Industry urges “change of course” towards fewer rules in German energy and climate policy
Clean Energy Wire
Germany’s largest industry lobby group, the Federation of German Industry (BDI), has called for “a change of course” in climate and energy policy to tackle the combined challenge of restoring the country's flagging competitiveness and achieving climate neutrality. BDI head Siegfried Russwurm, said at the group’s Climate Congress that unrealistic target setting and detailed regulation strangle efforts by companies to keep up with the move to more sustainable methods of production. “This approach based on a plan imposed by administrations is very time consuming and costly and fundamentally contradicts market-based creativity and efficient solutions,” he said.
A recent BDI report gauged costs for achieving climate neutrality at around 880 billion euros by 2030, yet there currently is no clear plan for how the majority of that sum should be raised, the industry association said. “A successful rebuilding of the economy requires a change of course and of the mindset of policymakers towards greater technology openness, entrepreneurial freedom and pragmatism,” said Russwurm. He added that this applies to the parties in the current governments in Germany and Europe, as well as those who aspire to lead in the future.
According to the association, immediate changes in policy should include co-financing of grid fees from the state budget, a novel power market design that secures supply and fosters investments, and a continued relaxation of bureaucratic procedures for planning and licensing new industry facilities. In the long-run, the country needs consistent industrial policy that is aimed at climate neutral growth, Russwurm added. “The image of de-industrialisation in Germany must not become recognisable around the world.”
The BDI, in a major industry report, said that green technology is Germany's best bet to remain an industrial leader in the future. Technologies related to the global energy transition, digitalisation, and health could form a market of 15 trillion euros annually by 2030, the report found. In a bid to accelerate the uptake of green technologies in the industry sector, the German government announced earlier this week the results of its first round of a novel “climate contract” scheme. The scheme has earmarked billions of euros in funding to cushion the financial risks for selected companies who embark on implementing new and climate friendly production procedures.
