Climate Change Regulation 2026

GERMANY Law and Practice Contributed by: Friedrich Gebert, Hannah Düwel, Bernhard Gröhe and Clara Schmidt, ARQIS Partnerschaftsgesellschaft mbB

tion of climate protection in the executive design could enhance effectiveness of climate change measures. 2.5 Bilateral/Multilateral Co-Operation Under the Paris Agreement 2.5.1 Article 6.2 – Internationally Transferred Mitigation Outcomes Germany concluded eleven bilateral partnerships (eg, Pakistan, Rwanda and Colombia) and one regional partnership with the Western Balkans. The partner - ships aim to support these countries in implementing their national climate goals and adapting to climate change. In doing so, the partnerships combine climate goals with social and economic development in line with the UN Sustainable Development Goals (SDGs). The partnerships’ central goal is to ensure that the transformation necessary for achieving the climate goals is socially just (“just transition”) by involving civil society, trade unions, the private sector as well as sci - ence and academia. The partnerships are designed to exist long term, and the governments involved agree on quantifiable goals. They build on the partner countries’ nationally deter - mined contributions (NDCs), adaptation strategies (eg, national adaptation plans) and long-term strategies, as well as the SDGs and national sustainability strat - egies. They support the partner countries in engag - ing in international climate alliances and initiatives by supporting and monitoring climate policies, helping to engage with all stakeholders (also civil society and the private sector), providing financial means and aid in mobilising additional donors and resources. In that capacity, Germany is generally ready to issue letters of authorisation for projects falling under Article 6.2 of the Paris Agreement. However, the country has not yet formally issued one. The authority responsible for such letters would be the Federal Environment Agency ( Umweltbundesamt ), precisely the German Emissions Trading Authority ( Deutsche Emissionshandelsstelle – DEHSt). Each partnership has individual goals and focuses on different sectors, eg, energy transition or climate adaptation. Details on each partnership can be found in the fact sheets for each partnership on the website of the Federal Ministry for Economic Cooperation and

Development ( Bundesministerium für wirtschaftliche Zusammenarbeit und Entwicklung – BMZ). 2.5.2 Article 6.4 – The Paris Agreement Crediting Mechanism Germany has established a Designated National Authority (DNA) for the Article 6.4 mechanism, which is the Federal Ministry for the Environment, Climate Action, Nature Conservation and Nuclear Safety (BMUKN). The DNA is responsible for assessing pro - posed Article 6.4 activities and determining wheth - er they contribute to the host country’s sustainable development objectives. However, Germany has not used the Paris Agreement Credit Mechanism (PACM). In fact, it has not yet authorised any specific Article 6.4 projects, as the mechanism is still in its early imple - mentation phase. Germany supports the Partnership for Market Implementation (PMI) which assists coun - tries in the acceleration of global decarbonisation by designing, piloting and implementing carbon pricing instruments. This is necessary to determine the NDCs and hence transfer carbon budgets from one country to another. 2.5.3 Article 6.8 – Non-Market Approaches Germany supports the programme Supporting Pre - paredness for Article 6 Cooperation (SPAR6C). It helps national governments of four partner countries to develop the necessary technical infrastructure to increase national climate protection ambitions, engage private sector actors and share research results and lessons learned from national experiences with the international community. Additionally, Germany supports Innovate4Climate (I4C) which is a global exchange forum that promotes dialogue between the public and private sectors to mobilise financing for climate action. It brings together leaders from government, industry, business, finance and technology to facilitate a dialogue on innovative climate finance models. Furthermore, Germany supports the Glasgow Com - mittee on Non-market Approaches (GCNMA) which focuses on co-operative, non-market-based climate actions such as capacity building and technical co- operation. Germany has hosted meetings of the Com - mittee in 2024 and 2025.

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