German NGOs, industry union call for annual €100 bln climate investment drive
Clean Energy Wire
An alliance of environmental NGOs and an industry union have called on the German government to launch an investment initiative to the tune of 100 billion euros per year to make the country’s industry fit for a climate-neutral future. “A signal of departure is needed now, otherwise the current crisis threatens to increase the already huge investment backlog in the country and jeopardise climate targets, energy security, good industrial jobs and overall social prosperity at the same time,” said environmental NGO umbrella organisation DNR, Germanwatch, WWF Germany, and the trade union for mining, chemicals and energy industries IGBCE. "In order to modernise our economy and strengthen social cohesion, the state must stimulate investment - not in 2024, but now!" the joint paper states, adding that the state must send an unmistakable signal to private capital to immediately invest in the industry's shift towards climate neutrality.
The joint paper called for an investment fund that provides incentives for a rapid switch to efficient and climate-neutral production processes. “In addition, the establishment of technologies necessary for the energy transition, such as photovoltaics or hydrogen electrolysis, must be promoted in a targeted manner and the expansion of renewable energies, hydrogen and the urgently needed infrastructure must be pushed forward,” the organisations said. “This country must now give itself a jolt in terms of transformation,” IGBCE head Michael Vassiliadis said. He added that past policy has put too much emphasis on setting targets, without clarifying steps to achieve them. “The really difficult task now is to push ahead with the climate-friendly conversion of the industry location, and to make Germany a successful international market leader in this field.”
Companies in Germany invested about 55 billion euros in climate action measures in 2021 but still have to double their financial efforts to get on track towards the country’s 2045 greenhouse gas neutrality target, accordig to a survey conducted by state-owned development bank KfW. German industry said in September it plans to stick to existing decarbonisation targets, despite the challenges caused by Europe's energy crisis.