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Opening balance sheet climate protection

On 11 January 2022, Minister for Economic Affairs and Climate Protection Robert Habeck presented the opening climate protection balance sheet to show where Germany stands in terms of climate targets in the various sectors, the expansion of renewable energies and grid expansion. The opening review shows how far climate protection is lagging behind expectations. Germany is starting drastically behind schedule and the climate protection measures taken to date are inadequate in all sectors. As a result, the climate targets for 2022 and 2023 will not be met. The backlog is to be made up through increased efforts. To achieve this, the speed of emission reductions must be tripled and significantly more must be done in less time.

By 2030, the share of renewable energies is to be increased to 80 % and Germany wants to become climate-neutral by 2045. The priority laws, regulations and measures are now being "put on track" - a first climate protection package will be ready by the end of April and a second one in the summer. The aim of the immediate climate protection programme is to bring all sectors onto the target path and to initiate the necessary measures so that Germany can achieve its climate targets. All necessary laws, regulations and measures are to be finalised by the end of 2022. In order to achieve this, the Federal Government will consistently press ahead with the creation and implementation of the programme. Economics and Climate Protection Minister Robert Habeck emphasised: "This is all a mammoth task. And it will take a few years before we see the results. But what we are doing now lays the foundation for bringing climate protection and prosperity together." The current developments in Russia and Ukraine have given this topic a new dynamic.

The immediate measures that the Federal Ministry for Economic Affairs and Climate Protection will present in the near future include

EEG amendment: In order to achieve the 80% of renewable electricity generation by 2030, the government wants to increase the tendering volumes in the Renewable Energy Sources Act (EEG). The technology-specific volumes would be designed to increase - starting from a very ambitious level from the outset. The gross electricity consumption in the centre of the corridor from the coalition agreement (680 to 750 TWh) is 715 TWh. The principle that the expansion of RE is in the overriding public interest and serves public safety is to be enshrined.

Solar energy: The government wants to unleash solar energy with the solar acceleration package. The solar acceleration package will contain a broad bundle of individual measures to significantly advance solar energy. These include an improvement in tenant electricity, an increase in the tendering thresholds and an opening up of the area for ground-mounted systems, taking into account nature conservation criteria. In addition, the new legal objective that all suitable roof surfaces are to be used for solar energy in future is to be implemented. Solar energy will become mandatory for new commercial buildings and the rule for new private buildings.

Wind energy: Potential areas for onshore wind are to be developed in the short term and the expansion process accelerated with a Wind on Land Act. The government wants to reduce the distances to rotating radio beacons and weather radars and implement measures to make wind expansion more compatible with military interests. There is a great deal of potential land available here. In the area of radio navigation and rotating beacons, 4 to 5 GW of additional capacity is possible. In the area of military interests, the potential is 3 to 4 GW. Two per cent of the state's land area is reserved for wind energy with the Wind-an-Land Act, the expansion of wind energy is to be reconciled with species protection and the conditions for faster planning and approval procedures are to be created.

The diagram shows the slump in 2021 and the increasing expansion to meet the climate targets.

This diagram also clearly shows that the current expansion is not sufficient to achieve the targets.

Reducing the price of electricity: The basis for more renewable electricity at competitive prices is being created. Above all, electricity is to become cheaper compared to fossil fuels. The government wants to make heat pumps and e-mobility more attractive and promote sector coupling. The EEG levy is to be financed via the federal budget from 2023 in order to relieve consumers of the burden of electricity costs.

By abolishing the EEG levy, the levies linked to the special equalisation scheme (KWKG, offshore grid levy) will be transferred to a separate law, which should give the industry a reliable and predictable legal basis for the remaining levies.

Climate protection contracts with industry: The legal and financial conditions for the provision of carbon contracts for difference as a central instrument to support the transformation in industry are being created. Industry needs a reliable funding and investment framework for the transition to climate-neutral production processes. As a result, the economic viability of climate-neutral production processes will materialise earlier and costs will become more predictable for companies.

Heat strategy: The Federal Minister for Economic Affairs is aiming for a very high proportion of renewable energies for the transition to climate-neutral production processes: 50% of heat is to be generated in a climate-neutral way by 2030. Energy efficiency is seen as the second pillar, which is why the government wants to develop a new "climate neutrality" building strategy to optimise the interaction between the two instruments. The government is making decisive progress on climate protection in buildings and is committed to comprehensive municipal heating planning as well as decarbonisation and the expansion of heating networks. To this end, the federal subsidy for efficient heating networks (BEW) will come into force immediately after approval under state aid law and its funding will be increased.

Building standards and promotion: Together with the Federal Ministry of Housing, Urban Development and Building will be realised with a rapid revision of the Building Energy Act (GEG) A reliable planning basis for investments has been created in order to bring new buildings and building renovations in line with the goal of climate neutrality by 2045 with a focus on significantly reduced energy requirements. This implements the agreement from the coalition agreement that from 2025, every newly installed heating system will be operated on the basis of at least 65 % of renewable energy. This is intended to prevent bad investments that are not compatible with the climate targets. The federal subsidy for efficient buildings will be swiftly adapted in parallel; it is intended to flank the new requirements of the Building Energy Act and bring the market into line with these steps by 2025 through efficient incentives.

Hydrogen strategy: The existing measures for the market ramp-up of hydrogen technology will be adapted in order to double the production of green hydrogen compared to previous plans. The National Hydrogen Strategy is to be revised this year and additional funding programmes launched.

Minister Habeck emphasised on 11 January 2022 that this was only an initial selection of the planned projects. It is currently being examined which other measures could be launched quickly. In addition, further measures from other departments and sectors are to be incorporated into the immediate action programme, which will be developed in close cooperation within the federal government over the coming months.

The MuP Group is helping to meet climate targets as part of the "Engineering for a Better Tomorrow" programme. M&P GO.BLUE.NOW is working with customers and partners to limit global warming to 1.5°.

Links to sources:

https://www.mup-group.com/mull-und-partner-gesellschaften/#gobluenow

Communication

Opening balance sheet climate protection (bmwi.de)

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