Germany’s companies support climate neutrality, demand clearer energy policies – survey

Uncertainty over the course of the energy transition and high energy prices are causing distress to one in three companies in Germany, a survey by the Association of German Chambers of Industry and Commerce (DIHK) has found. However, the DIHK said its survey also clearly showed that the goal of achieving climate neutrality in Germany by 2045 is supported by a majority of companies. 

Nearly 90 percent had set their own climate neutrality targets, with many aiming to achieve this before the national deadline, the association added. While the average score of the energy transition’s impact on business slightly improved compared to the previous year, 36 percent of respondents said the transition had a negative impact on their business, compared to a quarter who said it benefits them. “Companies in Germany can only master the transition if they do not lose their competitiveness,” the industry lobby group said when releasing its latest energy transition barometer, a recurring survey in which more than 3,500 businesses took part.

“In many companies, scepticism and uncertainty regarding the energy transition are dominating,” said DIHK deputy leader Achim Dercks. High costs, bureaucracy, and a challenging global economic environment had cut companies’ climate action investments, the DIHK argued. “In addition, there’s uncertainty over the new government’s energy transition course,” Dercks said. “As a result, companies are waiting. The energy transition has been put on stand-by in many places.” 

More than half of the companies with over 500 employees had already reduced or planned to reduce production in Germany because of the high energy costs, Dercks added. Over 80 percent of surveyed companies, therefore, called for lower taxes on electricity, better conditions for power purchase agreements (PPAs), and about half called for legal clarity on carbon capturing (CCS/CCU) and broad access to hydrogen infrastructure. “The companies’ responses clearly show that there needs to be a major overhaul in Germany’s energy policy,” Dercks argued. 

The German government is readying electricity subsidies for energy-intensive companies that commit to decarbonisation. Companies can get support if they are exposed to international competition, as long as they invest in cutting their emissions. In addition, they are also set to benefit from lower electricity taxes. Households and minor businesses were excluded from these plans.