Measures to reduce industry GHG-emissions in a short to medium timeframe

To meet the targets of the Paris climate convention, Germany has to drastically cut its greenhouse gas (GHG) emissions. The Federal Climate Change Act (KSG), amended in 2021, aims for industry GHG reduction from 186 million tons CO2 equivalents in 2020 to 157 in 2025 and 118 in 2030. The Umweltbundesamt (UBA) calculates the actual occurred emissions in the sectors and reports its findings to the Council of Experts on Climate Change (ERK). If the determined emissions exceeded the set goals, the responsible ministry is obliged to present a policy package within three months. According to the UBA, the industrial GHG-emissions in 2020 amounted to 178 million tons CO2 equivalents, lower than the set target due to economic effects of the coronavirus pandemic.

Projections from 2021 signal that the emissions reduction path for industry can be met until 2022 with existing measures. From 2023 onward, however, the reduction gab grows, to about 36,6 million tons CO2 equivalents in 2030. In response, the responsible ministry, the Federal Ministry for Economic Affairs and Climate Action (BMWK), announced the development of two policy packages during 2022. In addition to energy efficiency, excess heat recovery and decarbonisation of production processes will play an increasingly important role.

PricewaterhouseCoopers (PwC) (project lead), the Forschungsgesellschaft für Energiewirtschaft (FfE) and adelphi supported the BMWK in developing the first policy package.