In the world of CO2 emissions, the easiest way to drop emissions was for an economy to go into recession. If you compare the emissions during the yeas of COVID, emissions were down but it was a heavy price to pay with many people needing government assistance to live their lives. For most people going through a recession is not a good way to cut emissions and ideally should be avoided and there should be a better alternative.

In article by Geir Moulson of the Associated Press, the largest economy in Europe is Germany and carbon-dioxide emissions fell to its lowest levels in 7 decades. Germany aims to go closer to 0 by 2045, but it has a long way to go.

The Agora Energiewende think tank showed Germany emitted 673 million tonnes of CO2 last year a decline of 73 million tonnes. The figure was 40% lower than one in 1990.

Renewables of solar and wind accounted for half of the country’s energy production up to 56% of energy production up from 47.2% in 2022. Electricity made from coal dropped to 8.9% from 12.8%. Nuclear power was 1.5% down from 6.7% as 3 nuclear plants were shut down.

Germany is home to many energy intensive companies including chemical and metal industries. Germany’s economy also has done well because of high energy prices, global economic weaknesses and interest rate hikes to fight inflation.

Agora calculated that only 15% of last year’s emissions savings constitute permanent emissions reduction resulting from additional renewable energy capacity, efficiency gains and the switch to fuels that produce less CO2 or other climate friendly alternatives.

Economy and Climate Minister Robert Habeck, a member of the environmental Green Party who is also Vice Chairman, said Germany has laid the foundation for future growth in renewable energy by moving to expand solar and wind generation. We are making visible progress on the road to climate neutral electricity supply.

Linking to dividend paying stocks, governments can and will make policy changes for what they believe is best for their countries, often times there are delays between the actual and ideals the governments want to achieve. It is possible to agree with the ideal, but the importance is how the government wants to get there and what incentives they allow for people and companies to adjust. It is never a straightforward line, but many dividend paying companies have adjusted in the past and as an investor you need to believe they can adjust in the future.

There are more questions than answers, till the next time – to raising questions.