Chancellor Angela Merkel's cabinet last week overcame internal differences to agree the plan, but the measure will first require changes to several laws which could take up to a year to achieve.

Only then can the long process of implementation begin.

The government hopes to achieve a 36 percent cut in CO2 emissions by 2020 from 1990 levels, as it sets the tone ahead of a global meeting on the environment in Bali in December.

"It is a surprising plan and even a year ago I would not have thought such a programme possible," said Holger Krawinkel, energy expert at top German consumer association VZBV, which usually does not shy away from attacking policymakers.

"But the devil is in the detail and I think that a central power is lacking inside the government to pull this together."

Finance Minister Peer Steinbrueck's drive to shore up Germany's stretched public finances could be a stumbling block.

Steinbruck wants to spend more money on climate change only if tax revenues continue to surge and if extra money can be made from auctioning carbon emissions rights which polluters are forced to hold to cover their operations.

"In no case does he want to question the consolidation of his budget (by spending more on the climate)," Environment Minister Sigmar Gabriel said over the weekend.

The climate package requires hikes in the government's annual climate protection budget to 2.6 billion euros (US$3.53 billion) compared with 800 million in 2005.

INDUSTRY POSITIVE

But the bulk of energy savings and outlays for more efficient technology will have to come from public and private buildings, households and transport. Laws stipulating targets, and financial incentives will aim to achieve this.

There are many examples of how this is already working.

The energy industry has embraced the change of mood as it coincides with its own wishes to diversify production, respond to consumer trends, and benefit from subsidy payments.

E.ON plans to boost its renewable energy units, where 3 billion euros will go into hydroelectricity, wind and biogas, which its Ruhrgas arm will distribute, by 2010.

Heat produced during power generation will be piped to new German houses, as the climate plan gives the heat and power sector 750 million euros a year.

This is good news for machinery makers, equipment suppliers, contractors and homeowners. It will also create jobs.

The utility industry's only reservation is that the raft of schemes must be in harmony with each other, as they fear that already existing infrastructure might be ripped out prematurely.

Gabriel is confident that the eventual savings will be worth it and that Germany can lessen its dependence on energy imports.

CONVINCING CONSUMERS

There is reputable research showing spending now and saving later makes sense.

The DIW economic research institute said that while households would need to spend up to 7 euros a month on the environment over the next 10 years under the deal, they would save 12 euros in energy costs and pocket the remaining 5 euros.

There could be some opposition as households may be forced to buy new boilers and change other equipment, but subsidies for low earners could help them make the switch.

The success of relatively expensive "green" power suppliers also shows that consumers are willing to support the move towards sustainability -- renewable power supplier Lichtblick says it is recording a thousand customers enquiries each day.