German industry urges next government to ensure lower energy prices at EU and national level

German industry association BDI has called on the next government to focus on lowering energy prices at both the national and European level.

In its recommendations for climate and energy policies after the February snap election, the BDI said the next leadership should extend electricity price subsidies for energy-intensive companies and ensure that the EU agrees based on state aid rules. “EU state aid regulations must not stand in the way of relief from rising prices, grid charges and levies,” wrote the association.

The BDI also recommended a stronger implementation of so-called “Carbon Contracts for Difference”, a scheme which helps companies bridge the additional costs of switching to more climate-friendly production, also using EU funds. BDI emphasises that the new 2040 climate target – which will soon be negotiated in the EU – should not overburden the industry and that companies should receive the financial support they need.

At the national level, lower electricity prices should be guaranteed through an “ambitious” expansion of renewables, pushed by accelerating approval procedures, and accompanied by the necessary grid buildout. The BDI is also in favour of “vigorously” expanding the hydrogen and CO2 infrastructure.  

The weakness of Germany’s large industrial base has become a campaign focus ahead of this month’s snap election. Competitiveness and future industrial policies are key talking points among experts, and businesses agree that the new government must push forward industry decarbonisation in close cooperation with the EU.