Energy policy uncertainty delays some companies’ investments in Germany

A number of German energy-intensive and high-revenue companies are postponing investments due to energy policies and regulatory framework in the country, writes Cologne Institute for Economic Research (IW Köln) in a policy paper. A total of 9.1 percent of all companies surveyed said they postponed investment, with the figure rising to 36.2 percent for companies with a turnover higher than 50 million euros per year. This showed that uncertainty about the future energy policy agenda influences companies’ decision to invest, but only very few (2.2 percent) were planning to intensify foreign investments  for these reasons, writes IW Köln. This meant that current policies to prevent “carbon leakage” were working, writes IW Köln. The institute is the think tank of Germany’s large business associations.

Find the press release in German here and the policy paper in German here.

Find background in the CLEW dossier Energiewende effects on power prices, costs and industry.