Proposals for the next federal government

19.02.2025

Source: E & M powernews

The German Energy Agency (Dena) and the Agora Energiewende think tank have published recommendations for the new German government's energy and climate policy.

The election has not yet been held, but there are already policy recommendations for a new German government. On February 18, the German Energy Agency (Dena) and the Agora Energiewende think tank published recommendations for the new German government's energy and climate policy. The Dena impulse paper deals with the major infrastructure areas from electricity and heating grids to digitalization, sectoral fields of action such as the energy sector, buildings, industry and mobility, as well as fundamental questions of financing and responsibility at all levels of government.

"In order to achieve the climate targets, we must not deviate from the goals we have set ourselves," says the agency. Business and politics would have to pull together and get the whole of society on board in order to achieve the targets. Dena Managing Director Corinna Enders urges us to "sustainably modernize our industrial economy in terms of international competitiveness". Energy efficiency and digitalization are key functions for this.

Reduce electricity prices to switch to electric solutions

Agora calls for electricity prices to be lowered for businesses and households, for example by reducing taxes and levies. The high price is currently an obstacle to electrification. "Attractive electricity prices are a key factor in boosting the electrification of transport, heating and industry," says the think tank. Despite significant price declines since 2022, electricity prices are still more than 50 percent higher than five years ago, especially for industrial companies with high electricity consumption.

According to Agora, the majority of capital goods in industry will have to be replaced at least once by 2045. "A climate-neutral modernization of the industrial sector will succeed if upcoming investments are redirected from fossil to climate-neutral technologies and infrastructures," she writes. Investments in the broad ramp-up of climate-neutral cooling and heating as well as other efficiency technologies make up the majority of the demand.

Agora proposes four measures:

• Introduce a 15 percent tax-based investment premium for efficiency technologies that have been identified in energy management systems or energy audits. This would cost three billion euros a year from the federal budget.
• Further develop climate protection contracts into innovation guarantees and risk protection for CO2 price development, with a pragmatic module for smaller companies. This would cost the federal budget 3.1 billion euros a year.
• Create green lead markets via public procurement law and product standards through binding sustainability criteria for the ramp-up of climate-neutral raw materials
• Driving forward common international standards and scaling markets in the G7, G20, Climate Club and the COP as well as in EU trade agreements and partnerships

The successes in the expansion of renewable energies in recent years must be consolidated and driven forward, both institutions appeal. The emerging energy system of the future will make Germany and the EU less dependent on geopolitical upheavals. According to Dena, clear and reliable framework conditions from politicians and more intensive coordination between the federal, state and local authorities are necessary for this.

At the same time, it is necessary to make the financing of the energy transition permanent, for example by adjusting the debt brake, a special fund or an energy transition fund with sufficient resources, both institutions suggest. As climate protection can also lead to financial burdens, households should receive socially staggered and targeted financial support. According to Dena, this could be achieved through a climate money.

The Dena impulse paper with recommendations for action for the new legislative period is available on the Internet.

The Agora Energiewende factsheet is available to download as a PDF.

Author: Susanne Harmsen