The lecture outlines the basic policy orientations in the German energy and climate policy domains. The focus is put on the challenges arising from the – in an international perspective – exceptional and almost singular decision to phase out nuclear power. After the nuclear accident in Fukushima (Japan), the German government decided to shut down eight old nuclear reactors in the short term and to phase out the rest of nuclear power generation (nine reactors) within the next seven years. While maintaining the existing and very demanding climate policy objectives (reduction of 40% of greenhouse gas emissions until 2020 compared to its level in 1990) this energy program implies that energy security will largely be guaranteed by the expansion of renewable energies, improved energy efficiency, and accelerated innovation in energy and environmental technologies. In the paper recent achievements and further challenges in this policy program will be presented, and the various drivers, constraints and policy options will be discussed. In a methodological perspective the paper combines the case study and process tracing approach with social network analysis.