In 30 years of climate policy in Germany, a high level of declared ambition has coexisted with an eclectic mix of climate policy measures. Well‐organized lobbies were either exempt from policy instruments such as the energy tax or directly benefitted from them, as in the case of the renewable feed‐in tariff or windfall profits from free allocation of emissions allowances. As a result, German emissions mitigation is much more costly than it would have to be. Moreover, the challenges because of the imminent phase‐out of nuclear power are increasing due to failures in a number of relevant policy fields such as offshore wind, grid reinforcement, and carbon capture and storage (CCS). WIREs Clim Change 2013, 4:315–320. doi: 10.1002/wcc.224 Conflict of interest: The author has declared no conflicts of interest for this article. For further resources related to this article, please visit the WIREs website.