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Study: Accelerated energy transition could be economically worthwhile

2024-03-13T12:23:23.536Z

Highlights: Study: Accelerated energy transition could be economically worthwhile.. As of: March 13, 2024, 1:13 p.m By: Fabian Hartmann CommentsPressSplit Researchers recommend investing in the accelerated energy transition. This could be worthwhile, especially in the long term, they say. It could be cheaper for the German economy in theLong term if we manage to become climate neutral by 2045. According to the study, the amount in the business-as-usual scenario could be 13.3 trillion euros.



As of: March 13, 2024, 1:13 p.m

By: Fabian Hartmann

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Researchers recommend investing in the accelerated energy transition.

This could be worthwhile, especially in the long term, they say.

Berlin – If the energy transition continues at its current pace, Germany could miss its goal of climate neutrality by 2045 as agreed in the Paris Agreement.

However, an accelerated switch to renewable energies would also mean new costs.

However, these could still be financially worthwhile, as shown by a current study by the consulting firm PwC, which was available to the German Press Agency (dpa) before publication.

Accordingly, it could be cheaper for the German economy in the long term if we manage to become climate neutral by 2045.

The costs of the business-as-usual scenario amount to 13.3 trillion euros

As part of their study, the authors compare a so-called business-as-usual scenario with the possibility of an accelerated energy transition.

The parameters examined included investment and energy costs.

In addition, the researchers not only take into account the energy industry itself in their study, but also all sectors in which energy is consumed - including areas such as transport, industry and housing. 

Wind turbines and solar systems in Klettwitz, Brandenburg © IMAGO

In the first scenario, they assume that renewable energies will be expanded and electricity and heating networks will be converted at the same pace as previously planned.

This would ultimately lead to Germany missing its legally enshrined goal of climate neutrality by 2045.

According to the study, the amount in the business-as-usual scenario could be 13.3 trillion euros.

Accelerated energy transition would achieve climate goals by 2045 – and be cheaper in the long term

In the accelerated energy transition scenario on which the study is based for the comparison, Germany is investing more and faster in the energy transition than before.

And would achieve the climate goals agreed in the Paris Agreement by 2045 because electricity and heating networks, for example, would be converted more quickly.

The researchers estimate the costs for the accelerated scenario to be a total of 13.2 trillion euros for the period up to 2050, which is already slightly below the costs of the business-as-usual scenario.

The big advantage of the accelerated scenario, however, is that it saves costs in the long term, the researchers write.

The main reason for this is that once climate neutrality is achieved in 2045, no further investment costs will be necessary in this field.

In addition, the savings in energy costs would be greater because less money would be spent on pricing CO2 and energy efficiency would increase.

“The investment costs as part of the energy transition are a significant cost driver, but the energy costs should not be overlooked here,” said Nicolas Deutsch, who is responsible for energy and public consulting at PwC Germany, to the

dpa

.

Investments brought forward could be offset by lower energy costs in the future.

The political advice of the study authors is therefore to quickly reduce greenhouse gas emissions.

They also propose low-interest and government loans to increase acceptance of the energy transition.

(fh)

Source: merkur

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