German Vice Chancellor Robert Habeck insists soaring electricity prices have nothing to do with climate policies—instead, he points the finger at fossil fuels and global market shifts.
During an interview on ARD’s Farbe bekennen on February 19, Habeck defended Germany’s ambitious climate agenda, pushing back against claims that green policies are hurting the economy. Despite businesses leaving Germany over high energy costs, the Greens MP dismissed concerns that renewable energy is a disadvantage, arguing instead that embracing green tech is Germany’s only way forward.
“If we don’t lead in green steel production, China will—and we’ll lose,” Habeck warned. He also criticized Germany’s delayed EV push, claiming carmakers clung to combustion engines for too long.
When challenged on whether Germany’s high energy prices were to blame for its economic struggles, Habeck didn’t budge. “That’s a lie,” he fired back, insisting that rising costs were fueled by skyrocketing natural gas prices, especially after Russian supply cuts forced Germany to buy expensive imports.
However, the role of Germany’s nuclear phase-out and costly renewable subsidies went unquestioned. While the Energiewende—Germany’s shift to wind and solar—was designed to phase out fossil fuels, the country still relies heavily on lignite coal, one of the dirtiest energy sources, to keep the lights on.
The real kicker? Electricity prices remain tied to the merit-order system, where the most expensive power source (often gas) sets the overall market rate—meaning, despite its low cost, lignite hasn’t lowered prices.
With German households and small businesses bearing the brunt of these costs while large industries receive exemptions, Habeck’s defense of green policies may not sit well with struggling consumers.
