After the German federal government breakup in November 2024 and subsequent elections in February 2025, the CDU/CSU and SPD are poised to form a new government based on a draft coalition agreement. Released in April 2025, the agreement emphasizes climate and energy policies. It reaffirms climate targets, including achieving climate neutrality by 2045 and supporting the EU's 2040 climate goals. The document touches on hydrogen usage and the inclusion of various gas-fired power plants, raising concerns about their compatibility with climate objectives. Furthermore, the agreement discusses promoting Battery Energy Storage Systems (BESS) projects, focusing on system-beneficial locations and co-location with renewable energy sources. However, criteria for defining system-beneficial projects and the role of grid operators in this process remain ambiguous. The agreement hints at reducing financial burdens on BESS by eliminating taxes and fees. While the specifics of public funding and subsidies for renewable energy are not fully detailed, the agreement signals a long-term goal of discontinuing subsidies. Overall, the agreement presents a positive outlook on climate and energy policies in Germany, setting ambitious targets and outlining support for key initiatives.