News
26 Apr 2023, 13:15
Carolina Kyllmann

Asset managers see risks in LNG investments in Germany – report

Gas

Clean Energy Wire

Asset managers active in the area of sustainability see investments in liquefied natural gas (LNG) in Germany as risky, said a report by the Science Platform for Climate Protection (WPKS). Germany is betting on LNG as a ‘bridge technology’ until more renewable power capacity is built in the country, especially after imports of Russian pipeline gas were halted, formerly the country’s largest import partner. However, investors in LNG projects face three main risks, sustainability asset managers told the authors of the report: uncertainty over the use of LNG infrastructure for hydrogen, questions over investments in LNG can be classified as sustainable, and potential reputational backlash as LNG is harmful to the climate. “These risks are important reasons that have inhibited potential private sector investment in bridging technologies and LNG projects in Germany,” the report reads. Politicians should address these risks with reliable planning, transparency and clear communication, so “investors can assess the long-term profitability and associated risks and thus evaluate the fundamental attractiveness of corresponding projects,” the authors recommend.

“Bridging technologies should actively contribute to the transition to climate neutrality,” WPKS member Timo Busch said. Germany is planning for the construction of permanent land-based LNG import terminals, while leasing floating units in the short term. However, the country will have to gradually reduce fossil gas consumption in order to achieve its target to become climate neutral by 2045.

All texts created by the Clean Energy Wire are available under a “Creative Commons Attribution 4.0 International Licence (CC BY 4.0)” . They can be copied, shared and made publicly accessible by users so long as they give appropriate credit, provide a link to the license, and indicate if changes were made.
« previous news next news »

Ask CLEW

Sören Amelang

Researching a story? Drop CLEW a line or give us a call for background material and contacts.

Get support

+49 30 62858 497

Journalism for the energy transition

Get our Newsletter
Join our Network
Find an interviewee