This paper presents measures and instruments for Germany to achieve the goal of 40% CO2-emission reduction until 2020 by reducing energy-related emissions by 224 million tonne (Mt). The most important measures in this regard are cuts in electricity generation (savings of 40 Mt), fuel switching and increased energy conversion efficiency (30 Mt) and an augmented 26% share of renewable energies in the provision of electrical energy (44 Mt). Average cost of the measures are at 50 euro per tonne avoided CO2, which corresponds to an additional monthly expenditure per household of less than 25 euro. (C) 2008 Elsevier Ltd. All rights reserved.