengthen environmentally friendly procure- the sharply increasing demand for it. This means usages in ment is the review of the General Administrative Regulation various sectors are in competition, and targets clash (including on the Procurement of Climate-Friendly Services (AVV Klima). LULUCF, natural climate action and protection of biodiversity, By 2027, the German Government will work to ensure that and food security). biodiversity aspects, too, are reflected in the general admin- istrative regulations on public procurement, thus sending The aim is to use biomass efficiently and in a resource-con- important messages to the business community as regards serving way in the various user sectors in Germany, especially biodiversity-friendly production. where there are no other options available for decarbonisa- tion. The decarbonisation requirements and existing biomass It is necessary to leverage the value creation potential for new potential of these sectors are to be taken into account. The technologies, innovations and enhancing competitiveness, sustainable production and use of biomass is a key element not least in the SME sector. to advance the necessary transformation of the economy, to attain the climate action and biodiversity goals and to imple- In order to organise the public administration in a climate-­ ment the energy transition. At the same time, biomass policy neutral manner, all supreme Federal authorities will introduce is intended to contribute to long-term security of supply and an environment management system in keeping with the to planning and investment security in this field. EU Eco-Management and Audit Scheme (EMAS) by 2025. An environment management system is a tool for identifying g) Pushing circularity in the construction sector and using potential for improving an organisation’s envi- As a major source of demand for raw materials, the construc- ronmental performance. This touches not only on climate tion sector plays an important role in the transformation action and biodiversity, but especially the circular economy. to a circular economy. However, buildings are at the same By establishing across-the-board, binding environment time potential deposits of raw materials that can be reused management systems and ensuring that they are routinely to replace primary raw materials. For this reason, the German adhered to, the Federal administration will systematically Government will introduce a digital building resource pass- reduce its resource consumption and close materials cycles. port to collate all important information about a building and This will be a step towards the goal of 5000 locations regis- store data for circular construction. This is intended to sup- tered with EMAS in 2030 (indicator 12.2). port resource management and circularity on the basis of available environmental information about the building and e) Seizing the opportunities inherent in digitalisation its construction materials from the point of view of life cycle. Digitalisation is a vital lever for the success of the transition The aim is to introduce a standardised process to document from linear value chains to a circular economy. One key in- a building’s materials inventory, materials footprint and the strument is the digital product passport, which carries infor- potential for urban mining and thus to steer construction mation along the whole of a product’s life cycle and makes material flows in a targeted manner. it available to various stakeholders in a form appropriate for the particular target group. Digital product passports and standardised data spaces in the circular economy improve 4. Spillover effects cooperation among relevant actors and enhance product circularity. This expanded product information is intended, In order to make genuine contributions to the 2030 among other things, to facilitate repairs and second-life Agenda and the SDGs through the transformation to usage, to simplify disassembly and the recovery of valuable the circular economy, attention must also be paid to the resources, and to increase transparency in the supply chain. effects triggered in Germany or the EU or along their Consumers also benefit from the availability of data that is of supply chains which may have positive or negative relevance for informed purchase decisions or that can extend impacts on other countries. People and environments the usable life of the product. Digital product passports are in other, low- and middle-income countries are hit formulated in keeping with the principle of streamlined disproportionately hard by the negative effects of trade, data. The introduction of digital product passports as part production and consumption patterns here, and have of European initiatives serves this purpose. The first product less protection against them. Internationally, the circular passports will be introduced from 2027, for instance for bat- economy can lead to greater social justice, particularly teries for electric vehicles. Further product passports will if companies, in the spirit of extended producer respon- gradually be introduced for other product groups pursuant sibility, also assume physical and financial responsibility to the Ecodesign for Sustainable Products Regulation (ESPR). for the products they put into circulation. 70 Chapter B. Areas of transformation At the same time, however, structural changes in global “Housing” and “mobility” are, after all, two fundamental value chains and their implications for developing coun- prerequisites for participation in public life. This area of tries and emerging economies must not be ignored. transformation covers the whole of the built environment As part of a feminist development policy, all people, as a designed space, its usage, its further development, and irrespective of their gender, origins or other personal the raw materials and materials (e.g. wood, steel, concrete, characteristics, should be able to participate in this etc.) used. The way in which cities and municipalities are process of change. The circular economy in Germany shaped, with their buildings, structural installations, infra- must therefore be planned with an eye to equal access structures and private and public open spaces, has an influ- to natural resources for all and to intergenerational ence on the quality of human coexistence, as well as on justice. To this end, the countries of the Global South people’s health and productivity. Structures of all kinds, must be taken into consideration as equal partners including transport structures, are the basis for good, stable right from the start of the transformation process, and economic and social development. Constructing, maintaining attention should be given to the stages of circular value and operating them releases energy and material flows which creation across national borders. contribute to the scarcity of natural resources and to unde- sired repercussions for the environment. At the same time, The past few years have seen a slight downward trend buildings and infrastructures are durable goods: when they in circularity worldwide: the growth in demand for are being constructed, thought must be given not only to primary resources is still outstripping the dynamics current needs, but also to the benefits for future generations. of the development of the circular economy. Thus the Planning and investment decisions have consequences for fundamental potential of the circular economy to ad- society, business and the environment for many decades to vance climate action is far from being exhausted. For come. Measures must therefore be examined and evaluated this reason, there needs to be agreement among poli- in terms of their effectiveness in achieving targets on the one cymakers, business and society about fundamental hand, and their long-term environmental, sociocultural and directions to be taken, so that domestic branches of economic impacts on the other. The need for action in this industry have the requisite planning security allowing area of transformation becomes particularly obvious here: them to hike up their investment in the circular econ- omy. The necessary transformation of the German • over 50% of the world’s population now lives in urban economy also provides appropriate leverage to shape settlements; in Germany, the figure is 75%. Thus it is no global value chains. coincidence that approximately 70% of the SDGs and indicators have an urban aspect. • Multiple challenges, such as climate change, the loss of biodiversity, the COVID-19 pandemic, conflicts like Russia’s IV. Sustainable construction and illegal war of aggression against Ukraine, and the resulting ­sustainable mobility displacement and migration flows, affect municipalities to a particular degree. The “Sustainable construction and sustainable mobility” area of transformation plays a central role for the reality of • The “Construction, maintenance and operation of buil- people’s lives. dings” field of action accounts for approximately 40% of total GHG emissions in Germany (cross-sector view in keeping with the polluter-pays principle) and for a large Figure 9: SDGs of particular relevance for TT 4 share of demand for natural resources, including land area and primary raw materials. • The transport sector is responsible for approximately 20% of total GHG emissions in Germany. Technological advances in the field of mobility have led to a more efficient use of the available energy resources. Simultaneously, however, an increase in distances travelled has pushed up total energy consumption in recent years (rebound effect).5 5 www.umweltbundesamt.de/themen/verkehr/klimaschutz-im-verkehr#rolle 71 Chapter B. Areas of transformation

1. Aims climate-friendly and climate-smart, but also economically efficient. In order to meet this ambitious goal, it is necessary The aim is to develop cities and municipalities that are attrac- to tive to live in and are oriented to the common weal, and to establish sustainable mobility. • recognise and maintain the economic and ecological value of the building stock and For the development of cities and municipalities, this means • look at a building’s entire life cycle and encourage the reuse • undertaking to serve the common good and thus promote of materials and components, through measures ranging social cohesion and to create sustainable mobility concepts, from components exchanges to improved recycling tech- and nologies. • shaping it in a greenhouse gas-neutral and resilient way A further aim of this updated Sustainable Development while preserving and promoting resources and biodiversity. Strategy is to better map soil sealing in order to be able to counter the increasing loss of soil, a non-renewable resource, Only if we approach building, housing, transport and urban and its ecosystem services (cf. new GSDS indicator 15.3 on development, with all their different utilisation requirements, the degree of soil sealing). At present, around 45% of built-up as an ensemble will we be able to make the necessary con- and transport land in Germany is sealed, e.g. built on, con- tribution towards achieving the SDGs. The availability of creted over or tarred. suitable, affordable housing and the fundability of suitable infrastructures close to residential areas are fundamental Equally, it is crucial for social and economic participation prerequisites for social cohesion and for ensuring quality of and climate action to shape the mobility sector, too, in as life. The Federation has therefore set itself the goal of sup- environmentally friendly, climate-neutral and accessible a porting cities and municipalities in their development with way as possible. It must be affordable for all sections of the a corresponding framework in the form of legal and financial population. Furthermore, greenhouse gas, air pollutant and instruments, platforms for dialogue and further training, and noise emissions must be cut substantially in order to enhance research funding. Towns and cities must become catalysts quality of life, resource efficiency and health. for the transformation towards sustainable development. In more densely settled areas, this must be ensured through urban-compatible means, i.e. local public transport systems Quote: or shared mobility as far as possible, and, in rural areas, “Our struggle for global sustainability will be lost or through the intelligent linkage of various transport systems won in cities.” to ensure reliable accessibility. By strengthening ecomobility in urban and semiurban areas, the aim must be to make Ban Ki-moon, Secretary-General of the even individual motorised transport and goods transport ­United ­Nations, 2012 greenhouse gas-neutral and sustainable. Alternative drive technologies and, where necessary, renewable fuels will play an important role in this regard. At the same time, the construction and building sector causes substantial energy and material flows and thus plays a part in Access to sustainable transport options must be improved, the growing scarcity of primary raw materials and in adverse especially in rural areas. In short, basic mobility affordable environmental impacts. The construction and real estate for all must be guaranteed. industry in Germany (and worldwide) is currently facing the huge challenge of simultaneously building and developing structures in line with needs and demand, meeting the de- 2. Measures taken mand for affordable housing, ending the gridlock in rehabil- itation, modernisation and investment, enhancing efficiency a) Sustainable urban development through digitalisation and innovation, attaining the climate Construction activities are influenced via state regulation in targets and making existing building stock climate-resilient. the field of construction, incl. land use planning procedures, This creates enormous potential for reducing GHG emissions. building regulations and underlying strategic steering instru- The goal must be for planning, construction and operation ments in the form of integrated urban development concepts. to be resource-saving, circular, environmentally compatible, These should be sustainable. Sustainable urban development 72 Chapter B. Areas of transformation means taking an integrated approach to ecological (consump- municipal sustainable development strategies or overarching tion of new land, conservation of resources, climate action framework plans contain concrete measures and are the basis and climate change mitigation, biological diversity, etc.), social for successful future-proof development at local and regional (demographic change, social cohesion, affordable housing, level. They pull together these different perspectives and feed etc.) and economic factors (economic structure, infrastructure, them into land-use planning. These tried-and-tested in- etc.) and applies to cities and municipalities of all sizes. The struments must therefore be strengthened and adapted to job of sustainable urban development is to identify possible current circumstances. solutions to specific spatial problems and to elaborate strat- egies for the long-term development of spatial structures. Planning in the field of health promotion and prevention can also take greater account of environmental aspects in Strengthening integrated action future. Both the COVID-19 pandemic and the climate change-­ In 2020, at EU member state level, the Ministers responsible induced extreme weather events have shown how important for urban development adopted the New Leipzig Charter – resilient and equally adaptive urban development is for being The transformative power of cities for the common good as able to respond appropriately to crises and disasters. Within a key policy document for the modern development of cities the scope of the Federation-Länder programmes for the pro- and municipalities in Europe. The Charter provides the frame- motion of urban planning and integrated rural development, work for a transformation towards sustainability and was a as well as in the area of energy-efficient urban redevelopment, core element of Germany’s Presidency of the Council of the substantial positive experience has already been garnered European Union. As well as highlighting the need to think and with the implementation of measures to improve urban act in a more integrated way, the Charter puts the common resilience and climate adaptation on the basis of development good front and centre. The three dimensions for action – the concepts. just, green and productive city – are linked at neighbourhood, metropolitan and wider functional area level. The content of The promotion of equal health opportunities plays a key role the New Leipzig Charter is being implemented in Germany in the further development of urban resilience, as it is directly through the National Urban Development Policy. Integrated tied in to aspects of urban sustainability. For socioeconomical- action is key to ease the – inequitably distributed – adverse ly vulnerable population groups in towns and cities generally effects of environmental pollution and climate change on suffer far greater health problems as a result of heat or harmful health and to establish universal access to environment-­ emissions. In this connection, it is first and foremost the related health resources such as green spaces. The most im- public health services run by the municipalities that play an portant instrument for aligning the to some extent con- important function in ensuring social compensation. tradictory interests here is integrated urban development concepts at municipal level, drawn up in collaboration by Digitalisation, too, provides a host of opportunities for sus- various departments. tainable urban development. By developing and integrating local digital strategies into urban development processes The Cork 2.0 Declaration “A Better Life in Rural Areas” (2016) and concepts, resource efficiency can be enhanced, decision-­ and the European Commission’s long-term vision for rural making and participatory processes improved and digital areas (2021) similarly emphasise the importance of integrated skills expanded both in the business world and in civil society territorial development and connected action for Europe’s and the cultural sector. villages and rural areas. Making cities climate-secure Environmentally sound and resilient municipalities As a result of climate change and the associated increase in The basis for sustainable and environmentally sound urban extreme weather events, cities and municipalities must con- planning in terms of planning law is provided by the munici- centrate more on climate change adaptation. This involves palities’ land-use plans and zoning plans, which pursue the ensuring good provision of green spaces in local neighbour- strategic objectives of the integrated urban development hoods and residential areas (including roof and facade green- concepts. At municipal level, climate action and adaptation ing), connecting green and open spaces and implementing concepts, municipal heat planning, heat action plans, trans- water-sensitive urban development. Nature-based solutions port and mobility concepts, and air quality, noise reduction can strengthen social and ecosystem resilience in the face of and noise action plans, as well as landscape planning, may the climate crisis and at the same time make a contribution also be of relevance. Here, too, there are many possibilities to climate action. The funding programme for adaptation of for creating healthy environmental and living conditions urban and rural areas to climate change supports the mu- for all people in Germany. Integrated urban development nicipalities in this endeavour. In order to strengthen own concepts which take account of the needs of all people, ir- activities and deepen cooperation agreements, a heat pro- respective of age, gender, level of education or origin, and tection strategy has been drawn up for the fields of urban 73 Chapter B. Areas of transformation development and construction. Also as part of the preven- to the common good. The Federal Ministry for Housing, tive adaptation strategy with measurable targets, the aim is Urban Development and Building is therefore launching a to ensure adequate blue-green infrastructure in towns and new programme to promote strategic regional development cities. The Federal Information Centre for Climate Adaptation concepts in 2024. The “RegioStrat” programme addresses the (ZKA) has proven to be extremely helpful for municipalities regional level and builds bridges between formal regional in implementing this goal. Improving the availability of quality planning and informal regional development. The approaches green spaces (i.e. that promote local biodiversity and are main- it promotes to region-specific challenges are tailored to tained in a nature-based way) that are within walking distance the region in question. These challenges might range from and that fulfil health, social and ecological functions plays an climate adaptation and the energy transition, to migration important role both in climate-adapted urban development and housing, and mobility and digitalisation. and in the implementation of the EU Nature Restoration Law, the EU Biodiversity Strategy for 2030 and the National Good jobs can provide tangible impetus for local economies Strategy on Biological Diversity 2030. Not enough has been and infrastructures and thus improve the quality of life in done in this regard in socially deprived areas. In order to disadvantaged regions. By relocating Federal authorities and further this work, the system of targets and indicators will research institutions, new jobs are deliberately being brought be correspondingly strengthened as the German Sustainable to less favoured regions and eastern Länder. By 2028, for ex- Development Strategy (GSDS) is updated. ample, 5000 new jobs are to be created in the coal mining districts affected by structural change (cf. section 18 of the Shaping liveable inner cities Act on Structural Change in Coal Mining Areas, StStG). Inner cities and town centres are places of identification and as social and cultural centres of the community stand for Tackling housing scarcity identity, encounters and cohesion. The future of inner cities The availability of housing that is suitable, accessible and lies in being liveable places of encounter, thanks to mixed- affordable for all, as well as ecologically sound and climate-­ use design and attractiveness. In this context, it is vital that friendly and of high construction and design quality, is one the multiple uses – e.g. business, retail, skilled crafts, gas- of the key challenges for social cohesion. To this end, the Ger- tronomy, housing, education, culture, nature and public man Government has undertaken to create more affordable institutions – are blended sustainably. housing. It is therefore working, not least in the Alliance for Affordable Housing, to give an effective boost here. In 2022, the 33 Alliance members adopted a wide range of measures Quote from the dialogue process: for a construction, investment and innovation campaign “The planning of future-proof concepts for towns or entirely geared to housing affordability. These included cities must take account of the needs of all people, no measures to strengthen publicly funded housing construction, matter their age, gender, level of education or origin.” promote climate-friendly and resource-saving construction and speed up planning and approval procedures, along with German Council of Nursing steps to ensure sustainable building land and land policy, such as the strengthening and further development of municipal land allocation procedures (Konzeptvergabe) or the establish- In addition, there is a need to create publicly usable areas, in ment of needs-based municipal and regional land funds by whose design residents have had a say, as well as nature-based, the Länder and municipalities. climate-secure green-blue spaces and suitable mobility op- tions. To this end, use can be made of existing support from In addition to a strategic municipal real estate policy, po- the Urban Development Support Programme “Living Town tentials for sustainable land use are to be developed. At the and City Centres“, the Federal programme on future-proof same time, neighbourhoods, solidarity-based communities, inner-city areas and centres (ZIZ), and integrated rural devel- cooperatives and municipal housing associations are to be opment. Tests, successful model projects, municipal dialogue strengthened as public welfare-oriented stakeholders in the and research support (including the National Urban Devel- housing market. opment Policy or the research programme “Experimental Housing and Urban Development”) can also be put to use. On 25 September 2023, the German Government presented a comprehensive package intended to provide major, prompt Creating equivalent living conditions impetus for the stabilisation of the construction and real Cities and municipalities are closely meshed with their sur- estate sector and the preservation of jobs. The key elements rounding areas. In line with the principle of sustainable are measures to accelerate (and digitalise) planning and development, the political goal of creating equivalent living ­approval processes, tax incentives, and funding programmes conditions must be further strengthened. To this end, tradi- to incentivise additional investment in the construction of tionally investment-oriented growth and structural policy affordable and climate-friendly housing. To this effect, a major needs to be backed up with participatory approaches oriented revision of the Federal Building Code (BauGB), in which, inter 74 Chapter B. Areas of transformation alia, climate action and climate change mitigation, the orien- Limiting new land use and promoting multiple land use tation to the public good, and brownfield and infill develop- From an increase in land used for settlement and transport ment were to be strengthened and additional construction infrastructure (new land use) around the turn of the millen- land mobilised, was initiated in the 20th legislative term, but nium of over 120 hectares per day, land take is to be limited was not completed. Further measures relate to the standard- to below 30 hectares per day by 2030. The goal is to attain a isation of building regulations (Model Building Regulations, circular land economy, i.e. net zero land use, by 2050. Land MBO), nationwide harmonised type approvals that simplify use currently (2022 figure) stands at an average of 52 hectares serial construction, time limits on approval procedures, the per day. digital building application and the introduction of building type E to strengthen innovative capacities in the construction industry. Quote from the dialogue process: “In the municipalities, this use of land manifests itself Enhancing experiments with forms of planning, in increased competition for the use of space, as in many ­construction and participation as innovation drivers areas there is hardly any free land left. For example, at municipal level the creation of green spaces and recreational areas, a Experimental approaches can try out innovative ideas, espe- necessary and important step in climate change adap- cially those of initiatives and public welfare-oriented stake- tation, collides with the urgently needed expansion of holders, and can be transferred to other projects and processes. affordable housing construction. However, businesses In order to instigate processes on the ground, the funding and forms of urban production also need commercial programmes (e.g. Urban Development Support Programme, areas in cities if the “city of short distances” is to be Research for Sustainability [FONA] Strategy) support model realised as a contribution to climate action and the projects, regulatory sandboxes and innovative project formats. requisite mobility transition brought to fruition.” Thus the Federal Ministry of Education and Research, through the transformation clusters on social innovation for sus- Center for Sustainable Communities tainable cities, supports R&D projects that examine socially innovative approaches to, for example, the rehabilitation of existing housing stock, space efficiency and green areas, and A fair distribution of land quotas consistent with the reduc- draw up blueprints for effective scaling and transfer. Beyond tion trajectory of the Sustainable Development Strategy is this, the legal framework must be shaped in such a way that required for the future development of settlements in all experimental and innovative approaches can be moved municipalities. Sustainable action therefore demands new forward. approaches and an intelligent management of land. In par- ticular, the priority is to resolve the conflict between provid- Participatory formats are essential elements, not only to create ing affordable housing and limiting land use. In addition to acceptance for the necessary processes of transformation, but priority brownfield and infill development and the creation also to strengthen participation and thus democracy and of compact, mixed-use settlement structures in the sense of its institutions overall. The idea is to elaborate concepts of the New Leipzig Charter, greater attention must be paid to how the Federation and Länder can help the municipalities approaches geared to multiple land use. to ensure continuing professional development, specialist dialogue and training for employees in order to strengthen Section 2 (2) of the Spatial Planning Act sets forth the princi- sustainability in the municipalities. To this end, open-ended ple that spatial planning concepts should in particular give consideration was given to establishing a centre of excellence quantified specifications to reduce new land use. This princi- for further and continuing training, also as a knowledge hub ple must be followed at downstream levels used by the Länder. for municipal practice. Here, good use can be made of the The municipal level has at its disposal further instruments for experience gained and approaches taken by municipal educa- the management of land use, in the form of building law and tion communities with the aim of improving cooperation nature conservation law. and knowledge transfer within the administration – in this context, for example, between the education and urban plan- Perverse legal and fiscal incentives still contained in leg- ning spheres. The Federal Ministry of Education and Research islation, funding programmes, etc. must be wound back supports municipal education sectors through the ESF Plus or­ removed. Municipal land management should be given programme Bildungskommunen (“educational communities”) increased support in order to identify infill sites, empty and through a national network of development agencies properties and properties with repurposing and conversion and experts. potential. 75 Chapter B. Areas of transformation b) Sustainable building raw materials supply. The results of this work feed into re- There is a particular need to further reduce the environmental search, development and knowledge transfer and help to footprint of the construction and operation of buildings. To drive construction with wood. this end, the German Government has launched the following measures: Circular and resource-saving construction Given the limited availability of resources, the impact of ex- Minimising greenhouse gas emissions traction on the climate, the damage done to the environment Greenhouse gas emissions in the life cycle of buildings must and the need to avoid waste, moving towards a circular become a central target, planning and monitoring parameter. economy in the construction field of action is very important. The entire life cycle must be taken into account. The life cycle The aim is not only to close material cycles, but especially assessment is a suitable method for recording, assessing and to use them more efficiently. Consumption of primary raw influencing the environmental impact of buildings over the materials is to be reduced and buildings’ useful life extended entire building life cycle even at such an early stage as the through flexibility, adaptability and alternative use potential. planning of new construction and modernisation projects. The Federation will therefore take steps towards a planning-­ Planning and construction will therefore be geared to the phase life cycle assessment of variants, the creation of neces- use of circular, low-pollutant construction materials that sary conditions through training measures, and the provision are as climate-friendly as possible, the use of secondary raw of quality-tested data. The aim is also to create the founda- materials, reuse and recycling. Also, the building stock will tions for quality assurance in life cycle assessment software be regarded as a deposit of raw materials that can be used to and to expand supply and demand for low-carbon products, meet demand (urban mining). To this end, the German Gov- including the introduction of corresponding quality classes. ernment will introduce a digital building resource passport These are preconditions for the introduction of legal require- to collate all important information about a building and ments to limit greenhouse gas emissions in the life cycle of store data for circular construction. This is intended to sup- buildings with reference values for building-related and port resource management and circularity on the basis of operational shares. available environmental information about the building and its construction materials from the point of view of life cycle. The indicators for the precise measurability of greenhouse gas emissions in the construction field of action and with regard More intensive use will be made of the potential of new, cir- to the promotion of circular and resource-friendly construc- cular, environmentally friendly materials and multifunctional tion (including primary raw material consumption) are being materials, with greater use of renewable raw materials. The (further) developed in a user-friendly way, so that they can ability of biomass to bind CO2 and store carbon is particularly have greater relevance and a stronger steering effect. valued in decisions on materials. Timetables and phased plans are being developed to reduce Energy modernisation greenhouse gas emissions towards a greenhouse gas-neutral The transformation of the existing building stock plays the building stock. decisive role in achieving the goal of greenhouse gas-neutral operation of the building sector by 2045. The greatest poten- Climate-friendly construction with wood and other tial for reductions can be found in the most energy-inefficient ­renewable raw materials buildings. In order to advance sustainable development in Timber construction and construction with renewable raw this area, the energy modernisation of the building stock materials, such as insulation materials from paludicultures must be accelerated and heat supply systems must become from rewetted peatlands, can under certain conditions, in more climate-friendly. With the amendment of the Buildings comparison to construction methods using non-renewable Energy Act to introduce the 65% renewable standard for raw materials, demonstrably contribute significantly to GHG heating installation and the Heat Planning Act (both of which reduction and serve as a carbon sink and lead to negative entered into force on 1 January 2024), two key regulatory emissions. The Timber Construction Initiative (HBI) promotes elements were adopted that make a vital contribution to the the use of wood and other renewable raw materials in the modernisation and decarbonisation of the building stock construction sector, thereby furthering the goals of climate and the building heat supply. The Federation also promotes action, resource efficiency and more rapid construction. the energy renovation of buildings via Federal Funding for Efficient Buildings (BEG), for which substantial funds have Beyond this, the Charter for Wood 2.0 dialogue process been made available. In order to cushion the requirements supports responsible policy on wood as a resource and thus associated with the legal provisions, the BEG was again re- underlines goals in the fields of timber construction, timber vised to make it more attractive and more tailored to its target value chains, the circular economy, cascading and sustainable audience. Reducing energy consumption through energy-­ 76 Chapter B. Areas of transformation efficient building use and energy modernisation as well as the The Federation as role model use of renewable energies for electricity and heat ensure a The Federation fulfils its legal function as a model and takes climate-neutral building stock. As this process demands a account of goals of attaining climate neutrality by 2045 and high amount of investment, it is particularly important to making a comprehensive contribution to sustainable devel- shape it in a socially just way and to use instruments in a opment in the construction, conversion and extension of targeted (and subsidiary) manner. buildings and the creation and maintenance of infrastructure, with use of the sustainable construction assessment system Systematic maintenance and cyclical modernisation are (BNB) being binding. The Federation examines consideration essential to ensure a long useful life or life cycle of buildings of external climate and environmental costs via a shadow and structural installations. That is why the Federation has price, in line with information from the German Environ- supported the energy renovation of municipal facilities. The ment Agency. The Länder and municipalities are stepping Federation will also, for example, run campaigns to expand up their commitment to the goals of sustainable planning, the advisory services on offer when properties change hands. construction and operation and are further expanding their specific initiatives with support from the Federation. In ad- Climate adaptation dition, the revised EU Energy Efficiency Directive requires, The changes in the climate that have already occurred and from the end of 2025, that at least 3% of the total floor area of that are to be expected are leading to significantly more buildings owned by public bodies is to be renovated each year dramatic and increasingly frequent extreme weather events. and transformed into at least nearly zero-energy buildings Heat, storms, hail and in particular heavy rainfall with local- or zero-emission buildings, or that equivalent energy savings ised flooding can cause substantial damage to buildings, be demonstrated. To monitor implementation, a correspond- sometimes at tremendous financial cost. There is a need for ing database including all public buildings is to be set up. a precautionary risk analysis tailored to the specific location and type of building and for structural adjustments aligned The Federal Institute for Research on Building, Urban Affairs to the findings. The Climate Adaptation Strategy adopted in and Spatial Development (BBSR) is continuing to develop a December 2024 with measurable targets based on the Climate structure for the greenhouse gas-neutral operation of build- Adaptation Act (KAnG) therefore identifies goals and meas- ings; the Institute for Federal Real Estate (BImA) is making ures for the protection of residential and non-residential available data for the Federation’s energy and emissions report. buildings. It was developed in particular for the safety of residents in the event of extreme weather events. In exercising its role-model function, the Federation will take greater account than hitherto of sustainability in procuring Promoting sustainable and affordable planning and construction services and integrate it into ­housing ­construction requirements planning and competitions. As part of the re- To meet the growing demand for housing, the German Gov- form process regarding the German ordinance regulating the ernment has supported climate-friendly new construction remuneration of architectural and engineering services with low-interest loan programmes such as Climate-Friendly (HOAI), planning services for sustainability, as well as their New Construction (KFN), Climate-Friendly New Construc- remuneration, will be addressed more clearly. One focal point tion in the Low-Price Segment (KNN) and Home Ownership is the formulation of specifications for ecological and soci- for Families. It has also shifted the focus to existing building ocultural quality with appropriate construction costs and stock, e.g. reactivating empty properties, socially innovative defined life cycle costs. In this context, the procedures for forms of housing, converting non-residential buildings and integrating sustainability targets into requirements planning adding additional storeys to existing buildings. It has launched described in DIN 18205 will be applied. Invitations to tender programmes such as “Young buys old” and “From commer- for and the realisation of construction and modernisation cial to residential” to create affordable housing in the building projects that achieve net greenhouse-gas neutrality when in stock. It has started an initiative to reactivate vacant proper- operation will be tested in pilot projects. Ecologically sound ties and strengthened serial modular construction with an and climate-friendly construction is to be advanced through office and a roundtable at the Bauakademie. New housing federal pilot projects, using the German Sustainable Build- construction must be resource-efficient and affordable and ing Council (DGNB) Certificate for Biodiversity-Promoting must provide quality living conditions and an excellent en- Exterior Spaces (for new and old buildings) developed in vironment as well as a good social mix. Further aims are to 2023, where appropriate. introduce digital building energy certificates with integrated building resource passports and digital building records in Further, the Federation will intensify its efforts to use digital the engineering sector. tools for the collation, analysis, processing and dissemination of data, including as the basis for support for sustainability 77 Chapter B. Areas of transformation assessments and thus sustainable decisions over the entire life Providing resource-efficient mobility services, creating cycle of buildings. The widespread application of building ­alternative drive systems and charging infrastructure information modelling (BIM) on the basis of open, manufac- Digital solutions are available to organise mobility in a smart, turer-neutral standards and interfaces enables the optimised interconnected, efficient and climate-friendly way. The planning of buildings and thus the efficient use of resources, transformation in drive technologies in all transport sectors in terms of both construction materials/products and energy. is being shaped through progress and openness in electric The Federation is setting an example by introducing the BIM mobility with battery, hydrogen and fuel cell technology, method into federal construction projects. and through renewable fuels, where these are necessary. There are also endeavours to draw up principles for a building In order to make electric mobility practicable in everyday life inventory in order to drive forward climate adaptation in the all across Germany, we need a nationwide, demand-oriented, building sector. Information is to be gleaned in part from user-friendly charging infrastructure available to all users energy performance certificate and building resource pass- without long detours or long waits. The cost of public charg- port databases. ing should be transparent, and payment should be easy. The German Government has markedly advanced digitalisa- With the tenders for the Deutschlandnetz (Germany Network) tion in construction and planning. One important element on the basis of the Fast Charging Act, the German Govern- here is the digital building permit application, which Land ment is stepping up and complementing the nationwide Mecklenburg-Western Pomerania was the lead in rolling out expansion of high-power charging (HPC) infrastructure and on the basis of the one-for-all principle, and which is now ensuring basic provision in the regions and along motorways. being successfully also being used by the majority of the The more than 1000 locations with around 9000 ultra-fast Länder, with support from the federal level. charging points close remaining “white areas” on the charging map. This means that the nearest fast charging point is just c) Sustainable mobility a few minutes away, all over Germany. Technological innovations and the further development of drive systems have a crucial role to play in realising sustaina- The 11,000 or so municipalities in Germany are key actors ble mobility. It is just as important to avoid traffic, for example in expanding the charging infrastructure on the ground. through proximity-centred local urban design and a munic- To support them, the National Centre for Charging Infra- ipal transportation development plan geared to compact, structure, on behalf of the Federal Ministry for Digital and polycentric cities (15-minute city). Furthermore, the compe- Transport, has developed digital tools and principles that tition among transport forms should be improved, so that a are expanded and improved on an ongoing basis. proportion of freight traffic in the modal split is transferred to railways and waterways and a proportion of passenger The forward-looking, reliable expansion of the electricity transport shifted to the railways. Beyond this, the aim must grid is of fundamental importance so that the grid does be to move motorised individual passenger transport as far not become a bottleneck in the expansion of the charging as possible, particularly in inner-city areas, to other modes of infrastructure and ultimately in climate action. transportation by ensuring attractive local transport systems in cities. This can encourage people willingly to leave their Expanding railway infrastructure cars at home or enable them to live without a car of their own. The basis for expansion and new construction in the rail net- Strengthening local public transport as well as pedestrian and work is provided by the Requirement Plan for the Railways, cycle traffic, pursuing integrated approaches and introducing which addresses the bottlenecks expected in the network intermodal mobility platforms to connect different means in the future and creates demand-oriented capacities for all of transport, as well as expanding shared mobility and smart transport on the railways. The targeted expansion of and new traffic systems, are important elements here. In order to create construction on the railway network on the basis of the equivalent living conditions, it is also vital to ensure that Deutschlandtakt target timetable will create demand-oriented increases in travel cost do not restrict mobility in rural regions. capacities for rail passenger and freight transport that can be One suitable way to achieve these goals at municipal and better planned. As a key strategy for an efficient, reliable and regional level is with the sustainable urban mobility plans attractive rail network of the future, the Deutschlandtakt (SUMPs) propagated by the European Commission, which significantly strengthens rail transport. consider environmental, economic and social aspects in functional urban areas (a city and its commuting zone) across Digitalisation is also serving to expand and preserve the rail transport modes and providers. The SUMPs define both network. For this reason, the Federal Ministry for Digital principles for sustainable mobility and concrete measures. and Transport has already concluded some financing agree- ments with DB AG in the context of the Digital Rail Germany initiative. 78 Chapter B. Areas of transformation Strengthening local public transport promotion of the “city of short distances” and nationwide In order to attain the climate action targets, the aim must be mobile internet connectivity, as well as safety and comfort. not only to increase efficiency and to switch to alternative The Federal Ministry for Digital and Transport is implement- drive systems in the transition to a post-fossil, greenhouse ing the National Cycling Plan and drawing up a pedestrian gas-neutral mobility, but also to extend the range of environ- traffic strategy to make inner cities more attractive and mentally friendly mobility options on offer and to raise the pedestrian-friendly. It provides comprehensive support for number of passengers using local public transport. In this re- pedestrian and cycle traffic in the form of various support gard, important foundations have been laid with, for instance, and funding programmes. the Deutschlandticket as a fare tool and the dynamisation of the regionalisation funds. Mobility is a key element of people’s Taking account of urban design measures quality of life and at the same time also a major factor for the One important aspect of sustainable mobility is to shape the economy and the location of business. Accessible, affordable traffic areas in such a way as to ensure high-quality urban mobility services are indispensable prerequisites for liveable space. Urban design and cityscapes are major factors in cities and municipalities in Germany. That said, the mobility subjective well-being and are crucial for quality of life and the needs of rural areas must be borne in mind and met with in- attractiveness of a place. In order to successfully implement novative, climate-friendly, sustainable services (e.g. expansion a well-designed urban concept and its interplay with trans- of affordable public transport with more flexible services port, the municipalities need greater room for manoeuvre to such as on-demand transport). The model project to improve develop a sustainable mobility policy. To this end, the aspect mobility in rural areas picks up on this to create equivalent of supporting urban development has been added to section living conditions with the aim of introducing affordable 6 (4a) of the Road Traffic Act. mobility solutions across wide swaths of the country. The most recent revision of the Passenger Transportation Act The European funding measure ERA-NET Urban Accessibility (PBefG, section 44) introduced a new form of transportation: and Connectivity (EN-UAC), too, aims to establish safe, acces- on-demand transport integrated into the local public transport sible, affordable transport systems for all, with a focus on the system. Corresponding systems have been trialled in model needs of various sections of the population, such as people projects in many places and promising systems integrated. with disabilities. Specifically, the aim is to improve the acces- The development of intermodal mobility hubs can make it sibility and connectivity of urban mobility services. Projects easier to switch between different forms of transport. with German participation are looking, among other things, at how to make transitioning between different modes of The Federation supports the Länder, which are responsible for transport more accessible through mobility hubs and at local public transport, with regionalisation funding amounting inclusive, pedestrian-friendly urban planning from which to over 11 billion euro annually. The annual dynamisation vulnerable groups such as the hard of hearing benefit. Ac- rate from 2023 onwards is 3%. More than 12 million people cording to the information in the status report, the measure have subscribed to the Deutschlandticket since its introduction. runs from 2021 to 2024. This funding measure serves, inter This has attracted over a million new customers to local public alia, to implement article 20 (personal mobility) of the United transport within a very short space of time. To finance this, Nations Convention on the Rights of Persons with Disabilities. the Federation is making available to the Länder additional regionalisation funding amounting to 1.5 billion annually in Promoting experimental approaches the years 2023–2025. The possibilities for promoting experimental approaches at municipal level, including with other stakeholders, are to Strengthening pedestrian and cycle traffic be expanded. The scaling and transfer of results from small The German Government is promoting cycling as a means experimental areas to larger regions are to be accelerated by, of transportation with the aim of growing Germany into a for example, R&D projects within the scope of the Federal land of bicycles. Pedestrian and cycle traffic must be treated Ministry of Education and Research funding measure for on the same level as other forms of mobility. Active mobility sustainable mobility in regional transformation areas. on foot or bicycle is to be strengthened because it is in the interests of traffic generally, climate action, health and inner-­ city commerce. The fundamental prerequisite is an objectively 3. Next steps and subjectively safe, integrated infrastructure for all parts of the population. The revised Road Traffic Act (StVG) and a) Sustainable urban development Road Traffic Regulations (StVO) established climate action Endeavours to prioritise conversion over new construction, and environmental protection, health and regulated urban brownfield and infill development over greenfield develop- development as new goals alongside traffic flow and safety. ment, and multiple land use are to be intensified, at the same Other important measures include awareness-raising of the time creating affordable housing for liveable municipalities. advantages of walking, image campaigns for active mobility, New forms of housing in old buildings, the repurposing of 79 Chapter B. Areas of transformation vacant properties for housing and work, and the revitalisation internationally and the experiences gained by the munici- of buildings in rural areas for new working models are palities in the urban development area of transformation approaches to shape reduced resource consumption in col- connected up across borders. laboration with the community and to enhance acceptance. To this end, proven instruments such as urban development b) Sustainable building programmes and village development programmes must be Buildings and therefore their inhabitants are affected by the further evolved. At municipal level, municipal sustainability consequences of climate change. The same is true of structural management instruments in general must be strengthened. installations and their users. The foundations and tools for climate-adapted planning and construction are therefore There is a need for a more intensive discussion between the being further developed and expanded. This ranges from Federal ministries on the one hand and with the Länder and providing tools for analysing climate change-­related risks at municipalities on the other on the subject of responsibility specific sites, to the reorientation of standards and regulations and transparency when it comes to land take for renewable from an experience-based approach towards preparing for the energy installations, housing, commercial buildings and future, to increasing the demands made of site analyses and transport. There needs to be agreement on how the target of climate-adapted planning. Sustainable building also means reducing land take for settlement and transport infrastructure integrating ecological aspects into planning and construction. to less than 30 hectares per day by 2030 is to be achieved. At the level of buildings and structural installations, the use Experimental projects are helpful in finding new solutions of natural resources and the environmental impacts should and approaches. These should be supported in the form be determined, recorded and communicated in such a way of model projects and pilot projects. The necessary transfer that this information can be better taken into account than of innovation and practice must be accelerated through the hitherto, for example in decisions on rental or purchase, targeted promotion of implementation-oriented, transdis- financing and insurance terms, and valuation and risk as- ciplinary research and improved dovetailing of ministry sessment. The digital building resource passport supports activities. In this context, pressing developments in the field the circularity of building components, building products of urban development policy must be considered, and strat- and building materials. egies and/or instruments made available, especially in respect of issues such as land policy, the culture of building, gender-­ In the medium term, the aim is to collate the digital building equitable urban planning oriented to the common weal, social energy certificate, resource passport and other instruments innovations, heat protection or enhancing resilience, e.g. for the communication of environmental information in one against the impacts of climate change (particularly through comprehensive digital building logbook. Information from improved urban greening and nature-based building and energy certificates and resource passports is to be used to open space design). improve the national building stock model data. The Feder- ation is drawing up principles for a buildings inventory in Given the magnitude and simultaneity of these profound order to drive climate adaptation in the building sector. The challenges, it is vital that the cities and municipalities have requirements of the revised EU Energy Performance of the personnel, organisation and financial capacity to act. The Buildings Directive (EPBD) are being taken into account right Federation is to provide support for continuing training, from the start in elaborating these principles. expert exchange and employee training in coordination with the Länder within the bounds of its constitutional financial The Quality Seal Sustainable Building (QNG) is being further powers. To this end, consideration was given to establishing developed. Conditions are being put in place for the construc- a centre of excellence for further and continuing training, also tion and real estate sector to be able to take account of the as a knowledge hub for municipal practice. Further, munici- goals and principles of sustainable planning, construction palities – particularly those with major financial difficulties and operation when constructing new buildings, working and personnel shortages – must be helped to make better on the building stock and using and operating buildings. use of the funding system, inter alia by developing viable funding management structures in the regions, as the new The content (e.g. as regards criteria promoting biodiversity) funding initiative to strengthen the absorption capacity of and organisation of the Federation’s Assessment System for funds in vulnerable regions, for example, shows. Sustainable Building (BNB) are being comprehensively further developed. International cooperation must be enhanced. Exchange in the context of bilateral and global pilot projects and multilateral c) Sustainable mobility partnerships (e.g. G7, G20) should be intensified. In this way, Work will continue on the solutions already being pursued urban transformation processes and their sub-processes in and described in detail above. Mobility must be greenhouse the transport and construction sectors can be compared gas-neutral, efficient and affordable. There should be diverse 80 Chapter B. Areas of transformation sustainable options for the choice of modes of transport and 4. Spillover effects transport routes. Only then will mobility meet the needs of all people in both urban and rural areas, the requirements of Positive and negative spillover effects resulting from the business and industrial sectors, and the rights of future the German and European transformation of urban generations and guarantee freedom of choice, social and development, especially transport and construction, economic participation, the provision of public services and for countries in the Global South must be identified and equivalent living conditions. By supplementing traffic edu- addressed in order to reduce negative spillover effects cation in schools with mobility education, young people can as much as possible. Negative spillover effects occur, be made aware of the environmental impact of their mobility for example, when the demand for fossil raw materials patterns and their choices can be determined for the long and minerals in the German transport sector leads to term. This includes ensuring that children of primary school harmful effects in mining and processing regions, which age learn to ride bicycles safely and are taught in an age-ap- are located predominantly in countries of the Global propriate way how to use public transport. New mobility South. Consequences include loss of biodiversity or solutions offer an opportunity for transformation and value declining soil quality, greenhouse gas emissions and creation. Integrated mobility planning, systematic networking the pollution or overexploitation of water resources. of transport operators and a close mesh between individual and public mobility can make a key contribution here. Without circular economy approaches and recycling, the switch to environmentally sustainable drive systems Sustainable mobility must demonstrate the following in all transport sectors may lead to increasing exports qualities: of old, climate-damaging vehicles to developing and emerging countries. On a similar note, the question of • Ecological effectiveness through climate neutrality (elec- what happens to discarded batteries raises new ques- tric mobility and charging infrastructure, renewable and tions. At the same time, if steps are taken to manage the alternative fuels, e.g. e-fuels, hydrogen), attractiveness of primary raw material requirements for electric mobility ecomobility (local public transport, cycling and walking) and other alternative drive systems appropriately, there and multimodality in passenger transport may also be a positive economic and social impact. • Economic efficiency through the efficient use of energy, Positive framework conditions are therefore important, simplicity and digitalisation (user-friendly digital applica- so that there are positive incentives at international tions) and analogue marketing channels, collation and use level for sustainable urban and transport development. of mobility data, innovations and cutting-edge technologies, as well as resilience of the transport infrastructure through In addition to avoiding risks caused by the above-men- measures to adapt to extreme weather and climate change tioned effects, it is important to broaden access to international solution strategies and development • Social equality through affordability, including cheap fares cooperation for cities. To this end, funding and other on local public transport, shared mobility, and inclusion frameworks that enable municipalities to participate through measures to ensure accessibility in bilateral pilot projects and development cooperation programmes are to be further developed. The municipal In order to make transport sustainable, it is necessary to level (or its associations and networks) should regularly examine how further scope can be created for municipalities be considered as a dialogue partner in multilateral co- and competent authorities to promote sustainable mobility operation, e.g. the G7 and G20, especially in the policy on the basis of the amended Road Traffic Act. Furthermore, fields of relevance to it. The G7 Ministers’ Meeting on climate neutrality in the transport sector can only be achieved Sustainable Urban Development, held for the first time with a mix of different mobility providers with greenhouse under the German Presidency in 2022, must be consoli- gas-neutral drive systems. The field of use (inner cities, rural dated and the multilateral dialogue intensified. areas, heavy goods transport, etc.) must also be taken into account. At the same time, spillover effects from other countries, where a positive environment for sustainable urban development has so far been lacking, must be looked at. The development of national urban development policies and municipal development plans can play a part here in making cities sustainable and thus liveable. 81 Chapter B. Areas of transformation V. Sustainable agricultural and items and other agri-based goods are transported and food systems ultimately handled and consumed. It aligns with the integrated approach followed by the UN Food and Sustainable agricultural and food systems comprise farming, Agriculture Organization (FAO) and supported by the food production, forestry, fisheries and aquaculture managed German Government. in a way that lays the foundations for providing healthy food in sufficient quantity while protecting the environment, the climate and animals in line with the One Health approach. Agricultural and food systems are facing enormous challenges. Climate change, biodiversity loss, soil degradation and erosion, At the same time, it must be economically viable for farmers water shortages, changing precipitation patterns, growing to operate in these circumstances. Farming, food production, pollution and high resource consumption are endangering forestry, fisheries and aquaculture must also be diversified and, the natural resources that we depend on, and thus also threat- where possible, involve strong local value-added structures ening food security. In order to find long-term solutions for not least in rural areas. these challenges, a global transformation of agricultural and food systems is needed. Germany stands by its international responsibility to help global partners with this transformation Figure 10: SDGs of particular relevance for TT 5 towards sustainability, bolstering resilience, health and justice as well as the conservation of natural resources. The ways in which we produce and consume food can do a great deal to help solve many crises – or to exacerbate them. Unsustainable agricultural and food systems hinder socio-­ economic development potential and can lead to political instability. Unbiased research that looks at all methods and technolo- gies is essential for development and innovation and lays the foundation for designing and successfully establishing sustainable, knowledge-based agricultural and food systems. Youth Strategy The German Government believes it is very important to involve young people in the transformation process. The next generation is essential for the future of the resources that we depend on, not least as participants in the production and consumption of our food. Young people must therefore be consulted as part of the polit-

1. Aims ical process. In the area of transformation “Sustainable agricultural and Under the umbrella of the German Government’s Youth food systems”, the German Government highlights ways in Strategy, the Federal Ministry of Food and Agriculture which these systems can be made resilient and fit for the has developed a binding policy for strengthening con- future. sultative youth participation and is implementing this in its work. Formats are used that allow young people’s It looks at challenges, goals and problem-solving measures positions to be seen and heard. along the value chain. These include a two-day youth political forum (Jugend- politisches Forum) organised by the Food Ministry in Definition of “agricultural and food systems” 2023 and 2024 and planned again for 2025, as well as the Organic Future Camp that will take place in the summer This term describes the complex interrelationships and of 2025 on the margins of the Organic Field Days. dependencies between the ways in which agricultural raw materials are produced and processed and food 82 Chapter B. Areas of transformation Demands voiced during the public participation Unsustainable agriculture can, among other things, lead to the process: overuse, erosion and compaction of soils, to the contamination “Promoting health must also mean promoting youth of waters and groundwater with fertilisers and pesticides, and work that involves sport and exercise, because youth to particulate matter emissions, plastic pollution and bio- obesity is a growing problem. At the same time, more diversity loss. Agriculture is responsible for around 9% of must be done to indicate and regulate the presence of Germany’s greenhouse gas emissions. It is indirectly linked sugar in highly processed foods (limiting advertising to another 7% emitted from drained moorland, which is for sweets, taxing sugar, improving labelling).” generally used for agricultural purposes. German Federal Youth Council However, agriculture is also impacted by climate change and must be made more resilient to its effects. The frequency, duration and intensity of extreme weather Demands voiced at the Food Ministry’s youth such as heatwaves, droughts and heavy rain will increase as ­political forum in 2024 a result of climate change. These events become more severe as more greenhouse gases are emitted that heat the climate. In order to support the practical implementation of It is therefore essential to reduce greenhouse gas emissions. climate measures, participants demanded a system of At the same time, there is a growing need to adapt to the remuneration/compensation for farmers providing effects of climate change as it continues to progress. Nature-­ services of general interest. based landscape hydrology enhances natural water retention and helps to cope with extreme events and prevent water In order to promote biodiversity, practitioners in par- shortages, among other things. ticular suggested local and regional cooperation arrange- ments with funding for basic and further training. Adapting agriculture to be needs-oriented and sustainable can also have a positive impact on the environment. For example, In order to support sustainable consumption, a VAT it supports agricultural biodiversity and can mitigate the exemption was demanded for organic products. effects of extreme weather events. In order to reduce food waste, it was proposed that re- Agriculture can and must be part of the solution when it tailers be banned from disposing of food and required comes to climate action, too, because sustainable land use can to donate it after the best-before date is reached. remove carbon dioxide from the atmosphere and store it as organic carbon in agricultural land (via humus build-up) and In order to support farmers in implementing the EU’s in landscape elements (trees, hedges, copses in agroforestry common agricultural policy (CAP), a more practicable systems). Both of these processes also help to adapt agricul- approach was suggested (standardising and simplifying ture to climate change and make the entire landscape more the application and documentation). resilient to its effects. Nutrition stand at the Sustainability Forum – Securing the lasting basis for healthy, adequate and key concerns: sustainable food and access to it The international community has set itself the goal of end- At the nutrition workshop held as part of the Sustaina- ing hunger and all forms of malnutrition around the world bility Forum, the most frequently cited demands were: by 2030. We are deeply concerned to see that we are moving further and further away from this goal. Realising the human • “Regionality”, referring to locally or regionally pro- right to adequate food worldwide therefore remains one of duced goods, should be more precisely defined and our most urgent tasks. communicated in marketing; procurement law should be amended accordingly. b) Protecting the environment and climate Natural resources such as soil, water, air and a stable climate, • To accompany meal provision in schools and daycare along with biodiversity, are the lifeblood of the farming, centres, parents should receive more information about food, forestry and fisheries sectors. Sustainable and respon- healthy eating and avoiding food waste. sible stewardship of these resources is essential, not least in order to ensure the future production of high-quality food. 83 Chapter B. Areas of transformation • More land should be made available for producing to market-based considerations, farmers can also receive sustainable food items. adequate and differentiated remuneration for providing public goods that benefit society as a whole (and do not have • Greater use should be made of fiscal options for a market price). Remuneration for the provision of extra-stat- ­promoting more sustainable consumption (“sugar utory services of general interest for the protection of the tax”, reducing VAT on climate-friendly products). environment, the climate and nature will help to ensure fair income progression as well as enabling the necessary invest- • Hospitals should serve food that supports healing ment in more sustainable modes of production. and recovery. Local value chains Local value chains offer opportunities for sustainability in several respects: for climate action, for local and regional c) Preserving forests and making them income structures in agriculture, and for establishing and ­climate-­resilient maintaining processing structures in rural areas. Further- The forests that cover 32% of Germany’s territory are indis- more, surveys show that consumers, too, would like to see pensable for climate action. They are a major habitat for transparent, local and sustainable food production. And not numerous animal and plant species, and ensure healthy air least in light of crisis-related problems in global supply chains, and clean water as well as protecting the soil. They are the locally produced food as one element in diversified produc- source of around 735,000 livelihoods and an important public tion structures can make an important contribution to more space for exercise, recreation and leisure. The wood that they resilient and future-proof agricultural and food systems. provide is a valuable, renewable raw material. Rural areas This wide range of benefits means that Germany’s forests Rural areas are natural, cultural and living spaces as well as and sustainable forestry make a significant contribution to places to do business; they form the basis of our supply of achieving the SDGs. As forests come under pressure from food and renewable raw materials and contribute to energy climate change, it is urgently necessary to take action so that production. Cultivated and natural landscapes provide nu- they can continue providing their important ecosystem ser- merous ecosystem services: the provision and production vices. This must in particular include targeted forest conver- of food, energy and building materials; climate regulation; sion to ensure biodiverse and climate-resilient forests with water retention and flood protection; and the filtering of largely site-indigenous tree species. Forest owners must be pollutants from the air and water. Rural areas thus play a key supported so that they are able to conserve forest ecosystems, role in providing basic necessities. Furthermore, they are develop them to be climate-resilient and nature-based, and key to the preservation of our cultivated landscapes and also carry out conversion, afforestation and reforestation where important for recreation and tourism. Rural regions, both necessary. Conserving forests and increasing forest cover coastal and inland, shape our country. Quality of life and benefits humans and nature. public services are essential in order to preserve rural areas as places where people live and work. Sustainable forest stewardship and management depends on the committed efforts of all forest owners and the associa- Rural areas face considerable challenges. Creating equal living tions that they belong to. These efforts must be bolstered by a standards and sustainably developing rural areas remain core comprehensive, multi-faceted and attractive range of forestry political goals, not least in light of the multiple ongoing crises services offered both by public institutions (state forestry and the transformation needed for climate action and the operations and administrations, chambers of agriculture) and energy transition. Particular consideration must therefore be by private businesses in fair competition with one another. given to the small, decentralised structures of rural businesses, municipalities and civil society. Tourism is a highly profit- d) Improving the economic situation of farmers and able sector in Germany and is especially significant for rural, strengthening local value chains underdeveloped areas. In order to maintain and enhance its beneficial impact on local economies, tourism must be Securing farmers’ income guided by sustainability, including by the targets set in the As primary producers, farmers are at the beginning of the areas of climate action and adaptation as well as biodiversity value chain and often have relatively little negotiating power. and resource conservation. This must also be taken into The German Government therefore aims to strengthen their account in the process of developing the National Tourism position. In concrete terms it is reviewing how, in addition Strategy. 84 Chapter B. Areas of transformation

2. Measures taken and climate-resilient forest management, as well as through wilderness areas a) Climate action and adaptation • Preserving and sustainably managing forests Climate action A series of measures were adopted as part of the Climate • Maintaining and increasing humus and sequestering car- Action Programme 2030 to bring about emissions reductions, bon by maintaining and adding hedges and agroforestry including in agricultural and food systems. Some of these systems measures were then consolidated and reinforced in the Cli- mate Action Programme 2023. In the area of farming and • Promoting nature-based areas within inhabited zones food production, the focus is on the following: The implementation of the National Bioeconomy Strategy • Reducing greenhouse gas emissions in livestock farming will also help to make the economy and society increasingly (humane and environmentally sound methods, adherence independent of fossil fuels such as coal, oil and gas. to stocking density limits, feed optimisation) Adaptation to climate change • Improving fertiliser management and reducing excess Adaptation to climate change is just as important as climate nitrogen action, and is particularly essential in some cases such as forest conversion or the rewetting of moorland. It is becoming • Increasing energy generation from farmyard manure increasingly important to enhance the resilience of our for- ests and crops as well as of farm animals and in general of • Expanding organic farming farming, forestry and fishery operations. With the Climate Adaptation Law (KAnG) that was passed in July 2024, the • Promoting the cultivation and use of legumes as part of German Government has created a binding framework for the Protein Crop Strategy climate adaptation at federal, Land (federal state) and local level. In the same month it then adopted the Climate Adap- • Increasing energy efficiency in farming and horticulture tation Strategy in order to more precisely define the specific and promoting alternative drive technologies and measurable goals, measures and instruments. • Promoting a sustainable and, in particular, healthy diet A key challenge of the twenty-first century is to protect and and reducing food waste sustainably use water resources. One important factor is the responsible management of water resources along the entire • Ensuring sustainable food chains (e.g. deforestation-free value chain. All relevant parties must be involved and the supply chains) work of multi-stakeholder initiatives must be supported. Agriculture is impacted by problems with water resources, Furthermore, the role that natural ecosystems play as carbon but as the largest global consumer of water it can also play stores and sinks should be enhanced (LULUCF sector – land a pivotal role in sustainably protecting these resources. The use, land use change, and forestry). The Federal Action Plan on German Government’s National Water Strategy explores Nature-Based Solutions for Climate and Biodiversity contains challenges, strategies and measures for all water users with relevant measures currently being implemented that are a view to sustainable long-term solutions for climate change aligned with this goal. They include in particular the following: adaptation and the protection and use of inland waters and groundwater. In the agricultural sector, it focuses among • Improving the condition of unused and protected moors other things on efforts to help maintain healthy soils that (rewilding with a view to restoring typical moorland eco- can effectively absorb and store water. systems) Forests serve as natural carbon sinks and are therefore not • Promoting site-appropriate, wet use of moorland only helping us to reach the climate targets but are them- selves increasingly affected by the impact of climate change. • Reducing peat usage The last few years in particular have seen Germany’s forests lose a great deal of their vitality and stability. The Thünen • Preserving forests’ beneficial effect on the climate and Institute estimates that around 25% of the country’s forests making them adaptable and resilient, in order to increase must be converted to become climate-resilient and nature-­ carbon storage in long-lasting wood products and better based in the near future. The funding programme Climate-­ account for the substitution effect of wood; better protecting Adapted Forest Management provides financing and remu- biodiversity, primarily through integrative, nature-based neration for additional climate and biodiversity services. 85 Chapter B. Areas of transformation Moreover, forest owners are to be offered further financial meaning use them and secure them, in such a way that they incentives for continuing to make their forests more nature-­ remain available for future generations. To this end, the Fed- based. Afforestation of new areas is seen as a suitable measure eral Ministry of Food and Agriculture published the National for enhancing the role played by forests as carbon stores and Strategy on Genetic Resources for Food, Agriculture, Forestry sinks in the long term. and Fisheries in March 2024. b) Biodiversity The National Biodiversity Strategy (NBS) has been the German Conserving, restoring and sustainably utilising biodiversity Government’s core nature protection strategy since 2007, and are vital elements in ensuring that a growing global popula- is a key instrument for implementing international agree- tion can be supplied with healthy food in the face of changing ments on conserving and sustainably utilising biodiversity. climate conditions. The updated NBS 2030, adopted by the Federal Cabinet on 18 December 2024, transposed into national law the CBD’s The above-mentioned climate measures also have powerful Kunming-Montreal Global Biodiversity Framework and the synergistic effects for preserving biodiversity. This applies, EU Biodiversity Strategy for 2030, including ambitious goals among other things, to moorland and permanent grassland and packages of measures. as well as to maintaining and increasing humus, reducing nitrogen losses, cultivating legumes and promoting agrofor- Extensive use of pastures estry systems. The planned expansion of organic farming will Extensively used pastures offer significant potential for also do a great deal to promote biodiversity. In addition, the storing soil carbon while also doing a great deal to support German Government is supporting agroecological and other biodiversity and the production of especially high-quality innovative approaches to sustainable agriculture. protein in the form of meat and milk for human consump- tion. Livestock farming methods that are particularly suitable Further ideas are set out in the Arable Farming Strategy for realising this potential are, for example, those involving and Protein Crop Strategy. The future programme for plant herding or forest grazing. protection (Zukunftsprogramm Pflanzenschutz) will make another important contribution. c) Transforming livestock farming Livestock farming is fit for the future when it is humane, The EU’s new common agricultural policy (CAP), launched in environmentally sound and climate-friendly and offers 2023, includes greater efforts to promote biodiversity. Among farmers the prospect of profitably producing and marketing the CAP’s specific aims are helping to stop and reverse bio- their products. Animal stocks should be maintained at a level diversity loss, improving ecosystem services and conserving that is suitable for the site and compatible with the aims of habitats and landscapes. Progress will heavily depend on the climate and water protection as well as emission control green architecture in the member states. Following changes (ammonia/methane). to conditionality at EU level (exemption from the minimum requirement for non-productive land), this primarily means Key pillars in the transformation of livestock farming are the eco-schemes within the first pillar and the agri-environ- ment-climate measures within the second pillar. The com- • compulsory state-regulated animal welfare labelling; bined effect of the various green architecture measures should lead to a higher overall level of ambition regarding the envi- • amendments and additions to animal welfare law; ronment. The implementation of the relevant measures from Germany’s CAP Strategy Plan and their effect on biodiversity • the federal programme for supporting the transformation must be continuously analysed so that the approaches can be of livestock farming (Bundesprogramm zur Förderung des adapted if necessary. In one example, the German Bundestag Umbaus der Tierhaltung) (construction of livestock housing, has decided to provide more financing for the eco-schemes support with ongoing additional expenses); from 2026 and to use this financing for two new eco-schemes that will be introduced for grazing in dairy operations and • amendments to building law and permit law. for the purposeful distribution of biodiversity areas. The aim is to enhance biodiversity services as agreed in the 2023–2027 Supporting the transformation of livestock farming CAP. Farmers who invest in particularly humane and environmen- tally sound livestock housing, both conversions and new Diverse crops, livestock and commercially cultivated tree builds, will receive support. These projects will be subsidised and bush species with their diverse genetic resources are a (investment aid) and ongoing additional expenses incurred cornerstone of climate adaptation, breeding and cultivation, by particularly humane and environmentally sound farming and innovation, and will enable a secure long-term supply methods will be partially reimbursed. Furthermore, the im- of food and raw materials. We must manage these resources, plementation of legal provisions on pollution and immissions 86 Chapter B. Areas of transformation must be modified to allow for more new and converted The key elements of its approach are livestock housing that improves animal welfare without harming the environment. • better remunerating the services provided by organic farming and food production for society as a whole; Investments in the conversion of livestock housing will have a positive impact on reducing antibiotic usage, among other • supporting the sale and processing of organic food items things. In the long term, this could for example manifest in and increasing the share of organic food in away-from- lower resistance rates against antimicrobial substances and home catering; less environmental damage, thus benefiting humans, animals and the environment in line with the One Health approach. • enhancing research, knowledge transfer, data availability and infrastructure for the organic food supply chain; Animal welfare labelling The German Government promotes a more mindful approach • developing solutions for bureaucratic challenges. to animal-derived food products through a wide range of informational and educational measures, and through initi- With a total of 30 measures across six action areas, the 2030 atives such as the new compulsory animal welfare labelling. Organic Strategy sets out ways to work with all relevant It is an ongoing task to inform consumers, raise awareness stakeholders to remove hurdles preventing organic farming and create transparency. and food production and generate new ideas and momentum. With the Act on Animal Husbandry Labelling (TierHalt- To expand organic farming as intended, the Strategy focuses KennzG), which entered into force in August 2023, the Ger- on the importance of targeted funding schemes that bring man Government is making farmers’ efforts visible not least about the conditions needed for conventional farms to con- for consumers. The first step involves labelling for fresh, vert as well as creating incentives. At the same time, demand unprocessed pig meat; it will subsequently be expanded to must be boosted accordingly. These two sets of measures other animals and forms of distribution. The labels provide – accompanied by targeted research on organic farming – neutral information about the living conditions of the animals should lead to a stable market orientation. The Ministry in- from which the product is derived. tends to enhance its overall research on the topic, including programme research, with a view to moving towards the 30% d) Bolstering organic farming goal. Meanwhile, organic farming methods are to be made a Organic farming is a particularly resource-efficient and en- feasible option for the Global South. vironmentally sound form of agriculture. It provides a wide range of services, particularly with regard to biodiversity, Accompanying measures to increase organic farming and water protection and soil fertility as well as climate action food production and adaptation. Furthermore, organic farming and food As well as increasing the share of organic food in away-from-­ production drives innovation across the agrifood industry. home catering and strengthening local organic value chains, Numerous developments have found a broad application it is also important to implement public information cam- beyond the organic sector, for example new techniques for paigns to increase the impact and visibility of the environmen- mechanical weeding, mulch seeding and planting machines, tal and general-interest services provided by organic farming. mobile chicken coops, progress in cultivating legumes, and A new legal framework for the use of organic products in alternative methods of plant protection. away-from-home catering will introduce labelling regulations that are tailored to the needs of this sector. In addition, more The Food Ministry’s 2030 Organic Strategy organic food is to be served in canteens within the federal The 2021 coalition agreement contains the aim of expanding administration. The processing of organic products is to be organic farming to cover 30% of Germany’s farmland by 2030. facilitated and expanded through knowledge-sharing. To achieve this, the Federal Ministry of Food and Agriculture’s Strategy for the Future of Organic Farming was updated to e) Healthy and sustainable food become the 2030 Organic Strategy. This Strategy aims to put The way food is produced, the way we eat and the way food in place the necessary conditions along the entire value chain environments are shaped are influential factors in sustainable and eliminate current obstacles. development. 87 Chapter B. Areas of transformation Food and Nutrition Strategy Quote from the dialogue process: With its Food and Nutrition Strategy, the German Govern- “The provision of food and drink in the health sector is ment has set itself the goal of creating a healthy environment part of the economically significant away-from-home for nutrition and exercise. It aims to make it easy for everyone catering sector and represents the second-largest market in Germany to eat well, meaning healthily and sustainably. for the food industry, after food retail.” This will help to protect the natural assets that we depend on: the environment, the climate and biodiversity. German Council of Nursing National Reduction and Innovation Strategy for Sugar, Fats and Salt in Processed Foods A strong emphasis on organic food in away-from-home ca- The German Government’s National Reduction and Innova- tering is an effective way to accelerate the transition towards tion Strategy for Sugar, Fats and Salt in Processed Foods (NRI) healthy, sustainable, relatively unprocessed meals and increase sets science-based targets to create the political impetus for demand for seasonal and locally produced organic food. The swiftly and significantly reducing the amount of sugar, fats 2021 Programme of Measures on Sustainability includes the and salt in processed foods, making it easier for people to aim of reaching at least 20% organic food in canteens at federal eat healthily. institutions by 2025. As of the summer of 2023, a longer-term goal has also been set in the guidelines for canteens in federal Data from product monitoring show that the reformulations offices (Richtlinien für Kantinen der Dienststellen des Bundes): carried out to date are not yet sufficient to support a balanced at least 30% organic food by 2030 at the latest. diet to the extent needed. There are now more options for advice on away-from-home Away-from-home catering catering, with measures such as BioBitte (“organic, please”) The quality standards for mass catering published by the and Bio kann jeder (“organic is for everyone”). Furthermore, German Nutrition Society (DGE) and promoted by the Federal the Guidelines on Promoting the Counselling of Away-From- Ministry of Food and Agriculture are a key quality assurance Home Catering Companies on the Increased Use of Organi- instrument, as they support mass caterers in offering health-­ cally Farmed Products (RIBE-AHV) have been in place since focused and sustainable meals. The Ministry is working to see late 2022, and the Organic Away-From-Home Catering Ordi- these standards implemented nationwide. nance (Bio-AHVV) on food monitoring and labelling since 2023. The German Government and the Länder have set up a system of central advisory bodies known as networking centres (Vernetzungsstellen) for school and daycare catering and for Quote from the dialogue process: old-age nutrition. The Federation supports the networking “Away-from-home catering at municipal level can play centres’ efforts for high-quality and accessible mass catering a major role in strengthening local value chains. The in line with the DGE’s quality standards. procurement regulations in this area must be simplified. In addition, municipalities should receive support to The National Quality Centre for Nutrition in Daycare Centres draw up a food and nutrition strategy and establish a and Schools (NQZ) is the key point of contact at federal level sustainable food system.” for initiatives around good food. It is responsible for quality development and assurance as well as providing information. Association of German Cities The Food Ministry also runs a competition (Ernährungswende in der Region) supporting innovative ideas for sustainable and, above all, healthy eating at local and regional level. It targets f) Reducing food waste ideas that are developed and implemented in participative Sustainable agricultural and food systems cannot afford high approaches involving a wide range of stakeholders. Another levels of food waste or high losses in the field and during deciding factor is how easily the ideas can be emulated in transit and storage. In 2020, around 11 million tonnes of food other parts of the country. As an important sub-category of was discarded in Germany, much of it unnecessarily. The away-from-home catering, mass catering features heavily in German Government wants to tackle this waste of energy the competition. and valuable resources. Reducing food waste eases the pres- 88 Chapter B. Areas of transformation sure on natural resources. As well as protecting the environ- political and economic decision-making processes. In addi- ment and climate, this helps to ensure that adequate, healthy tion, the German Government supports the implementation food can be made available outside of Germany, too, without of the Voluntary Guidelines on Gender Equality and Women’s straining the Earth’s planetary boundaries. The aim is for and Girls’ Empowerment in the Context of Food Security and all stakeholders to work together to reduce food losses and Nutrition (VG-GEWGE) published by the United Nations halve food waste along the entire supply chain in Germany Committee on World Food Security (CFS), in international by 2030. The National Strategy for Food Waste Reduction is project and committee work as well as in connection with being updated across all sectors, following a participative national issues. process in which measures were tested and targets were set via sector-specific dialogue forums. Civic engagement and volunteer work Some 30 million people in Germany are involved in volun- As almost 60% of food waste occurs in private households, it teer work. Every volunteer and every joint project makes must become the norm for individuals to act in a way that an important contribution to ensuring that people can live protects resources and the climate. With the initiative Too good and happy lives both in the countryside and in towns Good For The Bin!, the Federal Ministry of Food and Agricul- and cities. ture raises awareness about this important issue and provides information and tips to help change daily habits. We need an active civil society to help address the societal challenges that accompany the transformation processes of g) Participation and social mobilisation our time. The German Government has introduced numer- ous measures to strengthen democratic civil society, and in Gender equality December 2024 adopted a Civic Engagement Policy (Engage- Sustainable agricultural and food systems are inextricably mentstrategie des Bundes) to tackle structural challenges in linked with gender equality. Greater sustainability requires this area and ensure it is resilient to crises. One important progress on equality, too. Tackling social issues and promoting step is to make volunteer work appealing to young people nuanced gender perspectives, with solutions that also address in particular. the structural causes of inequalities, is one of the cross-cut- ting tasks concerning all regulatory areas of agricultural and h) Fisheries and aquaculture food policy. The Federal Ministry of Food and Agriculture In view of the challenges faced by the marine environment, commissioned a study on “The living and working conditions inland waters and fish stocks as a result of climate change of women on farms in Germany”, which was carried out and nutrient pollution, for example, it is important to make by the Thünen Institute of Farm Economics and the Chair fisheries sustainable and resilient. Since Germany produces for Rural Sociology at the University of Göttingen. Various less than one-third of the fishery and aquaculture products stakeholders have since initiated measures for promoting that it consumes, sustainably managed inland fishing and gender equality based on the recommendations made in the aquaculture could do a great deal to support access to locally study. Further measures are needed to overcome outdated sourced, climate-friendly and healthy food as well as security gender roles and allow women better access to leadership of supply. Together with its partner countries, the German positions, farm inheritances and resources. Government is working to make it easier to harness the potential offered by sustainable and, in particular, ecosys- tem-friendly aquaculture and mariculture in the future. Demands voiced during the public participation process: “It is essential for the area of transformation ‘Sustainable 3. Next steps agricultural and food systems’ to address the specific needs of older people.” a) Sustainable prospects for developing and ­emerging countries German National Association of Senior Citizens’ Considering and actively incorporating the international ­Organisations (BAGSO) dimension is key to having an impact in the transformation area “Sustainable agricultural and food systems”. Germany continues to take on responsibility for accelerating the imple- With regard to the international dimension of gender equality, mentation of the 2030 Agenda at global level, too. the Federal Ministry for Economic Cooperation and Develop- ment presented its Feminist Development Policy in March The German Government is committed to providing swift

2023. This Policy aims to guarantee women the same rights and effective support and transitional assistance in emergen- and the same access to resources as men. It also seeks to cies and crises as part of its humanitarian assistance, in order ensure that women are equally represented and involved in to prevent hunger and malnutrition and contribute to food 89 Chapter B. Areas of transformation security. Germany is the world’s second-largest humanitarian The UN Food Systems Summit (UNFSS) took place in New donor and takes a needs-oriented, multi-sectoral approach York in September 2021. Two of its outcomes, in line with the that provides scope for follow-up work. In the field of de- UN Secretary-General’s statement on the need for transform- velopment cooperation, too, the German Government is ative food systems, were the development of national path- expanding its efforts in order to provide partner countries ways for transformation and the establishment of Coalitions with long-term support in transforming agricultural and of Action. The latter are intended to promote international food systems, and to create future prospects and address coordination in various fields and contribute to the national humanitarian needs before they arise. It attaches particular pathways. Germany has joined four Coalitions: 1) Zero Hunger importance to empowering marginalised groups. Coalition, 2) Agroecology Coalition, 3) School Meals Coalition and 4) Aquatic Blue Food Coalition. The first follow-up sum- b) Multilateral cooperation mit, the UN Food Systems Summit +2 Stocktaking Moment, was hosted by the UN Secretary-General together with the European Union FAO and Italy in 2023. The second follow-up, the UN Food To secure the EU’s supply of food and renewable raw mate- Systems Summit +4 Stocktake (UNFSS+4), will take place in rials in the long term, we must ensure that our agricultural 2025. Germany supports the UNFSS and its outcomes and ecosystems are able to continue functioning. Farming in follow-up processes, in addition to the Nutrition For Growth Europe must therefore be environmentally friendly and (N4G) summit, which is held every four years and aims to climate-friendly. fight all forms of malnutrition. Since the beginning of the new funding period in 2023, the In order to implement the Paris Agreement, the Kunming-­ EU’s CAP and its implementation in Germany have been Montreal Global Biodiversity Framework and the UN Con- making an even greater contribution to the transformation vention to Combat Desertification, the German Government of agricultural and food systems. This process is set to continue. is making greater efforts to promote sustainable use of land In the future, the CAP must focus more closely still on pro- and resources and dovetail objectives and measures for tecting the environment, the climate, waters, biodiversity sustainable and resilient agricultural and food systems. and animal welfare, in line with the objectives of the Farm to Fork Strategy, the European Commission’s Biodiversity In addition, it is using G7 and G20 meetings to promote a Strategy, the EU Nature Restoration Law and the Water sustainable transformation of agricultural and food systems Framework Directive. This primarily means income-generat- with the involvement of partner countries as well as civil ing remuneration for services of general interest, i.e. services society, scientists and industry. At the 2024 Hamburg Sustain- that contribute to the above protection efforts. Examples in- ability Conference, Germany became the first G20 member clude crop rotation systems and the conservation of grasslands to join the newly founded G20 Global Alliance against Hunger as well as of landscape features and other elements promoting and Poverty (GAHP). As a member of the GAHP Board of biodiversity. Further action must be taken to promote graz- Champions, Germany is particularly focused on school meals. ing, fallowing, flower-rich margins and plots in and around farmland, and climate-friendly methods such as agroforestry A rules-based free trade system taking into consideration systems and paludiculture processes. The principle of “public the SDGs money for public services” must underpin the CAP. The The world is facing persistent and growing crises exacerbated German Government is advocating for direct payments to by wars and conflicts – such as the global food crisis follow- be adequately replaced by income-generating remuneration ing Russia’s illegal war of aggression against Ukraine, with for measurable climate and environmental services, among its impact on global market prices and supply, in addition other things, while maintaining the level playing field between to the COVID-19 pandemic and extreme weather events member states. related to climate change. These crises are a stark reminder of the importance of international agricultural trade and free United Nations, G7/G20 and well-functioning agricultural markets on the one hand, The CFS, with its inclusive multi-stakeholder approach, is the and local supplier relations and economic processes on the right forum for developing comprehensive solutions and other hand. International agricultural trade is an important paths of action for global food security and the transforma- field of action for sustainability. The German Government’s tion of agricultural and food systems. The German Govern- agricultural trade policy therefore promotes rules-based ment contributes to the CFS’ work, provides it with staff and free markets and supports the effective implementation of funding, and promotes the implementation of its recommen- international sustainability standards through multilateral dations and guidelines. and bilateral cooperation and, in individual cases, through 90 Chapter B. Areas of transformation independent measures at local, national or European level in aged by NFDI consortiums in similar areas – such as the accordance with WTO law. With the aim of swiftly implement- MaterialDigital platform (PMD), FAIRagro and DataPLANT ing trade agreements, the German Government is guided by – can be easily connected. its trade policy parameters, the European Commission’s trade policy and the new approach to strengthen and more effec- A data-based transparency system is currently being devel- tively implement environmental, social and human rights oped for the entire food value chain. The aim is to provide protection, including dialogue, mediation and reaction information on producers’ sustainability performance so that mechanisms. The EU should, together with its member states, consumers can identify sustainably produced foods. offer support and incentives to partner countries with a view to effectively implementing sustainability standards. The German Government also believes it is essential for the World 4. Spillover effects Trade Organization (WTO) to align more closely with the Paris Agreement and the UN’s Sustainable Development Goals. Sustainable supply chains are a key concern for the German Government, in agricultural and food systems c) Support for partner countries as elsewhere. Germany is the world’s second-largest bilateral donor in the field of food security. In 2023, the German Government pro- It is therefore particularly committed to deforestation-­ vided a total of 3.2 billion euro for this purpose. With the free supply chains. Deforestation and forest degradation Special Initiative “Transformation of Agricultural and Food contribute in many ways to global climate change and Systems” run by the Federal Ministry for Economic Cooper- to biodiversity loss. Non-sustainable agriculture is the ation and Development, Germany helps partner countries to biggest driver of forest destruction worldwide. The FAO ensure equitable food security with affordable, healthy and estimates that the conversion of forests for agricultural varied food. The focus is on sustainable land use by small-scale use is responsible for about 90% of global forest destruc- agricultural production systems, resilient rural development, tion. access to healthy food including for marginalised groups, and access to water, sanitation and hygiene (WASH), as a basis for After previous measures proved insufficient to stop this sustainable food security. Support is provided for agroecologi- destruction, the EU adopted the Regulation on Deforest- cal and other innovative approaches to bolstering sustainable ation-Free Products (EUDR), which entered into force agriculture. To foreground the principle of agroecology in on 29 June 2023. This Regulation states that soy, cattle, the implementation of these new approaches, the Economic palm oil, coffee, cocoa, rubber, wood and some of their Cooperation Ministry and the Food and Agriculture Ministry derived products may be placed on the market, made joined the Coalition for Food Systems Transformation through available or exported in the EU only if they are not Agroecology (the Agroecology Coalition) in June 2023. associated with deforestation or forest degradation. Mar- ket participants are obliged to carry out due diligence d) Digitalisation (collecting certain data on the origin of delivered goods; Digitalisation is highly important for the transformation of performing risk assessments and, if necessary, risk mit- agriculture and of rural areas. It can contribute to sustainable igation). The EUDR will apply to large and medium resource use in the production of food and animal feed, thus companies from 30 December 2025 and to micro and reducing negative effects on the environment and climate small enterprises, with the exception of forestry and (including pollution and biodiversity loss), as well as improv- timber enterprises, from 30 June 2026. The German ing animal welfare, promoting organic farming and simplify- Government supports this ambitious Regulation as a ing agricultural processes. The German Government therefore necessary contribution to reducing global deforestation. supports numerous projects for new innovative approaches and products, often involving AI technologies. This includes Another example is the Supply Chain Due Diligence Act promoting communication (interoperability) between the (LkSG, cf. chapter A.III.3.b; chapter B.I.1.b – Sustainable technologies used so that different digital applications can supply chains; chapter B.I.2.c – Corporate responsibility work in sync with one another. The German Government for sustainable supply chains). The German Government also advocates a fair data infrastructure, for example in Gaia- also supports efforts including the German Initiative on X-based projects (relating to agriculture), in the creation of a Sustainable Cocoa (GISCO), the Forum for Sustainable common European agricultural data area, in national initi- Palm Oil (FONAP) and the Forum for More Sustainable atives for providing public data online, and in the harmoni- Protein Feed (FONEI), which work to promote the use sation of standards at federal and Land level. This infrastruc- of sustainably certified raw materials. Certification is ture must be designed for interoperability with the National based on international sustainability standards. Research Data Infrastructure (NFDI) so that databases man- 91 Chapter B. Areas of transformation VI. Pollutant-free environment are very persistent, such as per- and polyfluoroalkyl substances (PFAS), remain in the environment for a long time once they It is no longer possible to ignore the existential global threat have been released. During her term as interim Executive posed by the effects of pollutants on humans and the environ- Director of the UN Environment Programme, Joyce Msuya ment. The United Nations describes pollution as the third wrote in the foreword to the 2019 Global Chemicals Out- element in a “triple planetary crisis”, alongside climate change look II: “We cannot live without chemicals. Nor can we live and biodiversity loss. with the consequences of their bad management.” Figure 11: SDGs of particular relevance for TT 6 Quote from the public participation process: “Chemical diversity, availability and safety are crucial as a foundation for innovating and maintaining the competitiveness of industry, and thus for making Ger- many and Europe a successful and attractive industrial hub. They are equally essential for a sustainable trans- formation of the economy and society, the achievement of the EU’s strategic objectives and the success of the Green Deal, for the resilience needed to face crises, and for functioning value chains.” Statement by the German Chemical ­Industry ­Association (VCI) The pollution crisis cannot be seen as a one-dimensional issue. Chemical substances are present everywhere (ubiqui- tous), and they are both useful and harmful. Their effects Contribution from the online dialogue: on different environmental media (water, soil, air) and on “We welcome the fact that a whole sub-chapter of the health vary greatly. So too do the ways in which they enter Strategy is being dedicated to the issue of a pollutant-­ the environment – often diffusely over very large areas. In free environment. This emphasises how seriously we many cases, the environmental impact of chemicals requires must take global chemical contamination, as a crisis a European, supraregional and global approach, including comparable to climate change and biodiversity loss.” with regard to critical loads. CHEM Trust Europe The global trade in chemical substances, materials, products and waste means that the area of transformation “Pollutant-­ free environment” has a strong international dimension. For Chemical substances have industrial and commercial uses one thing, pollutants that are transported via environmental and are also contained in many consumer products. Chem- media such as soil, rivers or air do not stop at national borders, icals are the building blocks for the goods that we use on a and nor does the damage (pollution) that they can cause. daily basis, as well as for high-tech materials needed for a Examples include the fish deaths in the river Oder in 2022 circular and greenhouse gas-neutral economy. They can have and wind-borne particulate matter that travels for hundreds major benefits for human health and well-being, for example of kilometres. In the same way, products with harmful ingre- in the form of medicines or refrigerants. They are also essen- dients do not remain confined to national markets. tial for food safety and security (e.g. in fertilisers and pesti- cides, in food processing and packaging) and have a pivotal Preserving the resources that we depend on as the basis for role to play in the green and digital transformation, including health, prosperity and sustainable business is a cornerstone the energy transition (e.g. in batteries for electric cars, in wind of social justice – both now and for future generations. In this turbine production, in the semiconductor industry). context, it is important to remember that the causes and burdens of pollution are unevenly distributed both globally However, many substances and their derived products and and within countries. waste products can have dangerous properties that may harm the environment as well as human and animal health. They In 1992, in Rio de Janeiro, the international community there- pose a particular risk when they are used or applied excessively fore agreed to significantly reduce the impact of chemicals on or improperly, or are not suitably disposed of. Substances that humans and the environment. At the UN Rio+10 Conference 92 Chapter B. Areas of transformation in Johannesburg in 2002, participants committed to producing sity, the Intergovernmental Science-Policy Platform on Bio- and using chemicals “in ways that lead to the minimisation diversity and Ecosystem Services (IPBES) identified pollution of significant adverse effects on human health and the envi- as one of the five major drivers of biodiversity loss. ronment” by 2020. In addition, the World Bank notes that the global economic Chemical pollution is addressed by a number of the targets cost of human health damage caused by chemicals (e.g. lead relating to individual SDGs, such as target 12.4 on “the envi- poisoning) is significant. Studies show that “novel” substances ronmentally sound management of chemicals and all wastes are already being released on a considerable scale. throughout their life cycle”, target 6.3 on improving water quality “by reducing pollution, eliminating dumping and Some substances can directly damage the climate (e.g. ozone-­ minimising release of hazardous chemicals and materials”, depleting substances, fluorinated greenhouse gases). and target 3.9 on reducing deaths “from hazardous chemicals and air, water and soil pollution and contamination”. Meanwhile, developing safe and sustainable substances and production processes and responsibly handling chemical Many other SDGs as well cannot possibly be achieved with- substances, wastewater and waste products can do a great out measures to reduce the effects of harmful substances on deal to prevent unwanted releases into the environment humans and the environment. In addition to all of the and atmosphere, thus helping to implement the SDGs en- environment-related SDGs (6, 13, 14 and 15), the area of shrined in the 2030 Agenda as well as the targets set out in the transformation “Pollutant-free environment” also concerns Paris Agreement and the 2022 Kunming-Montreal Global some of the social goals (SDGs 3, 4 and 11) and indirectly Biodiversity Framework. impacts economic ones (especially SDG 8 “decent work and economic growth”). Finally, SDG 12 (on sustainable consump- Annual raw material extraction tripled worldwide in the tion and production) is always relevant to the issue of chemical period from 1970 to 2017 and is continuing to grow. European substances and avoiding harmful effects. industry remains dependent on a high throughput of raw materials, which are extracted, processed into products and Germany has essentially achieved many of the water-related traded before ultimately ending as waste or emissions. For the targets set out in the 2030 Agenda. However, it still has some transition to a sustainable supply of critical raw materials in shortcomings, for example in protecting and improving particular, it is therefore essential to diversify supply from aquatic and water-dependent ecosystems and further reduc- both primary and secondary sources. The EU’s Critical Raw ing chemical pollution. The National Water Strategy aims to Materials Act (CRM Act) sets concrete goals in this regard, for tackle these shortcomings. It also highlights ways to reduce example to promote secondary use. As part of this diversifi- Germany’s water footprint and sets out steps needed to cation, partner countries should be supported to build up improve multilateral structures for more rapid progress infrastructure for secondary raw materials and ensure sus- towards global water goals, in line with UN Water’s SDG 6 tainable supply chains. Global Acceleration Framework. Particularly important in this context is an overarching approach that takes account Ultimately, this can only be achieved with source streams that of the links between the 17 SDGs and upholds the principle are “clean” and safe for all participants and do not contain any of “leaving no one behind”. problematic substances. Substances with no adverse proper- ties, and products that can be easily recycled, help to enable The EU Directive on urban wastewater is an important step material cycles free of harmful elements and generate new towards sustainably reducing wastewater pollution. secondary raw materials, thereby reducing raw material consumption and detrimental effects on nature. Protecting and restoring freshwater ecosystems such as floodplains, moors and wetlands makes a vital contribution The above-mentioned factors make it clear that this trans- to improving water quality. This serves to implement the goals formation area is a cross-cutting issue, with connections to of the Paris Agreement, the Global Biodiversity Framework almost all of the other transformation areas within the GSDS. and the Ramsar Convention, as does sustainable water re- source management. This represents both a challenge and an opportunity for the necessary transformation towards sustainability. Unlike the The three elements of the triple planetary crisis – climate traditional siloed approach, an integrated perspective opens change, biodiversity loss and pollution – interact with one up additional new viewpoints and paths of action – beyond another in various ways. Many human-produced chemicals the typical field of legislation on the environment, substances, are contributing to the decline in biodiversity and damaging products and waste. Measures taken in this area should ad- human health. In its Global Assessment Report on Biodiver- dress potential conflicts between different goals and lead to 93 Chapter B. Areas of transformation an appropriate solution. This will do a great deal to enable mindset in the production and handling of chemicals, prod- reliable planning and ensure future economic strength. Focus- ucts and waste at all levels of the value chain, in politics and ing on these interactions between different factors can help ultimately also among consumers. to drive the sustainable transformation of the economy and boost Germany’s standing as a place to do business. The difficulties in determining planetary boundaries neces- sitate a precautionary approach that is as effective as possible in addressing the protection of the environment and human

1. Aims health from pollutant release. The transition to safe and sustainable chemicals, materials, production processes and Preserving the boundaries of our planet’s resilience products must be advanced in a way that enhances this More must be done to rigorously protect humans and the protection. environment from pollution in a way that ensures planetary boundaries are not exceeded while also supporting sustainable and competitive economic activity. This requires preventive 2. Measures taken action and integrative, fair, cross-border solutions, e.g. for the problem of plastic pollution. Germany has launched and supported numerous initiatives at international, European and national level that help to To this end, progress must be made on the transition to safe better detect the effects of harmful substances, identify risk and sustainable chemicals, materials, production processes measures and reduce the release of these substances. This and products, which will strengthen Germany’s standing and includes, among other things, programmatic approaches, competitiveness as a location for research, innovation and improved scientific knowledge and regulatory measures. production. a) International measures The German Government therefore supports the implemen- In light of the global trade in chemical substances, materials, tation of integrated measures. For example, it supported the products and waste, as well as the associated global supply European Commission in achieving the integrative approach- chains and the fact that pollution does not stop at national es outlined in the European Green Deal to move towards a borders, the aim of preventing pollutants cannot be achieved pollutant-free environment. This includes in particular the without efforts at international level. This is particularly clear implementation of the Zero Pollution Action Plan, the Chemi- in the case of air pollution or of antibiotics and the growing cals Strategy for Sustainability, and the circular economy levels of antibiotic resistance worldwide. Internationally action plan for a cleaner and more competitive Europe. There agreed targets and measures (and the financial instruments is also a range of legislation, such as the EU Regulation on behind them) make an important contribution to mitigating fluorinated greenhouse gases, which already includes inte- the uneven distribution of burdens worldwide and moving grative approaches. towards the goal of greater environmental justice. One challenge is to determine where planetary boundaries The international community has recognised the connection lie. Given the lack of adequate global emissions data for nu- between the environment and human rights. On 8 October merous substances and mixtures, and the complex effects 2021, the UN Human Rights Council adopted a resolution and interactions seen across a vast range of uses for humans that establishes the right to a healthy environment as a fun- and the environment, including the atmosphere, it is almost damental human right. Germany was among those who impossible to determine a benchmark comparable to the voted in favour. On 28 July 2022, the UN General Assembly 1.5°C pathway for climate action, for example. It is therefore recognised the right to a clean, healthy and sustainable necessary to continue developing innovative methods for environment in a resolution of its own. describing planetary boundaries based on the knowledge already available and to find suitable indicators. Multilateral agreements and initiatives by international bodies help to uphold this right. This requires further independent expertise and further re- search. In view of the positive impact of the Intergovernmen- In 2022, with Germany’s support, the International Labour tal Panel on Climate Change (IPCC) and the Intergovernmen- Organization (ILO) adopted “a safe and healthy working en- tal Platform on Biodiversity and Ecosystem Services (IPBES), vironment” as the fifth principle in its Declaration on Fun- the German Government therefore supports the creation of damental Principles and Rights at Work. This decision also an independent and transparent intergovernmental science-­ strengthens protection against hazardous substances as an policy panel on chemicals. The advice provided by this body integral aspect of decent work. would be key to bringing about the necessary change of 94 Chapter B. Areas of transformation Antimicrobial resistance (AMR) is the focus of a WHO global isations. The new international framework builds on the goal action plan and of efforts by the G7/G20, among others. already agreed at the UN Rio+10 Conference in Johannesburg in 2002 of producing and using chemicals “in ways that lead The German Government is actively collaborating on a num- to the minimisation of significant adverse effects on human ber of binding environmental agreements and non-binding health and the environment” by 2020. It was not possible to frameworks concerning the environment, chemicals and achieve this goal with the previously established global policy waste. Important conventions relating to the release of sub- instrument, the Strategic Approach to International Chem- stances and to their effects include, for example, the Basel icals Management (SAICM). The new GFC has updated this Convention on Transboundary Movements of Hazardous goal and contains, among other things, more specific fields Wastes, the Rotterdam Convention on the prior informed of action and measures to achieve it. consent procedure for certain hazardous chemicals and pes- ticides in international trade, the Stockholm Convention on Persistent Organic Pollutants (POPs), the Minamata Conven- New Global Framework on Chemicals tion on Mercury and the Hong Kong Convention on ship recycling. The new Global Framework on Chemicals (GFC) applies to all hazardous chemical substances and derived prod- The Vienna Convention for the Protection of the Ozone Layer ucts throughout their life cycles – from production, to and the Montreal Protocol on Substances that Deplete the use and transfer in the downstream product phase, to Ozone Layer address the environmental and health impact the waste phase. It aims in particular to promote the of chemical substances (effects of UV radiation; climatic transition to a circular economy through legislative changes). The 2016 Kigali Amendment to the Montreal measures, but also contains incentives for innovation Protocol includes the phase-down (by up to 80%) of hydro- to move towards sustainable chemistry. The 28 targets fluorocarbons (HFCs) in industrialised countries by 2035 set out in the GFC, to be reached by either 2030 or 2035, and in the countries of the Global South by 2045. HFCs are are organised within five strategic objectives: used in refrigeration technology and as foams, for example; they are no longer ozone-depleting, but in some cases have • Legal frameworks, institutional mechanisms and very high global warming potential. As the third-largest do- capacities are in place for chemicals management. nor to the Multilateral Fund for the Implementation of the Montreal Protocol, the German Government has been sup- • Data and information are available. porting implementation in the Global South for many years. • Issues of concern are addressed. Finally, the OECD Programme on Chemical Safety and Bio­ safety and the Globally Harmonized System of Classification • Safer, sustainable alternatives are available and in and Labelling of Chemicals (GHS) help enable chemical clas- use throughout product value chains so that risks to sification and risk assessments under harmonised criteria human health and the environment are prevented and verified testing standards worldwide, ensuring reliable or minimised. classification of substances including industrial chemicals, pesticides, biocides, and human and veterinary medicines in • Increased cooperation in order to integrate different a global market, for both businesses and consumers. objectives (including creation of a financing instru- ment) into all policy areas and decision-making pro- The Kunming-Montreal Global Biodiversity Framework cesses in support of relevant projects. Germany has of December 2022 addresses the issue of pollution with re- contributed 20 million euro to this fund so that it can duction goals to be achieved by 2030 under Target 7 of its start its work as soon as possible. Importantly, it is action-­oriented global targets. Target 7 includes, in particular, not only governments who are called on to act – the reducing the risks to global biodiversity from excess nutrients, involvement of stakeholders, particularly the chemical pesticides and highly hazardous chemicals by at least half by industry, is explicitly envisaged. 2030 and working towards eliminating plastic pollution. The Global Framework on Chemicals – For a Planet Free of The United Nations Environment Assembly (UNEA) has in- Harm from Chemicals and Waste (GFC) was adopted in itiated further processes. Resolutions on nitrogen, specifically September 2023, at the fifth session of the International Con- on “Sustainable nitrogen management”, were adopted at its ference on Chemicals Management (ICCM5), held in Bonn fourth and fifth sessions (UNEA-4 and UNEA-5) and progress during Germany’s presidency, by governments and numerous on these resolutions was reported at UNEA-6 in the spring stakeholders from industry, trade unions, the health sector, of 2024. civil society and academia as well as the relevant UN organ- 95 Chapter B. Areas of transformation UNEA-5 also decided in March 2022 that a science-policy In the EU alone, pollutants are already addressed by around panel for chemicals management should be established 40 different legal acts with different approaches and aims. The (Resolution 5/8). The science-policy interface is essential in precautionary principle plays a very important role here. order for governments to make sound, appropriate and viable decisions in the context of current global crises. These acts are not limited to legislation directly addressing chemicals, such as the EU Regulation on the registration, eval- In addition, the German Government supports efforts to uation, authorisation and restriction of chemicals (REACH bring about an international legally binding instrument to Regulation) and the Regulation on the classification, labelling end plastic pollution in line with UNEA Resolution 5/14. and packaging of substances and mixtures (CLP Regulation), or special regulations on biocides and pesticides. Legislation As part of development cooperation efforts, the German on veterinary and human medicines aims not only to protect Government is working with partner countries to help im- humans and animals but also to protect the environment prove chemical safety. This is a cross-cutting issue that is from exposure to medicines and their ingredients. Other supported as a project component in around 40 projects, in environmental legislation too (e.g. on protecting waters and areas including textile production, mining, farming, the waste seas or controlling air pollution) contains regulations on management industry and the circular economy. Global textile harmful substances. production often uses chemicals that pose risks to workers, the environment and consumers. In voluntary multi-stake- This is in addition to regulations on specific products such holder approaches, the German Government is calling for as cosmetics, toys, foods and electronic devices. Even the compliance with sustainable standards and cooperating with Ecodesign Directive 2009/125/EC of 21 October 2009 took partners such as the industry initiative Zero Discharge of into account the use of certain substances in product design. Hazardous Chemicals (ZDHC). The Partnership for Sustainable The new Ecodesign for Sustainable Products Regulation Textiles (BNT) and the government-run certification label (ESPR) will in future make it possible to pass on more detailed Green Button urge companies to manage chemicals respon- information on substances of concern in the supply chain sibly. Anyone who wants to award textile products the Green and to make substances subject to certain requirements for Button must provide suitable evidence at the producer level. reuse and recycling. Germany was also the leading donor to the eighth replen- Other relevant law includes provisions governing waste (e.g. ishment of the Global Environment Facility (GEF) with a waste management, in particular for hazardous waste, end- contribution of 700 million euro. A total of 15% of the GEF-8 of-life vehicles and electrical/electronic waste). Finally, there funds are earmarked for the category Chemicals and Waste. are also provisions to protect workers from potential harm resulting from the production, use or disposal of substances As well as contributing expertise and policy efforts to the cre- and materials in the workplace. ation of international conventions, it is important to support developing and emerging countries, which are often par- The European Green Deal, the new EU growth strategy pre- ticularly affected by pollution – for example because indus- sented by the Commission in 2019, includes the aims of cli- trialised countries previously outsourced heavily polluting mate action and adaptation, the protection of intact ecosys- manufacturing processes there. For various reasons, these tems and biodiversity, and “zero-pollution ambition”. This countries often lack the financial and structural resources latter aim involves an ambitious, strategic approach, given to ensure consistent implementation of international regula- the wide range of possible regulations and paths of action, to tions. The German Government therefore also contributes help reduce pollution from all sources, support the transition financing to help partner countries implement agreements, to a pollutant-free environment and better protect human including through financing instruments under conventions health and the environment. such as the Global Environment Facility. It was enshrined in law in Article 2 (2) of the 8th Environmen- b) European level tal Action Programme (EAP), which emphasises the integrative Given the cross-border effects of chemical substances, and approach needed. not least in the context of the European single market, eco- nomic targets cannot be considered in isolation and must As a first step towards realising the zero-pollution ambition, be embedded in European solutions. This is and remains the European Commission adopted the Chemicals Strategy the only way to develop effective, comprehensive strategic for Sustainability – Towards a Toxic-Free Environment (CSS) approaches and measures as a contribution to reducing the in October 2020. The CSS aims to better protect citizens and release of undesirable substances. the environment by boosting innovation for safe and sustain- 96 Chapter B. Areas of transformation able chemicals. It also involves enhancing economic resil- market, the release of persistent microplastic particles into ience and competitiveness in Europe. The Commission has the environment will be reduced. The restriction will take announced a range of measures to achieve this goal. They effect in several stages for different applications so that affect- include in particular a simpler “one substance one assess- ed businesses have sufficient time to develop alternatives and ment” process for risk and hazard assessments for chemicals. switch over their production. Further-reaching consumer protection measures are also planned, e.g. to protect against especially harmful substances In 2024, the new F-gas Regulation came into force, further in consumer products. A restriction on the use of per- and restricting the use, production and distribution of fluorinated polyfluoroalkyl substances (PFAS) in the EU is currently be- greenhouse gases (e.g. as refrigerants and propellants) – in ing prepared. Measures to protect against the most harmful some cases even further than the international provisions chemicals in consumer products are also being examined. in the Montreal Protocol and its Kigali Amendment. Some Risk-based restrictions on certain substances always require substances in this group have over one thousand times the a thorough, science-based and differentiated approach. New global warming potential of carbon dioxide. regulations must also take into consideration the availability of alternatives in order to avoid unwanted repercussions. The European Green Deal also includes the European Corpo- rate Sustainability Due Diligence Directive (CSDDD), which As a second major step, in 2021, the European Commission entered into force in July 2024. It requires companies to carry adopted the EU Action Plan: Towards Zero Pollution for Air, out due diligence relating to the environment and human Water and Soil – also called the Zero Pollution Action Plan rights along their supply chains. They must identify and (ZPAP). The ZPAP’s vision for 2050 is a reduction in air, water address potential and actual adverse human rights and en- and soil pollution “to levels no longer considered harmful to vironmental impacts. This covers, among other things, a ban health and natural ecosystems”, “thus creating a toxic-free on producing and using certain pollutants. The Farm to Fork environment”. Strategy also envisages a 50% reduction in the use and risk of chemical pesticides for agriculture and a 50% reduction Meanwhile, the Commission’s 2020 New Circular Economy in the use of more hazardous pesticides by 2030. Action Plan for a cleaner and more competitive Europe in- cludes measures to make secondary raw materials (recyclate) Traffic exhaust emissions are likely to be largely eliminated safer. by the middle of the century thanks to the revised carbon dioxide fleet limits for cars and trucks in the 2023 Green Deal. The Commission has a number of other transformative strate- In addition, brake and tyre abrasion are regulated for the first gic approaches, in particular the European industrial strategy, time by the Euro 7 Regulation. Tyre abrasion accounts for a the Farm to Fork Strategy, the European Union Strategic Ap- high proportion of all microplastics released into the environ- proach to Pharmaceuticals in the Environment, the Methane ment and is likely to remain a challenge for the foreseeable Strategy, strategies for medicinal products, the Biodiversity future. In aviation, the ReFuelEU Aviation Regulation requires Strategy for 2030, Europe’s Beating Cancer Plan, the EU Soil a certain proportion of sustainable aviation fuels to be used Strategy for 2030 and the Strategic Framework on Health and for refuelling at airports within the EU, which indirectly also Safety at Work 2021–2027, which contain targets of their reduces particulate emissions from aircraft turbines. own and will also help to support progress on the above-­ mentioned aims. e) National measures To supplement European measures, the German Government In light of these overarching aims, the German Government also takes action against harm caused by substances at national has supported a number of pan-European initiatives by the level. This action is guided by the principle of a social-eco- Commission to reduce the release of harmful substances. For logical market economy as a prerequisite for a high quality example, the CLP Regulation has been expanded to include of life. additional hazard classes. On 17 October 2023, new EU-wide rules came into effect as part of REACH, restricting inten- One key field of action is the collection of data on different tionally added synthetic microplastic particles. This includes substances’ effects. With the German Environmental Speci- particles used as fillers, binders, film-forming agents, abra- men Bank and the German Environmental Study (GerES) sives, carriers, stabilisers, filters and opacifiers, for the targeted assessing environment-related health risks, including human release of active substances, for encapsulating fragrances, as biomonitoring (HBM), the German Government has effective antifoamers or defoamers, or as blasting agents for industrial instruments for regularly investigating the occurrence of surface treatment. These new rules are an important step pollutants in the environment and people’s bodily fluids. towards a pollutant-free environment, because after inten- In particular, it reviews whether existing regulations are tionally added microplastics are no longer permitted on the effective and whether more are needed. 97 Chapter B. Areas of transformation Meanwhile, the introduction of a national poisoning register an “environmental atlas” (Umweltatlas) with a section on will improve the advice available to the public in the event reactive nitrogen, helping to inform and educate people of exposure to poisons. Overarching evaluations will also about the effects of high nitrogen emissions and enable make it possible to detect potential health effects of certain them to adapt their behaviour accordingly. substances and develop suitable risk measures at an earlier stage.

3. Next steps Chemicals or mixtures that interfere with hormones, known as endocrine disruptors, are foreign substances, meaning they a) International measures do not naturally occur in the body. They can have a negative There is a global imbalance in rules and regulations on impact on one or more functions of the hormone system. The chemical safety, which are much stricter in some places German Government has therefore introduced a Five-Point than others. The result is an uneven playing field as well Plan on Protection Against Endocrine Disruptors, which as social inequality. highlights links between regulation, education and research on these substances. It sets out measures and targets to im- The provisions of the Basel, Stockholm, Rotterdam and Mi- prove protection, with the aim of ensuring that fewer of these namata Conventions are therefore designed for worldwide substances will be found in humans and the environment implementation. The UN’s Globally Harmonized System of in the future. German authorities are also working to have Classification and Labelling of Chemicals (GHS) also explicitly bisphenol A and other similarly concerning bisphenols aims at internationally uniform standards for safe chemical restricted under REACH. use. The German Government will campaign for the new hazard classes in the CLP Regulation, including endocrine Growing antibiotic resistance is a global challenge for human disruption, to be incorporated into the GHS as well, to bring and veterinary medicine. At national level, the first German about a uniform level of protection and a level playing field. Antimicrobial Resistance Strategy (DART) was launched in 2008; this has since been replaced by DART 2020 and subse- However, some 100 countries worldwide have not yet imple- quently DART 2030. It focuses on six action areas, notably mented these international regulations or currently have including infection prevention as well as enhanced surveil- no chemicals management processes at all. Low- and middle-­ lance and monitoring and appropriate antibiotic use in income countries in Africa in particular, as well as in South human and veterinary medicine. One important goal is to and Central America, lack the resources needed to set up reduce antibiotic use in veterinary medicine, where the Euro- structures and institutions that can establish safe chemicals pean Green Deal and Farm to Fork Strategy envisage a 50% handling. This means they also lack the necessary informa- reduction in the quantity of antibiotics used for animals by tion on which substances are on the market, what they are 2030, as against 2018. used for, what properties they have – particularly dangerous ones – and how they can be safely handled. The German Government has also incorporated chemical safety considerations into its Supply Chain Due Diligence International efforts therefore focus, among other things, on Act (LkSG), which sets out human rights and environmental continuing to develop the Global Framework on Chemicals due diligence obligations for companies in global supply (GFC) and on putting in place organisational structures, chains. It also requires companies to ensure compliance with staffing and expertise in developing and emerging countries. certain international chemical conventions. The LkSG is to be The German Government will campaign for long-term finan- updated in line with the new European Corporate Sustain- cial support for the Multilateral Fund for the Implementation ability Due Diligence Directive (see above). of the Montreal Protocol at international level. Finally, the German Government also works to boost consum- The German Government will also work to see greater in- er awareness and literacy around sustainable consumption, volvement and accountability on the part of private-sector including through its Blue Angel eco-label. institutions. Internalising the costs of environmental pol- lution, i.e. including the resulting environmental and social Consumers can easily access verified data on chemical sub- costs in balance sheets, cannot remain something that falls stances via the free smartphone application Chemie im Alltag to the state alone. (CiA), meaning “chemistry in everyday life”, which was devel- oped by the German Environment Agency and released in Furthermore, the German Government is heavily involved in October 2021. It allows users to scan products, especially the working committees set up to operationalise the science-­ typical consumer products such as food and cosmetics, in policy panel for chemicals management so that it can begin order to access general information about the chemicals that its work. they contain. The German Environment Agency maintains 98 Chapter B. Areas of transformation Germany is also pursuing improved application and broader COP28 conference two years later, Germany was nominated implementation of the GHS in order to create a level playing as a European GMP Champion to act as a trailblazer in global field. methane management. In addition, the German Government will work for a UN COP28 then adopted the Global Cooling Pledge in December General Assembly resolution to establish a regular agenda 2023 to ambitiously cut global emissions related to cooling. item for discussion and knowledge-sharing on issues around The German Government signed this Pledge together with chemical and waste management, in order to foster more 61 other states. in-depth discussion and thus support coherent goals and decision-making. The German Government accordingly also The Climate Change Conferences will remain the most supports cooperation bringing together different Conventions. important forum for progress on global climate action and implementing the Paris Agreement in the coming years. Together with the EU, the German Government will pursue These steps are essential on the path to achieving the SDGs. the goal of a globally level playing field by continuing its in- Only at the Climate Change Conferences do all countries depth technical and political contributions to the various have a seat at the table, especially those hardest hit by the substance-related environmental conventions, campaigning effects of the climate crisis. For the 2025 conference in Belém, for their regulations to be ambitiously updated, and seeking this means that mitigation must move back up the agenda, further support within international political bodies as and the transition away from fossil fuels must be supported necessary. by specific measures. As part of the OECD Programme on Chemical Safety and b) European level Biosafety, the German Government continuously contrib- The European Green Deal remains the foundation for a utes to the ongoing processes for harmonising chemical sustainable transformation of the national and European management at international level, thus doing a great deal to economy. As it implements the necessary measures, the Ger- help ensure the quality and reliability of globally used sub- man Government will continue to be guided by the principle stance assessments, for example in the context of pesticide of the social-ecological market economy. It will campaign for and medicine approval and control. Suitable testing methods a balanced, coherent European regulatory framework that are also essential in order to generate reliable data as a basis follows the precautionary principle, sets out effective meas- for assessments and to enable effective oversight of bans ures for addressing the risks posed by problematic substances and restrictions. Work in this area focuses in particular on and combating the pollution crisis, and provides suitable standardising test procedures, including methods that do solutions for possible conflicts between different targets. The not involve animal testing, and ensuring compliance with German Government has identified the primary measures the principles of Good Laboratory Practice. that will be used to achieve measurable progress in the differ- ent areas of transformation. Responsible handling of novel materials is something else that will require increased attention, including from a pre- With regard to the security of the raw materials supply, it is cautionary point of view. These materials include advanced essential to bolster circular material flows (cf. chapter B.III.). plastics, specially designed biological nanostructures, and Substances that are problematic for recycling or for products glass and ceramic materials with novel properties, which made from recycled material should therefore be avoided are used in fields such as energy, mobility and health. Many from the outset if possible. With a view to sustainable life of these substances were developed with a view to more ef- cycles, the nature of the substances used should thus be con- fective protection of resources, the environment and the cli- sidered in the production phase as well as during use and mate. However, they can also have certain properties with disposal. In addition to safety aspects, other sustainability unintended effects on the environment and not least on considerations also play a role in the life cycle of substances the circular economy. It must also be reviewed whether the or products, and these may overlap or even contradict each existing legal regulations are sufficiently prepared for the other. A shared understanding of the criteria is therefore special properties that different materials of the future may essential. The German Government supports the develop- have. ment of a European assessment framework for chemicals and materials that are “safe and sustainable by design” (SSbD The 2021 UN Climate Change Conference in Glasgow (COP26) framework). This is a crucial step towards defining uniform adopted the Global Methane Pledge (GMP), with ambitious safety and sustainability criteria for the future, and thus to- commitments to reduce global methane emissions. The influ- wards ensuring coherent assessments across different sectors ence of methane on the greenhouse effect is around 27 times and value chains. The result will be greater innovation in the stronger than that of carbon dioxide. In preparation for the design, development, manufacture and use of chemicals and 99 Chapter B. Areas of transformation materials with desirable functions or performance, in a way National Clean Air Programme (NLRP). This serves in par- that contributes to sustainability in the long term. The aim of ticular to implement Directive (EU) 2016/2284 on the reduc- this process must be to establish appropriate standards for tion of national emissions of certain atmospheric pollutants the safety and sustainability of chemicals and materials; the (NEC Directive), which sets out binding national reduction associated risks (of exposure) must be a key consideration in commitments for all member states for the period from 2020 their use. The German Government will examine the above-­ to 2029 and from 2030, as against 2005 levels. mentioned criteria and the extent to which criteria for certain areas, such as procurement or state funding as a binding The soil monitoring law (Directive on Soil Monitoring and requirement, can be taken into account. Resilience) presented by the Commission in July 2023 aims to have all soils in the EU in a healthy condition by 2050. Among The European Commission’s draft for a revision of the general other things, it proposes Europe-wide guidelines for identi- pharmaceutical legislation, presented in April 2023, provides fying and addressing contaminated sites. It also includes the for much more rigorous and widespread environmental risk measurement of harmful soil contents as part of regular soil assessments, including possible risk mitigation measures to monitoring. The German Government is committed to a protect the environment and public health. binding regulation for European soil protection. It is essential to continuously take human samples and exam- c) National measures ine them for harmful substances in order to assess different The German Government has identified the primary meas- patterns of effects and interactions, identify possible expo- ures that will be used to achieve measurable progress in the sures and causes, and thus lay the groundwork for sound different areas of the transformation process. It is pursuing chemicals management. Germany plays a leading role in a broad range of efforts that are not limited to individual Europe with its human biomonitoring (HBM) activities. From effects of substance release, but address complex patterns of 2016 to 2022 it coordinated the EU research project European effects in an overarching approach, including research. Human Biomonitoring Initiative (HBM4EU), which received up to 50 million euro of funding from the European Com- One key area is the practical implementation of international mission. The aim of the project was to coordinate the exist- and European initiatives as suitable in the national context. ing HBM activities of 30 participating states, further develop them and ensure they can be utilised. This work is now being For example, as part of updates to the National Biodiversity continued for seven years by the EU’s new Partnership for Strategy (NBS) 2030, the German Government is working on the Assessment of Risks from Chemicals (PARC) and sup- a contribution to the implementation of the Kunming-Mon- plemented by environmental monitoring and the ongoing treal Global Biodiversity Framework and the EU Biodiversity development of toxicology test methods. Strategy for 2030. The NBS 2030 combines all the most im- portant topics for biodiversity protection with new targets under one strategic umbrella and addresses the polluters Quote from the online participation process: responsible for the ongoing decline in biodiversity. Several “Exposure to problematic synthetic chemicals has al- objectives and measures in the latest draft of the NBS 2030 ready reached harmful levels for the environment and deal with substance release and other negative effects on health. Findings from the European Human Biomoni- ecosystems. These include: toring Initiative (HBM4EU) and human biomonitoring studies carried out by the German Environment Agency • Reducing pesticide use and nutrient surpluses from show, among other things, that urgent action is needed agriculture to reduce exposure to substances of concern. […] Protect- ing human health and the environment from harmful • Reducing nitrogen and phosphorus emissions from all chemicals and rising pollution requires clear legal sources into all environmental media provisions that apply the precautionary principle.” Substances of concern need to be regulated at the • Reducing pollution from environmentally hazardous source so that they do not enter the environment in substances and from plastic entering the environment the first place.” Individual indicators will be developed to facilitate progress Statement by BUND / Friends of the Earth Germany reviews, and specific measures will be defined in two succes- sive action plans (2024–2027 and 2027–2030). In order to further reduce air pollution and ensure long- The National Circular Economy Strategy (NCES), which was term protection for human health and the environment, adopted in December 2024, aims among other things to make the German Government recently produced the second closed material cycles the norm. In this context, removing 100 Chapter B. Areas of transformation pollutants from materials cycles or preventing them from 4. Spillover effects entering is an essential approach for the safety of humans and the environment in a circular economy. Product- and market-related measures in the national and, above all, European context can help to promote There is a need for cross-sectoral, integrated action and joint German standards at global level. On the other hand, action between different policy areas and a wide range of European protection rules and restrictions on the actors to promote local and social environmental justice. European market may provide an added motivation One significant example is the integration of sustainability for companies trading in problematic substances and goals at the local level. The WHO’s Healthy Cities Network products to seek sales markets or even production sites and the Urban Agenda for the EU can be harnessed for this outside the EU. purpose, and the aims of a pollutant-free environment can be pursued via the “triple inner urban development” model The World Trade Organisation (WTO) has highlighted (green spaces, mobility and inner urban development). the importance of chemical management standards for global trade and has identified significant differences Science-based policy can only be developed through research in approaches to chemical management and the level and analysis of the causes of environmental pollutants, their of rigour applied. At the same time, it can be seen that paths of distribution and impact, and possible substitutes. in other industrialised countries as well as in emerging Particularly significant in this context are technological and countries, European chemicals legislation serves as a non-technological innovations, which can make important model and there are efforts to establish similar regula- contributions to a pollutant-free environment. tory approaches. For example, the German Government is supporting the German companies have the innovative power as well analysis of causes and sources of microplastics in the world’s as the global market connections needed to take on a oceans and pollutants from munitions remnants in the North trailblazing role in the transformation towards safe and Sea and Baltic Sea. The research programme Wasser: N – sustainable chemicals, materials, production processes Research and Innovation for Sustainability highlights clean and products worldwide. This puts them in a position water as a key challenge, to be solved by identifying pollut- to tap new markets and ensure the resilience and future ants and pathogens as well as their paths of entry and their viability of the sectors concerned, in Germany as else- effects on the environment and human health. The activities where. By setting out to support this aim, policymakers, set out in the programme also include developing innovative business and wider society can give domestic branches technologies and strategies for managing risks as well as of industry the confidence they need to plan ahead and removing pollutants and in some cases substituting them. invest more in sustainability. Substitution is particularly relevant in the context of the circular economy, in order to ensure that harmful substances Positive note should be taken of the growing public do not hinder recycling processes nor remain present in interest in the issue and of new optimised processes recyclates and material cycles, but are avoided from the out- within individual stages of the value chain. At the same set wherever possible. time, greater efforts are needed to spark a coherent, overarching innovation dynamic. There must also The research, development and innovation activities of the be higher-level incentive systems and comprehensive Federal Ministry of Education and Research also address the steering and coordination mechanisms across all safety and the health and environmental impact of new ma- stages of the value chain. terials, with the aim of avoiding potential risks to humans and the environment by carrying out well-founded assessments. Furthermore, structural changes in global value chains This ensures that equal consideration is given to protecting and their implications for developing and emerging health and the environment and to promoting innovation. countries must not be ignored. Regulations on corporate due diligence (Germany’s Supply Chain Due Diligence The German Antimicrobial Resistance Strategy DART 2030 Act – LkSG) and sustainability reporting (the EU Corpo- is currently being supplemented with an action plan that is rate Sustainability Reporting Directive – CSRD) can to be regularly reviewed and updated as necessary. generate positive effects that can ultimately also help to improve production processes and sustainable products in Germany, across Europe and in third countries. 101 Chapter B. Areas of transformation In order to ensure fair access to natural resources for all, the German Government will take the countries of the Global South into consideration as equal partners and plan out the steps of circular value creation across national borders. In a globalised market, restrictions on the marketing of substances and products regularly have indirect tax effects, including for third countries importing into the EU. At the same time, export regulations in particular can assist partner countries in the introduction and implementation of sustainable policies and the fight against dumping. One example of successful global cooperation is the Rotterdam Convention, which is implemented in the EU by the PIC (Prior Informed Consent) Regulation concerning the export and import of hazardous chemi- cals. Under PIC, cross-border trade in certain hazardous chemicals requires the prior consent of the destination country. This allows exporting countries to assist importing countries in implementing their national restrictions. Other examples of export regulations that strengthen cooperation with partner countries on tackling undesir- able product or material flows include the EU Regulation on shipments of waste, the Regulation on fluorinated greenhouse gases, and the Ozone Regulation, which prohibit the export of waste electrical and electronic equipment containing climate-damaging or ozone-­ depleting substances. 102 Chapter C. Levers Chapter C. Levers Building on the 2019 Sustainable Development Goals Re- the SDGs, the Strategy is designed to span multiple legislative port, the 2021 German Sustainable Development Strategy terms. Sustainability governance must become more impact-­ highlighted the following five levers that have particular oriented in order to meet these challenges. potential to accelerate progress towards the SDGs: In line with the principle of ministerial autonomy, the minis- Governance; social mobilisation and participation; fund- tries independently manage the areas of German sustainabil- ing; research, innovation and digitalisation; and interna- ity policy that fall within their respective remits, including tional responsibility and cooperation. financing and implementing them. They also share responsi- bility for reconciling the three directly connected dimensions of sustainability in their efforts to meet all of the goals set out in the 2030 Agenda. I. Governance a) Organisation and institutions at federal level Germany has an internationally recognised system for imple- menting political goals and decisions relating to sustainable Minister of State with responsibility for sustainable development (sustainability governance). These institutional ­development structures and processes within the German Government, In its decision of 24 August 2022, the Federal Cabinet entrust- including accompanying bodies, allow it to steer, implement, ed Sarah Ryglewski, Member of the German Bundestag and monitor and evaluate its sustainability policy. Minister of State to the Federal Chancellor, with responsi- bility for sustainability policy. She heads the State Secretaries’ The Land level is also included (cf. also section 1.b. on vertical Committee on Sustainable Development, on which all min- integration) and mechanisms are provided for the involve- istries are represented. International experts had demanded ment of various stakeholders from civil society and academia as long ago as 2009 and 2013, in a peer review conducted (cf. also chapter C.II. “Social mobilisation and participation”). by the Council for Sustainable Development (RNE), that a Minister of State to the Federal Chancellor be given specific The compass for steering sustainability policy is the 2030 responsibility for sustainability. Agenda and, building on that, the goals and principles set out in the German Sustainable Development Strategy (cf. State Secretaries’ Committee for chapter A.I.). Since this Strategy was first adopted in 2002, ­Sustainable ­Development sustainability governance has been continuously adapted The Committee is the management body for the German and updated. Sustainable Development Strategy. Its meetings are attended at permanent state secretary level by representatives of all ministries.

1. Institutional structures and processes for sustainability governance It sees itself as a high-level strategy forum in which core sustainable development issues are discussed and addressed The Federal Chancellery is responsible for the cross-cutting by all German Government ministries with input from exter- task of overseeing and coordinating German sustainability nal experts. The chairs of the Parliamentary Advisory Council policy, including the German Sustainable Development on Sustainable Development (PBnE) and the RNE regularly Strategy. In view of the fundamental challenges related to attend in order to discuss various agenda items. 103 Chapter C. Levers The Committee’s work on the updated German Sustainable Interministerial cooperation Development Strategy focused on the areas of transformation With a view to modernising government, the coalition (cf. chapter B.) and on the levers (cf. chapter C.) in German agreement for the 20th legislative term provided for the sustainability policy. The areas of transformation and selected introduction of permanent, agile project teams and inno- levers were each examined by the State Secretaries’ Commit- vation units that operate across ministries and authorities tee in two stages. First, the State Secretaries discussed the topic and have specific remits. This concept formed the basis for with experts on the basis of a short background paper. Sub- the creation of seven transformation teams (TTs) for the sequently, the Committee looked at the proposed decision areas of transformation and the lever of international drawn up by the relevant ministries; a final version was then ­responsibility and cooperation, in the form of temporary adopted by the Federal Cabinet. “Transformation reports” interministerial project groups. were drafted on the six areas of transformation and the lever of international responsibility and cooperation and were Drawing on work and processes that were already ongoing, adopted by the Cabinet. and with specific areas of emphasis within their areas of trans- formation, one role of the TTs was to prepare the meetings of In addition to adopting decisions and holding discussions on the State Secretaries’ Committee for Sustainable Development. key sustainability issues, the ministries used the Committee They also drafted decisions and reports on the different issues to report on the implementation of the German Sustainable (cf. chapter B. and chapter C.I.1.) and supported the imple- Development Strategy within their respective remits. The mentation of measures. Their members were determined at ministerial sustainability reports that they were required a Committee meeting on 14 November 2022 (cf. chapter B.). to draw up served as the basis for this. These reports are published on the website of the German Sustainable Develop- The TTs involved the RNE, the Science Platform Sustainability ment Strategy (www.deutsche-nachhaltigkeitsstrategie.de, 2030 (wpn2030) and a dialogue group in their work. The RNE section on sustainability reports, in German): and wpn2030 were more closely involved from the beginning of 2024 after they were given the option of joining meetings with the dialogue group. Seven transformation reports – six areas of ­transformation, one lever The TTs’ work puts into practice the whole-of-government approach, which sees holistic interministerial efforts as the

1. Human well-being and capabilities, social justice key to successful transformation. In the 2023 Global Sustain- (Committee discussion 27 March 2023; Cabinet able Development Report (GSDR, p. 48), the TTs were high- ­decision 23 August 2023) lighted as an example of good practice for a policy approach aligned with the areas of transformation. The evaluation of

2. Energy transition and climate action (Committee the TTs is to pay particular attention to the aspect of making discussion 12 December 2023; Cabinet decision interministerial cooperation more impact-oriented. 20 March 2024)

3. Circular economy (Committee discussion 22 May Global Sustainable Development Report – 2023; Cabinet decision 27 March 2024) ­Phases of transformation

4. Sustainable construction and sustainable mobility In the first phase (emergence), new technologies or (Committee discussion 24 July 2023; Cabinet decision practices develop out of innovative ideas and research 21 August 2024) findings. In the second stage (acceleration), successful innovations gain importance and spread exponentially.

5. Sustainable agricultural and food systems (Commit- This ultimately leads to the third and final phase of tee discussion 25 September 2023; Cabinet decision transformation (stabilisation), a normalisation of the 5 June 2024) technology or practice. However, the three stages do not follow on from one another automatically. Active

6. Pollutant-free environment (Committee discussion management is needed to ensure that transformation 27 November 2023; Cabinet decision 24 July 2024) processes are successfully completed. Global capacity-­ building for these processes is therefore essential.

7. International responsibility and cooperation as This is the only way to mitigate upheavals, strengthen a lever of transformation (Committee discussion resilience, promote social mobilisation and increase 23 January 2023) participation. 104 Chapter C. Levers Independently of the TTs, the regular meetings of the Direc- Quote from the dialogue process: tors’ working group for sustainable development (UAL-AG) “The Advisory Council would like to take this oppor- offer the opportunity to discuss topics that affect all ministries. tunity to emphasise the importance of efficient and Under the Federal Chancellery’s leadership, specific decisions effective interministerial action.” are prepared for the State Secretaries’ Committee and the ministries inform one another about relevant activities in the Parliamentary Advisory Council on field of sustainability. ­Sustainable ­Development Recommendation by the Council for Sustainable Against this backdrop, a process was established to look into Development, 13 November 2023 (extract): maintaining the TTs, as well as other cooperative structures, “We welcome the expansion of interministerial coop- and possibly further specifying their future tasks. This process eration within the German Government on the use of should be ambitiously continued during the next legislative TTs.” term. Council for Sustainable Development Parliamentary Advisory Council on ­Sustainable ­Development (PBnE) The Parliamentary Advisory Council on Sustainable Devel- The Federal Environment Ministry leads an interministerial opment was set up for the first time in 2004. It has been working group (IMA) for the ongoing development of the reconstituted at the start of each legislative term since then. sustainability indicators, with members from all ministries and the Federal Statistical Office. During the 20th legislative term it was chaired by Helmut Kleebank (Member of the German Bundestag for the SPD). Furthermore, all ministries once again appointed Coordina- The Parliamentary Advisory Council brings the issue of sus- tors for Sustainable Development for the 20th legislative term. tainability into the German Bundestag and uses the stimulus They ensure that the ministries act in lockstep to implement provided by the German Sustainable Development Strategy the 2030 Agenda. and the 2030 Agenda for political work in the parliamentary groups, committees and plenary debates in the Bundestag. To this end it organises regular expert discussions that are open Duties of the Ministry Coordinators for Sustainable to the public. The Council carries out formal examinations of Development the sustainability impact assessments compiled by the minis- tries for new bills and, where necessary, calls for corrections • The central contact person for issues relating to and additions by the ministries concerned. It submits its ­sustainable development findings to the relevant lead committee in the form of a statement, which this committee must in turn discuss and • Interdepartmental coordination of the implementa- evaluate in writing. Its statements are used by the relevant tion of the German Sustainable Development Strategy lead committees in their own reviews. and the 2030 Agenda in their ministry’s policy The Council’s recommendations for its future development • Interdepartmental involvement to ensure that sus- were discussed at a plenary debate in the German Bundestag tainability aspects are taken into account in the legis- on 19 January 2024. The Council expressed its support for lative and regulatory process (sustainability impact a modification to the Rules of Procedure of the Bundestag assessment pursuant to Article 44 (1) sentence 4 so that it can begin work from the beginning of each new of the Joint Rules of Procedure of the Federal Minis- legislative term, ideally in parallel to the committees. tries – GGO) and in ministry strategies German Council for Sustainable Development (RNE) The Council for Sustainable Development advises the German It will remain crucial to take an interministerial approach to Government on sustainability policy. It acts independently the challenges of sustainable development and to continue and since 2001 has been appointed every three years by the working on forward-looking solutions and support their Federal Chancellor, most recently as of 1 January 2023. It implementation. comprises 15 public figures from civil society, the business 105 Chapter C. Levers community, academia and politics. The members of the Key EU achievements such as peace, freedom and solidarity Council are appointed for three years at a time, ad personam form a foundation for achieving the 2030 Agenda. Sustainable and not as formal representatives of individual interests or development is one of the aims agreed in the EU treaties: associations. Since 2023 it has been chaired by Reiner Hoffmann, former “The Union [...] shall work for the sustainable develop- chairman of the German Trade Union Confederation. The ment of Europe based on balanced economic growth Deputy Chair is Gunda Röstel, Commercial Director of the and price stability, a highly competitive social market utility company Stadtentwässerung Dresden GmbH and an economy, aiming at full employment and social pro- Authorised Representative for GELSENWASSER AG. gress, and a high level of protection and improvement of the quality of the environment. It shall promote sci- The tasks of the Council are in particular to advise the German entific and technological advance. It shall combat social Government on sustainable development issues, to draw up exclusion and discrimination, and shall promote social contributions for updates to the German Sustainable Devel- justice and protection, equality between women and opment Strategy, and to publish opinions on individual topics. men, solidarity between generations and protection of It also carries out activities to help raise public awareness and the rights of the child.” foster a broad dialogue on sustainability (cf. chapter C.II.2. on Joint Action for Sustainable Development, and below on local Article 3 (3) and (4) of the Treaty on European Union authorities / the mayoral dialogue). In addition, it launches (TEU) initiatives of its own such as the German Sustainability Code and the Local Sustainability Reporting Framework (BNK). The Council is supported by an office in Berlin. The EU aims to play a leading role in implementing the 17 SDGs. Within the EU, Germany works to promote sus- b) Vertical integration: international cooperation, tainable policymaking and ambitious implementation of Europe, Länder and local level the 2030 Agenda. International cooperation and Europe The German Government thus works closely with the admin- The German Government is committed to multilateral action istrations of other European states on sustainable develop- and multilateral approaches in order to implement the 2030 ment (see also chapter A.I. and chapter C.V.). It is also a Agenda in its entirety in Germany, by Germany and alongside member of the European Sustainable Development Network international partners. (ESDN). German foreign policy, and development and environmental cooperation aligned with the 2030 Agenda and its guiding The European Sustainable Development Network principles of people, planet, prosperity, peace and partnership, (ESDN) allows members of the administration as well contributes significantly to implementing the 2030 Agenda as subject-matter experts to share information on and promoting sustainability at international level. In an strategies and measures for sustainable development. increasingly multipolar world order, Germany is also relying more heavily on bilateral partnerships with countries in Asia, Currently, the ESDN has more than 400 members and Africa, South and Central America and the Middle East. partners from over 40 countries. Given the crucial importance of international cooperation Its annual conference was held in June 2024 in Brussels in achieving the SDGs, the German Government has set up a as an official event of the Belgian Presidency of the dedicated transformation team for the lever of international Council of the European Union, under the title Up- responsibility and cooperation (cf. chapter C.V.). grading Europe: Building Transformative Policies to Reach the Sustainable Development Goals. Germany At a time of fundamental change in the global environment, contributed a presentation titled Germany – Addressing European cooperation is more indispensable than ever. Transformation in the National Sustainable Develop- ment Strategy. In September 2024, the Federal Environ- ment Ministry and the ESDN jointly hosted the fourth ESDN Youth Workshop in Berlin. It was attended by 33 young people from 19 European countries. 106 Chapter C. Levers Länder (federal states) a meeting with the Heads of the State Chancelleries. This Within Germany’s federal structure, legislative and admin- meeting format is to be continued as a high-level exchange istrative authority over key aspects of sustainable develop- between the Federation and the Länder. ment rests with the individual Länder. The Länder therefore play a decisive role in the implementation of the German The Regional Hubs for Sustainability Strategies (RENN) were Sustainable Development Strategy and the 2030 Agenda. created in 2016 as a network for sustainable action and social transformation with 16 partners from all of the Länder. Since The short Länder profiles on the German Government’s then, the four hubs (RENN Nord, West, Mitte and Süd) have website (www.deutsche-nachhaltigkeitsstrategie.de, in made an important contribution to linking up sustainability German) provide an overview of the sustainability activities activities at regional level and ensuring a broad impact. From of the Länder. 2025, their activities will be brought together by the newly founded organisation RENN. Prominent political issues with relevance for sustainable development are addressed as appropriate at the level of the Local level Federal Chancellor with the Heads of Government of the In a multi-level federal system, each level of government Länder, or by the Head of the Federal Chancellery with the bears a joint responsibility for achieving the goals of the 2030 Heads of the State and Senate Chancelleries of the Länder. Agenda in and with Germany. This requires strong actors at local level, too, because towns and cities, municipalities and districts play a key role in implementing the SDGs. Declaration by the German Government and the Länder, Berlin, 6 June 2019 In local communities, sustainable development must be “Out of responsibility for a bright future in Germany, shown to be viable and capable of reconciling conflicting Europe and the world, we, the Chancellor of the Federal aims, for example in the areas of education, affordable Republic of Germany and the Heads of Government greenhouse gas-neutral housing, societal cohesion, health- of the Länder, are working together to ensure that the care and other forms of care, equal living standards, mobil- guiding principle of sustainable development is con- ity and green spaces, and climate change and adaptation. sistently applied at the level of the Federation and the Local communities are also a place where people can see Länder. and feel the impact of sustainable solutions firsthand. As a venue for direct democracy, they are more important than We want to work together to implement the 2030 Agen- ever, because they strengthen people’s confidence in the state da for Sustainable Development of the United Nations and allow them to experience societal cohesion up close. with its 17 Sustainable Development Goals in Germany. The adoption of the 2030 Agenda was a milestone in international cooperation towards creating a world “Around two-thirds of the 17 SDGs primarily depend on worth living in for everyone. We want to make swift what happens in local communities. For a successful progress in order to master the challenges facing present transformation at local level, local authority funding and future generations, in Germany and – together with requires a complete overhaul. Following the Federal our partners – also in Europe and around the world. We Constitutional Court’s ruling on the federal budget, firmly believe that this responsibility cannot and must the question of financing the transformation at local not end at the borders of our country.” level is more pressing than ever. The longer it goes unanswered, the worse things will become.” Another forum for expert discussion of current issues is the Katja Dörner, Mayor of the Federal City of Bonn, twice-yearly Federation-Länder Exchange on Sustainable member of the Sustainable City dialogue and the Development (BLE NE). Meetings are prepared and led by Council for Sustainable Development the Land currently holding the chair of the Conference of Minister-Presidents, together with the Federal Chancellery. A total of 80 UNESCO sites, including World Heritage sites, The Länder are also actively involved in updates to the Ger- biosphere reserves and Geoparks, as well as numerous edu- man Sustainable Development Strategy. In addition to the cational and cultural networks such as UNESCO Associated dialogue conferences (e.g. with Land Berlin and in Bremen, Schools, stakeholders in Education for Sustainable Develop- cf. chapter C.II.4.), the Länder have taken part in special ment (ESD) and UNESCO Creative Cities, have been success- sessions at working level, provided written opinions and fully pioneering the strategic and cross-sectoral implemen- participated in the Sustainability Forum (cf. chapter C.II.4.). tation of the 2030 Agenda for years, and make it possible to Finally, in September 2024, Minister of State Ryglewski held experience and shape the transformation at regional and 107 Chapter C. Levers municipal level. These sites serve as ambassadors for sustain- in 12 Länder to date. Around 250 local authorities have already ability and as role models for sustainable development; they signed the specimen resolution on the 2030 Agenda by the encourage engagement with global issues such as transforma- Association of German Cities and the Council of European tions and climate change, and implement regional solutions Municipalities and Regions, and come together to form the based on local experience, knowledge and traditions. Club of 2030 Agenda Municipalities. In addition, there is support for municipal participation in selected international Sustainability strategies are therefore developed not only at conferences in the context of the 2030 Agenda. federal and Land level, but also at municipal level, and must thus be vertically integrated. Municipal climate partnerships enable regular, structured cooperation between towns, cities, municipalities or districts In the interest of effective horizontal networking and integra- and a municipality in the Global South in the areas of climate tion, the annual Sustainable City dialogue organised by the action and adaptation. So far, 88 municipal climate partner- Council for Sustainable Development (RNE) brings together ships have already developed joint action programmes on 40 mayors once a year to discuss their sustainability initiatives these issues. That is in addition to 22 municipal sustainability and issue recommendations to the German Government. partnerships involving strategic interdisciplinary cooperation The Council also supports local authorities in piloting and between municipalities in Germany and the Global South in continuing to develop the Local Sustainability Reporting order to implement the 2030 Agenda at the local level. Framework (BNK). The initiatives launched by the Council, including the Joint Action for Sustainable Development plat- Municipal contributions to achieving the SDGs are also made form (chapter C.II.3.) and the Regional Hubs for Sustainability visible at international level, for example through reports Strategies, aim to bring together sustainability ideas and known as Voluntary Local Reviews (VLRs). These have come to stakeholders at regional level in order to lend visibility to the play a much more significant role at the High-level Political wide range of efforts being made to achieve the SDGs in towns Forum (HLPF) in recent years. and cities as well as in the countryside. Local authorities are a key player in promoting sustainable The end goal is to enhance the local implementation of sus- development. Even after the adoption of the German Sustain- tainability, beyond existing project funding arrangements, able Development Strategy, there should therefore be a review and ensure synergy effects can be harnessed even more ef- of possibilities for even closer integration of the municipal fectively. For example, the Federal Environment Ministry level with the Land and federal level. Outcomes from the is currently examining the possibility of a joint financing online dialogue and from the municipal congress organised scheme for climate adaptation. by the Bertelsmann Stiftung in June 2024 under the title “Sustainability needs strong municipalities!” (Nachhaltigkeit The German Government provides an overview of current braucht starke Kommunen!) fed into the ongoing development funding programmes in an interministerial database of the GSDS at various points and will continue to do so. (www.foerderdatenbank.de, in German). In addition, a review is underway at federal level concerning the imple- mentation of a competence centre / knowledge hub for 2. Monitoring, evaluation and planners, which would also support local authorities in ­administrative action various ways (e.g. responding to enquiries about funding programmes). Steering sustainability policy requires not just a solid structure but also binding and measurable objectives, and therefore a Local authorities, globally connected regular monitoring and evaluation system. Municipal partnerships focusing on the 2030 Agenda’s goals and their implementation at local level represent an a) GSDS indicators important channel for sharing knowledge and experience, The German Sustainable Development Strategy sets out e.g. relating to climate action and conservation, sustainable targets that are aligned with the SDGs and in most cases urban development, and development cooperation. quantified (cf. Table 2), illustrating in detail how Germany can achieve the SDGs, including by defining indicators to Comprehensive federal support for local authorities is also measure progress. These indicators reinforce the binding offered by the Service Agency Communities in One World nature of the goals and also increase transparency, which (SKEW) run by Engagement Global on behalf of the Federal assists with the political process of steering and adjusting Ministry for Economic Cooperation and Development. For policy. They furthermore serve as a touchstone for sustain- example, its programme on globally sustainable municipal- ability impact assessments in the legislative process (cf. also ities (Global Nachhaltige Kommune) has been implemented chapter C.I.2.b). 108 Chapter C. Levers The Federal Statistical Office provides an interactive platform Sustainable Development Strategy, there will be a review of that displays and analyses the progress of these indicators how the parental leave indicator can better reflect parental in depth. Progress is also reviewed by the Federal Statistical divisions of labour. Office in Indicator Reports every two years. These reports assess whether the targets are likely to be reached based on However, the social dimension is also affected by other ex- the current trend and assigns a corresponding symbol to isting and new targets and indicators in the GSDS, via their each target. impact on human well-being, prosperity and fulfilment – and in some cases indirectly by way of the state of, or access Meanwhile, the German Government produces Off-Track to, nature and the environment. Examples include clean Indicator Reports every two years on indicators where either air, clean water, fertile soil, a stable climate, intact nature progress is off-track (meaning there is a trend in the wrong and nearby green spaces. direction) or there is a gap of more than 20% between current progress and achieving the target, as identified by the statisti- cal assessment; these reports also set out planned corrective Council for Sustainable Development measures. They are published (most recently on 24 July 2023) ­recommendations for updates to the German and taken by the State Secretaries’ Committee as a basis for ­Sustainable Development Strategy’s system of adjustments to ensure the targets are reached. ­targets and indicators, 13 February 2024, p. 8: “In the Council’s view, it is particularly necessary for Updates, in particular regarding the social dimension Germany to ensure additional investments in infrastruc- The latest update to the GSDS included adjustments to the ture transformation, especially from the perspective of set of indicators used. The social dimension of the Strategy climate change, digitalisation and demographic change. is now given greater prominence with new and enhanced The Council therefore believes that this aspect should indicators. The indicator system is to be continuously adjust- be included in the indicators and targets relating to ed and enhanced in order to make it more impact-oriented public debt (indicator field 8.2).” and reflect rapidly changing social realities. Council for Sustainable Development The newly included indicators in this context include in particular: Some existing indicators were also adjusted in order to take • Schools with an ESD label (SDG 4) account of changes in external circumstances and data availability or to increase their usefulness (cf. Table 2). For • Participation in continuing education (SDG 4) example, the previous input indicator 3.3, “Germany’s con- tribution to global pandemic prevention and response”, • Average weekly working hours of all mothers and fathers with the aim of increasing expenditure and commitments (SDG 5) substantially from 2019 to 2030, has been replaced by a new output indicator 3.3. The aim of the previous indicator con- • Jobs covered by a collective agreement (SDG 8) tinues to apply. Germany’s contribution as measured by the previous indicator 3.3 was 300.5 million euro in 2019 and • Consumer debt (SDG 12) 452.8 million in 2022, in addition to 1224.9 million for the global fight against the COVID-19 pandemic. The Federal Statistical Office and the Federal Ministry of Health (Robert Koch Institute) are piloting data collection The online indicator platform provided by the Federal Statis- to explore the connection between social status and health. tical Office continues to report on the previous indicator 3.3. The aim is to examine whether a new indicator can be de- The new indicator 3.3 will continue to be adjusted until the veloped based on the difference in life expectancy between next GSDS update. prosperous regions and those that are socioeconomically less well-off. By that time there will also be a review of indicator 8.6, “Voluntary sustainability reporting by companies according In order to better map the link between social origin and to the German Sustainability Code (DNK)”, in the context of education, an adjustment to the newly introduced indica- a possible update of regulations on corporate due diligence tors 4.3.a and 4.3.b is under review; indicator 4.3.a focuses obligations. The consumer debt indicator 12.4 will be revised on a more nuanced exploration of participation in further in the same timeframe with regard to its target of prevent- training and its effects on mobility in study careers, while ing individual over-indebtedness. For future updates, it will 4.3.b focuses on optimising the identification and measure- also be necessary to review whether issues around wealth ment of risk factors. Before the next update of the German distribution should be integrated. 109 Chapter C. Levers A further point to be reviewed for subsequent updates to the The aim is to develop sustainability impact assessments as indicator system is how procurement to cover the needs of an important means of establishing coherent policies on the Bundeswehr can in the future be excluded from calcula- sustainability, and as an opportunity to institute systematic tions of the increase targeted by indicator 12.3.a. Indicator solutions in this regard. 13.1.b must be adjusted after 2025 in the light of the new global financing target (cf. pp. 53 and 57). In concrete terms, this means that the SDGs as well as the national targets and principles set out in the German Sus- In order to keep the set of indicators manageable – including tainable Development Strategy are to be taken into account as a basis for regulatory impact assessments – care was taken from the outset in every step of the conception and develop- to limit the increase in the total number of indicators. ment of laws and ordinances. This means The public participation process generated important mo- • identifying which SDGs are significantly affected by draft mentum and ideas for the revision of the indicator system. legislation and how its aims relate to progress towards the Some proposals from the consultation process were incor- SDGs, from the beginning of the drafting process, porated into this GSDS update, for example addressing sus- tainable and globally responsible business practices, financial • developing new legislation in such a way that its expected crime and international gender equality. Other valuable sug- impact is conducive to achieving the SDGs, and gestions could not be implemented in the short time available. These include in particular improved mapping in the areas of • taking a joined-up approach to the SDGs that accounts for public safety, inclusion and a pollutant-free environment. interactions between them, including relevant conflicts They will be taken into account in future amendments to the during implementation, possible negative effects of the GSDS’s system of targets and indicators. draft legislation on progress towards individual SDGs (both nationally and, if relevant, internationally) and the These future amendments will also involve a revision of the resulting conclusions. methodology behind the selection of targets and indicators, including the possibility of internal differentiation. Targets An evaluation of the German Government’s draft legislation and indicators can then be modified or newly added by way initiated by the Federal Ministry of Justice in November 2023 of an amendment decision by the State Secretaries’ Commit- shows that sustainability impact assessments relating to new tee and implemented by the Federal Statistical Office on its legislation are carried out at interministerial level. On the online GSDS platform. basis of the evaluation’s findings and suggestions for improve- ment, the ministries are now called upon to continue advanc- b) Sustainability in legislation ing their efforts to bolster sustainability considerations in The German Government reviews all draft legislation and the legislative process. The Justice Ministry offers training ordinances to assess their impact on sustainable development. on the subject as well as an exchange of best practice for all ministries. It has also produced a virtual working guide and a collection of best practice examples and incorporated these “It must be shown whether the impact of the draft materials into the e-legislation process. Draft legislation and legislation is consistent with sustainable development, other texts produced by the German Government now contain and in particular what will be its long-term impact.” references to the SDGs and associated targets contained in the 2030 Agenda for Sustainable Development, usually in the Section 44 (1) sentence 4 of the Joint Rules of covering note under the heading “Problem and objective” and ­Procedure of the Federal Ministries (GGO) and, frequently in the general section of the explanatory notes. for draft ordinances, section 62 (2) of the GGO Sustainability impact assessments in the legislative process are carried out by the ministry with lead responsibility for Since a decision by the State Secretaries’ Committee for the legislation in question. This ministry liaises with other Sustainable Development on 14 November 20226, the German affected ministries. A web-based assessment tool (eNAP) Government has taken the SDGs into account at an early supports the ministries in their work. stage when drafting legislation and legal ordinances, and as a recommendation in strategies and programmes. Possible conflicts between different goals must also be taken into account, as well as possible effects on third countries. 6 www.bmj.de/SharedDocs/Downloads/DE/Themen/Nav_Ministerium/2022_Empfehlungen_Nachhaltigkeitsziele.pdf?__blob=publicationFile&v=3 110 Chapter C. Levers Example: Draft of a Second Law Amending the targets set out in the GSDS, taking into consideration expe- ­Federal Climate Change Act (KSG) riences gained from the process of revising the GSDS. The aim is to make the indicators an even better instrument for A. Problem and objective and explanatory notes measuring progress. A. I. Objectives of and need for these regulations Programme of Sustainability Measures (MP NHK) The federal administration has set itself concrete goals with This draft legislation comes in a context of uncertainty the Programme of Sustainability Measures, first adopted in around the timely implementation of the Sustainable 2010 and most recently updated in 2021, in order to make its Development Goals contained in the United Nations own administrative activities sustainable. Progress with the General Assembly Resolution of 25 September 2015 implementation of these measures is determined annually titled Transforming Our World: the 2030 Agenda for and published in a monitoring report. Subject to the availa- Sustainable Development. It is intended in particular bility of the necessary budget funding and staffing positions, to support progress towards SDG 13, “take urgent ac- the ministries are responsible for ensuring that the Programme tion to combat climate change and its impacts”. In the of Measures is implemented within their respective remits interest of a joined-up approach to the SDGs, it is also and the goals are achieved. The measures cover areas including intended to support the timely implementation of making the federal administration climate-neutral by 2030, target 16.6, “develop effective, accountable and trans- construction, mobility, procurement, events, canteens / mass parent institutions at all levels”. catering, equal access to leadership positions, work/life balance for parents and carers, and diversity. Electronic sustainability impact assessments The monitoring reports for 2021 and 2022 showed progress A web-based assessment tool, known by the German in the implementation of these measures. By the end of 2022, acronym eNAP (www.enap.bund.de), exists to support around 22% of the measures had been largely implemented sustainability impact assessments. Work on adapting and around 32% partially implemented. The need to focus on the tool to the content of the 2021 GSDS and ensuring national and collective defence since the invasion of Ukraine it meets accessibility requirements was completed in and the resulting Zeitenwende has a wide range of national May 2022. In addition, eNAP has been designed so that and international implications for the Defence Ministry, and conflicting objectives can and should be reported. The entails greater requirements concerning materiel, staffing principal change, however, is that eNAP is now incorpo- and infrastructure projects as well as a significant increase rated into the electronic legislative system on German in funding needs. The Programme of Measures is also to be Government networks. This allows the sustainability applied to the action now being taken by the German Gov- impact assessments to be linked with other regulatory ernment in the face of these increased requirements. As part impact assessment issues. of this process, sufficient consideration must in particular be given to ensuring accelerated procurement to support the material readiness of the Bundeswehr. Great importance is placed on taking sustainability into account in legislation, and this process is being continuously An evaluation of the Programme of Measures is planned for refined and optimised. 2025, including a review of reporting obligations. A value- for-­money assessment will also be carried out in accordance c) Sustainable administration with section 7 (2) of the Federal Budget Code (BHO). The guiding principle of sustainable development must also be followed in administrative activities. The public sector Climate-Neutral Federal Administration serves as a role model and its activities have a relevant im- ­Coordination Unit (KKB) pact on the three dimensions of sustainable development. Pursuant to section 5 of the Federal Climate Change Act (KSG), the public sector serves as a role model and has committed to A modern, interdisciplinary and agile administration that can making the federal administration climate-neutral by 2030. make complex, strategic, integrated and forward-looking decisions with greater public involvement helps to ensure that This requires a wide range of activities, which are supported SDGs can be implemented effectively and efficiently. This and coordinated by the Climate-Neutral Federal Adminis- requires capacity-building and learning from examples of tration Coordination Unit, established at the Economic good practice at federal, Land and municipal level. Meanwhile, Affairs Ministry in 2020. One particular task of the Coordi- existing structures must be continuously developed and nation Unit is to calculate the annual climate footprint for adapted to changes. This must involve reviewing how the the direct federal administration. indicator system can be linked even more effectively to the 111 Chapter C. Levers Centre of Excellence for Sustainable Procurement (KNB) • defining sustainability criteria for procurement by the With procurement worth hundreds of billions of euros, the Federation, and public sector plays a crucial role in driving demand for sus- tainable products and services. There are around 30,000 • coordinating the production of guidance for authorities procurement bodies across the federal, Land and municipal and institutions with regard to sustainable procurement. levels, making knowledge transfer and knowledge-sharing an important factor in sustainable development. In order to meet the aim of standardising sustainable public procurement as much as possible nationwide, the Committee As the German Government’s central information and ad- involves other stakeholders in its work, not least the Länder vice centre on sustainable public procurement, the Centre and municipalities as well as civil society. of Excellence for Sustainable Procurement has since 2011 been supporting contracting authorities within the meaning Further training of the Act against Restraints on Competition (GWB) in tak- The Federal Academy of Public Administration (BAköV) is the ing account of sustainability criteria in their procurements. German Government’s central further training institute and does vital work to enable an agile, sustainable federal admin- istration. Since 2020, it has offered training measures for fed- Activities of the Centre of Excellence for eral administration staff on the topic of sustainability, in close ­Sustainable Procurement cooperation with other federal authorities. These measures give staff the skills and knowledge that they need to imple- Contracting authorities can, for example, contact ment important sustainability principles that strengthen the Centre via a telephone hotline and by email. It the federal administration’s strategic and operational action. also offers training on sustainable procurement and on human rights in procurement. Together with the More than 1100 training events with a total of 23,000 partici- Länder, it operates a central information platform on pants have already been held. The range of training offered all aspects of sustainable public procurement. will be continuously updated over the next few years. The Academy thus supports the federal administration’s function as a role model and contributes significantly to its modern- In its role as a network hub, the Centre works with all parts of isation, because this transformation depends on staff at all society to support and shape solutions for sustainable public levels having comprehensive knowledge and skills in the field procurement. For example, it has negotiated an undertaking of sustainability. from Bitkom, Germany’s digital industry association, to in- clude social criteria in IT procurement. A joint further training d) Governance outlook initiative between the Federation and the Länder was estab- Advances have been made in sustainability governance to lished in 2023, based within the Centre for Excellence, with make it even more effective and binding. This process incor- the aim of intensifying further training activities in the Länder porated ideas from the Council for Sustainable Development on a broad footing in order to make sustainability in procure- (RNE) and the Science Platform Sustainability 2030 (wpn2030), ment the norm. Particularly in view of the digital transfor- among others. However, it should not be considered “com- mation, alternative forms of support for public contracting plete”. The aim is still to be able to react as flexibly as possible authorities are to be promoted. to changes, now and in the future. Interministerial Committee for Sustainable Public Efforts to update the governance system are set to continue ­Procurement (IMA nöB) following the adoption of the revised GSDS. As well as updates An Interministerial Committee for Sustainable Public Pro- to the system of targets and indicators, this affects forms of curement was established in 2022 under the leadership of interministerial cooperation and vertical integration (Länder, the Interior Ministry and Economic Affairs Ministry. Its tasks municipalities), and the structures and processes for imple- include menting and updating the GSDS themselves. One formalised goal should be to review and continue enhancing the effec- • coordinating measures to promote sustainable tiveness and efficiency of existing structures. Overly complex ­procurement, processes must be avoided. This concerns not only the nature and scope of reporting but also the principles of interministe- • identifying and prioritising sustainable, standardisable rial cooperation. The transformation teams will be evaluated products and services that are available on the German in this connection as well. Government’s online procurement platform Kaufhaus des Bundes (KDB), 112 Chapter C. Levers Recommendation by the Council for Sustainable a) Science Platform Sustainability 2030 (wpn2030) Development, 13 November 2023: Comprehensive know-how is needed for the sustainable “The Council also recommends that the German Gov- transformation to succeed. This not only forms the basis for ernment adopt a new policy decision at the beginning developing new technologies and sector-specific adaptation of the legislative term concerning the implementation strategies, but also helps improve understanding of systemic of the SDGs (aligned with the content and publication factors and integrate them into the development of measures. date of the future coalition agreement).” Science and research thus make an essential contribution to solving current challenges (cf. chapter C.IV.). Interdisciplinary Council for Sustainable Development and transdisciplinary science is particularly well-suited to producing integrated and solution-oriented knowledge for sustainability transformations. In Germany, the scientific advisory boards to the ministries II. Social mobilisation play a key role in incorporating research findings into govern- and ­participation ment projects, as do expert committees and other advisory structures. In order to harness synergies and increase the The success of the sustainable transformation depends not effectiveness of scientific advice and critical monitoring of just on committed political and administrative action, but strategy development and implementation, information-­ also on individual grassroots initiatives, associations, sporting sharing between these bodies is supported by, for example, and cultural institutions, academia, trade unions, businesses the advisory board dialogue set up by wpn2030 and the Sus- and voluntary work. Creating a sustainable Germany is a task tainable Development Solutions Network (SDSN) Germany. for the whole of society, one that can only succeed through collaborative efforts across the local, regional and national Established by the German Government, wpn2030 serves as levels. an interface between researchers and politicians, allowing them to reflect on issues around sustainability policy and sup- In order to involve all of these levels and advance social port the implementation and ongoing development of the change, people must be empowered to actively help shape German Sustainable Development Strategy with scientific transformation processes. Opportunities for civic engagement expertise. The networks SDSN Germany and the German contribute to a strong civil society and a thriving democracy, Committee Future Earth (DKN) are involved at all times. as does greater appreciation for voluntary work. Being able The platform also provides a space for reflecting on the to play an active role promotes people’s self-efficacy, or Federation’s sustainability activities, addresses open issues confidence in their own capabilities, and thus helps them to from past experience and incorporates these into the scien- identify with the goals of sustainable development. tific discussion. Municipalities, towns and cities in particular have a major The German Government’s Sustainable Finance Committee role to play in this respect, as many of the SDGs can only be also provides valuable recommendations to support discussion implemented at local level. As a venue for direct democracy, of targeted approaches to the challenges of transformation, local communities are more important than ever (cf. chap- and result-oriented measures to drive these approaches. ter C.I.1.b). People can gain greater trust in the state and societal cohesion by helping to shape measures for a suc- b) Dialogue group cessful sustainable transformation and seeing and feeling A dialogue group was formed in 2018 to give different parts of the impact of these measures on the ground. society a say in preparing meetings of the State Secretaries’ Committee. Members of the dialogue group, such as the Ger- man League for Nature Protection and the German Farmers’

1. Academia, associations, civil society Association, take part in expert discussions with the ministries, for example at the meetings to prepare the transformation In order for the GSDS to have the necessary impact, the reports. German Government consistently involves relevant groups within society and their associations, as well as the academic community, in the implementation and further development of the Strategy. 113 Chapter C. Levers The current dialogue group was convened on 1 January 2024 c) Civil society and has 15 members: To give due consideration to fears, resistance and conflicts around the transformation of our economy and society, suitable participation processes must be created for all. These Dialogue group – organisations participating in must empower all sections of civil society, young people, ministry discussions in preparation for meetings older people, people with disabilities, people of migrant ori- of the State Secretaries’ Committee for Sustainable gin, people of colour and financially less well-off people to Development: make their voices heard and help shape the transformation. The UN calls this the Inclusion Imperative and stresses that

1. Friends of the Earth Germany “inclusion, empowerment and equality” must be “at the heart of our efforts” for sustainable development. Accordingly, the

2. German League for Nature Protection social dimension has been comprehensively considered in the updated GSDS. The area of transformation “Human well-­

3. World Wide Fund for Nature being and capabilities, social justice” (chapter B.I.) also high- lights basic measures to this end. Chapter C.II.4. describes the

4. The Voice of German Industry participation process behind the GSDS.

5. Confederation of German Employers’ Associations Teenagers and seniors Young people need improved opportunities to help shape a

6. German Environmental Management Association sustainable future. Many young people are concerned about political choices being made today that will define their

7. German Farmers’ Association future. They call for sustainable, equitable policymaking and ways of doing business that do not come at a cost to their

8. German Trade Union Confederation generation or subsequent generations. Teenagers in particular must therefore have opportunities to participate and make

9. Federation of German Consumer Organisations active contributions.

10. Commissariat of German Bishops / Evangelical Greater opportunities for young people to participate are a Church in Germany key priority of the German Government’s policy. The voting age for European Parliament elections was therefore reduced

11. German Federal Youth Council to 16 years on 11 November 2022. The Federal Ministry for Family Affairs, Senior Citizens, Women and Youth has also

12. VENRO updated the Youth Strategy since 2022 with a National Action Plan for Child and Youth Participation.

13. German Forum on Environment and Develop- ment In recent years, many federal ministries have established their own youth schemes for consultative participation in

14. Germanwatch political processes in fields such as climate (Federal Foreign Office, Economic Affairs Ministry, Family Affairs Ministry,

15. Sustainable Development Solutions Network Environment Ministry, Development Ministry) or to prepare the transformation reports (cf. chapter B.V.). Young people also play a major role in Education for Sustainable Development Depending on the topic of the meeting, up to five other (ESD), both in shaping action and as a target group. relevant organisations or institutions may also be invited. During the process of updating the GSDS, representatives of One conclusion from the consultation phase for the GSDS youth organisations and advisory boards were invited to the update is that, in the future, the dialogue group will also Sustainability Forum and to a workshop discussion on youth include three organisations that help to ensure special con- participation (cf. chapter C.II.4.). sideration for equality – one each focusing on women, people with disabilities, and migrants. Thought is also being given to In addition to involvement in political processes, the voluntary ensuring greater involvement by young people, beyond the social year and other voluntary services in Germany offer participation of the German Federal Youth Council. These young people good opportunities for civic engagement and steps will support the development of sustainable solutions participation in societal processes. for the common good. 114 Chapter C. Levers Civic engagement opens up new perspectives and makes Government is committed to gender equality at international people more tolerant of differing opinions. It also teaches level, too, and works with various partners for this purpose. important social skills needed for shaping the transformation, Equal rights, equal opportunities and equal power for all strengthens our democratic system and makes solidarity genders are explicit objectives of German development and tangible. foreign policy (cf. chapter C.V.). In order to integrate the objectives of gender justice and equality even more closely However, the principle of solidarity and social justice also into the GSDS, a workshop meeting on the topic was also requires the needs of different generations to be reconciled. held as part of the update process (cf. chapter C.II.4.). In light of current demographic change, a broad spectrum of structural change will be necessary to enable not just younger Integration and anti-racism people but also older and ageing people to enjoy consistent Respect, mutual trust, shared responsibility and a sense of involvement in participatory processes and life in their com- community should shape the way we live together here. munities. This includes adapting teaching programmes for This requires the successful integration of immigrants, and older people and building skills in the area of digitalisation efforts to fight racism. The aim of integration is to strengthen in particular (cf. chapter B.I.). cohesion throughout society. Integrating the people who come to our country as swiftly and sustainably as possible Inclusion benefits not only them but all of us. Integration is a task for In a society where we see diversity as an asset, we must the whole of society. meet a range of different requirements to ensure that all groups participate in society. Inclusion is not primarily Participation in the labour market is essential for successful about demanding that people who are “different” adapt, integration. Paid work offers not only a stable income and but about adapting the social environment to people. For financial independence, but also the opportunity to actively policymakers, this means putting in place the conditions participate in society. Improving labour market integration needed for everyone to have equal access to all areas of is key in order to eliminate difficulties caused, for example, by life and removing barriers that lead to exclusion. a lower level of school or vocational education, a (temporary or permanent) lack of recognition for professional qualifica- The implementation of the UN Convention on the Rights of tions obtained abroad, or a lack of available information and Persons with Disabilities, and the tasks set out in October 2023 advice on labour market issues. by the Committee on the Rights of Persons with Disabilities (CRPD), the independent expert body for the implementation This integration process depends not least on language of the Convention, in the form of concluding observations, acquisition as a crucial factor in successful integration and form the basis for creating these conditions. At federal level, participation. the Convention is implemented via a National Action Plan. Already on its second version, this is a catalogue of measures Integration courses are offered by the Federal Office for Mi- that will be continually updated, reviewed and supplemented. gration and Refugees (BAMF) to help immigrants integrate It contains more than 400 schemes, projects and activities into society. The integration course system was established covering all areas of life for people with disabilities, in order in 2005 and has undergone continuous needs-oriented devel- to gradually close gaps between the legal situation and reality. opment since then, aiming to help participants complete their courses more quickly and thus to support their integration Equality into the labour market. The Federal Ministry of the Interior People’s gender or origin can also be a barrier to equal and Community is responsible for the BAMF’s integration participation in social transformation processes in Germany. courses. The occupational language courses that build on Gender equality is therefore a core aim of government action. the integration courses comprise a broad, demand-oriented All people, regardless of their gender, must have the same offering for integration into the labour market. They prepare opportunities throughout their personal, professional and migrants and refugees for the world of work in Germany and family lives. are also administered by the BAMF. Funding the occupational language courses falls within the remit of the Federal Ministry In order to give greater prominence to the issue of equality of Labour and Social Affairs. within the social-ecological transformation and to genuinely take gender equality into account in all relevant policy areas, Germany has also improved integration prospects by intro- the opinion on the Fourth Gender Equality Report is to pro- ducing one of the most modern immigration laws. The Act to vide recommendations for action (cf. chapter B.I.3.e). Together Modernise Nationality Law (StARModG) entered into force with more consistent use of regulatory impact assessments on 27 June 2024. Under this Act, people who work in Germany focusing on equality, this can help ensure that gender is suf- and are well integrated can become German nationals after ficiently considered in sustainable development. The German just five years instead of eight. They no longer need to give 115 Chapter C. Levers up their previous nationality and thus a part of their identity. late environmental and social aims into tangible sustainable Under certain strict conditions, naturalisation will even be action, for example in the areas of mobility, nutrition, equality possible after just three years. and inclusion. Sporting events are often particularly in the spotlight when it comes to the question of sustainable imple- Integration requires commitment in many areas of life and mentation. Their reach makes them an important venue for from all levels of government. It involves contributions from sharing sustainable values and practices. A project looking at many federal ministries, the Länder and above all the local sustainability for major sporting events in Germany (Nach- level, as well as many non-governmental stakeholders. The haltige Sport[groß]veranstaltungen in Deutschland), funded by importance of civil-society involvement has become particu- the Interior Ministry and Environment Ministry, developed larly evident in the context of refugee arrivals in Germany in a portal addressing all aspects of sustainability for future recent years. Successful integration promotes overall societal event organisers. This includes practical recommendations cohesion while also boosting our country’s appeal for skilled for action in all relevant areas, and examples of good practice workers from abroad. One important part of this is a consistent as well as minimum standards for future large-scale events. effort to fight racism. A particular role is played by major international sporting competitions such as the men’s European football champion- The report Racism in Germany, published for the first time in ship EURO 2024, held in Germany from 14 June to 14 July 2023 by the Federal Government Commissioner for Anti-Rac- 2024. The Federation, Länder and host cities as well as the ism, provides an overview of the status quo and measures German Football Association, UEFA and EURO 2024 GmbH already taken by the German Government. It also identifies drew up the “Joint understanding of a sustainable UEFA EURO gaps in prevention work as well as advice and support services. 2024TM tournament”, which covered all three dimensions of It highlights research needs and urgent areas of action – in sustainability and explored how to minimise or, if necessary, politics, wider society, the workplace, education, healthcare compensate for negative effects on the environment, the and the work of the security authorities. At the heart of the climate and natural resources, among other things. To this issue is empowering people and giving back control to those end the German Government supported various projects affected by racism. They should be heard, know their rights and measures in all dimensions of sustainability, which are and be empowered to act. presented in the final report on EURO 2024 that it published on 3 December 2024. The Anti-Racism Commissioner supports numerous projects to this end. One example is a community-based counselling Positive example: culture and advice scheme (Community-basierte Beratung gegen Ras- The cultural sector benefits society by offering guidance on sismus) that works to expand and improve the coverage of a vast range of issues. Art affects us emotionally and serves these services in Germany in line with the needs of those as a kind of informal education. It is therefore an especially affected. Following a racist incident, it should be possible to good way to share knowledge and visions for the future, and quickly and easily access professional help, in both urban it actively names the changes that are needed as well as and rural areas, in both the east and west of Germany. Other motivating people to see and think about things in new ways. projects aim to improve protection for local politicians and Cultural institutions, like sport, are not only a venue for decision-makers against racist and far-right hostility and teaching and sharing, but must also adapt their own structures attacks, strengthen initiatives by and for those affected, and in line with the principle of sustainability. This will allow the fight against racism in organised sport. cultural sector to serve as a role model. Positive example: sport Publicly funded institutions in particular have a leading role Sport teaches values such as fair play and tolerance, encour- to play in this green transformation. That especially applies ages people to engage in volunteer work, and promotes inte- to cultural infrastructure. For example, the Federal Govern- gration into society. It creates community thanks to its deep ment Commissioner for Culture and the Media funds a Green roots at the local level. There are over 86,000 sports clubs in Culture hub to support the sustainable green transformation Germany, with over 28 million memberships in total – far of the cultural and media sector through advice, networking more than any other voluntary organisations. With extensive and knowledge transfer. structures and networks, plentiful events, and prominent women athletes setting an example, sport reaches broad To address their environmental footprint, cultural institutions swathes of the population and can therefore play a crucial use certified management approaches as well as environ- role in the success of the sustainable transformation. mental and sustainability management systems such as the German Sustainability Code, ECOPROFIT, Economy for the The sporting sector is an important partner for environmental Common Good, KlimaBilanzKultur (KBK, “cultural climate and nature conservation, and at the same time is particularly footprint”) and KlimaBilanzKultur+ (KBK+) as well as EMAS challenged by climate change. Sport can show how to trans- and the International Organization for Standardization (ISO). 116 Chapter C. Levers These are mapped with a new indicator introduced in the European Sustainable Development Week (ESDW) 2025 GSDS, measuring the proportion of cultural and media and German Sustainability Action Days (DAN) institutions that have some form of sustainable certification. Furthermore, guides and sector-specific minimum standards The annual European Sustainable Development Week have been developed at the initiative of cultural institutions (ESDW) in Germany is organised by the Council for and their umbrella associations, such as the Theatre Green Sustainable Development (RNE). Book or the guide by the German Museums Association, making their own significant contribution to the transforma- This Europe-wide initiative aims to launch activities, tion and to raising awareness within cultural institutions. projects and events that promote sustainable develop- ment. “Culture shapes change by giving sense and meaning The German Sustainability Action Days (DAN) take place to people’s actions.” throughout Germany during this period. They are part of the European Sustainable Development Week, and Statement by the Office for Culture and Monument therefore visible across Europe. During the German Protection, Dresden, state capital of Saxony Sustainability Action Days, throughout Germany, all interested parties – be they individuals, associations, businesses, universities, municipalities, churches and Culture thus has a positive impact on social mobilisation and others – are invited to contribute ideas. participation. Social and cultural experiences boost human capabilities and foster societal cohesion. In 2024, a total of 1997 activities took place in Germany, while 4009 activities were held across 39 countries in Europe.

2. Joint Action for Sustainable Development Germany’s transformation towards sustainability can only Figure 12: Joint Action Since 2021, the RNE has success- happen through a collective effort. Progress on the path to- for Sustainable Devel- fully devised and, with great ded- wards sustainable development can only be achieved through opment ication, implemented the Joint respectful cooperation if everyone does their part in line with Action for Sustainable Devel- their interests, opportunities, talents and skills. opment platform on behalf of the German Government and On 26 September 2022, Minister of State Sarah Ryglewski, the Länder. It has therefore laid representing Federal Chancellor Olaf Scholz, and the Chair of important and valuable foundations for Joint Action. At the the Conference of Minister-Presidents, Hendrik Wüst (North beginning of 2025, Engagement Global gGmbH (EG) will take Rhine-Westphalia), together launched the Joint Action for over responsibility for implementation of Joint Action on be- Sustainable Development web platform. Joint Action for Sus- half of the Federal Ministry for Economic Cooperation and tainable Development is based on an initiative by the German Development. By building on the substantial work of the RNE Government and the Länder. Its aim is to make existing efforts to date, resulting synergies can be used to reach even more towards sustainability in policy, business, science and civil people. society more visible, motivate more individuals and organ- isations to commit to sustainable development and create Through EG, the German Government is already promoting connections between different stakeholders. Federal minis- a wide range of support programmes for citizens, associations, tries, the Federal Chancellery and the Press and Information schools, municipalities and many other social groups commit- Office of the Federal Government are also members of this ted to – or interested in – contributing to the implementation network. of the 2030 Agenda (more information can be found online at www.bmz.de/mitmachen, in German). The main focuses of Joint Action for Sustainable Development were sustainable building in 2023 and housing and biodiver- sity in 2024. Through the Joint Action platform, civil-society 3. Communications organisations can also showcase their engagement during the annual German Sustainability Action Days (DAN), organised Communications on the implementation of the GSDS is at by the Council for Sustainable Development, and inspire the core of Germany’s sustainability policy. Press and public others to do their part. relations work is therefore carried out by the entire German Government. Transformation can only be achieved together 117 Chapter C. Levers with society and within it. The German Government’s a) Kick-off conference in Berlin on 19 October 2023 communications on the topic of sustainability thus pursues The Berlin conference was organised by the German Gov- three different objectives: ernment together with Land Berlin. Some 350 participants attended the event, which focused on updating the GSDS and

1. Increasing awareness of the 2030 Agenda, its 17 SDGs and establishing a new Berlin Sustainability Strategy. Federal the GSDS. Particular attention is paid to communicating Chancellor Olaf Scholz and Kai Wegner, the Governing Mayor the global and national challenges and objectives. of Berlin, officially opened the conference via pre-recorded video messages. With Steffi Lemke (Federal Minister for

2. Informing the public about important developments and the Environment, Nature Conservation, Nuclear Safety and German Government activities relating to sustainability. Consumer Protection), Svenja Schulze (Federal Minister The Government explains the rationale behind its meas- for Economic Cooperation and Development) and Sarah ures to help the public better understand them. Ryglewski (Minister of State to the Federal Chancellor), the Federal Government had high-level representatives

3. Working together towards a sustainable future for human- throughout the entire conference. ity, ensuring active participation by everyone, especially that of vulnerable groups. The German Government also During various panels and debates, participants discussed how encourages each and every individual to embrace and the SDGs can be achieved in Germany. Among other topics, practise sustainability in their own lives. they exchanged views on whether reducing bureaucracy could make a significant difference in this context. In communications on sustainable development, the German Government employs a variety of instruments, including its In five workshops, participants delved deeper into the areas official website, the regularly published German newsletter of transformation of the GSDS and policy advice. These Nachhaltigkeit aktuell, a range of online publications and its workshops were organised by the responsible ministries, the social media channels. Sustainability-related content is also RNE and wpn2030. The federal ministries then consolidated distributed via the Joint Action for Sustainable Development the workshops’ outcomes and published them online. platform. Information published on topics of sustainability also covers the activities of the Minister of State to the Federal b) Regional conference in Bremen Chancellor, Sarah Ryglewski. on 7 ­December 2023 A regional conference was organised by the German Govern- During the German Government’s Open Day, the Federal ment in cooperation with the Free Hanseatic City of Bremen Chancellery, the Press and Information Office of the Federal and the University of Bremen. Around 200 interested parties Government and the ministries invite citizens to engage held discussions with Minister of State Sarah Ryglewski, directly with the Government on subjects relating to sustain- Parliamentary State Secretary at the Environment Ministry ability. In-person events taking place as part of the ongoing Dr Bettina Hoffmann, as well as Bremen’s Mayor Andreas development of the GSDS also serve as a key factor for foster- Bovenschulte and the city’s Senator for the Environment ing communication and participation in the dialogue between Kathrin Moosdorf. the German Government and civil society. The main theme of the Bremen conference was the role of education and science in advancing sustainability. Many

4. Dialogue process supporting the German participants believed that greater communication about Sustainable Development Strategy what is already technically possible and establishing dialogue between all sections of society and generations is crucial for Every four years, the German Government updates the GSDS success. They also highlighted the importance of integrating together with all sections of society. It relies very heavily on Education for Sustainable Development (ESD) as a core skill dialogue and transparency in the revision process. The objec- into school curricula. In specialised workshops, participants tive is to put sustainability into practice in everyday life. addressed cross-cutting issues related to the areas of trans- formation and the individual levers of the GSDS. The participation process for updating the existing strategy, spanning several stages, began as early as October 2023 with c) Participation process with an online dialogue two in-person conferences: a kick-off conference in Berlin Once again, interested parties were able to participate online on 19 October 2023 and a regional conference in Bremen in the further development of the GSDS. A dedicated website on 7 December 2023. with a forum function – created collaboratively by the Federal Chancellery, the Press and Information Office of the Federal Government and the Federal Ministry of Defence – allowed users to post comments on the draft version of the GSDS, 118 Chapter C. Levers Figure 13: Process of updating the GSDS 4 October 2023 Federal Cabinet: 2030 Agenda for Sustainable Development mid-term review 19 Oktober 2023 Kick-off conference in Berlin 7 December 2023 Regional Dialogue Conference in Bremen thereafter Development of the draft version as part of the UAL-AG Spring 2024 Consultations at the StA NHK May–July 2024 Online participation and opportunity to submit written comments May–July 2024 Workshop meetings at the Federal Chancellery 2 September 2024 Sustainability Forum (discussion on the further development of the GSDS) thereafter Revision of draft January 2025 StA NHK: Approval of the final draft January 2025 Federal Cabinet: Adoption of the GSDS view contributions from other users and “like” them. From tunities for young people to become involved. Key points May until the end of July 2024, citizens, associations and included the role of youth associations as extracurricular organisations thus had the opportunity to contribute their learning spaces for democracy, funding requirements for ideas and suggestions for a sustainable Germany. these efforts, investment for future growth, the importance of providing a basic child allowance, current health risks Overall, around 2000 people made use of the online platform facing youth (including mental health), the need for quality and posted some 900 entries. In addition, more than 50 people education, as well as climate action and social aspects. submitted their comments by email. All contributions and statements were evaluated by the federal ministries respon- e) Workshop meeting on labour and social affairs sible for the further development of the GSDS. On 9 July 2024, Minister of State Sarah Ryglewski met with high-ranking representatives of unions and employer Many local stakeholders, such as municipalities, also took an associations and members of the academic community to active part in the dialogue, as they play a pivotal part in imple- discuss the significance of labour and social affairs in achiev- menting the UN’s SDGs and the 2030 Agenda (cf. chapter ing sustainable development. Representatives from the Ger- Cl.2.). To complement the online dialogue, Minister of State man Trade Union Confederation, the Mining, Chemical and Ryglewski invited participants to three workshop meetings Energy Industrial Union, the Federation of German Industries, at the Federal Chancellery. the Confederation of German Employers’ Associations and RWI – Leibniz Institute for Economic Research reaffirmed that d) Workshop meeting on youth participation sustainability plays a critical role in making Germany fit for On 28 May 2024, Minister of State Ryglewski spoke with rep- the future. Among the subjects discussed were collective bar- resentatives of youth organisations including the German gaining coverage, co-determination, investment for future Federal Youth Council, the Federation of Alevi Youth in Ger- growth, social security systems, basic and continuing educa- many, the Federation of German Catholic Youth, the Federal tion and training, gender equality, the role of the Länder and Youth Organisation of the National Society for Worker Welfare municipalities in promoting sustainability, and approaches for (AWO), the youth arm of the German Alpine Club, Young measuring overall prosperity and well-being. All participants Friends of the Earth Germany, the German Youth Fire Brigade, agreed that safeguarding prosperity calls for long-term the Youth Association for the Protection of Nature and the strategies and policy frameworks that meet people’s needs for Youth Organisation of the Federal Agency for Technical peace, decent employment and a high quality of life. Especially Relief. The discussion shed light on the various areas of trans- at a time of upheaval, the significance of social cohesion formation from a youth perspective and explored oppor- cannot be overstated. 119 Chapter C. Levers f) Workshop meeting on gender equality With an additional workshop, the Federal Ministry for On 9 July 2024, women representatives of the Federal Foun- Economic Cooperation and Development and the Federal dation for Gender Equality, the National Council of German Ministry for the Environment, Nature Conservation, Nuclear Women’s Organisations, the German Women Lawyers Asso- Safety and Consumer Protection launched the participation ciation, the initiative for the appointment of more women process for the Voluntary National Review (VNR), which will be to boards of directors (FidAR) and UN Women Deutschland presented at the UN High-level Political Forum on Sustainable met with Minister of State Ryglewski to discuss how gender Development (HLPF) in 2025. The VNR outlines the current equality, treated as an overarching issue and lever for trans- state of the 2030 Agenda's implementation in, with and by formation, can have a sustainable impact and which equality Germany. Germany has already presented two VNR reports, policy issues are important in this context. They highlighted, in 2016 and most recently in 2021. During the workshop, among other points, the need for further reducing pay dispar- ministries and stakeholders exchanged views on possible ities (e.g. the gender pay gap), achieving a fairer distribution content and forms of participation. of care work (e.g. the gender care gap), consequential action in systematically pursuing gender equality in the appointment of leadership and decision-making positions, and consistently incorporating a gender perspective into regulatory impact III. Finances assessments and the design of public budgets (i.e. gender budgeting). Implementing the Sustainable Development Goals requires more than just action in the relevant policy fields. It also g) Sustainability Forum demands a framework that makes sustainable development The Sustainability Forum, held annually since 2017, is where possible in the first place. the German Government consults with social stakeholders on progress with the implementation of the 2030 Agenda. Financial policy plays a key role in this. Therefore, sustainable finance has long since been an important issue for the German This year’s forum, focusing on the further development of Sustainable Development Strategy (GSDS) and the work of the the German Sustainable Development Strategy, took place State Secretaries’ Committee for Sustainable Development. on 2 September 2024 at the Federal Chancellery with over 140 participants. Around 60 associations, institutions and organisations – representing business, science, environmental “The State Secretaries’ Committee for Sustainable De- protection, youth, development cooperation, churches, trade velopment reaffirms that sound public finances are not unions, migrant support networks and municipalities – an end in themselves. Rather, they form the basis for joined Minister of State Ryglewski, the Länder and all federal sustained economic growth, environmental protection ministries to discuss the GSDS. The draft version of the GSDS, and climate action, as well as a fair social welfare sys- published on 31 May 2024, along with the statements gathered tem fit for the future. Ensuring solid public finances during the dialogue process, formed the basis of the plenary is therefore a key pillar of the German Government’s discussion. These organisations were also given the oppor- Sustainability Strategy.” tunity in advance to submit key statements on how the GSDS should be further developed, which were subsequently Decision of 4 January 2016 by the State Secretaries’ presented during the plenary. Committee for Sustainable Development, Sustainable finance – sound and intergenerationally equitable Led by the relevant federal ministries, smaller workshops provided an additional forum for intensive debate on the issues raised by citizens during the online dialogue: A sound financial policy geared towards sustainability is an important contribution towards sustainable policies as well • The social dimension of sustainability as intergenerational equity. Moreover, it is a powerful lever for fostering transformation in the economy and society • The social-ecological market economy (cf. the 2030 Agenda for Sustainable Development mid-term review “Courageously shaping the future together – Picking • Inclusion up more speed” dated 4 October 2023, Chapter II. 8. “Orient finances coherently and comprehensively to sustainability”, • Nutrition Bundestag printed paper no. 20/8719, in German). The Ger- man Government’s financial policy is aimed at ensuring the • Circular economy sustainability of the Federation’s explicit and implicit liabilities with sound state finances and, at the same time, at enabling • Biodiversity the necessary investment to make Germany fit for the future. 120 Chapter C. Levers The German Government is honouring its pledge to facilitate possible is mobilised and used effectively, just like public a decade of investment in a modern, digital and greenhouse investment. Private-sector investment is necessary to make gas-neutral Germany and is increasing federal investment to production processes, supply chains and business models exceed the current high level. future-proof. It is equally important to strengthen sustain- able economic structures. Increased support is being given for What is more, the German Government is creating the nec- real economic investment and activities that are necessary essary conditions for mobilising private-sector investment, to achieve the UN Sustainable Development Goals. which accounts for around 90% of overall economic invest- ment in Germany. To this end, the state provides tangible Against this background, the German Government has set incentives with reliable conditions and a conducive environ- itself the goal of transforming Germany into an international ment for innovation, the establishment of new businesses pioneer in sustainable finance. As one of the world’s leading and research. This includes improving funding opportunities financial centres, Germany wants to promote the expertise, for young and innovative companies through regulatory and infrastructure and a practical regulatory framework for tax measures. sustainable finance at national, European and international level. In order to achieve this, it relies heavily, among other things, on the advice of practitioners in the German Govern-

1. Aim ment’s Sustainable Finance Advisory Committee. a) A financial policy geared towards stability Through its financial policy, the German Government will “The State Secretaries’ Committee for Sustainable Devel- continue to ensure the soundness of public finances and the opment notes that sustainable finance can support the sustainability of the national debt, while at the same time implementation of the German Government’s financial strengthening economic growth potential on a lasting basis market stability, energy, climate, development and other through the efficient use of budget resources and targeted sustainability goals. It is aware that, in particular, envi- investment – also in order to meet challenges such as demo- ronmental and related changes in the real economy can graphic ageing, decarbonisation and the comparatively weak pose significant risks to individual financial market development of productivity. All of this fosters the transforma- players and to the financial market as a whole. Sustaina- tion to an economy and society fit for the future. Sustainable ble finance can help successfully address the national, public finances create a good framework for private-sector European and international dimensions of these changes, investment, thus laying the foundation for prosperity in our challenges and risks.” society. In this way, they contribute directly towards achieving the Sustainable Development Goals (especially SDG 8). Decision of 25 February 2019 by the State ­Secretaries’ Committee for Sustainable Development, For this purpose, the German Government is pursuing a finan- “­Sustainable Finance” cial policy which is efficient and constructive. It is efficient because it prioritises and evaluates spending on an ongoing basis. This ensures the sustainability of public finances as These are essential prerequisites for creating a sufficiently well as fiscal resilience in future crises. At the same time, the deep capital pool for sustainable investment, so that the German Government aims to make possible the investment economy can be transformed successfully for all – for large needed to make Germany fit for the future. It is constructive corporations as well as SMEs. because it helps address medium- to long-term challenges on both the revenue and the expenditure side. The Federation itself is leading by example here. Through its financial decisions, it has helped to make Germany a leading b) Making Germany a leading international location location for sustainable finance by becoming one of the for sustainable finance world’s largest state issuers of green securities and acting Climate change, biodiversity loss, social inequality and sustainably with regard to its own investments (e.g. KENFO, other pressures on environmental boundaries are triggering Supplementary Pensions Agency for Federal and Länder fundamental social-ecological change that must be shaped Employees – VBL, federal civil-service pension fund). successfully. Pursuant to Article 2 (1) (c) of the Paris Agreement, finance flows must be consistent with a pathway towards low A further focus is on promoting sustainable finance in devel- greenhouse gas emissions and climate-resilient development. oping countries and emerging economies as part of German development cooperation, in order to contribute towards a Sustainable finance helps to ensure that the financial oppor- social-ecological transformation and to mobilise appropriate tunities and risks the transformation entails are correctly funding in those countries, too. assessed and that as much private-sector investment as 121 Chapter C. Levers c) Strengthening performance budgeting in relation Moreover, if private-sector investment is to be successfully to the SDGs mobilised then uncertainties must be minimised, for instance Financial and budget policy is to be used to an even greater with regard to future taxes and interest rates. Sustainable pub- extent as a strategic lever for sustainable development. At a lic finances and modern infrastructure are a key prerequisite time of structurally declining budgetary leeway, as well as a for “sustained, inclusive and sustainable economic growth” simultaneous rise in the number of challenges when it comes (SDG 8). to sustainably modernising the economy and society, ways must be found to achieve government goals efficiently. This is one of the key advantages of performance budgeting. Report on the Sustainability of Public Finances Performance budgeting in particular, among other things in The Federal Ministry of Finance publishes in-depth anal- relation to the SDGs in the federal budget, is to be strength- yses of the long-term development of public finances ened. European neighbours, such as Austria, are going down and their sustainability once per legislative term in its this road, too. This is intended to provide greater clarity as Report on the Sustainability of Public ­Finances. The to whether and how budgetary measures help achieve the Ministry’s sixth report was published in February 2024. SDGs. Assessing the impact of measures on SDGs can pose The projections in the report extrapolate demographic-­ challenges, however, for example in the field of basic research related spending in the overall budget in various scenar- (cf. the report on the 11th spending review, in German). ios. According to the sixth report, the sustainability of public finances cannot be taken for granted. In order The expansion of performance budgeting will make a tangible to ensure sustainability, it will be crucial to initiate and contribution towards helping to gradually improve the impact continue the necessary reforms that have a positive of financial measures, thus further enhancing the quality of impact on the development of public finances. public finances as a whole.

2. Measures taken b) Investment in the future in the federal budget strengthened a) Financial policy geared towards achieving resilient In addition, investment in the future has been substantially and sustainable public finances strengthened in the federal budget. The German Government The rise in interest rates in the wake of the monetary policy is investing at a high level and setting clear priorities – for measures taken to tackle inflation is a reminder that the sus- stronger growth and increased prosperity, greater security, tainability of public finances must be ensured at all times in better education, sustainable climate action and faster digital- an uncertain world plagued by risks of interest rate changes isation. Specifically, it is investing in efficient infrastructure, and risks to growth. A financial policy geared towards stability faster internet, road and rail networks, reliable energy supplies therefore ensures that the overall national debt ratio does and an agile and digital state, thus supporting the German not continue to grow from crisis to crisis, also in order to economy in mastering the transformation processes. avoid additional sustainability risks arising from structurally increasing federal expenditure on interest payments. This is c) Spending reviews carried out and the an expression of fiscal resilience and financial sustainability ­implementation of the recommendations initiated for a state which must be able to take financial measures at With the help of two issue-specific budget analyses (10th and any time and if necessary, on a large scale. 11th spending reviews), the process of embedding Sustainable Development Goals in the federal budget was begun, and Preserving and expanding public infrastructure is of great performance budgeting further developed. importance for sustainable and resilient economic develop- ment. That is why public investment is a high priority for Led by the Federal Ministry of Finance and with the partic- the German Government. Although combating the effects ipation of the Federal Ministry for the Environment, Nature of the crisis has placed a heavy burden on the budget, the Conservation, Nuclear Safety and Consumer Protection and German Government has increased public investment, thus the Federal Ministry for Economic Cooperation and Develop- enhancing the basis for economic growth. It is essential to ment, the 10th spending review dealt with embedding Sustain- continue along this path. However, public investment is just able Development Goals in the federal budget. The aim is to one element. Above all, private-sector investment is needed link departmental budgets, chapters and titles of the federal for economic development. The German Government is budget with SDGs. The recommendations of the 10th spending working to improve the investment environment, for example review include signalling, i.e. the inclusion of SDGs in the by reducing bureaucratic obstacles so that private-sector forewords and preliminary remarks of the departmental investment, too, can increase. 122 Chapter C. Levers budgets and chapters of the federal budget, as well as tag- measures are also important for mobilising private-sector ging, i.e. the allocation of SDGs to specific titles in the federal investment in sustainable projects in developing countries budget. and emerging economies which are key to achieving the SDGs. The 11th spending review on “Improving performance At the same time, the German Government is actively work- budgeting in the federal budget, with a particular focus on ing at European level to promote the practical further sustainability” was led by the Federal Ministry of Finance in ­development of sustainable finance, including coherent and conjunction with the Federal Ministry for the Environment, practice-oriented rules for sustainability-related corporate Nature Conservation, Nuclear Safety and Consumer Protec- and financial information and a stronger focus on companies tion and the Federal Ministry for Economic Affairs and Cli- during the transition. mate Action, as well as with the participation of the Federal Ministry for Digital and Transport. The concrete aim was to The Sustainable Finance Advisory Committee (SFB, www. improve the assessment of effectiveness and efficiency in sustainable-finance-beirat.de), established on 10 June 2022 achieving the SDGs and to ensure that performance budget- for the 20th legislative term, is an important partner for the ing with a focus on sustainability was embedded throughout German Government. This independent multi-stakeholder the budget cycle. By specifically linking budget titles with body advises the German Government on what positions Sustainable Development Goals, for example, it would be it should take, as well as on the implementation and further possible to more efficiently and specifically direct, review and development of guidelines in the sphere of sustainable manage federal spending on environmental or development ­finance. It also puts forward concrete proposals on how the projects to achieve the SDGs. financial sector can better support the real economy in its transformation to achieve the SDGs and to implement the At its session on 10 April, the Federal Cabinet took note of the Paris Agreement and the Global Biodiversity Framework. final report of the 11th spending review and commissioned These contributions provide key impetus for the German the Federal Ministry of Finance to carry out the 12th spend- Government’s discussion and strategy on sustainable finance. ing review with other ministries on the implementation of recommendations to improve performance budgeting. On 22 November 2024, the Sustainable Finance Advisory This spending review follows on from the work of the now Committee presented its compendium entitled “Funding concluded 11th spending review and draws up the initial our tomorrow – How private capital makes the difference implementing steps, in particular on evaluation, indicators for Germany’s transformation”. It contains 13 recommen- and impact assessment. dations for action on financing the transformation into a resilient, competitive and sustainable economy (sustainable-­ d) Improvements of the financing environment for finance-beirat.de/wp-content/uploads/2024/11/SFB_ young and innovative companies implemented Kompendium_Funding_our_Tomorrow.pdf, in German). With the Financing for the Future Act (ZuFinG), which entered into force in December 2023, numerous measures were taken to enhance the framework conditions for the capital market The Sustainable Finance Advisory Committee’s and for start-ups with this goal in mind: the option to issue ­concept for a sustainable financial system 2023 multiple-vote shares, tax relief for employee share ownership, as well as innovations such as electronic shares have improved The Sustainable Finance Advisory Committee published financing conditions for companies. a concept for a sustainable financial system. According to the concept, “finance” will be synonymous with e) Foundation laid in the sphere of “sustainable finance” in 2034 – there will no longer be ­sustainable ­finance any distinction, since sustainability will be an integral The German Government has laid important foundations in part of all risk management and decision-making the area of sustainable finance, e.g. with the successful estab- processes. The players on the financial market will lishment and expansion of the issue of green federal securities, support the transformation of the real economy with the further development of the investment of the federal ambition and in a responsible manner. civil-service pension fund in keeping with the goal of the Paris Agreement, or the establishment of the International sustainable-finance-beirat.de/wp-content/­ Sustainability Standards Board (ISSB) in Frankfurt as the key uploads/2024/07/SFB_Zukunftsbild_DE.pdf standard-setter for global sustainability reporting. These 123 Chapter C. Levers f) Strengthening international cooperation and and inclusiveness of international tax cooperation. In this ­advancing a needs-based reform of the international regard, Germany believes it is important to avoid the dupli- financial architecture cation of work at institutional level, also in order to prevent With 33.89 billion euro (0.85% of gross national income) in possible legal uncertainties arising from this. 2022, Germany was the world’s second-largest ODA donor (official development assistance). This sum includes all Germany’s payments to developing countries which count 3. Next steps as ODA and encompasses the contributions of all federal ministries, the Länder and the municipalities, including a) Continuing to pursue a financial policy geared spending on refugees in Germany, as well as costs relating to ­towards stability students from developing countries studying in Germany. Within the context of stability-oriented financial policy, public investment must continue to be strengthened in the coming Germany is also a reliable partner in international climate years despite challenging fiscal conditions. In particular, we finance. In 2023, Germany’s international climate finance need to counter the risk of low growth rates through a broad-­ amounted to around 9.9 billion euro, of which approximately based economic and financial policy agenda, to secure Ger- 5.7 billion euro came from the federal budget. Germany is many’s international competitiveness and to drive forward thus recognised worldwide as one of the leading donors and transformation. is doing its part to support partner countries. This strengthens Germany’s role at multilateral and regional level. In order to ensure long-term sustainability, the demographic challenges in all relevant policy areas will require a balanced In addition to financing projects eligible for support from mix of structural reforms and other legal and sub-legislative budgetary resources within the context of development policy, measures. the Federation makes it possible for ODA-eligible loans to be granted from market funds of the KfW Entwicklungsbank by providing guarantees. In 2022, these guarantees enabled Quote from the public participation process KfW to provide loans from market funds amounting to 4.8 (­comment by Clara-Johanna): billion euro. “We need consistent investment in nature conservation and climate action. But that does not mean across-the- However, bilateral ODA payments alone cannot and should board subsidies which may only benefit large companies not be the primary source of funding for global development or corporations. Not using up financial resources, but in the longer term. Germany therefore supports a needs-based investing in the future, in rail, digitalisation, solar reform of the international financial architecture, including expansion, unsealing and greening public spaces. […]” reform of the World Bank Group, which Germany played a key role in initiating, as well as increased efficiency and co- operation of regional development banks. In September 2023, Germany was the first shareholder to announce that it would b) Initiative for Growth – new economic dynamism provide the World Bank with hybrid capital to the tune of Germany as a business location is facing major structural 305 million euro to expand its financing framework. challenges and needs impetus for greater economic dyna- mism. The German Government therefore launched the Ini- Germany is actively working to find solutions for overly tiative for Growth on 17 July 2024. The aim of the Initiative indebted states, including in particular support for the G20 for Growth is to strengthen productivity and innovativeness Common Framework for Debt Treatments to implement in the German economy. coordinated debt restructuring. Germany is also one of the few countries in the world with a detailed bilateral debt In order to reduce the burden on the public and companies, conversion programme (up to 150 million euro per year). the German Government has, among other things, increased tax allowances and adjusted the income tax rate to inflation. In the field of international tax policy, Germany supports fairer international tax systems, in particular through the c) Completing a budget analysis on improving implementation of the OECD’s Two-Pillar Solution to reform ­performance budgeting in the federal budget, international business taxation. In addition, Germany is with a particular focus on sustainability participating at UN level in the work on international tax Following the completion of the issues-related budget cooperation and is making a constructive contribution to the analysis on improving performance budgeting in the federal negotiations for a UN framework convention. Discussions budget with a focus on sustainability, the recommendations within the UN institutional framework are intended to make from the 10th and 11th spending reviews are being rigorously possible potential next steps to strengthen the effectiveness implemented. 124 Chapter C. Levers After the successful signalling and tagging pilot phase out- f) Further developing instruments for mobilising lined in the 10th spending review during the preparation of ­private-sector funds the 2024 budget, all other departmental budgets of the minis- Mobilising private-sector funds to finance the sustainable tries and the Federal Chancellery will be included in the development, climate and biodiversity goals is an important preparation process for the 2025 federal budget (roll-out). concern for Germany. The German Government is keen to In order to ensure a smooth introduction, the number of further develop existing instruments, particularly with regard major object classes and titles to be tagged per departmental to scalability, as well as to examine new approaches, including budget will remain limited. Following a successful roll-out, risk-mitigating instruments for leveraging private-sector the aim is to ensure that all relevant major object classes are investment, which, however, must be designed to ensure fully tagged in the coming years. appropriate risk-sharing between public budgets and private-­ sector investors. Furthermore, in order to boost the mobi- d) Implementing a Sustainable Finance Strategy lisation of the private sector in developing countries and with an international reach emerging economies, the German Government will examine Building on the recommendations of the Sustainable ways of improving the global conditions for investment. In ­Finance Advisory Committee, the German Government this context, the German Government is working, inter alia, is implementing a Sustainable Finance Strategy with an to promote standardisation in the blended finance sector international reach on an ongoing basis. (including uniform reporting) at international level. The Federation is also continuing its strategy regarding g) Remaining a reliable partner – the issuance of green federal securities, coupled with a ­using ­multilateral forums high degree of transparency with respect to recognised Germany will continue to be a reliable partner in interna- green spending, the impact on the climate, environment tional development and climate finance by adhering to its and nature, and price formation. An update of the Green funding commitments. In addition, multilateral forums Bond Framework is to take into account current market and formats are to be used to further advance the reform of standards and the expectations of sustainable investors. the international financial architecture. These include the The transparency of green spending is to be further Hamburg Sustainability Conference (HSC), the UN Summit strengthened, in particular as regards applicability and of the Future, the 4th International Conference on Financing compliance with the EU taxonomy. for Development in 2025, as well as the G7, G20 and OECD forums. e) Working to improve the practicability and ­coherence of sustainable finance regulation at EU level and helping shape work in 4. Spillover effects ­international working groups The German Government will also work to improve the German action within the context of the financing practicability and coherence of sustainable finance regulation lever has various effects on other countries, not only at EU level and to avoid unnecessary bureaucracy. To this end, in Europe but also beyond. Therefore, positive spillover it will work at European level to revise the Green Asset Ratio effects should be taken into consideration and possible for banks in order to improve its relevance as a key driver negative effects avoided. of transformation. At the same time, it supports a review of the Taxonomy Regulation, the Sustainable Finance Disclo- Stability-oriented financial policy is an important an- sure Regulation and the Corporate Sustainability Reporting chor in Europe and of great relevance to the monetary Directive in order to prevent duplicate reporting obligations. union in particular. Germany is one of the few countries The German Government will help shape the work of key in the EU to have an AAA rating and therefore plays a international working groups, such as the G20 Sustainable key role in the EU’s overall credit standing. Effective Finance Working Group, and will support initiatives such as European fiscal rules reduce the risk of negative spill- the Task Force on Nature-related Financial Disclosures (TNFD) over effects caused by financial measures taken by other and the International Sustainability Standards Board (ISSB). member states. At the same time, investment incentives Aspects of promoting the interoperability of different inter- included in the new EU fiscal rules promote positive national sustainable finance frameworks will also be taken spillovers. into consideration. The German Government also welcomes initiatives such as the Network for Greening the Financial With its stability-oriented financial policy and good System (NGFS), which are intended to ensure that climate framework conditions for sustainable finance, the and nature-related risks are adequately taken into account German Government provides companies and players in the financial system. in the financial market with security and clear guiding 125 Chapter C. Levers principles for (sustainable) investment decisions. Capital IV. Research, innovation and investment can thus flow in a more targeted manner and ­digitalisation into ecologically and socially relevant activities. This can also have an impact on investment decisions abroad, Research and innovation are part of SDG 9 – industry, in- thus generating positive effects on the economy and novation and infrastructure – but also represent a key lever sustainable development. which facilitates and makes possible the achievement of many other SDGs. For example, the German Government is It should be noted that private-sector financing, for ex- funding research on the connection between biodiversity ample of security goods or fossil fuels, is still necessary in (SDGs 14 and 15) and human health (SDG 3). the transition phase, in line with the decisions of COP26, COP27 and COP28 (“keeping the goal of limiting global warming to 1.5°C within reach”) and Article 2 (1) (c) of On the road to sustainable development with the Paris Agreement (“making finance flows consistent research, innovation and digitalisation with a pathway towards low greenhouse gas emissions and climate-resilient development”). The German Digitalisation has significantly transformed our world in recent Government is also in favour of this, partly in view of decades and is increasingly shaping all areas of our lives. This limited public funds. comprehensive change relates to the integration of digital technologies into all aspects of society, the economy and The German Government will live up to the commit- personal interactions. The growing utilisation of digitalisa- ment made in Glasgow in the COP26 statement on tion represents both an opportunity and a challenge when Public Support for the Clean Energy Transition, in line it comes to protecting the climate and conserving resources. with the G7 decisions (cf. Annex 2 of the Strategy on While the smart management of devices, facilities, processes Climate Foreign Policy), to end public international and networks makes a significant contribution towards saving funding for unabated fossil fuels without carbon capture energy in many areas, the continued spread of information and storage from the beginning of 2023, subject to lim- and communication technology (ICT) is further increasing ited, clearly defined exceptions in accordance with the the consumption of energy and resources. 1.5°C limit. The G7 agreement will permit limited excep- tions in accordance with the Paris Agreement and the 1.5°C limit. The German Government is continuously 1. Aim assessing how exemptions should be defined, taking into account energy policy challenges, including those a) Research and innovation resulting from the Russian war of aggression against Research, science and sustainability are linked by the goal of Ukraine, as well as compliance with the Paris Agreement securing a liveable and progressively forward-looking future and the 1.5°C pathway. for society and everyone living in it. The transformation towards sustainability is an opportunity for innovation and German development cooperation is aligned with the progress. 2030 Agenda in order to support developing countries and emerging economies in achieving the SDGs through At the same time, the potential offered by innovation and targeted and partnership-based cooperation. In addition progress is to be geared to an even greater extent towards to existing instruments for improving an outcome-driv- sustainability. The goal is scalable and marketable innova- en approach in German development cooperation, the tions for greater sustainability, which in turn result in new transparency of federal spending for partner countries products, services and jobs. The German Government’s in development cooperation can also be improved by research and innovation policy is based on a holistic under- linking budget titles with SDGs. standing of innovation. It encompasses a wide range of innovations, such as technological innovations, new business The German Government’s involvement in the EU and models and social innovations. in international working groups has also led, among other things, to the anchoring of climate-related aspects Research and innovation funding at federal level must be in financial policy, the establishment of sustainable fi- aligned even more specifically with the UN Sustainable nance approaches in partner countries, the embedding Development Goals, also in order to live up to our responsi- of sustainability in financial market reforms and the bility towards future generations as well as global responsi- practices of financial market players, as well as the devel- bility. Since the Industrial Revolution, inventive genius has opment of suitable financing instruments abroad. This impressively demonstrated time and again that disruptive creates positive spillover effects that contribute towards innovations can change the face of the world. At the same achieving SDGs in partner countries. time, inventions can also have negative effects on society, 126 Chapter C. Levers nature, the environment and the climate. It is of key impor- purposes, their use in public administration, as well as for tance to uphold the precautionary principle when drawing sound, efficient and targeted government action, can make a up policies, observe protection standards and adapt to significant contribution towards sustainable development. changing conditions that take into account possible positive and negative effects. As one of the most important key technologies, AI is increas- ingly penetrating all areas of the economy and society and will therefore have a significant impact on the implementa- Council for Sustainable Development, It’s the politics, tion of the SDGs. According to studies, AI can make a positive stupid: The Responsibility of State and Society for contribution towards achieving 134 of the 169 SDG targets, Sustainable Living Environments, p. 3: but can also hinder the achievement of 59 targets (Vinuesa “Technical innovation is necessary, but not enough. In et al., 2020). Good and innovation-friendly conditions are order for us as a society to operate within the limits of therefore necessary for the development and responsible use what our planet can sustain, it is essential that we signif- of AI. icantly reduce our use of resources. This calls for changes in many areas of our current economic structures.” c) Sustainable digitalisation The downside of the digital transformation is the growing Council for Sustainable Development demand for energy and resources. This is not just about en- ergy resources, but also about raw material resources, such as climate-damaging refrigerants for cooling the necessary Universities and non-university research institutions, which hardware. In addition, digitalisation has downstream negative have facilities for innovation transfer, professional science effects on the climate and environment due to the generation communication and co-creative knowledge production, of new, intensified consumption patterns among consumers contribute significantly towards the success of Germany’s in the platform economy, such as the increasing amount of research and innovation capacities and towards mastering packaging waste in e-commerce. the sustainability transformation. A large number of other research institutes (e.g. Ecornet institutes), which often work The growing number of networked devices, data centres and in a transdisciplinary manner, also play a role in this. digital infrastructure requires a considerable amount of en- ergy and space. In the case of networked devices, the discon- b) Digital revolution and innovation tinuation of updates, cloud dependencies and unsustainable Digitalisation plays a crucial role on the road to sustainability. software can mean that hardware that is still functional has Our environmental footprint can be reduced by replacing to be disposed of (software-related obsolescence). What is traditional, resource-intensive processes with digital alter- more, the share of networked devices is increasing every year, natives. For example, the increased use of digital documents and with it the volume of electronic waste. Moreover, the minimises the need for paper and thus the demand for wood, production of electronic devices, from smartphones to servers, which is a limited resource. Virtual meetings and workflows requires considerable quantities of raw materials. help reduce travel and thus CO2 emissions. However, the potential has not yet been fully exploited and the German In the field of AI, new research and applications are increas- Government believes it has a responsibility to do more to ingly focused on foundation models, which are larger and promote the positive environmental impact of digitalisation. more resource-intensive than smaller systems. They are now being used in many areas of the economy and society, and In addition, digitalisation makes possible, for example, the the ever-faster spread of generative AI is also increasing the introduction of technologies that optimise energy consump- demand for energy and resources. Furthermore, inefficient tion and reduce resource consumption. Digital technologies software leads to greater consumption of energy and hard- thus facilitate a comprehensive transformation of our econo- ware resources. my and the introduction of a genuine circular economy. What is more, the development of sustainable technologies, such as It is crucial to note that digitalisation not only brings oppor- renewable energies and environmentally friendly production tunities, but also responsibilities. Therefore, there must be methods, is being driven forward by digitalisation. even greater focus on digitalisation as a means of accelerating the transformation towards sustainability. The development Data (including big data) and artificial intelligence (AI) are and promotion of energy-efficient technologies, the use of playing an increasingly important role in these processes. renewable energy sources for digital operations and the pro- Data are at the heart of the digital and ecological transfor- motion of recycling and circular economy approaches are mation of society, business, science and the public sector. decisive steps towards minimising the consumption of en- In addition to the use of data for research and development 127 Chapter C. Levers ergy and resources. At the same time, downstream effects reducing the use of resources (SDGs 9 and 12), conserving such as new, intensified consumption patterns must also material and energy resources and reducing pollution (SDG be taken into account. 13). Furthermore, federal research funding in the area of One Health can promote understanding of the connections be- What is more, shaping digitalisation in a sustainable man- tween human, animal and environmental health. As part of ner is also aligned with social goals (such as an inclusive, the long-term research initiative concerning the conservation participatory and human-centric digital transformation of biodiversity, funding has been provided since 2023, for that is oriented towards the common good and takes into example, for research on the relationship between biodiversity account human, civil and consumer rights, fair production (SDGs 14 and 15) and human health (SDG 3), as well as research conditions for hardware, etc.) and economic goals (such as on the use of AI and digitalisation to better understand the reducing market concentrations in digital markets and complexities of biodiversity in order to advance species protection against cybercrime). conservation (SDGs 14 and 15). The establishment of the National Research Data Infrastruc-

2. Measures taken ture (NFDI) and the MaterialDigital platform (PMD) is aimed at improving access to and the (re)use of research data for a) Sustainable research and innovation knowledge gain and innovation. Several NFDI consortiums The global challenges, in particular the sustainability, cli- are working in the area of sustainability, such as DataPLANT mate and biodiversity goals, harbour enormous potential (basic plant research), NFDI4BioDiversity (biodiversity, ecology for innovation. With the Future Research and Innovation and environmental data), FAIRagro (agrosystems research), Strategy published in 2023, the German Government has NFDI4Earth (earth systems research) and NFDI4Energy placed key transformation tasks at the centre of its research (­energy systems research). NFDI and PMD provide researchers and innovation funding: the topics of the six missions of with newly developed advisory and other services, guidelines the Future Strategy encompass climate action, biodiversity, and training courses in relation to research data management health and food security, the circular economy, sustainable and work on and with data. mobility and sustainable cities as well as social cohesion. Through these missions, research and innovation funding The German Government sees gender equality and diversity provides important impetus to drive forward the transfor- in all their dimensions as quality criteria and competitive fac- mation to a sustainable society. tors in the scientific system. With the Programme for Women Professors 2030, the Federation and Länder are promoting a The activities initiated within the context of the Research change of culture in science and research in terms of gender for Sustainability (FONA) strategy, which was devised by the equality. Top female scientists are important role models for Federal Ministry of Education and Research, are also aligned young women and girls. The Federal Ministry of Education with the Sustainable Development Goals. FONA forms the and Research therefore promotes the visibility of female sci- umbrella for research and innovation activities in areas such entists and their achievements through the funding directive as hydrogen, the defossilisation of industry, the circular “Spotlight on Innovative Women”. economy, bioeconomy, biodiversity conservation, climate action and adaptation, urban development and sustainable b) Sustainable digitalisation use of the oceans. Around a dozen funding measures were Sustainable digitalisation must always be considered from launched in 2024. FONA has led to new solutions that help, two angles and the necessary framework created accordingly: for example, to align value chains to conserve resources, reconcile biodiversity conservation and land use or strengthen (1) Sustainability through digitalisation cities as transformation centres and prepare them for climate The Digital Strategy adopted on 31 August 2022 is this Gov- change. ernment’s digital policy roadmap. It brings together under one roof the political priorities and goals of all ministries in The strength of the research and innovation lever becomes the cross-cutting sphere of digitalisation. The Digital Strategy particularly clear when you look at the thematic breadth of prioritises projects whose implementation is expected to have research activities geared towards sustainability and the links the greatest leverage effect. This includes the availability of established between SDGs. The majority of all technical in- data and data tools, modern registers as well as uniform novations depend directly or indirectly on the properties of international technical norms and standards. In addition, the materials used. Sustainable material innovations, such as 19 major projects are being considered, which are to be im- those promoted within the framework of the MaterialNeutral plemented by the end of the legislative term at the latest. initiative, offer great potential for carrying out industrial One aim of all these projects is to consistently mainstream processes at all levels of the value chain more effectively while sustainability aspects. 128 Chapter C. Levers Within the context of the AI Strategy and its updating, the the start-up ecosystem in Germany and Europe. With their German Government is committed to the targeted use of AI innovative business models, start-ups can help master the to achieve the SDGs and to the development and shaping of digital transformation. An unprecedented 35% of start-ups AI in line with the SDGs. This includes funding measures for are working on innovations in the field of sustainability. the research and development of resource-efficient AI as well as the use of AI and data-driven approaches in areas such as Digitalisation also plays a major role in making our agricul- the circular economy, climate research and health. In this ture and rural areas sustainable. Our wide range of food prod- context, the Federal Ministry of Education and Research’s ucts and renewable raw materials, as well as most renewable funding measures AI Application Hub on Plastic Packaging energy, are produced in rural areas. Digital technologies can and Digital GreenTech, for example, provide practical digital improve animal welfare, as well as make agriculture more tools for conserving resources and protecting the environ- resource-saving and efficient, and thus more resilient. In this ment. way, they help to secure our livelihoods and the foundations for the future of our economy. They support us in improv- The Federal Ministry for the Environment, Nature Conserva- ing consumer health protection and animal health, thereby tion, Nuclear Safety and Consumer Protection has developed making a major contribution towards greater food safety. a catalogue of measures for different target groups with the The opportunities offered by digital technology boost rural five-point programme “Artificial Intelligence in Support of areas economically and make them more attractive to live in. the Environment and Climate”. It includes the funding ini- This fosters the convergence of living standards throughout tiative “AI lighthouse projects”, which has already launched the country. Essential prerequisites for this are efficient digital more than 50 projects developing pioneering AI applications infrastructure for the public, businesses and the public admin- in the sphere of environmental protection. istration, as well as a better transfer of information and ideas. Furthermore, the Federal Ministry for the Environment, Na- With 29 centres in the Mittelstand-Digital network, the ture Conservation, Nuclear Safety and Consumer Protection German Government raises awareness among mid-size is working within the framework of the National Circular companies throughout Germany, especially SMEs, skilled Economy Strategy (NCES) on, among other things, concepts crafts firms and start-ups, about all aspects of sustainable to facilitate sustainable consumer behaviour through dig- digitalisation, providing them with information and training ital tools. This is the focus of the project “Conceptualising sessions. Companies are empowered to position themselves and planning digital solutions to promote sustainable sustainably for the future and thus secure their long-term consumption for a circular economy (Digikon)” competitiveness. The Federal Ministry for Economic Affairs and Climate Action With the mFUND funding directive, the Federal Ministry for is supporting the development of data ecosystems for industry Digital and Transport is promoting research and innovation within the framework of the initiative Manufacturing-X. The to develop digital solutions, applications and processes having aim is to make data available and transparent throughout a positive impact on Germany’s sustainability goals. industrial supply chains, for example as regards the CO2 footprint or the circular economy (circularity as a service). In projects financed through mFund – such as EmBaLu, KoFeMo or RAMUS – there is a special focus on monitoring With the PMD as the core of the MaterialDigital initiative and improving environmental data. (www.materialdigital.de), the Federal Ministry of Education and Research is promoting standardised solutions for the Another important focus of the funding is innovative appli- digital handling of materials in industry. This encompasses cations in the field of air mobility using unmanned aviation. the digital description of materials, including associated pro- cesses and devices, using what is known as ontologies. This Applications for unmanned aircraft systems are expected to provides a machine-readable presentation for the collation reduce the emissions of air pollutants, for instance in relation and maintenance of important information about materials. to structural inspections (e.g. on railway lines), pollutant monitoring, logistics or medical purposes, as well as the safe The aim is to operate the PMD on a long-term basis in an and rapid transportation of emergency medical personnel. open, international platform that ensures compatibility and Here, special applications can help alleviate the pressure on can be expanded, and in which data on materials will be more emission-intensive air and ground transport. EULE, stored in a machine-readable and interoperable manner in FlowPro, MEDinTime and Liefermichel, all projects funded by the future. With the Start-up Strategy drawn up in 2022 under the Federal Ministry for Digital and Transport, are illustrative the auspices of the Federal Ministry for Economic Affairs and examples of this. Climate Action, the German Government is strengthening 129 Chapter C. Levers (2) Sustainability in digitalisation the Green ICT innovation competition, which will explore Modern fibre optic networks create the basis for economic new approaches in electronics for energy-efficient commu- and social participation. They are necessary to ensure that nication technology until 2025. The Green HPC measure Germany’s digital transformation succeeds across the board, focuses on improving high-performance computing centres also in terms of sustainable economic and social development. at universities and research institutions, as well as commercial data centres. In order to create a central point of contact for Within the framework of the Gigabit Strategy, the German green ICT, a Green ICT competence centre was set up at the Government has therefore formulated the goal of widely Research Fab Microelectronics Germany (FMD). expanding modern gigabit infrastructure (latest-generation fibre optic and mobile communications) by 2030 and creating The Federal Ministry for the Environment, Nature Conserva- the appropriate framework conditions. Energy-intensive tion, Nuclear Safety and Consumer Protection has devised copper networks are already being replaced by much more another initiative, the German Government’s Green IT Initi- efficient technologies such as fibre optic and 5G. ative, whose aim is to offer solutions to the federal admin- istration to reduce energy consumption caused by ICT and Modern cable-laying methods, such as trenching, ploughing implement environmentally friendly practices in data centres. or milling, help to ensure that broadband expansion is faster, Energy consumption has been reduced since 2008, despite more resource-efficient and more environmentally friendly. major increases in the performance of federal IT systems. Another aim of this initiative is to reduce the annual energy Digital technologies and business models based on them are consumption of federal IT systems to below 350 GWh. The important enablers for the social-ecological market economy. IT Council has decided to extend this initiative until 2027 in With the GreenTech Innovation Competition, the Federal order to achieve the following objectives: Ministry for Economic Affairs and Climate Action wants to strengthen Germany and Europe as a high-tech location for 1. Compliance with the Blue Angel criteria in all main digital technologies and business models based on them, and ­federal data centres make an important contribution towards the SDGs.

2. Consistent use of the most environmentally friendly IT With the “greenpower4tower” sustainability competition for products and services mobile communications, the Federal Ministry for Digital and Transport and the Mobilfunkinfrastrukturgesellschaft mbH 3. Focus on qualitative aspects for the development of envi- (MIG) are looking for innovative energy supply solutions. The ronmentally sound IT by overhauling the reporting system aim of this competition of ideas is to identify and test innova- tive local and CO2-neutral energy supply systems for remote Sustainability in digitalisation also includes the regulation mobile communication locations that are particularly difficult of AI systems at EU level, especially with regard to SDGs 5 and expensive to develop for productive operation. In the next (gender equality) and 10 (less inequality). The EU law laying step, the most promising concepts will have the chance to be down harmonised rules on artificial intelligence (Artificial implemented on a pilot basis. Intelligence Act, AI Act) serves this purpose. It is intended to promote the introduction of human-centred and trustworthy Within the framework of the IPCEI (Important Project of AI while ensuring a high level of protection of health, safety Common European Interest) Next Generation Cloud Infra- and the environment from the harmful effects of AI systems. structure and Services, the Federal Ministry for Economic This concerns, among other things, the risk of discrimination Affairs and Climate Action is promoting CO2-reducing and unfair disadvantages, for example through scoring sys- technologies and sustainable applications in the sphere of tems or in the context of credit checks. cloud and edge computing. Among other things, the operation of edge nodes in solar and wind farms is being promoted, as Furthermore, various measures will strengthen civil society’s is the use of waste heat. In the field of sustainable digitalisation, involvement in shaping the framework conditions for digi- the Federal Ministry of Education and Research has launched talisation. One example is the DIN Consumer Council, which measures for energy-efficient and resource-saving techno- represents consumer interests in standardisation processes logical solutions with the Green ICT research initiative. Key of relevance to consumers, including in the area of AI and elements are the focus on social and economic needs and the digitalisation. With the initiative Civic Coding – Innovation greatest possible leverage effect. The initiative focuses on Network AI for the Common Good, the Federal Ministry of holistic approaches in various areas, such as data processing Labour and Social Affairs, the Federal Ministry for the Envi- (edge instead of cloud, smart data instead of big data), data ronment, Nature Conservation, Nuclear Safety and Consumer centres (more bits instead of more watts) and efficient com- Protection and the Federal Ministry for Family Affairs, Senior munication networks. Three winning projects emerged from Citizens, Women and Youth are strengthening data and AI 130 Chapter C. Levers literacy in civil society, pooling funding programmes and Agency for Transfer and Innovation (DATI) contribute towards support measures, providing support for the implementa- the rapid application of research results and thus towards tion of digital projects and promoting social, participatory accelerating the development of innovative solutions for and sustainable technology. the challenges facing society, especially the transformation towards sustainability. The Federal Ministry for Economic The German Government is also committed to sustainable Affairs and Climate Action’s innovation funding programmes digitalisation at international level: the German Environment for innovative SMEs, which are based on an overarching Agency, together with UNDP, UNEP, Future Earth and other “from the idea to market success” approach, are open to all international actors, launched the CODES initiative (Coalition fields and based on a bottom-up method. The different for Digital Environmental Sustainability) to bring together challenges facing SMEs in the various phases of the innova- the scientific community, government and UN organisations, tion process are being addressed. The task of the Competence tech companies and civil society. Mandated by the UN Sec- Center for Innovative Procurement (KOINNO) is to promote retary-General, the CODES initiative focuses on promoting the focus on innovation in public procurement and to advise digital ecological sustainability. The Federal Ministry for public authorities. Economic Cooperation and Development is implementing a series of measures that promote the twin green and digital transition in the partner countries of German development Quote from the online participation process: cooperation. Together with multilateral partners such as “One step further, research (projects) funded by Germany the World Bank and the International Telecommunication should in general have a stronger focus on gender, in- Union (ITU), it is developing a framework for sustainable tersectionality and power dynamics. These are highly digital infrastructure and is piloting digital approaches to relevant in global sustainability research contexts but climate action and adaptation. In addition, the Ministry is often disregarded. In addition, research, including calls working with the European Commission and other European for proposals, should address the gendered dimension partners to promote digital green innovations in Africa, Asia, and implications of sustainable production and con- Latin America and the Caribbean. sumption patterns. Where applicable, research should address the potential or existing differentiated impacts of technologies and practices with a view to reduce

3. Next steps inequalities and achieve more societal justice.“ In order to strengthen the leverage effect of research and Sandra Bonn, noting: “This is a contribution from innovation in achieving the Sustainable Development Goals, discussions of a workshop with international systemic and mission-oriented approaches are increasingly ­researchers in the field of sustainability science.” being used in research and innovation policy. In a systemic approach, economic, environmental and social interests can be brought into line with the SDGs as a guideline and cross-cutting issue, thus enhancing synergies and mitigating a) Energy research conflicting objectives as far as possible. In line with the Future Energy research, which was addressed by the State Secretaries’ Research and Innovation Strategy, interministerial mission Committee for Sustainable Development in its decision of teams are coordinating the implementation of the six mis- 24 July 2024 on the research, innovation and digitalisation sions. In these six missions, the goal is to link research and levers, plays a key role in the energy transition. After all, an innovation policy more effectively to other policy areas and affordable, secure and sustainable energy supply is the basis to focus action more efficiently. A first implementation tool for climate neutrality and a circular economy in all sectors, will be the Mat4Twin programme on materials research, and ultimately for a future worth living in. To get there, a which supports the transformation of industry and society broad-­based and long-term focus of energy research is through green and digital material innovations. required, which enables innovations to meet medium and long-term objectives. We need to accelerate the transformation towards sustain- ability. The German Government will therefore increase the In order to achieve the goals of the energy transition, the agility of its innovation policy and improve the promotion of research and development of green hydrogen production transfers. To this end, interdisciplinary and transdisciplinary technologies in Germany are to be pursued in a manner that work is to be strengthened and innovation-friendly conditions is sustainable, climate-friendly and open to all technologies. for regulatory sandboxes are to be created that allow new With the aim of rapidly developing and ramping up the scope for testing innovations. The flexibilisation of the Federal hydrogen market, and as stated in the National Hydrogen Agency for Disruptive Innovation (SPRIND) through the Strategy, other hydrogen colours, in particular low-carbon SPRIND Freedom Act and the establishment of the German hydrogen from waste or natural gas in conjunction with 131 Chapter C. Levers CCS/CCU, will also be utilised in the transition period until 4. Spillover effects sufficient green hydrogen is available. The expected demand is to be covered in this way, particularly in the transformation In the field of research and innovation, no spillover phase, and the technological switch to hydrogen made pos- effects on the ability of other countries to reach the sible. The German Government aims to ensure a reliable SDGs have been pointed out (Source: Sustainable supply of green hydrogen for Germany which is sustainable ­Development Report 2023). There is a huge research in the long term (see also the National Hydrogen Strategy spending gap between high-income countries on the Update of 2023). one hand and middle-income and low-income countries on the other. In the field of research funding, a causal In order to achieve the climate targets for 2030, 2040 and 2045, impact assessment of research funding is very challeng- significant contributions from the field of applied energy ing due to the non-linear innovation processes. This also research are expected in the near future. Research efforts in applies to measuring spillover effects. It is very likely this area will have to be focused on practical application – in that research activities and innovation can affect other particular on system integration and the further development countries’ ability to reach the SDGs. Depending on how of technologies available in the short term, as well as the sus- the respective innovations are used, positive and neg- tainable digitalisation of the energy system. In the context of ative effects are conceivable. This is why long-term a secure and reliable energy supply for Germany, sufficiency cooperation and close dialogue with international strategies and the avoidance of rebound effects must also stakeholders from partner countries – especially from be considered and factored into research, innovation and low-income countries – are very important. transfer. The considerable material demands of the energy transition underline the need for resource efficiency and Understanding and taking into account the negative the transition to a circular economy in order to strengthen and positive effects of innovation at an early stage resilience and reduce dependencies. means being able to shape politics accordingly. The Federal Ministry of Education and Research pursues b) Sustainable digitalisation this goal with its innovation impact assessment, for In order to be able to successfully and sustainably shape example through the INSIGHT funding directive. With digitalisation projects, the German Government is review- the innovation areas of hydrogen, digital education ing the recruitment requirements and salary brackets of IT and social innovation, the focus was on a number of professionals and is adapting them to market conditions. issues which have an impact on SDGs in the funding period 2021–24. During the Digital Summit in 2023, the Federal Ministry for Digital and Transport published a meta-study conducted by As part of the Future Research and Innovation Strategy, the Wissenschaftliches Institut für Infrastruktur und Kom- the German Government is focusing its research and munikationsdienste (WIK) and key points that serve as a basis innovation policy on the pressing challenges of our for discussing the development of recommendations for time. The research results and innovation arising from action for the sustainable expansion of the gigabit network. this can produce positive spillover effects. Through Together with the relevant players, the key points are now application and transfer, the positive spillover effects being further developed into recommendations for action. of technological progress and innovations, for example The consultation deadline is early 2024. in the field of renewable energies, also benefit other countries. Within the framework of international processes such as the Global Digital Compact (GDC), the German Government is We must avoid unintended outflows of research and committed to shaping the digital transformation in a sustain- development results that can affect the technological able manner. It is crucial that the GDC promotes the imple- sovereignty of Germany and Europe. mentation of the 2030 Agenda and addresses the opportu- nities and risks of digital transformation for biodiversity, When engaging in international cooperation in the field environmental protection and climate action, as well as social of science and research, the Federal Ministry of Educa- and economic goals. The multi-stakeholder approach is key tion and Research is working in a spirit of partnership to this. to ensure that the needs of all partners involved are taken into account, that all countries benefit from the research In order to ensure digital sovereignty and guarantee sustain- activities and that no new dependencies arise. For ex- able digitalisation, the German Government is planning to ample, in Southern (SASSCAL) and Western (WASCAL) build its own cloud. The cloud solution should be designed Africa, the Federal Education Ministry supports research in such a way that a secure and resource-efficient use of AI on climate action and adaptation in long-­standing in public administration can be ensured. partnerships. 132 Chapter C. Levers In the field of digitalisation as well, no spillover effects agreements in this context include the Paris Agreement, have been identified to date. By implementing the Digital the Kunming-Montreal Global Biodiversity Framework, Strategy, the German Government is enhancing the the Convention to Combat Desertification and the UN importance of impact assessment in the implementation Biodiversity Beyond National Jurisdiction Agreement. of digital projects in the public administration. The EVALUATE project initiated by the digital-political think Protecting our natural heritage, promoting human rights and tank Agora Digitale Transformation (ADT) and funded by reducing global inequalities are closely interlinked. They are the Federal Ministry for Digital and Transport provides essential in order to achieve all SDGs. Shouldering global the necessary expertise. responsibility also means paying greater attention to the global impact of national actions. We must avoid or minimise as far as possible negative spillover effects, that is to say the negative impact of our trade, production and consumption patterns and financial markets on other countries. The Ger- V. International responsibility man Government wants to shape every policy from the outset and ­cooperation with a view to ensuring that it is of benefit not only within Germany, but also has a positive impact at global level. Precise and comprehensive impact assessments as well as sound data

1. Introduction sources are essential in order to identify potentially conflicting objectives and to take appropriate countermeasures in good Although all nations are called upon to make ambitious time. national contributions, sustainable development cannot be achieved solely within national borders. Many of the chal- The Supply Chain Due Diligence Act (LkSG), which entered lenges of our time transcend borders. The complex nature into force in January 2023, is an important instrument which of global challenges such as the climate crisis, the loss of the German Government uses to address spillover effects. biodiversity, pollution, increasing inequality and violent It obliges companies to comply with human rights and en- conflicts requires coordinated international cooperation. As vironmental due diligence obligations along supply chains a key international player and committed member of the in Germany and abroad. Other political approaches, such as United Nations, Germany is working at international level to supporting the development of sustainable agricultural and implement the 2030 Agenda and, to this end, is strengthening food systems or building a sustainable circular economy along its global partnerships. global supply chains with the right to repair, are also suitable tools for minimising negative impacts on other countries. In addition to the six areas of transformation, the German For example, the National Circular Economy Strategy is Government has also formed a transformation team for intended, among other things, to close material cycles and the international responsibility and cooperation lever. The thereby reduce primary resource consumption, which often transformation report prepared by the team was adopted cannot be achieved by Germany itself. by the Federal Cabinet on 17 July 2023 (Bundestag printed paper no. 20/779907). The National Water Strategy provides a framework for modern, sustainable water management in Germany, but at Together with global partners, the German Government is the same time sets out goals for how we can work together pushing for a global structural policy that promotes a socially to sustainably protect global water resources. just and environmentally sound sustainability transformation. At the same time, all transformation teams are focusing on the international and European dimensions of their issues. Quote from the dialogue process: “Moreover, peer learning formats should be increasingly implemented with national and international stake-

2. Action in Germany: holders from science, the world of politics, society and ­Considering ­global connections business, also in order to take into account the per- spectives of the stakeholders and countries affected a) Aims and examples of measures by spillover effects throughout the process of devising In order to harmonise national objectives with the 2030 measures to reduce such effects.” Agenda and key international agreements with each other, a coordinated and science-based approach is required. Key Tabea Waltenberg, SDSN Germany 7 www.bmz.de/resource/blob/165014/230713-pm-84-transformationsbericht.pdf 133 Chapter C. Levers Transformation processes themselves can trigger potentially What is more, Education for Sustainable Development negative spillover effects and foment poverty and inequality. greatly increases acceptance of a comprehensive sustainability For instance, the energy transition comes with a significant transformation. increase in the demand for certain raw materials, e.g. water in mining and processing methods, copper for the expansion Higher education is best placed both for Education for Sus- of power grids, as well as lithium and cobalt for electric mobil- tainable Development and for Global Learning, as research ity. Consequently, the German Government supports both knows no geographical or cultural boundaries per se and the sustainable extraction and processing of raw materials therefore always has an international, intercultural and and circular economy approaches in partner countries. intersectional perspective. Cooperation among universities Environmental, social and human rights aspects are taken around the world, student exchanges and international into account. Positive effects can be increased by creating fair teaching and research projects are an important basis for working conditions or by strengthening sustainable pro- understanding, mutual knowledge transfers and co-creative duction chains. One example of this is support for partner knowledge gain, which are indispensable at a time of complex countries in the green hydrogen market ramp-up. global crises. The 2030 Agenda is founded on social engagement at all lev- b) Selected initiatives with particular transformation els. The broad-based participation of civil society, especially potential young people, is necessary in order to anchor the Sustainable In order to accelerate sustainable development, the German Development Goals in a vibrant democracy. In addition, civil-­ Government is driving forward, among other things, the society engagement around the world is crucial for the suc- following initiatives with particular transformation potential: cessful implementation of the 2030 Agenda. The German Government therefore continues to focus on strengthening civil society both in Germany and in partner countries, • We have stepped up our efforts to address and system- supporting their contributions towards the implementation atically counteract negative impacts on the achieve- of the 2030 Agenda and fostering mutual exchange. The ment of SDGs in third countries (spillover effects) German Government is actively working at international emanating from Germany. A follow-up process will level to combat the restrictions on the scope of civil-society continue to address all areas of transformation across action (“shrinking spaces”). several levers, a process which began with the German Sustainable Development Strategy of 2024. This will The SDGs can only be achieved if municipalities and Länder take up proposals from the dialogue process on the are involved in their implementation. For this reason, the Ger- German Sustainable Development Strategy in order man Government is supporting the municipal level, among to deal with spillover effects even more systematically other things in drawing up local sustainability strategies and and in a more targeted manner. voluntary sustainability reports, known as voluntary local reviews (VLRs). In addition, municipal partnerships that • We support global agendas to avoid negative spillover contribute to the Sustainable Development Goals through effects. One example of this is the implementation of joint projects are being promoted (cf. chapter C.II.). Further- the Two-Pillar Solution for the taxation of interna- more, business is an important partner in the sustainability tional corporations, in particular the global minimum transformation – also in view of the huge need for investment effective taxation, and support for developing coun- when it comes to implementing the SDGs. By funding the tries in its introduction. Partnerships 2030 programme, the German Government is promoting multi-stakeholder partnerships between state, • We review how and where public administration civil-society, private-sector and scientific players in a targeted practices and procedures can minimise unintended fashion. impacts on third countries. For example, shaping public procurement in a sustainable manner is a key The promotion of Education for Sustainable Development starting point for this, particularly with regard to the (ESD), particularly taking into account the global perspec- inclusion of environmental, social and human rights tive (Global Learning), is also crucial. That applies likewise standards. to cultural relations and education policy. Education for Sustainable Development and Global Learning empower • The sustainability impact assessment of measures, people to think and act in a forward-looking manner and laws and strategies, subsidies, green federal bonds or enable them to gain a deeper understanding of the impact of the federal budget is to be oriented also in the future their own actions on the world. Civil-society stakeholders can towards the holistic approach of the 2030 Agenda, thus participate in the necessary transformation processes. 134 Chapter C. Levers taking into account the interconnections between the United Nations SDGs and effects on third countries. With this in mind, Since Germany’s accession to the United Nations in 1973, the sustainability impact assessment of laws will be its commitment to multilateralism and the principles and revised on the basis of the recommendations adopted objectives of the United Nations have formed important by the State Secretaries’ Committee for Sustainable cornerstones of German foreign, security and development Development in November 2022, in particular with policy. regard to the use of the electronic sustainability assess- ment tool “eNAP”. As the second-largest contributor to the UN system, Germany is contributing to its ability to act and, as co-facilitator of the • The German Government supports development Summit of the Future initiated by the Secretary-General, was policy education programmes in Germany and is committed to reaching a consensus among member states on working together with the Länder to ensure that a Pact for the Future. In 2025, Germany will chair the Peace- Education for Sustainable Development and Global building Commission, host the UN Peacekeeping Ministerial Learning are permanently integrated into the cur- and the Global Disability Summit in May 2025, nominate the ricula of schools in Germany. candidate for the office of President of the 80th session of the UN General Assembly, champion reform of the Security • In keeping with the aim of involving young people in Council and stand for a non-permanent seat on the Security national sustainable development processes as well as Council in 2027/2028. at international level, Germany supports the appoint- ment of a UN Special Envoy for Future Generations. Today, Germany is a particularly strong advocate of structural reforms of the UN system and the multilateral system as a • As part of the WTO negotiations on the abolition of whole. Not only the UN Security Council, but also the inter- harmful fisheries subsidies (SDG 14.6), the German national financial architecture must become more efficient Government supported the participation of partner and gain greater legitimacy. The African continent and other countries in the preliminary negotiations through a regions of the Global South in particular need greater rep- WTO fund. In addition, it will contribute up to 2 mil- resentation in multilateral forums and their capacities need to lion euro to the fund to support the implementation be enhanced. Germany will continue to work on strengthening of the agreement for developing countries. the free international order based on international law, the Charter of the United Nations and universal human rights. Germany supports the reform of the United Nations Devel-

3. Driving forward the 2030 Agenda at opment System (UNDS) to ensure a more coherent and ­European and international level efficient implementation of the 2030 Agenda. Key elements of the reform are better coordination at country level and a) Aims and examples of measures the implementation of the Funding Compact. Germany is committed to promoting effective international cooperation for a global sustainability transformation. In an Germany is actively involved in the High-level Political increasingly multipolar world order, Germany is focusing to Forum on Sustainable Development (HLPF), which is held a greater extent on partnerships with countries in Asia, Africa, annually in New York, and is funding the participation of South and Central America and the Middle East in addition youth and indigenous representatives from the Global South. to European and transatlantic cooperation. In addition, Germany has already presented two Voluntary National Reviews (VNRs) on the national implementation To this end, the German Government is expanding its bilat- of the 2030 Agenda and is planning its third report in 2025. eral and multilateral partnerships in a targeted manner in Germany attaches particular importance to a socially inclu- order to effectively address sustainable-development tasks, sive and integrative approach both in the process and in such as combating the climate and environmental crisis and the report, with the participation of stakeholders from civil its effects, alleviating humanitarian emergencies, strength- society, business, the scientific community, the Länder and ening global health, reducing inequalities within and between municipalities. states and preserving peace and security. Part of this effort is the better dovetailing of the 2030 Agenda with other global processes, such as the Rio Conventions. 135 Chapter C. Levers Quote from the dialogue process: 9. Enhancing food security “What is more, it is alarming to see member states making it increasingly difficult for civil-society or- 10. Strengthening healthcare systems and ganisations to participate in the HLPF, for example. ­pandemic prevention But civil society is needed to implement the SDGs. The German Government thus sent a strong message 11. Reducing the negative impact on third countries by inviting an unusually large group from civil society to New York with the German delegation.” 12. Thinking globally, acting locally. Promoting climate-­friendly urban development and green Thomas Hohn, Bündnis ZukunftsBildung infrastructure. In the context of the ECOSOC-HLPF review, Germany is Source: Key contributions of the German ­Government committed to strengthening the HLPF as a central forum for the SDG Summit 2023 for reviewing the progress of the implementation of the 2030 Agenda, for example with regard to the participation of civil society or closer integration with the scientific At the SDG Summit, the 193 member states of the United recommendations of the GSDR. Nations unanimously adopted a political declaration renew- ing their commitment to the 2030 Agenda. Reducing the SDG In 2023, the SDG Summit was held at the level of the Heads financing gap and reforming the international financial ar- of State and Government. The focus was on the mid-term chitecture feature prominently in that declaration. Other key review of the 2030 Agenda, in particular with regard to the points are the reduction of inequalities, the promotion of lack of progress in implementing the SDGs, as well as calls gender equality, inclusive digitalisation, a sustainable and for improved development financing and reform of the inter- resilient water and energy supply, as well as support for national financial architecture. agricultural, food and health systems. Other UN processes, such as the 15th Conference of the Parties to the Convention As requested by the Secretary-General, the German Govern- on Biological Diversity (CBD COP15) and the 28th UN Climate ment presented twelve key contributions to the United Na- Change Conference (UNFCCC COP28), were also addressed. tions in New York ahead of the SDG Summit. The measures proposed by the German Government address key aspects Against the backdrop of the mutually reinforcing global of our international sustainable development policy: crises, geopolitical polarisation and the lack of progress on the SDGs, UN Secretary-General António Guterres presented a report entitled “Our Common Agenda” on the occasion of

1. Promoting sustainable development financing the 75th anniversary of the United Nations, in which he pro- and World Bank reform posed comprehensive reform of the multilateral order. Based on these recommendations, the Summit of the Future took

2. Structuring public debt in a sustainable manner place in New York on 22 and 23 September 2024. The Pact for the Future, which was adopted by consensus, reaffirms

3. Promoting German policies in line with the the commitment of the UN member states to multilateral- 2030 Agenda ism and calls for reforms in key areas of the international order to make multilateralism fit for the future and to help

4. Promoting European policies in line with the achieve the Sustainable Development Goals of the 2030 Agen- 2030 Agenda da more quickly. In particular, this includes a strengthened role for the United Nations in the field of peace and security,

5. Promoting climate action and the conservation reform of the international financial architecture, digital of biodiversity cooperation and the involvement of young people in United Nations processes. Moreover, multilateral governance is to take

6. Promoting feminist development and foreign into account the interests and needs of future generations. ­policy Antje Leendertse, the German Permanent Representative to the United Nations in New York, and her Namibian colleague,

7. Making the global energy transition socially just Neville Gertze, led the negotiations on the preparation of the and ecologically sound Summit of the Future. The German Government will actively work in the relevant organisations and bodies to implement

8. Promoting social justice and the inclusion of the Pact for the Future. It is pursuing this aim with the objec- ­people with disabilities around the world tive of successfully using the Summit of the Future to make multilateralism more efficient, transparent and inclusive. 136 Chapter C. Levers In addition to the Summit of the Future, the Second World to successfully shape the transition to a modern, resource-­ Summit for Social Development will likewise focus on lending efficient and competitive economy. With the announcement momentum to the implementation of the 2030 Agenda. Thirty of the Clean Industrial Deal and in the context of the Global years after the first World Summit for Social Development in Gateway infrastructure initiative, attention is also being Copenhagen in 1995, the second Summit will take place in focused on further priorities. The German Government is Doha from 4 to 6 November 2025. Its purpose will be to speed committed to the European Union actively implementing up implementation of the 2030 Agenda and to strengthen and developing the European Green Deal in order to jointly social development in a sustainable manner, in particular the combat the climate and biodiversity crises, environmental fight against poverty, productive full employment, decent pollution and degradation, as well as the loss of natural re- work for all and social inclusion. sources, while at the same time ensuring prosperity for all European citizens through the conservation and sustainable Germany also supports the UN Sustainable Financing for use of natural resources. Furthermore, it is important to Development process and the ongoing preparations for consider the impact of implementing the European Green the Fourth International Financing for Development Con- Deal and other EU policies on partner countries, particularly ference in 2025. The process addresses the major structural the least developed countries, and to address this where and transformative challenges of our time. It aims to identify necessary. systemic solutions to current global crises, including in key areas such as the global debt architecture, international tax Moreover, as a member state of the European Union, Ger- cooperation, private-sector mobilisation and the future of many is instrumental in ensuring that further EU measures international development cooperation. also make an important contribution to the SDGs. These include the Global Gateway infrastructure initiative, the EU’s European Union climate action package Fit for 55, the Farm to Fork Strategy The German Government wants the European Commission for Sustainable Agriculture and Food, the EU Biodiversity to declare that the 2030 Agenda is the guiding principle for Strategy for 2030, the EU Taxonomy, the EU Regulation on regulation, policy strategies and programme planning. It nature restoration and the EU forest strategy, the EU Regula- believes the Agenda should be taken into account from the tion on deforestation-free products (EUDR), the EU Circular outset in all process steps. It is important that this also applies Economy Action Plan, the NextGenerationEU Recovery to the future work of the Commission appointed in 2024. Plan, the EU trade strategy, the EU Corporate Sustainability Reporting Directive (CSRD), as well as key labour market and Germany is committed to ensuring that the European Com- social standards. mission now becomes more specific when it formulates and implements its work programme: do the measures contrib- As a member of the Council Working Party on the 2030 Agen- ute to the implementation of the Sustainable Development da for Sustainable Development, Germany, together with the Goals and to the correction of the shortcomings, and if so, other EU member states, regularly monitors and supports to what extent? The implementation of the 2030 Agenda at the implementation of the 2030 Agenda in all of the EU’s local level should also continue to play an important role. internal and external policy areas. Within the working party, Germany supported the European Commission in the prepa- The European Commission presented a voluntary report at ration of the EU Voluntary Report (EU-VR) and repeatedly the High-level Political Forum on Sustainable Development called for adequate participation by civil society as well as (HLPF) in 2023 reviewing the progress made in implement- balanced and differentiated reporting. This commitment is ing the 2030 Agenda (EU Voluntary Review, EU-VR). In this to continue with the preparation of a second EU Voluntary report, it affirms its commitment to the full and timely im- Report by 2030. plementation of the 2030 Agenda. It states that all European Union measures and strategies are to contribute to the imple- European Sustainable Development Network (ESDN) mentation of the SDGs. The European Union is striving for a The German Government works closely with the administra- high level of ambition by adopting far-reaching transformative tions of other European states on sustainable development. policies and strategies. The European Green Deal, which is It is a member of the European Sustainable Development inextricably linked to SDG implementation, serves as a Network (ESDN). In this context, the Federal Ministry for guideline here. the Environment, Nature Conservation, Nuclear Safety and Consumer Protection has been funding and organising an an- It is to be welcomed that the European Commission is con- nual conference for European Youth Delegates for Sustainable tinuing to build on the European Green Deal and to main- Development since 2020. The Ministry also supported the tain its commitment to achieving its objectives. With the structured involvement of youth delegates in the form of a Green Deal, the European Union aims to promote the global permanent youth network within the ESDN. The aim is to transformation towards a sustainable and peaceful world and 137 Chapter C. Levers support the work of the youth delegates and to improve the global reversal in interest rates. It is due, among other networking among the delegates as well as with represent- things, to significant financing requirements in order to atives of the ESDN. overcome current challenges ranging from climate action and biodiversity conservation to food security and health Engagement at G7 and G20 level protection. Within the scope of existing budget funds, the During its G20 Presidency in 2024, Brazil worked to combat German Government wants to help ensure that this short- extreme inequalities. One focus was the fair organisation of fall is made up. Both public and private-sector financial flows tax systems and global tax cooperation. Today, the ultra-rich should be oriented coherently to the SDGs in order to pro- often have a significantly lower tax burden than workers with mote a social-ecological transformation and climate-resilient average incomes. An indirect objective is therefore to ensure development internationally (sustainable finance). The central the effective taxation of wealthy individuals worldwide framework here is the multilaterally adopted Addis Ababa through closer cooperation and more targeted measures. Action Agenda (AAAA) on financing for sustainable devel- opment. Moreover, the German Government supports Brazil’s newly founded Global Alliance against Hunger and Poverty (GAHP), which spotlights SDGs 1 and 2. The multiple crises of recent Comment by a representative of civil society at the years have led to setbacks in the fight against poverty and kick-off conference on the revision of the German hunger. Germany therefore stands shoulder to shoulder with Sustainable Development Strategy: Brazil in favour of accelerating the implementation of the “Reform of the international financial architecture has SDGs mentioned above, which can have a positive leverage one of the strongest leverage effects for the SDGs.” effect on other closely related SDGs. Felix Meyerhoff Germany will also support South Africa during its G20 Presi- dency in 2025 in order to continue the G20’s drive to reduce inequality and fight hunger. Germany is an important player in the UN Financing for Development process. Among other things, Germany has Germany is also committed to generating fresh impetus in been co-hosting the meetings of the Friends of Monterrey the G20 for relevant international negotiations – for example, Group, an important informal political forum in the field of in the fields of sustainable and equitable development, climate sustainable development financing, together with Mexico action, biodiversity and environmental protection, the energy and Switzerland since 2016. transition, food security, water and sanitation, global health, social security, gender equality, etc. Furthermore, Germany The German Government welcomed the decision by the UN wants to see quicker implementation and entry into force of General Assembly in November 2023 to convene the Fourth agreements reached. International Conference on Financing for Development in Seville in 2025, and is supporting the ongoing preparatory At G7 level, Germany is working to advance transformative process. Such a conference is essential in order to review initiatives in line with the 2030 Agenda. During Germany’s together the progress and challenges of development financ- G7 Presidency in 2022, the G7 members adopted the Berlin ing, and offers an opportunity to adapt the development Roadmap, which is intended to strengthen cooperation within financing agenda to changing needs. the G7 on the circular economy and resource efficiency in the coming years and links these issues with climate action Reforming the international financial architecture is an for the first time. In 2023 a new work strand was established important lever for closing the SDG financing gap. Due in at, inter alia, Germany’s suggestion as part of cooperation large part to Germany’s initiative, the World Bank Group within the G7 Alliance for Resource Efficiency with the aim shareholders agreed on fundamental reform at its annual of accelerating the establishment of a circular economy and meeting in October 2023. In future, the World Bank Group’s resource efficiency to foster climate action and the protection mission, operating model and targets system will focus to a of biodiversity in the G7 (cf. chapter B.III.). greater extent on the protection and provision of global public goods such as climate action, biodiversity conservation, Sustainable development financing pandemic prevention, preparedness and response, as well as In 2023, the OECD put the SDG financing gap in developing the promotion of peace and security. The World Bank Group countries and emerging economies alone at 3.9 trillion US will thus become a genuine bank for transformation. Germany dollars per year until 2030. The gap has continued to grow in was the very first country to announce that it would offer recent years, particularly in countries of the Global South, due financial support to a reformed World Bank Group by making to Russia’s illegal war of aggression against Ukraine and a debt available hybrid capital. It is also promoting a corresponding situation that has been significantly exacerbated by, inter alia, path and reform in the regional development banks. The aim 138 Chapter C. Levers is to ensure that the multilateral development banks act in The German Government aims to continue contributing 0.7% a coordinated and thus more effective manner (MDBs as a of gross national income to official development assistance system). (ODA ratio) in the coming years. The question as to how prosperity and economic progress Quote from the dialogue process: will be defined in future is also important. The international “In our view, the German Government has to use the community must go beyond measuring economic growth Sustainable Development Strategy to promote compre- and, in particular, include natural and social capital. One hensive reform of the international financial architec- objective is to make it binding to take into consideration ture, which includes an ambitious UN convention on cross-border costs and benefits in future. taxation law that covers all countries and prevents cross-­ border tax violations and tax avoidance by transnational b) Selected initiatives with particular companies and wealthy individuals, and generates more ­transformation potential financial resources for countries in the Global South.” In order to advance the 2030 Agenda at European and ­international level, the German Government, among VENRO ­other things, is promoting the following: Germany advocates the effective implementation and further • Germany’s commitment to advocate effective multi- strengthening of the G20 Common Framework for restruc- lateral cooperation and systematic alignment with turing the debt of low-income countries and is committed the 2030 Agenda in all international organisations to debt transparency. Moreover, as another development-­ in which it participates. cooperation instrument, Germany is offering bilateral debt conversions to low- or middle-income countries that are • Strengthening global partnerships in an increasingly indebted but not over-indebted. This will make it possible multipolar world. Working to strengthen and reform to mobilise targeted additional investment for sustainable the United Nations as an irreplaceable pillar of a peace- development and climate action. ful and just world and as a key player in achieving the 2030 Agenda. Quote from the dialogue process: • Further implementing the World Bank Group reform “The Global South is disproportionately affected by in order to bolster its capacity to support a socially climate change but produces the lowest emissions. At just and ecological transformation. The protection the same time, many countries are over-indebted and and provision of global public goods are to be system- thus unable to invest extensively in measures to foster atically integrated into the World Bank’s operating climate change adaptation. A comprehensive debt relief model. Strengthening the entire system of multilateral strategy must provide funding so that people in the development banks. regions of the world affected by climate change can also lead lives worth living.” • Supporting the Two-Pillar Solution for the taxation of international corporations. Caru • Supporting the Fourth International Conference on Financing for Development in 2025. Another focus is on promoting sustainable finance in devel- oping countries and emerging economies as part of German • Supporting the effective implementation and further development cooperation, in order to contribute towards a strengthening of the G20 Common Framework for social-ecological transformation of the economic and finan- restructuring the debt of low-income countries and cial systems in those countries, too. advocacy of debt transparency and the OECD Debt Transparency Initiative. At international level, the German Government also strongly advocates fighting illicit financial flows and is making an im- • Bilateral debt conversion through debt-for-SDG portant contribution towards the fight against money laun- swaps. dering and terrorist financing within the Financial ­Action Task Force (FATF), among other things. What is more, Germany is • Striving to maintain an ODA ratio (share of public strengthening the capacity of global, regional and national development assistance in gross national income) partners to tackle illicit financial flows. of 0.7% in the coming years. 139 Chapter C. Levers • Supporting the accelerated implementation of the Germany focuses on integrated approaches that take all 2030 Agenda at EU level as a responsible, as well as the aspects of sustainable development into account, and inter- largest, member state, with the aim of anchoring the links bilateral, multilateral and sectoral engagement. Germany SDGs as a key priority in European policies; inclusion is the second-largest bilateral donor in development coop- of the 2030 Agenda as a guiding principle in the EU eration and humanitarian assistance, the second-largest UN budget; promotion of policy coherence in line with contributor, as well as the largest donor of support for the 2030 Agenda; improvement of the EU’s monitor- countries taking in refugees. ing of SDGs; effective implementation of multilat- eral sustainable development standards through key The aim is to make attractive offers in the field of development EU strategies (including the Global Gateway infra- policy that are in line with strategies on the partner side – for structure initiative) and in all existing and future trade example, with the African Union’s Agenda 2063. Admitting agreements, as well as efforts to develop a European the African Union to the G20 in 2023 was an important step. Commission strategy to implement the 2030 Agenda. After all, the African Union represents the interests of some 1.4 billion people. In this context, the Federal Ministry for • Strengthening multilateral relations by developing Economic Cooperation and Development supports the peer-learning and best-practice approaches to initi- African Continental Free Trade Area (AfCFTA) championed atives and laws in line with sustainable development by the African Union, which promises great opportunities policy, such as the Supply Chain Due Diligence Act for economic growth, investment and jobs. (LkSG), the Federal Action Plan on Nature-based Solutions for Climate and Biodiversity or the National Various factors have led to a loss of confidence in the West on Circular Economy Strategy. the part of many countries in the Global South. These include shortcomings in multilateral decision-making structures, • Creation of new spaces to develop concrete solutions frustration over unfulfilled pledges by Western countries, for for a social-ecological transformation through global example those concerning climate and development financ- cooperation. With the Hamburg Sustainability Con- ing, unequal vaccine distribution and production during the ference, the German Government, in cooperation with COVID-19 pandemic and the fact that global trade, produc- the United Nations Development Programme (UNDP), tion and consumption patterns very often have a detrimental the Michael Otto Foundation and the Free and Han- impact on the countries of the Global South. seatic City of Hamburg, brings together key figures from the world of politics, business, science, civil so- The German Government is committed to working in part- ciety and international organisations in a high-level nership with the countries of the Global South, based on format. This enables an exchange in a spirit of mutual respect, reciprocity, shared responsibility as well as common trust and partnership between decision-makers from values and goals. Activities must be defined on the basis of the Global South and the Global North and provides exchanges with partners, their interests must be recognised a platform for concrete agreements on advancing and taken into account, and our own positions must be global sustainable development. communicated transparently. A critical confrontation with Germany’s colonial past, ­including the consequences of the colonial age and our own

4. Germany’s global responsibility: understanding of development, is one crucial factor for an ­Foreign-­policy, environmental and open dialogue with partner countries. This includes in-depth ­development ­cooperation with reflection on whether and to what extent colonial continu- ­partner ­countries ities, for instance asymmetric power and dependency struc- tures, exist in relations with our partners and how these can a) Aims and examples of measures be dismantled through dialogue. Forming alliances instead of going it alone: establishing This is an essential prerequisite for a sustainable model of partnership models that show the way forward future cooperation which highlights respect and reciprocity. The host of global challenges can only be tackled through global cooperation and partnership. German development Germany will continue to support inclusive multilateralism policy, which is aligned with the 2030 Agenda and its Sustain- which strengthens the voice of our partner countries in able Development Goals, is a key element here. It has the nec- international decision-making processes. One example is essary tools to support far-reaching structural change in the the CODES Initiative already described here. economic, environmental and social spheres at global level, as well as to strengthen our partners’ resilience. 140 Chapter C. Levers Priorities for Germany’s commitment in line with a global The German Government will continue to advocate for a structural policy for sustainable development socially just and ecologically sound transition in global sec- In order to get back on track with the 2030 Agenda, Germany toral processes. has set the priorities listed below with the aim of strengthen- ing justice and resilience in and with our partner countries. For example, it will take advantage of the momentum created by the UN Water Conference in 2023 to help partner countries A socially just ecological transition is crucial for maintaining find appropriate solutions to ensure greater water security our natural heritage and mitigating climate change, as well and to realise the human rights to safe and affordable water as adapting to its impact. Germany is working with partner and sanitation. To this end, Germany supports, among other countries around the world to bring about the necessary things, the UN System-wide Strategy for Water and Sanitation, structural change towards socially just, greenhouse gas-neu- launched during the HLPF in July 2024, SDG 6 monitoring tral and ecologically compatible societies. Together with our and the new UN Secretary-General’s Special Envoy on Water. partners, we are shaping processes of change to increase The same applies to the forthcoming 2026 UN Water Confer- local added value and revenue, align financial flows with ence and its preparatory processes, in which stakeholders the SDGs in a coherent way, create decent jobs and protect are to be involved. Germany will also continue to work for our environment. safe chemicals management and an ambitious international agreement on plastic. Within the EU, the German Government The framework for this is provided, among other things, by advocates, among other things, stricter regulations on the use the Paris Agreement, the Kunming-Montreal Global Bio- of single-use plastics. diversity Framework and the United Nations Convention to Combat Desertification. Germany is driving forward the The Federal Foreign Office and the Federal Ministry for implementation of these instruments at international level Economic Cooperation and Development have developed and is supporting partner countries in developing and their own guidelines or strategy on feminist foreign policy implementing relevant strategies, programmes and plans. and on development policy. Sustainable development can In view of rising demand as well as global climate and envi- only be achieved if all people are able to participate equally ronmental justice, the German Government has continuously in social, political and economic life. However, people are increased its contributions to international climate finance. discriminated against and systematically left behind all over In 2023, it provided some 5.7 billion euro in public climate the world, whether it be because of their gender, age, religious finance from budgetary funds, including grant elements of affiliation or other grounds of discrimination. KfW development loans. If market resources and privately mobilised funds are added to this, German climate finance in 2023 totals around 9.9 billion euro. With a view to increasing Quote from the dialogue process: public climate finance from budgetary resources (including “Especially in the case of gender-specific discrimination grant elements) to 6 billion euro per year, Germany reliably in the context of the climate catastrophe, it is essential provides its fair share of the pledge made by industrialised to learn from international partners. One example of countries to mobilise 100 billion US dollars per year for the this is the Gender and Climate project funded by the fight against climate change in developing countries and Federal Ministry for Economic Cooperation and Devel- emerging economies. As part of climate finance, the German opment and implemented by WECF, in which partners Government will increase international biodiversity financing from Georgia, Uganda and Colombia work together to to 1.5 billion euro per year by 2025. Germany is thus sending a strengthen the capacities of climate stakeholders and strong message about the protection of our natural resources. to plan, finance and implement gender-based climate measures. These global partnerships can generate posi- The Just Energy Transition Partnerships with South Africa, tive spillover effects that contribute towards sustainable Indonesia, Viet Nam and Senegal constitute a core element of development, both at national and international level.” Germany's efforts to foster global and socially just structural change by adopting integrated approaches. They accelerate Women Engage for a Common Future (WECF) the expansion of renewable energies and advance a just en- ergy transition. In addition, a memorandum of understanding was concluded in 2023 between Brazil and Germany on a The feminist foreign and development policies of the Fed- partnership for a socially just and ecological transformation. eral Foreign Office and the Development Ministry address With this partnership, the two partners have committed to structural inequalities and make women and LGBTQIA+ the objectives of the 2030 Agenda and to a socially just and people in all their diversity, as well as marginalised groups, ecologically sound transformation. the focus of attention. It is important to take into account 141 Chapter C. Levers various overlapping and possibly reinforcing reasons for Germany will continue to support partner countries in de- discrimination (intersectional approach). Germany’s com- veloping and expanding social security systems. They are an mitment is based on the three Rs: equal rights, equal access to important lever for combating poverty, hunger and inequal- resources and increased representation in decision-making ity and bolstering social resilience. During Germany’s G7 processes. Presidency in 2022, the G7 Development Ministers agreed to support the countries of the Global South, in cooperation The Federal Ministry for Economic Cooperation and Devel- with international partner organisations, in giving up to a opment and the Federal Foreign Office aim to increase to 93% billion more people access to social protection by 2025. The the proportion of newly pledged project funding from their German Government is therefore committed to further respective budgets aimed at promoting gender equality. Some developing international alliances with relevant partners 8% of the funds are to be used in a gender-transformative such as the World Bank and United Nations organisations manner or as the primary objective in line with the OECD such as the International Labour Organization (ILO). DAC code. For the entire German Government, the share of newly pledged project funds from development cooperation In addition to social security, decent employment is an im- that foster gender equality is to rise to 85% by 2030 (indicator portant lever for reducing poverty and inequality. Together 5.1.g). This objective is based on the Gender Action Plan III, with the World Bank and the ILO, Germany has set up an which entered into force in 2020 during Germany’s Presidency initiative to support the UN Secretary-General’s Global Ac- of the Council of the European Union. celerator on Jobs and Social Protection for Just Transitions. The aim is to support partner countries, through improved Combating poverty, hunger and inequality is more urgent international coordination and a coordinated financial archi- than ever. It is especially important to reach the most dis- tecture, in driving forward the expansion of social security advantaged and poverty-stricken people and communities systems to cover 4 billion more people and to create 400 mil- and to reduce inequalities. Leave no one behind – this is the lion decent jobs in future-oriented economic and employment main ambition of the 2030 Agenda and the cross-cutting sectors in the Global South. theme of Germany’s commitment worldwide. The increasing impact of climate change, violent conflicts, poverty and inequality, as well as the tense situation on global Comment by a representative of civil society at the agricultural markets, are hitting marginalised groups around kick-off conference on the revision of the German the world particularly hard. In 2023, about 733 million people Sustainable Development Strategy were affected by chronic hunger. Around 2.8 billion people “Too little attention was paid in the last German Sustain- could not afford a healthy diet in 2023. The German Govern- able Development Strategy to helping disadvantaged ment continues to work together with international partners groups. The ‘leave no one behind’ principle is important to combat and prevent food crises. In 2022, for example, it and should be anchored not only in the 2030 Agenda, launched the Global Alliance for Food Security (GAFS) in but also in the indicators of the German Sustainable response to the global food crisis. The Alliance’s critical tools, Development Strategy.” such as the Global Food and Nutrition Security Dashboard and the Preparedness Plans, are being utilised and further Dr Gabriele Weigt, Managing Director of bezev developed by other international initiatives and organisations despite the Alliance’s termination. In addition, the German Government is promoting the transformation towards sus- Every individual has the right to equal social, economic and tainable, resilient agricultural and food systems. This includes political participation. In order to support and advance the advancing the implementation of the outcomes of the UN worldwide implementation of the United Nations Convention Food Systems Summit and its follow-up processes. on the Rights of Persons with Disabilities in terms of devel- opment policy, Germany is hosting the next Global Disability Health is simultaneously the goal, prerequisite and result of Summit in Berlin on 2 and 3 April 2025, in cooperation with sustainable development. The COVID-19 pandemic reversed Jordan and the International Disability Alliance. development progress, particularly in the Global South, and highlighted the importance of the prevention or early detec- The German Government also aims to improve the frame- tion of potential epidemics and pandemics. Most infectious work conditions for the protection and integration of refugees diseases with pandemic potential are zoonoses and vector-­ and displaced persons around the world. Germany therefore borne diseases, i.e. they are closely related to the care and supports the implementation of the Global Compact on handling of wild and farm animals, as well as the destruction Refugees and the Global Compact for Migration and the UN of natural habitats and climate change. Antimicrobial resist- Secretary-General’s Action Agenda on Internal Displacement. ance is a problem at the human-animal-environment inter- 142 Chapter C. Levers face. In order to better prevent future pandemics, it is there- In times of increased armed conflict and geopolitical up- fore necessary to achieve a lasting balance between human, heaval, the relevance of peace and security as a fundamental animal and environmental health. That is why the German prerequisite for sustainable development becomes particularly Government is increasingly strengthening the One Health clear. The preamble of the 2030 Agenda states that it “seeks approach at national and international level. to strengthen universal peace in larger freedom”. The German Government’s crisis management and actions Statement from the dialogue group: in the sphere of peace policy are based on the Guidelines on “The food-health-climate-biodiversity nexus is par- Preventing Crises, Resolving Conflicts, Building Peace pub- ticularly relevant. Targeted investment is needed in lished in 2017. These guidelines are being further developed integrated programmes for sustainable food systems in the course of implementing the National Security Strategy that promote small farms as well as environmentally adopted in 2023. In this context, the German Government sound, socially compatible and climate-friendly ap- ensures close dovetailing between humanitarian assistance, proaches. The One Health approach must be imple- development cooperation and peace building. It drives for- mented.” ward international processes to systematically implement integrated action in line with the Humanitarian-Develop- Anke Kurat, VENRO ment-Peace nexus for all crisis regions in the world. The German Environment Agency, together with UNDP, Germany plays a leading role in pandemic prevention, pre- UNEP, Future Earth and other international actors, launched paredness and response, including as a founding member of the CODES (Coalition for Digital Environmental Sustaina- the Pandemic Fund established by the World Bank in 2022. bility) initiative to bring together the research community, In addition, the German Government supports the Nature governmental and UN organisations, tech companies and for Health (N4H) multi-partner trust fund, which strengthens civil society. Mandated by the UN Secretary-General, the the One Health approach and contributes to the prevention CODES initiative focuses on promoting digital ecological of epidemics and pandemics of zoonotic origin. sustainability. Efficient, digitalised health systems are a fundamental build- b) Selected measures with particular ing block for the economic and social development of any ­transformation potential society. Fair access to vaccines, diagnostics and therapeutics, In order to assume global responsibility in its foreign, envi- as well as access to healthcare, should be ensured as a lesson ronmental and development policy cooperation with partner learned from the COVID-19 pandemic. The German Govern- countries, the German Government is promoting, among ment is also committed to this in the negotiations for the other things, the following measures: international pandemic treaty and the successful revision of the International Health Regulations at the WHO in 2024. • Increasing the share of newly pledged development cooperation project funds of the entire German Statement from the dialogue group: Government that contribute to gender equality to “Universal access to water, sanitation and hygiene 85% by 2030. In addition, the Federal Foreign Office (WASH), especially in healthcare facilities and other and the Federal Ministry for Economic Cooperation public institutions such as schools, is a basic prereq- and Development are setting themselves targets that uisite for health and resilient healthcare systems.” go beyond that goal (cf. previous text and newly introduced indicator 5.1.g). The aim is to improve pandemic prevention, preparedness • Supporting the United Nations Global Accelerator on and response as well as the necessary national capacities Jobs and Social Protection for Just Transitions with the worldwide. Germany also supports the establishment and aim of giving 4 billion people access to social security expansion of its own vaccine and pharmaceutical production and creating 400 million decent jobs by 2030. Support- in partner countries in order to improve global access to ing the Sahel Adaptive Social Protection Programme health products. to the tune of 130 million euro. 143 Chapter C. Levers • Embedding the Agenda for Decent Work Worldwide • Developing and expanding ambitious climate partner- in German development cooperation, addressing ships (JETPs and bilateral Climate and Development issues such as living wages, basic and further training Partnerships) with countries of the Global South and and local processing of raw materials to create high-­ ongoing support for the Global Shield against Climate quality jobs. Risks. • Organising the 2025 Global Disability Summit in • Strengthening partnerships to jointly implement Berlin. climate, health and biodiversity objectives through a number of international initiatives (for example, on • Supporting the UN Committee on World Food Secu- drinking water, sanitation, emission reduction). rity (CFS), the UN Food Systems Summit and its fol- low-up processes (including national pathways) and • Using the momentum generated by the UN Water international food security initiatives, for example in Conferences in 2023 and 2026 for the ambitious inter- the context of the G7 or G20. national implementation of the water-related goals of the 2030 Agenda. • Supporting a sustainable transformation of agricul- tural and food systems with the special initiative • Promoting a socially just transition to renewable Transformation of Agricultural and Food Systems, energies and supporting measures for the sustainable launched by the Federal Ministry for Economic Co- extraction and processing of raw materials in partner operation and Development, as well as the Agricul- countries. Advancing the Energy Compact initiative. tural Policy Dialogue with the African Union initiated by the Federal Ministry of Food and Agriculture on • Supporting fast-growing cities in the Global South in the key issue of climate-resilient agriculture and food implementing climate action and adaptation meas- waste. ures that are socially inclusive, contribute towards the conservation of biodiversity and are thus making • Supporting multilateral initiatives and funds to cities more attractive to live in for all. This includes create sustainable agricultural and food systems, access to sustainable forms of mobility in cities. In such as the Global Agriculture and Food Security particular, investment will be made possible through Programme, the Food Systems 2030 Fund and the the Cities Climate Finance Gap Fund and the C40 50x2030 Initiative, implemented through a part- Cities Finance Facility (CFF). nership between the World Bank, IFAD and FAO. • Enhancing pandemic prevention, preparedness and response, including by providing 169 million euro for the Pandemic Fund, and by expanding national vaccine and pharmaceutical production in partner countries. Conducting negotiations on an international pandemic treaty and a revision of the International Health Regulations. • Increasing Germany’s contribution towards interna- tional climate finance from budgetary funds (including grant elements) to 6 billion euro annually (this target was reached for the first time in 2022). As part of this, the German Government will increase international biodiversity funding to 1.5 billion euro per year. Ger- many’s commitment to international forest climate finance is to reach 2 billion euro in 2021–2025. This goal has already been achieved. 144 Chapter D. Outlook Chapter D. Outlook The 2030 Agenda marks a milestone in international coopera- This is achieved, among other things, by monitoring key tion and represents a strong commitment to multilateralism. policy areas using the Strategy’s indicators, objectives and Realising the SDGs contained in the 2030 Agenda remains a principles, which are incorporated into all laws and regula- mission of the highest priority. It is the key to ensuring that tions via the sustainability impact assessment. In future, the people on this planet have good lives on a durable basis. actual achievement of goals and their progress should be depicted in a more focused manner. This is also in keeping Whether the international community manages to maintain with a call from the Parliamentary Advisory Council on its commitment to rigorously implement the 2030 Agenda in Sustainable Development. the future and beyond 2030 will determine whether politicians will be able to tackle crisis-related developments effectively Effective interministerial cooperation is needed to anchor and as early as possible while upholding the principle of sustainable development in all policy areas. The review of sustainable development – with the spectrum of challenges the relevant processes already initiated should therefore be ranging from climate change, biodiversity loss and resource continued in the next legislative term. The experience gained consumption to social disparities and the goal of achieving so far should be used to make cooperation more efficient. the convergence of living standards in all regions of Germany. Lean and efficient processes are necessary to accelerate the pace of the implementation of the 2030 Agenda. The burden on business and the public administration should be lessened Picking up the pace and unnecessary bureaucracy reduced. It remains true that we will only achieve the goals set forth At the HLPF in July 2025, the German Government will pres- in the 2030 Agenda if we make this decade the Decade of ent its third Voluntary National Review (VNR) which will Transformation, the Decade of Action for the implementation incorporate the adopted Strategy and upstream processes and of the 2030 Agenda. The mid-term review has shown that the contribute towards dovetailing national sustainable develop- pace has to be accelerated even further. Driving forward the ment with international processes. With the GSDS, Germany transformation in this way and working together to make it is a role model for other countries and a driving force behind fair – this is the task ahead of us. the implementation of the 2030 Agenda, and will continue to work within the UN to accelerate the implementation of the To an even greater extent, sustainable development policy 2030 Agenda goals. We must shape transformation fairly – must become a guiding principle that shapes all areas of together and mindful of our responsibility for Germany and policy and current political action. the world. This requires that policymaking remains consistently oriented Sustainable development offers the opportunity to meet towards sustainable development, not only as an overarching Germany’s challenges at national, European and interna- guiding principle but, in keeping with the whole-of-govern- tional level in future. Even in the face of major challenges ment approach, as an effective cross-cutting principle in all at both global and national level, we can jointly transform policy fields and in the (day-to-day) activities of the public our society and economy in a just manner in line with the administration. 2030 Agenda if we tackle this task with resolve. 145 Chapter D. Outlook The German Government is living up to this responsibility and calls on everyone to do the same. All stakeholders must play their part in order to take this transformation forward: the state and its institutions, business, the scientific communi- ty and civil society. With the consistent and ongoing develop- ment of the Strategy, Germany is also sending a clear message to the international community concerning the central im- portance of the 2030 Agenda. Leave no one behind – this is the main objective of the 2030 Agenda and the cross-cutting theme of Germany’s commitment worldwide. 146 Overview: Content and steering of the ­German Sustainable Development Strategy Overview: Content and steering of the ­German Sustainable Development Strategy (sustainability management system) I. Significance, basis and scope of b) European level: ­sustainability as a steering instrument • Germany is committed to enhanced sustainability and

1. Sustainable development (sustainability) is the guiding implementation of the 2030 Agenda at European level, principle behind the German Government’s policies. As specifically via a shared implementation strategy and a goal and a yardstick of government action at national, linkages between it and national strategies. European and international levels, it must be taken into account when it comes to measures in all policy fields, and • Germany cooperates closely with other European in any actions taken by the public administration. Earth’s countries on sustainable development issues, the planetary boundaries, along with the objective of a life in European Sustainable Development Network (ESDN) dignity for all, form the parameters for political decisions. being one vehicle.

2. The aim behind sustainability is to achieve intergen- c) Länder (federal states) and municipalities: The German erational equity, social cohesion and quality of life, and Government and the Länder communicate regularly in to assume international responsibility. In this context, the relevant forums on the topic of sustainability with economic performance, the protection of our living envi- the aim of improving the coordination of activities and ronment and social responsibility should be combined to goals. Particular emphasis is placed on the exchange of ensure that developments are sustainable in the long term. experience between the Government and the Länder on sustainable development. This exchange is based on the

3. The German Sustainable Development Strategy is the joint declaration by the Government and the Länder 2002 Strategy (National Sustainable Development Strategy) of 6 June 2019 on sustainable development. Municipal in its revised version published in 2025 with amendments umbrella organisations are also involved in the strategic from the Policy Decision of November 2022. It sets out a work. process of policy development for the longer term and offers guidance on this process. 6. Stakeholders in society – Joint Action for Sustainable Development. The German Government regards sustain-

4. Primary responsibility for sustainable development at ability as a joint project that should involve all stakeholders national level rests with the Federal Chancellery, in order in society. to highlight the significance for all policy areas and to ensure monitoring and steering across all ministries. • Stakeholders from civil society (the public, trades unions, churches and civic associations) are, in many different

5. Making sustainability a reality depends to a large extent ways, an integral part of achieving sustainability, and on how well all levels interact. are involved on an ongoing basis. Among other things, consumers make their own contributions by selecting a) International level: Germany is committed to achieving products and by using them in a way which is socially progress on sustainable development within the United acceptable, environmentally friendly and economically Nations framework – and the High-level Political Forum meaningful. on Sustainable Development (HLPF) in particular – as well as in other formats such as the G7 and G20, and bilaterally. 147 Overview: Content and steering of the ­German Sustainable Development Strategy • The private sector – businesses, chambers of commerce a) Apply sustainable development as a guiding and associations – is called upon to play its part in sup- ­principle at all times and in all decisions porting sustainable development. For example, busines- The overriding goal and benchmark of all actions is to safe- ses are responsible for their own production processes, guard the Earth’s natural resources on a permanent basis and products and services and also for ensuring that human to enable all people to live a life in dignity now and in future.8 rights are respected in their supply chains. Informing consumers about the health and environment-related To this end, it is necessary to think about economic perfor- properties of the products and about sustainable pro- mance, the protection of our natural heritage, social justice duction methods is part of this responsibility. and equal participation as interrelated issues, while also taking account of systemic interrelationships and technological and • The scientific community plays an important part in social innovations, so that developments for present and fu- the updating and implementation, on the basis of know- ture generations are environmentally and socially sustainable ledge and facts, of the German Sustainable Development on a global scale. Political action must be coherent. Strategy. b) Assume global responsibility • Cultural and media professionals can, among other In line with the UN 2030 Agenda for Sustainable Develop- things, consider the development potential of a society ment and the Paris Agreement, the following aspects must in which we want to live in the future, and thus also be interlinked at global level: develop sustainable development narratives. • The fight against poverty, hunger, social inequality and • The German Government is promoting participation in exclusion the Joint Action for Sustainable Development platform (Gemeinschaftswerk Nachhaltigkeit), which is based on • Respect, protection and guarantee of human rights a decision by the Federation and the Länder of 2019 and is currently being implemented by the Council for • Comprehensive participation for all in economic and Sustainable Development. Individual ministries are also ­social development actively involved. • Protection of the environment, especially the climate, including compliance with environmental boundaries in a regional and global context II. Sustainability management concept • Responsible government action in compliance with the rule of law

1. Management concept Germany must consider and encourage sustainable develop- The federal ministries use the sustainable development ment in other countries. Wherever possible, our actions in management concept to assess and develop measures in their Germany must not have a detrimental impact on people or particular areas of responsibility. This concept contains the the environment in other countries. following three elements: c) Preserving our living environment • Principles of sustainable development (cf. 2 below) To safeguard the sources of life on Earth and keep within planetary boundaries, material cycles must be closed as • Key indicators (cf. 3 below) quickly as possible and brought into alignment with eco- system processes and functions. This means: • Monitoring (cf. 4 below) • Renewable natural assets (e.g. forests, water resources and fish populations) and soils may be used only within the

2. Principles of sustainable development bounds of their ability to regenerate and without impairing their other environmental functions. The following principles set out the fundamental require- ments for sustainable politics. They are intended as an aid • Non-renewable natural assets (e.g. mineral raw materials for putting the guiding principle of sustainable development and fossil fuels) must be used as sparingly as possible. Re- into practice and are based on the 2030 Agenda for Sustain- newable resources are to replace non-renewable resources, able Development, and set in the context of the urgent need provided this reduces the environmental impact and is to transform our society and our economy. sustainable in every aspect. 8 World Commission on Environment and Development (Brundtland Commission), 1987 148 Overview: Content and steering of the ­German Sustainable Development Strategy • Substances may only be released into the environment • Everyone should have an equal opportunity to share in in line with the precautionary principle and within the economic growth. environmental sustainability boundaries of natural systems (environmental responsiveness). • Necessary adaptations to demographic change must be made at an early stage at political and economic level and Dangers and unjustifiable risks to human health and nature in society. must be avoided. • Everyone should be able to take part fully in social, d) Strengthening sustainable economic activity ­cultural and political life without discrimination. The structural transformation required for global sustainable consumption and production and the technological advance- • Contributions should be made towards reducing poverty ments to be harnessed for this purpose should be economi- and inequality worldwide. cally successful as well as ecologically and socially sustainable, and should ensure intergenerational equity in both the f) Using education, science and innovation as drivers German and global context. of sustainable development The necessary qualifications and capabilities must be anchored Energy and natural resource consumption and the use of throughout the education system in line with education for transportation must be decoupled from economic growth. sustainable development (ESD). Opportunities to participate At the same time, the aim must be to curb the increase in in high-quality education and acquire skills for sustainable demand for energy, resources and transport, and for con- development action must be further enhanced, regardless of sumption to decline as a result of efficiency gains (absolute background, gender or age. decoupling). All decisions must be based on scientific findings. Science Sustainable agriculture and fishing must be productive, com- and research are called upon to align their work more inten- petitive and socially and environmentally compatible. They sively with the goals and challenges of global sustainable must protect and conserve biodiversity, soils and waters in development. particular, and take into account the requirements of both livestock farming that respects animal welfare, and precau- Sustainability aspects must be included consistently and tionary consumer protections, especially where health is right from the start in innovation processes, especially in the concerned. context of the digital transformation, so that opportunities for sustainable development can be seized and risks for people Public budgets are obliged to take account of intergenera- and the environment can be avoided. At the same time, the tional equity in all of the dimensions of sustainability. The willingness and scope to innovate are to be broadened. financial markets should factor in the demands of sustainable development.

3. Key indicators e) Preserving and enhancing social cohesion in an open society Sustainable development is measured in 37 areas using the The following is required to strengthen social cohesion and following key indicators: leave no one behind: • Poverty and social exclusion should be overcome, or ­prevented to the greatest possible extent, and inclusive prosperity promoted. • Efforts should be made to achieve equivalent living ­conditions in every region. 149 Overview: Content and steering of the ­German Sustainable Development Strategy Table 2: Overview of the key indicators Indicator field No. Indicators Targets Sustainability postulate SDG 1. End poverty in all its forms everywhere 1.1.a Poverty Material and social Keep the proportion of people who are Limiting poverty ­deprivation materially and socially deprived below the EU average by 2030 1.1.b Poverty Severe material and social Keep the proportion of people suffer- Limiting poverty deprivation ing severe material and social depriva- tion below the EU average by 2030 SDG 2. End hunger, achieve food security and improved nutrition and promote sustainable agriculture 2.1.a Farming Nitrogen surplus in Reduction of the nitrogen surpluses of Environmentally sound production in our ­agriculture the overall balance for Germany to 70 cultivated landscapes kilograms per hectare of utilised agricul- tural area on an annual average between 2026 and 2030 2.1.b Farming Organic farming Increase the proportion of organically Environmentally sound production in our farmed agricultural land to 30% by cultivated landscapes 2030 2.2 Food security Support for good Funds disbursed for the application of the Realising the right to food worldwide ­governance in attaining guidelines and recommendations of the appropriate nutrition UN Committee on World Food Security worldwide (CFS) to be increased appropriately as a percentage of total spending on food security by 2030 SDG 3. Ensure healthy lives and promote well-being for all at all ages 3.1.a Health and nutrition Mortality avoidable Reduction to 200 cases per 100,000 Living healthy for longer through prevention and ­inhabitants by 2030 treatment (women/men) 3.1.c Health and nutrition Smoking rate among Reduction to 7% by 2030 Living healthy for longer ­adolescents 3.1.d Health and nutrition Smoking rate among Reduction to 19% by 2030 Living healthy for longer adults 3.1.e Health and nutrition Obesity rate among Increase to be permanently halted Living healthy for longer ­children and adolescents 3.1.f. Health and nutrition Obesity rate among adults Increase to be permanently halted Living healthy for longer 3.2.a Air pollution Emissions of air pollutants Reduction of emissions to 55% of 2005 Keeping the environment healthy level (unweighted average of the five pollutants) by 2030 3.2.b Air pollution Share of the population Fall in the share of the population with Keeping the environment healthy with excessive exposure to an annual mean PM2,5 exposure of more fine particulate matter than 10 micrograms per cubic metre (PM2.5) (equivalent to the level of the new EU limit value for PM2,5 from 2030) to 0% by 2030 150 Overview: Content and steering of the ­German Sustainable Development Strategy Indicator field No. Indicators Targets Sustainability postulate 3.3 Global health Proportion of countries By 2030, 30% of countries have Strengthening the global health architecture supported by Germany in achieved an improvement of at least pandemic prevention, pre- 3 points in the Global Health Security paredness, and response Index (GHSI) compared to 2019 (PPR) that have made pro- gress in the Global Health Security Index (GHSI), ­relative to the total number of countries supported by Germany in the area of PPR SDG 4. Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all 4.1.a Education Early leavers from Reduce the proportion to 9.5% by 2030 Continuously improving education and ­education and training ­vocational training 4.1.b Education Persons with a tertiary or Increase proportion to 55% by 2030 Continuously improving education and post-secondary non-ter- ­vocational training tiary level of education 4.1.c Education Schools with an ESD label Steady increase Promoting the anchoring of education for sus- (education for sustainable tainable development in the education system development) 4.2.a Prospects for families All-day care for children Increase to 35% by 2030 Improving the compatibility of work and (0- to 2-year-olds) family life 4.2.b Prospects for families All-day care for children Increase to 70% by 2030 Improving the compatibility of work and (3- to 5-year-olds) family life 4.3.a Social situation and education Participation in education Increase to 65% by 2030 Promoting mobility in education biographies and training 4.3.b Social situation and education Proportion of 17- and Reduce or eliminate the gap between Promoting mobility in educational trajectories 18-year-olds with (aspired) the groups “no risk situation” and “at university entrance least one risk situation” ­qualification SDG 5. Achieve gender equality and empower all women and girls 5.1.a Equality Gender pay gap Reduce the gap to 10% by 2030 Promoting equality and a partnership-based division of responsibilities 5.1.b Equality Women in management 40% women on supervisory boards of Promoting equality and a partnership-based positions in business listed and fully co-determined companies division of responsibilities by 2030 5.1.c Equality Women in management Equal-opportunity participation Promoting equality and a partnership-based positions in the federal of women and men in civil service division of responsibilities civil service management positions by 2025 5.1.d Equality Proportion of fathers Increase to 65% by 2030 Promoting equality and a partnership-based ­receiving parental division of responsibilities ­allowance 5.1.e Equality Average weekly working Approximation of the average weekly Promoting equality and a partnership-based hours of all mothers and employment working hours of all division of responsibilities fathers mothers and fathers 151 Overview: Content and steering of the ­German Sustainable Development Strategy Indicator field No. Indicators Targets Sustainability postulate 5.1.f Equality Vocational qualifications Gradual increase by one third by 2030 Strengthening the economic participation of for women and girls compared to 2015 as the base year women globally through German develop- ment ­cooperation 5.1.g Equality Proportion of project Increase the proportion of project Achieving equality and empower all women funds allocated to gender funds in German development cooper- and girls equality in German ation that address gender equality to at ­development cooperation least 85% by 2030 SDG 6. Ensure availability and sustainable management of water and sanitation for all 6.1.a Water quality Phosphorus in flowing Not exceeding benchmark values for Reduction of substance pollution in water waters specific types of water bodies at all monitoring points by 2030 6.1.b Water quality Nitrate in groundwater Compliance with the nitrate threshold Reduce substance pollution in water value of 50 mg/l at all monitoring points by 2030 6.2.a Development cooperation for drinking wa- Number of people with 6 million people per year by 2030 ter and sanitation access to new or improved Better access to drinking water and sanitation drinking water supply worldwide, higher (safer) quality 6.2.b Development cooperation for drinking wa- Number of people with 4 million people per year by 2030 ter and sanitation access to new or improved Better access to drinking water and sanitation basic sanitation or waste- worldwide, higher (safer) quality water treatment SDG 7. Ensure access to affordable, reliable, sustainable and modern energy for all 7.1.a Resource conservation Final energy productivity Significant increase Using resources economically and efficiently 7.1.b Resource conservation Primary energy Reduction by at least 39.3% by 2030 Using resources economically and efficiently ­consumption compared to 2008 7.2.a Renewable energies Share of renewable Increase to 41% by 2030, to 45% by Strengthening a sustainable energy supply ­energies in gross final 2040 and to 60% by 2050 ­energy consumption 7.2.b Renewable energies Share of electricity from Increase to 80% by 2030 Strengthening a sustainable energy supply renewable energy sources in gross electricity ­consumption SDG 8. Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all 8.1 Resource conservation Raw material input Trend of the years 2000 to 2010 to be Using resources economically and efficiently ­productivity maintained until 2030 8.2.a Government debt Government deficit Annual government deficit less than 3% Consolidating public finances – creating of GDP, to be maintained until 2030 ­intergenerational equity 8.2.b Government debt Structural deficit Structurally balanced government Consolidating public finances – creating in- budget, general structural deficit tergenerational equity must not exceed 0.5% of GDP, to be maintained until 2030 8.2.c Government debt Government debt Ratio of government debt to gross do- Consolidating public finances – creating mestic product (GDP) must not exceed ­intergenerational equity 60%, to be maintained until 2030 152 Overview: Content and steering of the ­German Sustainable Development Strategy Indicator field No. Indicators Targets Sustainability postulate 8.3 Provision for future economic stability Gross fixed capital Appropriate development of the ratio, Creating favourable investment conditions – ­formation in relation to to be maintained until 2030 securing long-term prosperity GDP (investment ratio) 8.4 Economic performance GDP per capita Steady and appropriate economic Combining greater economic output with growth by 2030 environmental and social responsibility 8.5.a Employment Employment rate, total Increase to 83% by 2030 Boosting employment levels (20- to 64-year-olds) 8.5.b Employment Employment rate, older Increase to 77% by 2030 Boosting employment levels people (55- to 64-year-olds) 8.5.c Employment Collective bargaining Increase the proportion of collective Increasing social justice, strengthening fair ­coverage bargaining coverage by 2030 and good wages 8.6 Sustainable and transparent corporate Voluntary sustainability By 2030, the number of voluntary sus- practices reporting by companies tainability reports in accordance with Globally responsible and transparent according to the German the German Sustainability Code (DNK) ­management Sustainability Code (DNK) will increase significantly SDG 9. Build resilient infrastructure, promote inclusive and sustainable industrialisation and foster innovation 9.1.a Innovation Private and public At least 3.5% of GDP per year by 2025 Shaping the future sustainably with new ­expenditure on research solutions and development 9.1.b Innovation Rollout of broadband – Universal gigabit network rollout by Shaping the future sustainably with new share of households with 2025 solutions access to gigabit ­broadband services SDG 10. Reduce inequality within and among countries 10.1 Equal educational opportunities Foreign school graduates Increase the proportion of foreign Improving educational success of foreigners school leavers with at least a secondary in German schools general school certificate and bring into line with that of German school leavers by 2030 10.2 Distributive justice Gini coefficient of income Gini coefficient of income after social Prevent excessive inequality within Germany after social transfers transfers to be below the EU figure by 2030 SDG 11. Make cities and human settlements inclusive, safe, resilient and sustainable 11.1.a Land use Expansion of settlement Reduction to an average of less than 30 Using land sustainably and transport area hectares per day by 2030; `net zero´ land consumption by 2050 11.1.c Land use Density of settlements No reduction in density of settlements Using land sustainably 11.2.a Mobility Final energy consumption 15 to 20% reduction by 2030 ­compared Guaranteeing mobility – protecting the in goods transport to 2015 ­environment 153 Overview: Content and steering of the ­German Sustainable Development Strategy Indicator field No. Indicators Targets Sustainability postulate 11.2.b Mobility Final energy consumption Reduction by 15 to 20% by 2030 Guaranteeing mobility – protecting the in passenger transport ­compared to 2015 ­environment 11.2.c Mobility Accessibility of medium-­ Reduction of average travel time by Guaranteeing mobility – protecting the sized and large cities by public transport ­environment public transport 11.3.a Housing Proportion of people with Reduce the proportion of people who Affordable housing for all high housing costs are overburdened by housing costs to 13% by 2030 11.3.b Housing Accessibility of recreational Green areas, parks etc. in cities should Maintaining and improving quality of life, green spaces in cities be within walking distance for everyone health and well-being in urban areas in future SDG 12. Ensure sustainable consumption and production patterns 12.1.a Sustainable consumption Market share of products Increase to 34% by 2030 Making consumption environmentally and certified by a state sustain- socially compatible ability standard 12.1.ba Sustainable consumption Global environmental Steady reduction Making consumption environmentally and ­impact by private socially compatible ­household consumption – use of raw materials 12.1.bb Sustainable consumption Global environmental Steady reduction Making consumption environmentally and ­impact by private socially compatible ­household consumption – energy consumption 12.1.bc Sustainable consumption Global environmental Steady reduction Making consumption environmentally and ­impact by private socially compatible ­household consumption – CO2 emissions 12.2a Sustainable production Eco-management and 5000 locations of organisations by 2030 Steadily increasing the proportion of ­Audit Scheme (EMAS) ­sustainable ­production 12.2.b Sustainable production Sustainability-certified Increase the number of cultural cultural and media ­institutions with the corresponding Reflecting values and production patterns ­institutions certifications by 2030 12.3.a Sustainable procurement Share of public Significant increase in the share of Giving shape to the public sector’s exemplary ­procurement procedures ­public procurement contracts in which role in sustainable public procurement in which at least one sustainability criteria are taken into ­sustainability criterion has ­account, ensuring that this will be the been taken into account norm by 2030. It should be noted that procurement to meet the needs of the Bundeswehr, the Federal Police as well as civil protection and disaster prevention does not contribute towards an increase 12.3.b Sustainable procurement CO2 emissions of commer- Significant reduction Giving shape to the public sector’s exemplary cially available vehicles in role in sustainable public procurement the public sector 12.3.c Sustainable procurement Sustainable textile pro- Increase to 50% by 2026 Give shape to the public sector’s exemplary curement of the Federal role in sustainable public procurement Administration (excluding special textiles) 12.4 Consumer debt Consumer debt Reduction to below 10% by 2030 Consumer debt – avoid overloading consumers 154 Overview: Content and steering of the ­German Sustainable Development Strategy Indicator field No. Indicators Targets Sustainability postulate SDG 13. Take urgent action to combat climate change and its impacts 13.1.a Climate protection Greenhouse gas emissions Reduction by at least 65% by 2030 and Reducing greenhouse gases by at least 88% by 2040, in both cases compared to 1990; greenhouse gas neutrality to be achieved by 2045 13.1.b Climate action International climate fi- Raise international climate finance to at Contribution to international climate finance nance for the reduction of least 6 billion euro by 2025 at the latest greenhouse gases and ad- aptation to climate change SDG 14. Conserve and sustainably use the oceans, seas and marine resources for sustainable development 14.1.aa Protecting the oceans Nitrogen input in coastal Adherence to good quality in accordance Protecting and sustainably using oceans and and marine waters – nitro- with the Ordinance for the Protection marine resources gen input via the inflows of Surface Waters (annual averages for into the Baltic Sea total nitrogen in rivers flowing into the Baltic Sea may not exceed 2.6 mg/l) 14.1.ab Protecting the oceans Nitrogen input in coastal Adherence to good quality in accordance Protecting and sustainably using oceans and and marine waters – nitro- with the Ordinance for the Protection marine resources gen input via the inflows of Surface Waters (annual averages for into the North Sea total nitrogen in rivers flowing into the North Sea may not exceed 2.8 mg/l) 14.1.b Protecting the oceans Share of sustainably fished The share of sustainably managed fish Protecting and sustainably using oceans and stocks of fish in the North stocks in the North and Baltic Sea in all marine resources and Baltic Seas MSY-examined stocks is to rise to 100% by 2030 SDG 15. Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, ­combat ­desertification, halt and reverse land degradation and halt biodiversity loss 15.1 Biodiversity Biodiversity and landscape Reach the index value of 100 by 2030 Conserving species – protecting habitats quality 15.2 Ecosystems Eutrophication of Reduction by 35% by 2030 compared to Protecting ecosystems, conserving ecosystem ­ecosystems 2005 services and preserving habitats 15.3 Soil degradation Degree of soil sealing Declining increase in soil sealing Preserving soils and their ecosystem services 15.4 Sustainable land use Bilateral contributions Increase in sustainable land use Protecting, restoring and promoting from german international (through protection, sustainable ­sustainable use of land ecosystems cooperation arrangements ­management, restoration) by 2030 towards the ­protection, sustainable use and resto- ration of land (including forests), measured in ­hectares 155 Overview: Content and steering of the ­German Sustainable Development Strategy Indicator field No. Indicators Targets Sustainability postulate SDG 16. Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels 16.2 Peace and security Personnel trained by the Training of at least 1,000 people by Taking practical measures to combat Bundeswehr to strengthen Bundeswehr experts from 2024 to 2030 ­proliferation, especially of small arms small arms control and ammunition safety 16.3a Good governance Corruption Perceptions Improvement by 2030, compared to Combating corruption Index in Germany 2012 16.3b Good governance Corruption Perceptions Improvement by 2030, compared to Combating corruption Index in partner countries 2012 for German development cooperation 16.4 Financial crime Financial Action Task Improvement to at least 8 out of 11 Prevent negative effects on the political order, Force (FATF) rating possible points by 2029 the rule of law, the economy and society ­effectiveness SDG 17. Strengthen the means of implementation and revitalise the Global Partnership for Sustainable Development. 17.1 Development cooperation Official development Increase the proportion to 0.7% of Supporting sustainable development ­assistance as a proportion gross national income by 2030 of gross national income 17.2 Knowledge transfer, especially in technical Number of students and Increase the number by 10% from 2015 areas researchers from develop- to 2020, then stabilisation Sharing knowledge on an international scale ing countries and least de- veloped countries per year 17.3 Opening markets Imports from least Increase the proportion by 100% by Improving trade opportunities for ­developed countries 2030, compared to 2014 ­developing countries

4. Monitoring a) The progress made in implementing the Strategy and b) The public is involved on a broad basis and at an early planned further measures are reported and the Strategy stage in taking the Strategy further. further developed on a regular basis: c) In addition, once per legislative term the individual • Every two years, the Federal Statistical Office publishes ministries report to the State Secretaries’ Committee for an Indicator Report. The Office is responsible for the Sustainable Development on how all of the component analysis of the indicators’ development. parts of their ministry policies help to further the imple- mentation of the GSDS and the SDGs. Particular attention • The Strategy is revised once per legislative term, as part of is paid here to conflicting objectives, and to the interre- comprehensive reporting on the Strategy. These reports lationships with other targets. The ministry reports are evaluate progress with Strategy implementation, contain published and transmitted to the Parliamentary Advisory specific measures to achieve the set targets and further Council on Sustainable Development for information develop the Strategy. purposes. • The reports are made available to the German Bundestag for information purposes. 156 Overview: Content and steering of the ­German Sustainable Development Strategy III. Institutions b) contributes towards taking the Sustainable Development Strategy further,

1. The Federal Cabinet makes decisions concerning changes and further developments regarding the German Sustain- c) publishes statements concerning specific issues, and able Development Strategy. d) contributes in particular towards raising public

2. The State Secretaries’ Committee for Sustainable awareness and towards the dialogue within society ­Development on sustainability. a) revises the substance of the German Sustainable The Council members are appointed by the Federal ­Development Strategy, ­Chancellor. b) monitors the development of sustainability indicators on a regular basis, IV. Strategy implementation procedures c) is the point of contact for the Parliamentary Advisory within the German Government Council on Sustainable Development, the German Council for Sustainable Development and the Länder, 1. The ministries share responsibility for implementing the and German Sustainable Development Strategy. To achieve both the Strategy’s goals and the Sustainable Development d) acts as an adviser on current areas of the German Goals, they make contributions within their defined area ­Government’s work related to sustainability. of competence, work together at interministerial level and coordinate their projects with the Länder and municipal- All ministries are represented at State Secretary level on the ities. They ensure that private-sector and social stakeholders Committee. In line with the decision made by the Federal as well as political actors are adequately involved in policy Cabinet on 24 August 2022, the State Secretaries’ Committee decision processes. is chaired by Sarah Ryglewski, Minister of State to the Federal Chancellor. 2. On the basis of the Strategy, the ministries gear their activ- ities, including their administrative practices, towards the

3. The meetings of the State Secretaries’ Committee are need for sustainable development. The Ministry Coordi- prepared by a working group under the direction of the nators for Sustainable Development work towards this. Federal Chancellery, in which all of the ministries are They are generally represented by the directors in charge of the matters in question. • the central points of contact for issues relating to ­ustainable development,

4. The Interministerial Sustainability Indicators Working Group, which is chaired by the Federal Ministry for the • involved at interdepartmental level in incorporating the Environment, Nature Conservation, Nuclear Safety and German Sustainable Development Strategy and the 2030 Consumer Protection and includes the Federal Statistical Agenda into the policy of the ministry in question, and Office, conducts preparatory work with regard to the technical monitoring and improvement of the sustaina- • involved at interdepartmental level in ensuring that bility indicators. sustainability aspects are more prominently taken into account in the legislative and regulatory process, and

5. In the German Bundestag, the Parliamentary Advisory in ministry strategies. Council on Sustainable Development monitors and supports sustainable development policy at national, 3. The impact of proposed legislation on sustainable devel- European and international level. opment is examined and the results presented (§ 44 (1) sentence 4 of the Joint Rules of Procedure of the Federal

6. The German Council for Sustainable Development Ministries (GGO), § 62 (2) in conjunction with § 44 (1) (­decision of the Federal Cabinet of 26 July 2000, as sentence 1 GGO). In this context, the ministries outline amended on 4 April 2007) conflicting objectives between the sustainability targets transparently and in the light of expected progress. The a) advises the Federal Government on questions relating assessment is performed within the framework of the to sustainable development, regulatory impact assessment by the ministry responsible 157 Overview: Content and steering of the ­German Sustainable Development Strategy for the legislative project. The web-based electronic ­sustainability impact assessment tool eNAP is applied to all regulatory initiatives to improve the quality of those assessments. Derogations from this rule are possible in exceptional cases, subject to the approval of the compe- tent Ministry Coordinator for Sustainable Development. Statements on the impact on sustainable development must also be made in the case of strategies and programmes that are particularly relevant to the goals that have been set. In line with the recommendations to strengthen the binding nature of sustainability goals in the preparation of laws, legal regulations as well as strategies and programmes (decision of the State Secretaries’ Committee for Sustain- able Development of 14 November 2022), sustainability aspects are to be taken into account at an early stage.

4. The ministries monitor the implementation of measures under the Sustainable Development Strategy on an on- going basis and, when required, notify the State Secretaries’ Committee for Sustainable Development about any prob- lems that arise. They regularly examine whether existing projects are aligned with the goals of the Sustainable Development Strategy, and check whether the latter could also be achieved by adjusting or terminating these projects.

5. As part of their own communications work, the ministries take care to highlight links with the Sustainable Develop- ment Strategy as well as the 2030 Agenda, including in particular links to the SDGs. The ministries support the Press and Information Office of the Federal Government with interministerial communications.

6. The ministries and their executive agencies include sustain- ability criteria in their governmental actions in order to implement the Programme of Sustainability Measures (decision by the Federal Cabinet of 25 August 2021), i.e. to translate sustainability into real-world administrative action. In doing so they are also helping to achieve climate neutrality by 2030. 158 Abbreviations and acronyms Abbreviations and acronyms A B AAAA Addis Ababa Action Agenda BAFA Federal Office for Economic Affairs and ­Export Control ADT Agora Digitale Transformation BAföG Federal Training Assistance Act AFBG Aufstiegsfortbildungsförderungsgesetz (­Career Development Act) BAköV Federal Academy of Public Administration AfCFTA African Continental Free Trade Area BAKS Federal Academy for Security Policy AFIR Alternative Fuel Infrastructure Regulation BAMF Federal Office for Migration and Refugees AG Aktiengesellschaft (public limited company) BauGB Baugesetzbuch (Federal Building Code) AGIL “Altersgerecht, gemeinschaftlich und inklusiv BBSR Federal Institute for Research on Building, leben”, pilot project for age-appropriate, ­Urban Affairs and Spatial Development ­communal and inclusive living BDA Confederation of German Employers’ AGJ Working group, Child and Youth Welfare ­Associations ­Association BDI Federation of German Industries AHV Außer-Haus-Verpflegung (Away-from-home catering) BECCS Bioenergy with carbon capture and storage AI Artificial intelligence BEG Bundesförderung für effiziente Gebäude (­Federal Funding for Efficient Buildings) AI Act EU regulation on artificial intelligence BELL Lifelong Learning and Volunteering ALBVVG Arzneimittel-Lieferengpassbekämpfungs- und Versorgungsverbesserungsgesetz BFSG Accessibility Reinforcement Act (Act to Improve the Supply of Medicines) BGZ Bundesprogramm Gesellschaftlicher AMR Antimicrobial resistance ­Zusammenhalt – Vor Ort. Vernetzt. Verbunden. (­Social cohesion – Local. Integrated. ANK Aktionsprogramm Natürlicher Klimaschutz ­Interconnected.) (Federal Action Plan on Nature-based ­Solutions) BHO Bundeshaushaltsordnung (­Federal Budget Code) AnpaSo Climate Adaptation in Social Institutions BIM Building information modelling AOK Allgemeine Ortskrankenkasse, local health ­insurance provider BImA Institute for Federal Real Estate AUL Bildungsvereinigung Arbeit und Leben BKM Federal Government Commissioner for (­Education Association for Work and Life) ­Culture and the Media AVP Abfallvermeidungsprogramm BLE NE Bund-Länder-Erfahrungsaustausch zu nach- (Waste ­Prevention Programme) haltiger Entwicklung (exchange of experience between the Federal Government and the AVV Klima Allgemeine Verwaltungsvorschrift zur Beschaf- Länder on sustainable development) fung klimafreundlicher Leistungen (General Administrative Regulation on the BMAS Federal Ministry of Labour and Social Affairs Procurement of Climate-Friendly Services) BMBF Federal Ministry of Education and Research AWO Arbeiterwohlfahrt (National Association for Workers’ Welfare) BMDV Federal Ministry for Digital and Transport 159 Abbreviations and acronyms BMEL Federal Ministry of Food and Agriculture COVID-19 Coronavirus disease BMFSFJ Federal Ministry for Family Affairs, Senior CRMA EU Critical Raw Materials Act ­Citizens, Women and Youth CSDDD Corporate Sustainability Due Diligence BMG Federal Ministry of Health ­Directive BMWK Federal Ministry for Economic Affairs and CSRD Corporate Sustainability Reporting Directive ­Climate Action CSS Chemicals Strategy for Sustainability BMWSB Federal Ministry for Housing, ­Urban ­Development and Building BMZ Federal Ministry for Economic Cooperation and Development D BNatSchG Bundesnaturschutzgesetz (Federal Nature Conservation Act) DAC Development Assistance Committee BNB Bewertungssystem Nachhaltiges Bauen DACCS Direct air carbon capture and storage (­Assessment System for Sustainable Building) DAN Deutsche Aktionstage Nachhaltigkeit BNK Berichtsrahmen Nachhaltige Kommune (­German Sustainability Action Days) ­(Local Sustainability Reporting Framework) DART Deutsche Antibiotika-Resistenzstrategie BNW Bildungswerk der Niedersächsischen (­German Antimicrobial Resistance Strategy) Wirtschaft (Vocational Training School of the Lower Saxony Business Association) DATI German Agency for Transfer and Innovation BTHG Federal Participation Act DBJR Deutscher Bundesjugendring (German Federal Youth Council) BUND- German Federation for the Environment and jugend Nature Conservation youth organisation DFB German Football Association BZgA Federal Centre for Health Education DGB German Trade Union Confederation DGE Deutsche Gesellschaft für Ernährung e. V. (­German Nutrition Society) DGNB German Sustainable Building Council C DigiKon Conceptualising and planning digital solutions to promote sustainable consumption for a CAP Common Agricultural Policy ­circular economy CBAM EU Carbon Border Adjustment Mechanism DIN German Institute for Standardization CBD Convention on Biological Diversity DKN German Committee Future Earth CCS Carbon capture and storage DOSB German Olympic Sports Confederation CCU Carbon capture and utilisation DSEE The German Foundation for Civic Engagement and Volunteer Work CEAP Circular Economy Action Plan CFF Cities Finance Facility CFS Committee on World Food Security E CiA Chemie im Alltag (chemistry in everyday life, smartphone application) EAP Environmental Action Programme CIF Climate Investment Funds ESD Education for Sustainable Development CLP Classification, Labelling and Packaging ECOSOC United Nations Economic and Social Council ­Regulation EED Energy Efficiency Directive CO2 Carbon dioxide EEG Renewable Energy Sources Act CODES Coalition for Digital Environmental ­Sustainability EG Engagement Global COP Conference of the Parties EMAS Eco-Management and Audit Scheme (UN Climate Change Conference) EmBaLu Emission-Based Ventilation Control COP29 29th UN Climate Change Conference EmpCo Empowering Consumers 160 Abbreviations and acronyms eNAP Elektronische Nachhaltigkeitsprüfung GAHP Global Alliance against Hunger and Poverty (­electronic sustainability assessment tool) GDC Global Digital Compact EnEfG Energieeffizienzgesetz, The Energy Efficiency Act GDP Gross domestic product EN-UAC European funding measure ERA-NET Urban GEF Global Environment Facility Accessibility and Connectivity GFC Global Framework on Chemicals EPBD Energy Performance of Buildings Directive GG Basic Law EPR Extended Producer Responsibility GGO Gemeinsame Geschäftsordnung der Bundes­ ESDN European Sustainable Development Network ministerien (Joint Rules of Procedure of the ESDW European Sustainable Development Week Federal Ministries) GHG Gesundes-Herz-Gesetz (Healthy Heart Act) ESF European Social Fund GHG Greenhouse gas ESPR Ecodesign for Sustainable Products Regulation GHS Globally Harmonized System of Classification ESR Effort Sharing Regulation and Labelling of Chemicals EU European Union GHSI Global Health Security Index EUDR Regulation on Deforestation-Free Products GISCO German Initiative on Sustainable Cocoa EU-EHS I EU Emissions Trading System GmbH Gesellschaft mit beschränkter Haftung EURO UEFA European Football Championship (­limited liability company) 2024 GMK Standing Conference of the Ministers of EWK- Einwegkunststofffondsgesetz Health of the Länder FondsG (Single-Use Plastics Fund Act) GSDR Global Sustainable Development Report GSDS German Sustainable Development Strategy GWh Gigawatt hour F FAO Food and Agriculture Organization of the United Nations H FATF Financial Action Task Force H2 Hydrogen FFO Federal Foreign Office HBI Holzbauinitative (Timber Construction FiDAR Initiative for the appointment of more women ­Initiative) to boards of directors HBM Human biomonitoring FMD Research Fab Microelectronics Germany HBM4EU European Human Biomonitoring Initiative FONA Research for Sustainability HFCs Hydrofluorocarbons FONAP Forum for Sustainable Palm Oil HiAP Health in All Policies FONEI Forum for More Sustainable Protein Feed HLPF High-level Political Forum on Sustainable FüPoG Führungspositionengesetz (Gender Equality ­Development Management Positions Act) HOAI Honorarordnung für Architekten und ­Ingenieure (German ordinance regulating the remuneration of architectural and engineering services) G HPC High-power charging G20 Group of 20 HSC Hamburg Sustainability Conference G7 Group of Seven Hy2Infra European hydrogen infrastructure projects GAFS Global Alliance for Food Security Hy2Tech European hydrogen technology projects GaFöG Ganztagsförderungsgesetz (All-Day Support Hy2Use European hydrogen value chain projects for Children of Primary-School Age Act) 161 Abbreviations and acronyms I Klim- Pro-In- Avoiding climate-damaging process emissions in industry dustrie ICI International Climate Initiative KMK Standing Conference of the Ministers of ICT Information and communications technology ­Education and Cultural Affairs of the Länder in the Federal Republic of Germany IEA International Energy Agency KNB Kompetenzstelle für Nachhaltige Beschaffung IFAD International Fund for Agricultural (Centre of Excellence for Sustainable ­Development ­Procurement) IG BCE Mining, Chemical and Energy Industrial Union KNN Klimafreundlicher Neubau im Niedrigpreisseg- ILO International Labour Organization ment (Climate-Friendly New Construction in the Low-Price Segment) IMA nöB Interministerieller Ausschuss für nachhaltige öffentliche Beschaffung KoFeMo Combined Investigation of Particulate Matter (­Interministerial ­Committee for Sustainable and Mobility Public ­Procurement) KOINNO Competence Center for Innovative Procurement INC Intergovernmental Negotiating Committee KSG Bundes-Klimaschutzgesetz IPBES Intergovernmental Platform on Biodiversity (Federal Climate Action Act) and Ecosystem Services KSP Klimaschutzprogramm IPCC Intergovernmental Panel on Climate Change (Climate Action Programme) IPCEI Important Projects of Common European ­Interest IRP International Resource Panel L ISO International Organization for Standardization LGBTQIA+ Lesbian, Gay, Bisexual, Transsexual/Transgender, ISSB International Sustainability Standards Board Queer, Intersexual, Asexual IT Information technology LkSG Lieferkettensorgfaltspflichtengesetz ITU International Telecommunication Union (Supply Chain Due Diligence Act) LULUCF Landnutzung, Landnutzungsänderung und Forstwirtschaft (Regulation on land use, land use change and forestry) J JETP Just Energy Transition Partnership M JMD Youth migration services MBO Model Building Regulations MDB Multilateral Development Banks K mFUND Modernity Fund MIG Mobilfunkinfrastrukturgesellschaft mbH KAnG Klimaanpassungsgesetz (Climate Adaptation Act) MINT Mathematics, IT, natural sciences and technology (in English STEM: science, technology, engineer- KBK KlimaBilanzKultur (cultural climate footprint) ing and mathematics) KdB Kaufhaus des Bundes (the German MP NHK Programme of Sustainability Measures ­Government’s online procurement platform) MSY Maximum Sustainable Yield KENFO German Nuclear Waste Management Fund KFN Klimafreundlicher Neubau (Climate-Friendly New Construction) KfW Kreditanstalt für Wiederaufbau KKB Climate-Neutral Federal Administration ­Coordination Unit KKG Gesetz zur Kooperation und Information im Kinderschutz (Child Protection Cooperation and Information Act) 162 Abbreviations and acronyms N PMD MaterialDigital platform POP Persistent organic pollutant N4G Nutrition for Growth PPR Pandemic prevention, preparedness and NABU Nature and Biodiversity Conservation Union ­response NAP Nationaler Aktionsplan für Kinder- und ProgRess German Resource Efficiency Programme Jugendbeteiligung (National Action Plan for PV Photovoltaics Child and Youth Participation) NBÖS National Bioeconomy Strategy NBS National Biodiversity Strategy NBSAP National biodiversity strategies and Q ­action plans QNG Qualitätssiegel Nachhaltiges Gebäude NDC Nationally determined contribution (Quality Seal Sustainable Building) NEC Di- EU Directive on the reduction of national rective emissions of certain atmospheric pollutants NFDI National Research Data Infrastructure R NGFS Network for Greening the Financial System R&D Research and development NIB Nachhaltig im Beruf (sustainability at work) RAMUS Tyre-Abrasion Measurements and Simulation NKWS National Circular Economy Strategy RBC Responsible business conduct NLRP National Clean Air Programme REACH EU Regulation on the registration, evaluation, NPI National Prevention Initiative authorisation and restriction of chemicals NPNK Nationales Programm für nachhaltigen RED EU Renewable Energy Directive ­Konsum (National Programme for Sustainable Consumption) RegioStrat Strategic regional development NQZ Nationales Qualitätszentrum für Ernährung in RENN Regionale Netzstellen Nachhaltigkeitsstrategien Kita und Schule (National Quality Centre for (Regional Hubs for Sustainability Strategies) Nutrition in Daycare Centres and Schools) RIBE-AHV Richtlinie zur Förderung der Beratung von NRI National Reduction and Innovation Strategy ­Unternehmen der Außer-Haus-Verpflegung for Sugar, Fats and Salt in Processed Foods zum vermehrten Einsatz von Produkten des ökologischen Landbaus (Guidelines on Pro- moting the Counselling of Away-From-Home Catering Companies on the Increased Use of Organically Farmed Products) O RKI Robert Koch Institute ODA Official development assistance RNE Council for Sustainable Development OECD Organisation for Economic Co-operation and RWI Leibniz Institute for Economic Research Development S P SAICM Strategic Approach to International Chemicals PARC Partnership for the Assessment of Risks from Management Chemicals SASSCAL Southern African Science Service Centre for PBefG Personenbeförderungsgesetz Climate Change and Adaptive Land Management (Passenger Transportation Act) SDG Sustainable Development Goal PDF Portable Document Format SDSN Sustainable Development Solutions Network PFAS Per- and polyfluoroalkyl substances SES System Development Strategy PIC Prior informed consent SFB Sustainable Finance Advisory Committee PM Particulate matter SGB VIII Book VIII of the Social Code 163 Abbreviations and acronyms SKEW Servicestelle Kommunen in der Einen Welt (Service Agency Communities in One World) V SMEs Small and medium-sized enterprises VBL Supplementary Pensions Agency for Federal SPD Social Democratic Party of Germany and Länder Employees VENRO Umbrella organisation of development and SPRIND Bundesagentur für Sprunginnovationen humanitarian NGOs in Germany (Federal Agency for Breakthrough Innovation) VETSD Vocational training for sustainable development StA NHK Staatssekretärsausschuss für Nachhaltigkeit (State Secretaries’ Committee for Sustainable VGEWE Voluntary Guidelines on Gender Equality Development) and Women’s and Girls’ Empowerment in the StStG Strukturstärkungsgesetz (Act on Structural context of Food Security and Nutrition Change in Coal Mining Areas) VLR Voluntary Local Review StVG Straßenverkehrsgesetz (Road Traffic Act) VNR Voluntary National Review SUMPs Sustainable Urban Mobility Plans VR Voluntary Review VZBV Federation of German Consumer Organisations T TEU Treaty on European Union W TNFD Taskforce on Nature-related Financial ­Disclosures WASCAL West African Science Service Centre on ­Climate Change and Adapted Land Use TT Transformation Team WASH Water, sanitation and hygiene WECF Women Engage for a Common Future WHO World Health Organization U WIK Wissenschaftliches Institut für Infrastruktur und Kommunikationsdienste (research institute UAL-AG Unterabteilungsleiter-Arbeitsgruppe für nach- for communications services) haltige Entwicklung (Directors’ working group wpn2030 Science Platform Sustainability 2030 for sustainable development) WTO World Trade Organization UBA German Environment Agency UEFA Union of European Football Associations UN United Nations UNDP United Nations Development Programme Y UNDS United Nations Development System youpaN Youth forum of the National ESD Platform UNEA United Nations Environment Assembly UNEP United Nations Environment Programme UNESCO United Nations Educational, Scientific and Cultural Organization Z UNFCCC United Nations Framework Convention on ZDHC Zero Discharge of Hazardous Chemicals ­Climate Change UNFSS UN Food Systems Summit ZKA Centre for Climate Adaptation UV Ultraviolet radiation ZPAP Zero Pollution Action Plan 164 List of figures and tables Figures Figure 1: The guiding principle for sustainability 16 Figure 2: SDGs of particular relevance for TT 1 30 Figure 3: Areas of transformation, off-track indicators (as of 2024) and measures4 31 Figure 4: SDGs of particular relevance for TT 2 49 Figure 5: Emission of greenhouse gases covered by the UN Framework Convention on Climate Change 50 Figure 6: Relative development of Germany’s GHG emissions and real GDP 53 Figure 7: Net installed capacity additions for power generation from renewables 56 Figure 8: SDGs of particular relevance for TT 3 62 Figure 9: SDGs of particular relevance for TT 4 71 Figure 10: SDGs of particular relevance for TT 5 82 Figure 11: SDGs of particular relevance for TT 6 92 Figure 12: Joint Action for Sustainable Development 117 Figure 13: Process of updating the GSDS 119 Tables Table 1: Overview of the transformation teams 29 Table 2: Overview of the key indicators 150 165 Publishing information Publishing information Published by The German Government For further information, go to www.deutsche-nachhaltigkeitsstrategie.de www.bundesregierung.de Last updated on Cabinet decision of 29 January 2025 Picture credits Title: SDG icons, United Nations, 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