The energy transition is causing heated discussions.
A look at Scandinavia, for example, shows how the path to a flourishing green electricity economy can succeed, writes Prof. Claudia Kemfert from the German Institute for Economic Research (DIW), in the guest article - including the strengthening of regional crafts and the creation of new jobs.
Berlin - Germany paradoxical.
The majority of the population wants climate and environmental protection, but changes are not very popular: "Wash my fur, but don't get me wet." Germany's energy and climate policy has been designed according to this motto over the last 15 years, in as much as possible no fur was washed.
That way you're guaranteed not to get anyone wet.
We are now up to our necks in water.
Because we are all stuck in the greatest energy crisis in history, because the paradoxical "fur washing policy" has led our economy into a dangerous dependence on fossil despots.
Unsurprisingly, we are a long way from achieving climate targets in many sectors.
The fact that this is still successful in some sectors is less due to the "fur policy" than to the crisis that arose from it.
Traffic light government is tackling the energy and transport transition
But now it should finally start.
The traffic light government is rolling up its sleeves.
The building sector is particularly polluted.
The heat transition is now intended to flush the CO2 emissions out of the system.
Obsolete fossil oil or gas heating systems are to be converted to sustainable heating systems including heat pumps.
And in the transport sector, which is also super dirty, the EU has heralded the sweeping weeks: From 2035 there should be no more new cars that emit CO2.
voice of economists
Climate change, corona pandemic, Ukraine war: Rarely before has interest in the economy been as great as it is now.
This applies to current news, but also to very fundamental questions: How do the billions in corona aid and the debt brake go together?
What can we do about the climate crisis without jeopardizing our competitiveness?
How do we secure our pension?
And how do we generate the prosperity of tomorrow?
In our new series,
Voice of the Economists,
Germany's leading economists provide guest contributions with assessments, insights and study results on the most important economic issues - profound, competent and opinionated.
The benefits are undisputed: the long-term "combustion phase-out" throughout Europe creates planning security for investors and industry, who draw courage from it to invest in future technologies.
Moving away from fossil fuel heating and tank systems saves economic costs and increases security of supply through energy independence.
The energy industry is gaining momentum from the heat transition because passive consumers are now becoming active "prosumers" who at the same time produce, use, store and sell green electricity - extremely conveniently.
Because the modern heating and energy systems stabilize the regional network in a digitized way.
The example of Scandinavia
A look at Scandinavia shows how heat pumps and emission-free local heating networks can be combined to form a flourishing and efficient green electricity economy.
Heat pumps are not only significantly more efficient and therefore cheaper than conventional fossil heating systems, they are especially so when compared to heating systems based on hydrogen.
And from an economic point of view it is particularly pleasing that the heat transition strengthens regional crafts and creates jobs and added value.
So a win-win-win situation.
But of course, this thorough fur wash does not work with dry shampoo.
When converting the system, some even fear extreme wetness.
The screaming is correspondingly large.
This childish defiance suits those who have hitherto made a living from fossil dirt.
Fur washing disrupts their business.
So they do everything imaginable to prevent the abandonment of fossil energies and stage a huge defamation theater: Any proposed solution for modern, emission-free heating or tank systems is torn apart within seconds with a roar in the air.
Facts are twisted and instead castles in the air full of emission-free technologies are conjured up - so that everything can stay as it has been.
It doesn't matter that the costs for e-fuels are five times as high!
It doesn't matter that the CO2 prices, which are currently still capped, would rise through the roof in the free market!
That we're running out of time, what the heck!
also read
How long house prices could continue to fall and how serious the situation really is
How long house prices could continue to fall and how serious the situation really is
Location ranking: Germany's decline is worrying
Location ranking: Germany's decline is worrying
Shortage of skilled workers: Germany must make immigration more efficient
Shortage of skilled workers: Germany must make immigration more efficient
Time for a reality check on current energy policy
Of course, the increasingly urgent restructuring of our economy and society will be a tour de force.
Subsidy programs will be needed to finance the changeover, to train enough craftsmen and to counteract possible material shortages.
But the fact that this is necessary is the result of the previous cloud cuckoo land economy and “fur” policy.
This is exactly why we have to change course now.
"Wash my fur, but don't get me wet" no longer works.
Time for a reality check.
Germany and Europe start the laundry day!
About the author: Prof. Claudia Kemfert is head of the Energy, Transport and Environment department at the German Institute for Economic Research (DIW) in Berlin and Professor of Energy Economics and Energy Policy at the Leuphana University of Lüneburg.