Climate Action – Business Opportunities in Germany
Meeting Germany’s new climate goals is an enormous challenge that requires immediate action in all sectors. Attractive business opportunities are opening up for international investors in a diverse variety of sectors.
Energy
The energy sector has the greatest role in meeting Germany’ new climate targets – approximately 30 percent of domestic emissions are energy industry produced. More than 80 percent of domestic energy needs are still covered by fossil fuels. This consumption must be reduced quickly, substantially and sustainably whilst maintaining security of supply and ensuring that energy remains affordable.
See what is going on in Germany’s energy sector
Industry
As one of the world’s leading industry nations, Germany has a special responsibility in taking decisive action to counter global climate change. In 2020, industry was responsible for around 24 percent of total carbon dioxide emissions. A fundamental transformation of manufacturing and production based on decarbonization, electrification, increased flexibility, and energy and resource efficiency is necessary to becoming a climate-neutral industry nation.
See what is going on in Germany’s industry sector
Mobility
Mobility as we currently experience it is not sustainable. Almost 30 percent of Germany’s energy consumption – 90 percent of which is oil based – takes place in the transport sector. Climate friendly mobility models, frameworks and new technologies are being developed and promoted through attractive incentives to keep mobility both clean and affordable.
See what is going on in Germany’s mobility sector
Buildings
Energy-efficient buildings have a major role to play in helping Germany meet its climate goals. Fifty percent of heating supply must be produced on a climate-neutral basis by 2030. Already generous funding provision is being streamlined and optimized into a single program to make energy-efficient building even more financially attractive to buyers and builders alike.
See what is going on in Germany’s building sector.
Heating
A statutory guidance framework (Act on Municipal Heat Planning) will be introduced to provide local stakeholders with greater investment certainty for the long investment cycles for heat infrastructure, heat generation and buildings. Plans are also in place to fund the expansion and decarbonization of heat networks using a new Federal Assistance for Efficient Heat Networks instrument. Electricity-based large scale pumps using ambient heat and low-temperature waste heat will be a key technology used to transform heat networks. Significant investment will also be made in harnessing deep geothermal energy for use in buildings.
Agriculture
Germany’s agriculture sector accounts for around nine percent of the country’s total emissions. Agriculture has a crucial role to play in combating the climate crisis. A federal investment-funding program for energy efficiency in the agricultural sector will help reduce carbon emission levels. Further financial support will be provided for the construction of low-emission storage facilities for liquid manure, with the retrofitting of storage facility covers and the construction of low-emission livestock stables as part of a joint federal-state program. A major new research initiative is being launched to address challenges of climate reporting, scientific impact assessments, scientific evaluation and development of ongoing measures.
Land Use and Forestry
In 2020, the land use, land use change and forestry (LULUCF) sector posted negative emissions of -11.3 million tons of carbon dioxide equivalents. This made it the only sector in Germany to act as a carbon sink overall. A target of -25 million tons has been set for 2030. The LULUCF sector has a pivotal role to play in the crisis in terms of greenhouse gas emissions and its ability to bind carbon dioxide. Measures identified for the sector address the most important ecosystems – bogs, forests and land – for climate action within the agricultural sector. Financing will be provided for the rehabilitation of ecosystems and for uses compatible with climate and biodiversity protection.
Waste and Recycling
The waste and recycling industry generated almost nine million tons of carbon dioxide equivalents in 2020. Previous greenhouse gas emission reductions of more than 35 percent during the period 2010 to 2019 will be pursued in the decade ahead. Changes to the current legal framework, targets and legal provisions governing the sector will find their way into a National Recycling Strategy to support the circular economy.
