Germany’s environmental innovation performance has been supported by a strong national innovation framework, a broad industrial base, a high level of participation in international trade, and strict environmental regulations. This chapter discusses the country’s rich experience in promoting innovation to reduce negative environmental impacts. It covers environmental and general innovation policies and the cross-cutting issue of policy co-ordination. Indicators of patenting activity, and examples from different areas such as air and waste management, energy, and transport, are presented. The chapter also analyses policies to promote renewable energy, including feed-in tariffs, which have helped German industry achieve a significant share of domestic and international markets for various renewable energy technologies.