Briefings

The Political Economy of Industry Transition towards Climate Neutrality in Germany

Share
24985024580_92bf96dac1_c

This briefing provides the main takeaways from E3G’s political
economy mapping of Germany’s industrial decarbonisation.

Industrial sectors play a major role in driving economic growth
and exports as well as providing high-quality employment in
Germany. The transition of steel, cement and chemical industries
to climate neutrality will, however, require substantial
technological advancement, a reformed regulatory framework,
and rapid, targeted investments.

After long-standing resistance to decarbonisation efforts, many
key energy-intensive businesses are taking a more progressive
stance. They have started to invest in low-carbon industrial pilots
and engage more constructively in policy debates about pathways
to climate-neutrality. However, concerns about international
competitiveness and uncertainty about the long-term regulatory
pathway continue to present barriers to more ambitious action.

Germany is a key international player with potential for
leadership on industry decarbonisation. It is a global leader in
climate mitigation technologies for the power sector and is
hoping to position itself similarly on the development of climateneutral technologies for industry.

Read the full briefing here.

Related

Subscribe to our newsletter