The chief economist at the Potsdam Institute for Climate Impact Research (PIK) recently warned the federal government about the potential consequences of the new heating law. He proposed introducing an investment levy specifically targeting the installation of new oil and gas heating systems. Speaking on the implications of the Iraq conflict, he cautioned the public against poor decisions, stating that people must not genuinely believe that the current price volatility is merely an isolated event.
He emphasized the immediate need to halt the widespread installation of new fossil fuel sources. As a practical and effective measure, he suggested making the proposed investment levy mandatory on such equipment. While understanding that some homeowners rely on gas heating because they cannot afford the extensive renovations necessary to install a heat pump, he still advocated for strict measures.
Regarding economic incentives, he noted that an immediate reduction in the electricity tax would significantly boost the usage of heat pumps. He advised that existing subsidy programs should continue, detailing that support is needed not only for the actual conversion process but also for compensating citizens for current burdens through a climate dividend. He criticized the government’s current approach, stating that the necessary careful design is presently not on their priority list, making this an opportune time for a change in strategy.
On a broader note, the economist warned that focusing on short-term crises always risks overlooking long-term ones. He lamented that climate policy is still frequently perceived merely as a luxury. He strongly argued that without robust climate protection, nations risk destroying their future wealth and assets. According to him, climate policy should be viewed as essential, long-term public welfare and wealth security, not a geographical handicap, but rather a considerable advantage. Furthermore, he advised that the government must not treat climate protection as a scapegoat for systemic failures within the industrial policy strategy.