Climate Action – Business Opportunities in Germany

Climate neutrality by 2045

Germany adopted major new climate legislation in June 2021 that sets higher national emissions reduction targets for 2030 (at least 65 percent) and 2040 (at least 88 percent) in order to achieve greenhouse gas neutrality by 2045.

Climate Action Programme 2030

Germany is in the process of transforming its energy supply – moving away from fossil fuels and nuclear energy towards renewable energy sources for better and more environmentally friendly energy supply. The country has set ambitious goals to realize these objectives.

• stricter climate target by 2030 (65 percent reduction at least)
• greenhouse gas neutrality by 2045
• strengthening natural sinks
• immediate Action Programme for more climate action
• coordinating climate action within Europe

“We want to be climate-neutral by 2045 and boost the share of renewable power to 80 percent by 2030.“

Federal Economic Affairs and Climate Action Minister Robert Habeck

Germany’s new energy vision

Germany’s new government has laid out its plans for a transformative energy vision to make the country climate neutral by 2045.

Coal production will be phased out by as soon as the end of the decade. The installed solar power capacity is to be tripled to 200 GW by 2030. The offfshore wind energy capacity goal has been expanded from 20 GW to 30 GW by 2030. And two percent of Germany’s land area is to be reserved for wind energy purposes in order to meet the 100 GW installed capacity target for 2030.

This energy supply transformation is being supported by far-reaching policy and funding measures that will create new business opportunities and favorable market conditions for international energy companies and suppliers.

Climate action programme 2030

As one of the world’s leading industry nations, Germany bears a special responsibility in taking decisive action to counter global climate change. Meeting the goals of the new Climate Change Act is an enormous challenge that requires immediate action in all sectors.

Germany is pressing forward in the fight against climate change with two major initiatives:  the Climate Action Programme 2030 and the immediate action programme for 2022. The Climate Action Programme 2030 enshrines the principle of a move away from fossil fuels towards a more climate friendly and energy-efficient future.

Business opportunities

The transformation of German energy supply and the expansion of renewable energy capacities is creating many business opportunities in different industries in Germany. Find out more in these sectors.

Wind energy industry

Photovoltaic industry

Energy storage industry

Energy efficiency industry

Our industry experts can answer all of your questions concerning industry developments, new business opportunities and how to set up business in Germany. Please do not hesitate to contact us. 

New mobility

Mobility as we currently experience it is not sustainable. Almost 30 percent of Germany’s energy consumption – 90 percent of which is oil based – takes place in the transport sector. Climate friendly mobility models, frameworks and new technologies are being developed and promoted through attractive incentives to keep mobility both clean and affordable. 

Germany’s world-leading automotive industry is being transformed. Flagship automotive regions are testing the mobility technologies of the future and electric battery production and R&D sites are springing up to meet the world’s changing mobility needs. 

There are plenty of new business opportunities arising from this these developments. Please do not hesitate to contact us. We look forward to answering your questions on market developments and business set-up in Germany. 

Transportation

On March 29, 2023, the German government agreed a set of policies, supplemental to the original coalition agreement, largely concerning the future of transportation in the country.

They included a EUR 45 billion investment in rail infrastructure until 2027 and set a goal of 25 percent transport of goods by rail by 2030.

Gas stations will have to offer at least one high-speed charging point within the next five years. And as of 2030, the government will require all vehicles purchased for public fleets to be CO2-emissions-free.

Energy efficiency for carbon-neutral energy supply

Germany is seeking to achieve the complete decarbonization of the energy sector through intensive efforts in all demand markets, the rebuilding of energy infrastructure, the phasing out of fossil fuels, and the massive acceleration of renewable energy expansion. 

Fifty percent of heating is to be produced in a climate-neutral fashion by 2030. A new building strategy is also being developed to promote climate neutral buildings.

Industry will be transformed through the provision of “Carbon Contracts for Difference” to make climate-neutral manufacturing and production economically viable for industry. The new industry-friendly funding and investment framework will help businesses make the transition to climate-neutral production.

The National Action Plan on Energy Efficiency

The National Plan on Energy Efficiency provides a comprehensive package of measures to improve Germany’s energy performance. Alongside the development of renewable energy sources, efficient use of energy is imperative to realizing the country’s climate goals. By 2050, Germany intends to cut primary energy consumption by 50 percent compared to 2008 levels.

These measures are opening up new markets along the entire value chain. Foreign business seeking to enter the German market will meet many opportunities in the years to come. Please do not hesitate to contact us. Our industry experts can answer all of your questions concerning market entry and business set-up in Germany. 

Green hydrogen economy

The development of an efficient “green” hydrogen economy is central to achieving Germany’s climate protection goals and positioning the country as an international lead market for carbon-neutral energy. Hydrogen can be stored for long periods of time and transported over long distances with almost no loss.

Hydrogen produced in a climate-friendly way can help to significantly reduce CO2 emissions – especially in sectors (aviation, shipping, transportation) that cannot effectively be decarbonized in any other way.

National Hydrogen Strategy

The National Hydrogen Strategy (NHS) provides an action framework for the future production, transportation and use of hydrogen and related technologies and investments. The new government has doubled the original NHS hydrogen electrolyser target to 10 GW by 2030. Increased capacity will be achieved through massive expansion in offshore wind energy and the creation of European international energy partnerships.

Significant investment is being made in the necessary infrastructure to meet the new target, with a number of support programs being put in place within the sector. Accelerated planning and authorization processes are also being put in place to speed up power and hydrogen grid roll out.

Business opportunities: decarbonizing German industry

The German chemical industry as well as the German steel industry are leading industry sectors in Europe. Both industry's are seeking decarbonization in order to reduce their carbon footprint - and will therefore be moving to hydrogen within the next few years. This decarbonization trend will create new investment opportunities along the entire value chain: for the production of decarbonized chemicals, for the production of green steel as well as for technology providers that enable this transition. 

Please do not hesitate to contact us for more information on business opportunities in Germany's hydrogen industry. Our industry experts look forward to answering your questions. 

Circular economy

Germany is seeking to build on the successes of the recycling and waste management sector in reducing greenhouse gas emission levels. By promoting a circular economy, the country will continue the trend that saw a 35 percent decrease in greenhouse gas emission levels between 2010 and 2019 - creating new opportunities in the flourishing sector.

National Circular Economy Strategy

Germany’s new coalition government plans to adapt the existing legal framework, define clear targets and review waste regulation as part of its plan to instigate a National Circular Economy Strategy. The new strategy will help reduce the current gap to the 2030 climate target to one million metric tons of carbon dioxide equivalents.

Contact us to find out how your business can profit from these market developments.