Climate
German Federal Bank blocks special drawing rights + LNG overcapacity + EU climate package + COP15
Dear reader,
Global climate policy produces many big ideas that end up failing because of minor issues. This could also be the fate of the "Bridgetown Initiative" of the Prime Minister of Barbados, Mia Mottley, to use special drawing rights to finance global climate action. The Deutsche Bundesbank is not playing along, and the ECB is also skeptical, as Bernhard Pötter found out. But without a green light from the central banks, it will be difficult.
Even the climate club initiative of German Chancellor Olaf Scholz started with a lot of verve but now struggles to find supporters. The approval from potential partner countries is limited, and the criteria have been relaxed. Lukas Hermwille of the German Wuppertal Institute describes how the climate club would have to be further developed to guarantee companies more security for the green transformation.
On the other hand, the plans of the Federal Ministry of Economics and Technology for liquefied natural gas far exceed actual demand. This is also revealed by an internal report from the ministry itself, which Malte Kreutzfeld was able to access. One first plan for an LNG terminal in Hamburg is to be scrapped. If all planned LNG terminals are built, there is the risk of either massive misinvestment or more gas imports than are compatible with the climate targets.
Your
Nico Beckert
