Berlin — The German government prepared for all-night talks on Thursday on a new climate policy that will determine whether Berlin is serious about engineering a paradigm shift in Europe's largest economy or simply wants to make a token show of going green.

The ruling coalition has set itself a Friday deadline to present a package of measures that is likely to include a carbon-pricing initiative to cap the use of fossil fuels in Germany, where the Greens party is enjoying a surge in support...

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