Germany could become CO2-neutral in a socially responsible way

09.01.2025

Source: E & M powernews

The Energy Watch Group has published the "Roadmap CO2-neutral Germany". This describes how to achieve the climate targets while reducing the financial burden on the economy and citizens.

A study by the Energy Watch Group was published on January 9. The "Roadmap CO2-neutral Germany" shows a path to a CO2-neutral Germany that promises falling energy costs and growing income. If the recommended measures in the roadmap are implemented, its author promises savings of 50 billion euros per year in energy costs for citizens and companies. According to Hartmut Fischer, this would also increase the added value of companies and the income of citizens, which would increase the gross national product by 2.5 percent.

According to the Energy Watch Group, Germany's international competitiveness in the rapidly growing future-oriented cleantech sector could be strengthened if strong climate protection is made a focus of the upcoming German government. The almost hundred-page study calculates technically and economically how the energy, building, transport and industry sectors can be successfully converted to CO2 neutrality and is based on data from the German government, industry associations and research institutes.

Defossilization saves money

"CO2 neutrality is profitable in Germany and can be achieved with a relevant economic boost," emphasized Fischer. The roadmap shows a way to achieve this that relieves the economy, citizens and public budgets. The cornerstones of the roadmap are ending the use of fossil fuels and replacing them with the most effective renewable sources. With the measures in the roadmap, citizens and businesses could save 24 billion euros annually on electricity costs, 5 billion euros by switching to CO2-neutral heating and 26 billion euros by switching to electric vehicles.

According to the roadmap, a tax-financed industrial price for green electricity and hydrogen would keep the energy price at the current level for companies at risk of relocating. Only for other companies in the manufacturing sector would costs increase by 5 billion euros per year or 0.2 percent of turnover.

Redistributing income and expenditure

In a carbon-neutral Germany, the public sector will no longer receive income from energy tax and the CO2 price, and industrial and heat pump electricity will also have to be subsidized. This should be compensated for by a socially balanced tax increase. "Together with the tax relief, the direct net effect for citizens and companies is a 'black zero'," promises the roadmap.

The required additional investments by the energy industry and others totaling 1,900 billion euros are considerable, but correspond to an increase in current annual investments of only 5 percent and are easily affordable over the time frame. As these investments go to plant manufacturers, car manufacturers and tradespeople, more money would remain in Germany than currently has to be paid for fossil fuel imports. "This creates an economic boost with a financial plus for citizens, the economy and the public sector of 110 billion euros per year," writes Fischer.

It would also create several 100,000 additional jobs. Other effects of the path to CO2 neutrality described in the roadmap include a heating conversion that is neutral in terms of warm rents and building renovation, which would provide relief for lower incomes in particular. In addition, the proposals comply with the debt brake and are budget-neutral overall, writes Fischer.

The "Roadmap CO2-neutral Germany" can be downloaded as a PDF from the Energy Watch Group website

Author: Susanne Harmsen