Germany must use development aid to access raw materials and energy – industry

German industry is calling for the country's international development budget to increase the country’s access to resources from developing countries. A paper by the Federation of German Industries (BDI) calls for the respective funds to serve “Germany’s own geostrategic interests.” The BDI says international development policy has “not promoted sustainable economic development in many countries”. At the same time, it frames development aid in terms of “struggle for a new world order” and says Germany is falling behind as China establishes dominance in resource-rich countries in Africa, Asia and Latin America.

In its paper, the BDI recommends that Germany support hydrogen production projects in locations such as Africa to meet its own energy needs – and investments should not necessarily be limited to hydrogen produced from renewables, but rather include fuel converted from methane and natural gas. Similarly, the lobby group says Germany should support the right of countries in the Global South to expand the use of gas as a “bridging fuel”. It is also calling for German development funds to be targeted at mining and processing operations to supply rare earth materials, such as lithium, cobalt and bauxite, for renewable technologies.