Energy Efficiency & Green Building

The German government increased its focus on building efficiency in the climate package that came into effect at the start of the year, so the incentives for energy-efficient renovation and construction had already been given a dramatic boost before the pandemic.

On top of that, this new package stocks up the ‘CO₂ Building Renovation Program’ with a further EUR 1billion – taking it to an impressive EUR 2.5 billion. The government also intends to use a further billion euros of federal funds to expand the existing program for the energy-efficient renovation of communal buildings and set up a new program for climate change adaptation measures in social facilities.

The vast majority of the buildings that will exist in Germany in 2050 have already been built. For us to have a climate-neutral building stock by then means we will need to push harder on energy-efficient renovation. The majority of construction investment was already going into existing buildings and the new, even greater volumes of funding announced in this package are only going to increase that.

More from Germany's Covid-19 economic recovery package:

• Hydrogen strategy: making Germany the home of power-to-X
• Power grids: sector coupling through the SINTEG program
• EV charging infrastructure: turbocharging the mobility of tomorrow
• Future forestry: adapting to climate change and moving to sustainable forestry
• Solar and wind power: higher expansion limits

New legislation has the German government injecting some €90bn into special project areas and makes it easier for companies to employ specialists in Germany. Big opportunities around.

Germany is not only Europe’s leading construction market but also home to the EU’s largest building stock, which accounts for 40% of national energy consumption. As part of its ongoing transition to a sustainable energy system, Germany aims to have an almost climate-neutral building stock by 2050.

Germany also recognizes the crucial importance of cities in safeguarding a sustainable and more prosperous future. This is why the country is actively positioning itself as a leading provider of smart technology solutions for the world’s cities. Pilot projects and implemented innovations for everyday use offer a European perspective on how technology can enable growing urbanization around the world while improving conditions for both citizens and the environment. International companies are invited to take part in shaping the way we live in cities already today.

As Europe’s manufacturing hub, Germany consistently emphasizes efficiency in industrial production. Although it already counts among the most energy-efficient in the world, German industry still has massive untapped potential for profitable investments in energy efficient production processes and technology. This translates into a substantial business opportunity for service and technology providers.

More and more businesses are taking a systematic approach to energy saving: Germany is by far the most eager adopter of ISO 50001 energy management systems (EMS). A recent (2014) University of Stuttgart survey shows that for 35% of German manufacturers, energy efficiency is already a stand-alone reason for investments and not just a welcome side effect of purchasing new equipment. Investments in industrial energy efficiency are supported by attractive grants and loans from the federal government.

R&D – Since 2010, the federal government has invested more than 3 billion EUR in energy research. A major part is spent on industrial and academic R&D projects in renewable energy and energy efficiency. A first-class university and R&D landscape and a renowned educational system make Germany a highly innovative location in the technology-intensive energy efficiency sector.

INCENTIVES - Germany offers numerous incentives for all investors – regardless of whether they are from Germany or otherwise. There is a large selection of programs designed to support a wide variety of business activities at different stages of the investment process available. Support ranges from cash incentives for the reimbursement of direct investment costs to incentives and project grants for labor and research and development (R&D).

INFRASTRUCTURE - Our extensive and comprehensive logistics infrastructure integrates state-of-the-art transportation networks with the most modern telematics, IT, and telecommunications systems.

STABLE INVESTMENT ENVIRONMENT - Social, economic, and political stability provide a solid base for your corporate projects. Our judiciary and civil services are highly professional. Contractual agreements are secure, and intellectual property is strictly protected in Germany.

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