German Blue Chips Seek Green Lift as Minister Urges Patience

(Bloomberg) -- The biggest companies in Europe’s largest economy pushed German Chancellor Angela Merkel to stimulate green investments ahead of a major climate conference on Monday.

Deutsche Telekom AG, ThyssenKrupp AG, Bayer SE and over 60 other companies want ambitious, post-crisis policy focused on cutting emissions, according to a joint statement. The plea was launched as Germany convenes its annual Petersberger Climate Dialog conference, taking place online this year and connecting leaders from 30 nations with the intent of keeping momentum of the Paris Climate accord.

Germany’s still struggling to overcome the coronavirus crisis, said Environment Minister Svenja Schulze in remarks broadcast on ARD television Monday, signaling that it’s still too early to set green stimulus.

“Right now we’ve a real crisis and in a first step we must help companies survive,” said Schulze, noting that climate-protection discussions are beginning.

Merkel’s cabinet pledged more than 1 trillion euros ($1.1 trillion) to stem economic collapse from the pandemic but has shown reluctance to commit to fresh finance on longer-term public programs before the crisis ebbs. The German economy is poised to shrink the most since Second World War.

While German industry supports the goal of national “climate neutrality” by 2050, meaning that net emissions should be brought close to zero, any proposals to tighten interim goals to 2030 “must urgently be scrutinized in light of changed economic circumstances,” the BDI industrial group said Monday in a note.

Merkel and British Premier Boris Johnson are slated to join the Petersberger conference on Tuesday. Proposals on the agenda will include plans to tighten Europe’s 2030 emissions target and how to ensure that the world’s poorest nations stay on track to protect their environments post-Covid 19.

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