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Germany announces boost in funding to cut greenhouse gas emissions by 2020

German Chancellor Angela Merkel, center, talks with Vice Chancellor and Economic and Energy Minister Sigmar Gabriel, left, and Head of the Chancellery Minister Peter Altmaier, right, during the cabinet meeting in Berlin, Germany, Wednesday, Dec. 3, 2014. The cabinet will present in the meeting laws about Germany's future energy policy and about the right of residence for immigrants. (AP Photo/Markus Schreiber)

German Chancellor Angela Merkel, center, talks with Vice Chancellor and Economic and Energy Minister Sigmar Gabriel, left, and Head of the Chancellery Minister Peter Altmaier, right, during the cabinet meeting in Berlin, Germany, Wednesday, Dec. 3, 2014. The cabinet will present in the meeting laws about Germany's future energy policy and about the right of residence for immigrants. (AP Photo/Markus Schreiber)  (The Associated Press)

Germany's government has announced a cash boost for measures to cut greenhouse gas emissions in a bid to meet its target for 2020.

Germany has pledged to reduce its carbon dioxide output by 40 percent by the end of the decade, compared to 1990s levels.

Economy Minister Sigmar Gabriel told reporters on Wednesday that the government is increasing subsidies for energy efficiency measures to 3.4 billion euros ($4.2 billion) from 2 billion euros a year.

Germany hopes the cuts will save a further 62 to 78 million tons of CO2 emissions by 2020, compared to current forecasts.

Gabriel says some 22 million tons of savings will need to be made by utility companies that generate power from coal.