In view of the February 23 elections, jobs, income and stagnation of the German economy are at the top of the political agenda. And for these problems, many blame the climate protection measures.

Friedrich Mertz, head of the CDU and the favorite for Chancellor, has stated that he will limit the operation of carbon and gas power stations only to the extent that this will not have an impact on the German industry. Even parties that focus more on the climate crisis do not exaggerate their environmental positions as in the 2021 elections.

All this is a reason for many experts who are afraid that the economy is prioritized at the expense of climate – and although according to a German Climate Alliance survey, most of the population would like to take more measures to address climate change .

But are things like that?

The German economy, the largest in Europe, has presented a recession for two consecutive years for the first time for decades.

Germany, which is very much based on exports, has been significantly affected by high energy prices, limited domestic demand, and weak global trade, while the automotive industry made mass redundancies and recorded sales and profits.

According to Gunnar Lunderrer, a specialist in the energy transition from the Institute of Research on the impact of the Potsdam climate, problems with the economy are not due to climate reforms: “The problems of the German economy are structural and have deeper causes”.

According to the expert, one key issue is the country’s dependence on Russian gas – and therefore the detachment after the invasion of Ukraine proved to be costly. At the same time, high energy prices have influenced the economy by increasing both production costs – especially for industries that need large amounts of energy – as well as prices for consumers.

The German economic model has also proved vulnerable to international competition and expansion of China to new markets, such as the electric industry, Lunderrer adds. “The operations of the German automobile industry did not act quickly and were very delayed to take steps for this new trend. And that’s exactly what we pay now. “

Germany can still lead in green technologies

“The claim that climate protection measures in Germany had a negative impact on the economy are untrue,” agrees Claudia Kefert, an economist and energy expert from the German Institute of Economic Research (DIW). The expert even estimates that smart climate measures can create a huge economic advantage, which is often overlooked.

Focusing on renewable energy sources, electricity and energy efficiency requires investments that create “value and jobs”, Keraphert explains, adding that renewable energy jobs increased by 15% over 2021-2022.

“If Germany focuses on the economy at the expense of the climate, there is a risk of losing jobs, the country will lose some of its competitive potential and increasing the costs for fossil fuels,” Keffert said.

Given Germany’s power in construction, machinery and the automotive industry, there are still many opportunities for the country to lead in green technologies – such as wind energy and electric drive.

In addition, many experts say that the presence of renewables in the energy mix results in not increasing the cost of electricity.

As Nikolas Henne, a scientist and founder of the German Non -Profit Research Institute, points out, the price of electricity is increased in proportion to the more expensive source of energy in the energy mix – and this is usually the natural gas units, while the renewables are lower. cost worldwide. “Therefore, electricity prices are increasing more due to our dependence on fossil fuels, rather than the expansion of renewable energy sources.”

Uncertainty and inactivity cost

Many parties have stated that they will reverse the controversial legislation to limit the use of fossil fuel heating systems, which came into force at the beginning of last year, and that they will challenge EU decision to ban new cars with conventional engines. from 2035.

This political uncertainty is causing insecurity in business design, observes Stephanie Langkamp of the Climate Alliance, who also points out that “if we do not already invest in climate action today, then there will be a truly huge impact, both for the economy and for the economy and for the economy and for the economy and for the economy and for the economy. The cost of climate change. “

According to a study published in the journal Nature journal, the economic impact of climate change worldwide is estimated to be six times higher than the money that needs to be invested in measures to reduce pollutants and overheating of the planet. In Germany, extreme weather is estimated to have caused 7 billion euros of damage – and only for 2024.

The planet is turning towards a climate neutral economy, a process in which significant steps have already been taken. “Some countries or some industries may move at a different speed than others, but this is a global phenomenon that is not going to stop. That is why if one does not invest in the climate action now, it will later find it difficult to follow his competitors, “Langabab said.

“The only choice of the German economy is to take early measures for the challenges and opportunities of green transition,” Lunderer agrees. “There is no more return. And the greatest risk for the German economy is to try to delay the transition or rely on older business models, which are no longer viable. “

Curated by: George Passas