The president of the Association of German Chambers of Industry and Commerce (DIHK), Peter Adrian, has expressed tempered expectations regarding the planned industrial electricity price. In comments to the “Rheinische Post” newspaper, Adrian stated the measure would not deliver a sustainable improvement, noting it only subsidizes 50% of electricity consumption for specific companies, subject to additional compliance costs.
Adrian emphasized that the industrial electricity price would not negate the fact that energy costs in Germany remain up to six times higher than in the United States. He also characterized the reduction in electricity tax for manufacturing businesses as a continuation of the status quo rather than providing substantial relief.
Despite these reservations, Adrian praised the initial steps taken by Federal Minister for Economic Affairs, Katherina Reiche, in energy policy. He welcomed a renewed emphasis on pragmatism within the ministry, noting Reiche’s recognition of the necessity of gas-fired power plants to ensure supply security following the phase-out of coal. Adrian also highlighted the positive step of enabling carbon capture and storage (CCS) technology, a crucial element for achieving climate neutrality for many industries.
Adrian contrasted this approach with that of Reiche’s predecessor, Robert Habeck, who he stated primarily pursued climate goals through state intervention. He argued this led to costly misdevelopments without achieving the desired results, citing the coal phase-out as an example where sufficient replacement capacity wasn’t ensured.
Scientists with the Intergovernmental Panel on Climate Change (IPCC) view CCS as an important tool for managing unavoidable emissions in sectors like cement, steel and chemicals. However, the IPCC also cautions that plans for atmospheric carbon removal could dilute the incentives for immediate emissions reductions. CCS projects have historically been expensive and difficult to scale, currently falling short of planned capacity. A key challenge remains ensuring the long-term stability of stored CO2 in geological formations to prevent its eventual re-release into the atmosphere and contribution to global warming.
