“Unpredictable” climate plans offer German industry little planning security – Stiebel Eltron

Clarification: The analysis is by BCG, the comments on the study by Stiebel Eltron.

The German government's "unpredictable" climate policy leads to uncertainty in industry, where planning security is a prerequisite to the transition to sustainable production, said heating company Stiebel Eltron in a press release citing an analysis by the Boston Consulting Group (BCG). In the heating market, a clear roadmap from policymakers would be desirable, the company said. The BCG study said: "Since heating systems have an average lifespan of about 25 years and extensive decarbonisation of the gas network is unrealistic, the installation and replacement of oil and gas heating systems would have to be effectively ruled out from about 2025, except in exceptional cases." Kai Schiefelbein, managing director of Stiebel Eltron, also demanded that the government provide improved planning security and regulatory support for the German heating industry. Schiefelbein called for a higher CO2 price, which is currently at 25 euros per tonne. “Consumers need electricity to operate the heat pumps. It must no longer be the case that the price of electricity for the environmentally-friendly heating of the future remains more heavily burdened with government levies than the prices of oil and gas,” he said. He called for a policy that creates a “purposeful steering effect” so that climate goals become attainable.

The BCG analysis found that German industry is combating greenhouse gas emissions with stricter targets than the government."25 of the 30 companies with the highest CO2 emissions in Germany currently have more ambitious climate targets than the German government," said BCG in a press release. The consulting group called on the German government to approach climate protection not as an imposition, but as an opportunity, an economic programme and a vision for the future.