Battles over dirty coal plants and the combustion engine have dogged her efforts to forge an unlikely three-way governing alliance with the Greens and pro-business Free Democrats (FDP).
They are also flashpoint issues as Germany and Fiji co- host UN climate talks in Bonn, which Merkel will address during a visit tomorrow with French President Emmanuel Macron.
Critics charge that Merkel, a trained physicist who has often championed climate action on the world stage, tends to cave in to business and political interests when it matters.
Weekly newspaper Die Zeit harshly compared Merkel's policies to that of climate change-denying US President Donald Trump, adding that "at least Trump is honest about it".
Also Read
Merkel, at a G7 summit she hosted in 2015, wrested a crucial if lofty promise from the world's leading economies -- to "decarbonise" by the end of the century.
On Saturday she said that Germany and other advanced economies must make sure "things change" in order to slow the trend of melting ice caps, rising seas and worsening storms, floods and droughts.
But she also made clear that Germany must protect its "industrial core" and that "if steelworks, aluminium plants and copper smelters all leave our country and move somewhere with weaker environmental regulations, then we won't have gained anything for the global climate".
Missing from that list were coal-fired power plants, Germany's current environmental hot-button issue that has sparked mass rallies.
Germany has in the past two decades raised the share of wind, solar and other clean renewables to one third of its electricity needs, while mothballing nuclear plants.
Germany has promised to cut its greenhouse gas emissions by 40 per cent by 2020 from 1990 levels. But it is now on track for only a 32 percent reduction.
Missing the closest target would raise big questions about Germany's far more ambitious goals of slashing emissions by 55 per cent by 2030 -- and by up to 95 percent by mid- century.
The Greens, in the lead-up to September elections, had promised to immediately shutter Germany's 20 most polluting coal plants, and to phase out coal and fossil fuel-powered cars by 2030.
The pro-business FDP -- which has in the past blocked reform plans for the EU carbon market and railed against wind farms during the campaign -- has suggested Germany could simply scrap its emission targets.
Merkel's conservatives also oppose rapid action on coal, given the more than 20,000 jobs involved, many of which are in the ex-communist east where the far-right AfD party has already made major inroads.
On the other side of the debate, Greenpeace urged Merkel to "signal a full coal phase-out in the new coalition government agreement", warning that "the time for climate sweet talk has ended".
Disclaimer: No Business Standard Journalist was involved in creation of this content