KfW/ZEW CO2 Barometer Manufacturing Industry Edition – Companies Consider Grid Expansion the Energy Transition's Major Challenge

According to German companies in the manufacturing industry, the grid expansion is the most important aspect in the shift towards renewable energy. This is the result of a survey conducted for the 2013 KfW/ZEW CO2 Barometer – Manufacturing Industry Edition. Half of the participating companies consider the grid expansion to be the major challenge of the energy transition, followed by renewable energy and energy efficiency targets.

The KfW/ZEW CO2 Barometer is a survey among all German companies participating in the European Emissions Trading Scheme (EU ETS). It has been conducted since 2009 by the Centre for European Economic Research (ZEW) in collaboration with KfW Bankengruppe. Since 2013, a survey of companies from the manufacturing industry has been added. The aim is to shed light on recent developments in the German manufacturing industry driven by European climate and energy regulations as well as the German energy transition in particular. The findings of both business surveys suggest that Europe and Germany have adopted the right approach, even if numerous problems have not yet been solved from the perspective of companies.

Acceptance of Energy Transition Depends on Costs

Public acceptance is crucial for the success of the energy transition. Some 60 per cent of companies consider public support an important challenge, because acceptance largely depends on today’s costs, no matter how high the energy transition’s future revenues in form of energy cost savings or fewer imports might be. The promotion of renewable energy by means of the Renewable Energy Law (EEG) must not overburden households and unduly strain the competitiveness of the German economy. The findings of the KfW/ZEW CO2 Barometer show that companies see the EEG levy as main driver of energy prices. The government proposal to reform the Renewable Energy Law is thus a step in the right direction, because it makes the promotion of renewables more cost-efficient and brings it closer to the market.

Clear Objectives Essential for more Energy Efficiency

The EU Climate Change and Energy Package does not address energy efficiency and defines no non-binding targets. Fortunately the German energy concept does set up clear objectives. The KfW/ZEW CO2 Barometer suggests that companies confronted with government energy consumption targets do implement energy efficiency measures. The energy transition thus requires clear targets for increased energy efficiency.

KfW/ZEW CO2 Barometer

The KfW/ZEW CO2 Barometer is a joint project conducted by KfW Bankengruppe and the Centre for European Economic Research (ZEW). Since 2009, the Carbon Edition has analysed the impact of the EU ETS on the regulated companies. Once a year, about 800 firms are surveyed; approximately 140 of which provide information on their current business situation and future strategies. In 2013 the Manufacturing Industry Edition was launched as a complementary survey among companies of the manufacturing sector. About 70 companies participated in the first round of the survey.

For further information please contact

Prof. Dr. Andreas Löschel, Phone +49/163 6235 200, E-mail loeschel@zew.de