Briefing from E3G: The Political Economy of Industry Transition towards Climate Neutrality in Germany

In The News 16 Dec 2020

This briefing provides the main takeaways from EIT Climate-KIC Partner 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: English | German

 
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