Germany has unveiled a strict climate and economic strategy to eliminate fossil fuels entirely, driven by energy supply vulnerabilities exposed by geopolitical conflicts and shipping disruptions. German Environment Minister Carsten Schneider announced the comprehensive transition plan, positioning the accelerated pivot away from coal, oil, and gas as both an environmental necessity and a crucial economic defense mechanism.
Ambitious 2030 Renewable Targets and 2045 Phase-Out
The policy framework commits Europe’s largest economy to ramp up renewable electricity, electrification of transport, heating and industry. The plan sets a target to raise the renewable share of electricity consumption from its current 55 percent to at least 80 percent by 2030, phase out coal-fired power generation by 2038 at the latest, and transition new gas plants to green hydrogen to achieve a completely fossil-free power sector by 2045.
Strait of Hormuz Disruptions Expose Supply Risks
The urgency behind the new strategy stems directly from heightened security risks in global energy transit routes. Threats to fuel availability intensified after military actions by the USA and Israel in late February blocked the Strait of Hormuz, a critical shipping lane between the Persian Gulf and the Gulf of Oman that handles roughly one-fifth of global oil supplies and substantial volumes of natural gas.
“When the situation in the Strait of Hormuz determines whether people can still afford to commute to work, something is fundamentally wrong,” Schneider stated, emphasizing that breaking the country’s reliance on imported hydrocarbons is essential for domestic stability and economic security.
Heavy Financial Toll of 2024 Fossil Imports
Despite these ambitions, Germany’s current reliance on fossil fuels remains profound. Government figures show fossil sources accounted for 65 percent of final energy consumption in 2024, with oil comprising 36 percent and gas 24 percent. The country spent 76 miliard eur, 1,85 bilionu korun on fossil fuel imports that year. Under the new strategy, capital previously directed toward foreign energy imports is intended to be redirected into the domestic economy.
Cross-Border Pressures on Daniel Křetínský’s Portfolio
Germany’s accelerated timeline carries major implications for cross-border commerce and corporate portfolios. As the primary trading partner for the Czech Republic, shifts in German energy policy directly influence regional business operations and industrial supply chains.
The transition particularly affects the business interests of Daniel Křetínský. His group, operating through EP Energy Transition, controls the German firm LEAG, which manages brown coal mines and power plants. The end date for fossil fuels compresses the operational lifespan of these assets, forcing an accelerated diversification toward gas, hydrogen, and renewable infrastructure. Křetínský’s EPH is actively pursuing the acquisition of Uniper, a major German energy company with extensive gas trading operations and a generation portfolio spanning both fossil and low-emission assets.
Setting a Blueprint for Industrial Nations
Germany joins France and the Netherlands as the third major advanced economy to establish a formal timeline for total fossil fuel elimination, following commitments made at an international conference held in Colombia in April, according to reporting by The Guardian. Schneider expressed optimism that Germany’s targets will establish a working model for other industrial nations facing similar economic and supply vulnerabilities.