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Both the USA and Germany are currently engaged in a battle over the respective rights of the federal government vs. the states in determining environmental standards and regulations. In the United States, California and a number of other states are endeavoring to introduce emissions regulations either singly or in regional partnerships. In Germany, reform of federalism could lead to exceptions from country-wide environmental regulations. In both instances, this tug of war could lead to disparate environmental regulations and standards from region to region, an outcome that could pose significant challenges for industry. An AICGS Policy Report focuses on the federalism debate as it relates to environmental regulation in Germany and the United States and its implications for business. This contribution of R. Andreas Kraemer focuses on federalism and environmental regulation in Germany and the EU.

It describes and assesses the structures and practice of federalism in Germany.  It focuses on the environment, which is a dynamic area of policy that is particularly rich with tensions among scales or levels of government. It also explores the foundations and development of federalism and "subsidiarity" in Germany and the European Union.  The constitutional make-up of the Federal Republic of Germany is sketched and the application of federalism in the field of environment is described in some detail.  There is a focus is on water management, especially the transboundary co-operation between states and the federal? government, where historical practice in the Rhine basin and institutional developments in Germany since the 1950s have laid the foundations for European structures and approaches.  The paper explores the conditions for and functions of structures for inter-state or transnational co-ordination, co-operation, and policy learning, and makes suggestions on how to apply them across the Atlantic.

The AICGS Policy Report No 31 is available for download [pdf, 842 KB, English].