German government lowers economic forecast for 2021, emphasises green recovery
Clean Energy Wire
The German government has downgraded its economic forecast for 2021 and reiterated the role of climate-friendly stimulus measures in its annual economic report. The government now expects a three percent GDP increase in 2021, down from a 4.4 percent forecast at the end of October. It highlights the energy transition and accompanying structural economic changes as key areas for the country’s coronavirus recovery programme decided last year.
The German Association of Energy and Water Industries ( BDEW) called on the government to continue the path of green recovery and do away with hurdles for renewable energy expansion, e-mobility and the ramp-up of a hydrogen economy. “Investments in the energy transition have a double benefit: they not only contribute to a clean energy world and thus to the fight against climate change, but also create very tangible value creation, jobs and economic growth in the region,” said BDEW head Kerstin Andreae.
As the coronavirus crisis has driven many governments across the globe to introducing emergency plans to cushion the immediate economic effects, many even see an opportunity to reset the economy on a more climate-friendly path with "green stimulus packages". Germany had introduced a recovery programme which included a “future package” with 50 billion euros for the areas of climate action, energy transition, mobility and digitalisation.