The Bundestag passed a law aimed at increasing the amount of power generated by renewable energy sources like wind or solar power to 30 percent from the current 14 percent by 2020.

Another measure is aimed at doubling the amount of electricity generated by combined heat and power (CHP) or cogeneration, which uses excess heat from power stations, to 25 percent in the next 12 years. The government aims to invest 750 million euros (1.2 billion dollars) in this technology.

Lawmakers also decided to lower subsidies on electricity from renewable sources in an effort to encourage these new industries to become more commercially viable.

A second package of laws covering areas such as car taxes based on a vehicles' emissions and more environmentally conscious construction is due to go before the cabinet on July 18.

The package has taken longer than expected to put together due to reported disagreements within the governing coalition, prompting speculation in the German press that the legislation may be abandoned altogether.