Germany has taken ambitious attempts to cut down on energy consumption, and with the government backing this serious effort, there will likely be changes within their economy and possibly, the focused exchange traded fund (ETF).

The ambitious package of measures just signed off by the German cabinet targets reduction of CO2 emissions by 40% relative to the levels seen in 1990, by the year 2020, reports Speigel Online. By taking the lead in the fight against the global climate change, Germany has set itself apart from the rest of the European nations, and set an example.

The sky-high oil prices have naturally set this plan into motion, but the oil giant BP (BP) presented a recent report in Berlin stating that Germany’s oil consumption fell by a greater extent than any other country in the world.

Primary energy is defined as oil, gas, coal, nuclear power, and hydropower, and German companies and consumers lessoned their use of these by 18.5 million tonnes of oil equal equivalent in 2007. This is a clear 5.6% reduction.

iShares MSCI Germany Index (EWG) does not hold assets in energy, however, it does hold 15.2% in utilities. Year-to-date, the fund is down 12.1%.

It would be far-fetched to imagine iShares Goldman Sachs Natural Resources Index Fund (IGE) or WisdomTree International Energy Sector Fund (DKA) taking a hit from this reduction, since there will always be a demand for energy in some form or fashion.

But if more countries take this "lead by example" lesson, what will the impact be? DKA holds 5.4% of assets in BP. IGE is up 11.4% year-to-date, while DKA is up 6.8% year-to-date.

Tags | Coal, Energy, Europe, EWG, Gas, Germany, Green ETFs, Natural Gas, Oil