BERLIN, Sept. 19 (Xinhua) -- One day before the crucial government meeting on climate, the Federation of German Industries (BDI) demanded tax incentives for energy efficient building, lower electricity prices and clear investment signals on Thursday.

"Decisions on energy and climate policy are overdue," said BDI President Dieter Kempf, and asked, among other things, for "powerful tax incentives to speed up the energy-efficient refurbishment of buildings noticeably."

Several measures of Germany's climate strategy to reach a reduction of greenhouse gas emission by 40 percent compared to 1990 levels are set to be decided at the meeting of the climate cabinet under the chairmanship of Chancellor Angela Merkel (CDU) on Friday.

"Our companies need decisions that enable them to invest in climate protection instead of making it more difficult. Particularly in an economic downturn, every new investment is good for economic development," said Kempf.

One measure to be discussed during the meeting of climate cabinet is the introduction of CO2 pricing in Germany. While the social democrats (SPD) are favoring a flat tax on carbon, the conservative union CDU/CSU is preferring to avoid such a tax and supporting the expansion of existing carbon trade mechanisms.

The BDI asked that the "fundamental decision on CO2 pricing must be accompanied by a rapid reduction" of the levy as required by the Renewable Energy Sources Act (EEG) which had been used to finance Germany's energy transition.

In the transport sector, a package of more than 50 measures as proposed by Federal Transport Minister Andreas Scheuer is seeking to "reduce emissions by a further 55 million metric tons." Scheuer's measures include shifting traffic to the railways, expanding local public transport as well as introducing new driving systems and alternative fuels.

However, the target for Germany's transport sector of reducing emissions by up to 42 percent by 2030 would not be reached at the current pace, according to the Federal Environment Agency (UBA).

Some vehicles had become less polluting, partly due to stricter emission regulations, but the overall level of emissions of pollutants remained high, a report presented by Federal Environment Minister Svenja Schulze found.

Kempf stressed that electric mobility and the strengthening of the railways would not be enough and called on the environment ministry to "abandon its blockade" toward advanced biogenic and synthetic fuels in order to create a "strong and reliable path for the market ramp-up of CO2-neutral fuels."

Meanwhile, the Fridays for Future movement has announced global climate protests to happen on the same day when the German climate cabinet is meeting.