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 that the measure will not deliver a lasting improvement, citing that it only subsidizes 50 percent of electricity consumption for specific companies, subject to additional compliance costs.
Adrian emphasized that the industrial electricity price will not offset the fact that energy costs in Germany remain up to six times higher than in the United States. He also described the reduction of electricity tax for manufacturing as merely a continuation of the status quo, rather than substantial relief.
Despite these reservations, Adrian praised initial steps taken by Federal Minister for Economic Affairs, Katherina Reiche, in energy policy. He welcomed what he perceives as a return to pragmatism within the ministry, noting Reiche’s recognition of the continued need for gas-fired power plants to ensure supply security following the phase-out of coal. Adrian also commended Reiche’s decision to enable carbon capture and storage (CCS), viewing it as a necessary step towards climate neutrality for many industries.
Adrian contrasted this approach with that of his predecessor, Robert Habeck, who he stated largely focused on achieving climate goals through government intervention. He argued that this led to costly missteps without achieving the desired results, citing the coal phase-out as an example where insufficient replacement capacity was secured.
Scientists with the Intergovernmental Panel on Climate Change (IPCC) recognize CCS as a crucial tool for managing unavoidable emissions in sectors like cement, steel and chemicals. However, the IPCC also cautions that plans for atmospheric carbon removal could undermine the incentive for immediate emissions reductions. The scalability and cost-effectiveness of CCS projects remain a challenge, with current capacity falling short of planned levels. A key concern is ensuring the long-term, leak-proof storage of captured carbon to prevent its eventual re-entry into the atmosphere and contribution to global warming.