Germany is set to water down emissions goals for the most polluting industries, in a move that’s been criticized as another blow to the country’s climate plans.

Starting next year, the country’s coalition government wants to track progress on emissions by focusing on economy-wide figures instead of the current sector-by-sector goals. The new approach will allow less-polluting industries to compensate for dirtier ones.

The move has been criticized by climate experts, who have warned that the reform will make it even harder for Germany, one of Europe’s biggest polluters, to meet its emissions goals. While the Economy Ministry defended the reform as helping overall efforts, it added that the country is still on track to fall short by a fifth of its goal to cut 1990 emission levels by 65% until 2030. 

“We have not yet reached our goal with the Climate Change Act, but with the overall package we may be able to get closer to our goal,” Economy Minister Robert Habeck told reporters in Berlin on Wednesday, after the government submitted its reform proposal and a set of measures to relevant departments.

The step comes just a day after the government agreed to water down a controversial ban on new gas and oil boilers that was meant to reduce carbon emissions in the building sector. Germany’s climate efforts have been set back by Russia’s invasion of Ukraine — and the loss of Russian gas — which forced the country to turn to coal instead.

Germany is currently far behind where it needs to be if it wants to meet its 2030 climate goals, having only cut carbon emissions by 1.9% last year. 

The transport sector is the biggest laggard, with emissions increasing in 2022 for a second consecutive year. The Economy Ministry said that Germany’s cabinet also decided on a CO2 surcharge for truck tolls that will help to finance rail investments.