Industry transition and resilient energy system among core growth areas in Germany – business initiative

Industrial reinvention and next generation technologies, as well as resilient energy systems are two of five growth areas identified – alongside AI, core infrastructure, and security and defence – in which investment in Germany is especially attractive, said business initiative “Made for Germany”, presenting a report on the country as a business location. 

Germany’s industrial and research environment serves as a good basis for reinventing established industries through automation and decarbonisation, said the group which is made up of 147 major companies and investors, and is fronted by Deutsche Bank chief executive Christian Sewing and Siemens chief executive Roland Busch. The government was also supporting the industrial transition with programmes such as the Carbon Contracts for Difference (CCfDs) to help industry decarbonise, the report argued. The economy ministry today (19 October) announced the third round of the programme for May 2027, focussing on hydrogen, carbon capture and storage or utilisation (CCS/CCU), and process heat. 

Germany’s energy transition, set to give the country the resilient energy system it needs to scale industrial operations, AI, and next-generation technologies, is another attractive investment area, the group said. To meet climate and energy targets, Germany would need to invest 780 billion to 1.04 trillion euros by 2035, with renewables (€300–450 bn) and grids (€350–400 bn) accounting for around 83 percent of the estimated total. Among the country’s advantages are the combination of a high renewable rollout alongside high grid reliability, as well as a stable regulatory framework, and a rising demand for storage and flexibility, driven by intermittent renewables.

All of this comes in addition to the country’s fundamental strengths, which include political and legal stability, pioneering research, a highly skilled workforce, a deep industrial base, and seamless access to the EU single market, the group said.

Structural challenges had held back growth and investments in recent years, the initiative argued, calling for reforms across the board and “growth-focussed economic policy.” It said that global investors were ready to put money into the German economy, provided that these reforms are implemented consistently. These included changes that would lower electricity prices, make the labour market more flexible, speed up permitting, and incentivise investments through lower taxes. 

The report’s release was timed to coincide with the government’s first-ever Invest in Germany Summit, held in Berlin on 19 and 20 October, and bringing together international company executives and investors with government representatives to pitch the country as a business location.