I. Title of the Best Practice

II. Overview of the Best Practice

As is known, there is quite a considerable potential for energy saving and substitution, in particular in existing buildings. It should be noted that constitutional reasons restrict regulatory measures in this field.

Therefore appropriate economic incentives are required.

Essential to this is a programme of investment grants and loans, increased considerably in 1999, promoting individual measures towards the use of renewable energies. The grants are to encourage demand for renewable energy technologies, to contribute towards the reduction in costs in this area through the manufacture of larger numbers of units. This will enable the use of renewable energies to become more economically efficient.

We should emphasise here the above-mentioned assistance programme for renewable energies close to the market with assistance amounting to 200 million DM per year, launched in connection with the ecological tax reform on 1 September of this year, and the 100,000 roofs solar power programme, launched by the German Government in January this year.

The German climate protection policy is characterised by its continual further development within the context of international negotiations. The next step will be the 5th report of the Interministerial Working Group "CO2 Reduction" to be presented in the first half of the year 2000.