In its energy and climate policy, the German economy warns of distortions of competition with serious effects on jobs in Germany.
“If the burdens keep getting higher, there will be a migration of companies abroad,” said Industry President Siegfried Russwurm of the German press agency. The President of the German Chamber of Commerce and Industry (DIHK), Peter Adrian, told the dpa that German companies, especially the energy-intensive ones, must be able to keep up with international competition.
“If we are now in Europe, and especially in Germany, treading the path that everything becomes more expensive, then this can quickly result in the affected industries and branches of the economy disappearing in this country – because they have to migrate abroad,” said Adrian. «These companies say: With the German energy prices we have no chance in European competition and we are lost in comparison to global competition. We have to go to Eastern Europe or another region of the world, for example, because otherwise we will lose our customers. This is, so to speak, the blind spot of climate policy. Politicians urgently need to deal more with this. That is our main concern. “
Russwurm said: “If we were to become climate-neutral by closing more and more factories in Germany because they are no longer competitive, the global climate would not be helped.” The 1.5 degree target can only be achieved through joint action worldwide. What is meant is the goal anchored in the Paris Climate Agreement of limiting global warming to 1.5 degrees compared to pre-industrial times.
Russwurm: “Germany must take the initiative”
“It would be a good first step for the introduction of a climate club if the G7 states came to an understanding as a coalition of the willing and said: We will agree on minimum requirements for climate protection,” said the President of the Federation of German Industries. “During the G7 presidency, Germany must take the initiative and press for the gradual introduction of CO2 pricing in all G7 countries.”
At the beginning of the year, Germany took over the G7 presidency of leading Western economic powers. Federal Chancellor Olaf Scholz (SPD) had proposed an international “climate club”. Countries willing to protect the climate should take the lead together and also avoid location disadvantages.
Global approaches required
In order to achieve the global climate goals, CO2 emissions not only have to be drastically reduced in Germany and Europe, said DIHK President Adrian. “We absolutely need a global approach to climate protection: the world’s most important economic blocs must agree on common standards. So I think a “climate club” is absolutely right. This is a very important key to really getting the transformation done, and in such a way that the competitiveness of German companies is maintained. ” One instrument would be a minimum carbon price.
Both associations are skeptical of a European CO2 border adjustment tax. It would be difficult to implement, so Russwurm. «Climate policy should not cause trade barriers or distortions of competition. Going it alone in CO2 pricing would threaten this just as much as with the unilateral introduction of climate tariffs, which would lead to counter-reactions. ” Adrian said that the idea of the European border adjustment mechanism does not solve the problem because it does not include exports from Europe.
High electricity prices in Germany
Russwurm said: “If the farmers are dissatisfied, they come to Berlin with a hundred trucks, drive to the Reichstag, and everyone sees the pictures. If the general conditions for investments and maintaining their competitiveness are no longer suitable for industry in Germany, then decisions are made in meeting rooms, or in the family business sometimes in the living room on Sunday afternoons. We didn’t see the effect until years later in the statistics. But the train left long ago. “
Energy-intensive industries would have a particularly difficult time in Germany because Germany is one of the countries with the highest electricity prices in the world. “At some point there comes a point where the company has no other choice. If the burdens keep getting higher, there will be a migration of companies abroad. ” Therefore, the electricity tax in Germany must be reduced to the EU minimum tax rate and the relief of energy-intensive industries must be ensured.