Climate Paths 2.0: A Program for Climate and Germany’s Future Development

OCTOBER 2021

With the Climate Change Act of 2021, the German federal government has again significantly raised its climate protection targets, underlining the country’s ambitious commitment to limiting the effects of climate change.

The study Climate Paths 2.0 proposes a program that would achieve 2030 climate protection targets in all sectors (total emission reduction of 65% compared with 1990) and set the important course toward greenhouse gas neutrality in 2045. The program simultaneously aims to preserve Germany’s competitiveness and industrial strength and to allow a socially balanced distribution of costs.

The results were developed and validated in a comprehensive bottom-up process with German industry. More than 150 experts from BCG, the Federation of German Industries (BDI), and some 80 companies and associations were involved from March to September 2021.

How We Developed a Program to Reach Germany’s Climate Targets

Listen in to Holger Lösch, Deputy Director of the German Industry Association, and BCG’s Elisabeth Richenhagen and Stefan Schönberger discuss how we developed a program to address the challenge of reaching ambitious climate targets in 2030 and 2045.

 
 

Twelve key messages from Climate Paths 2.0

1. GREENHOUSE-GAS NEUTRALITY IN 2045 REQUIRES COMPREHENSIVE TRANSFORMATION

2. ACHIEVING 2030 CLIMATE TARGETS ALREADY REQUIRES DRASTIC CHANGES

3. BY 2030, ADDITIONAL INVESTMENTS OF €860 BILLION WILL BE REQUIRED

4. CURRENT CLIMATE POLICY WILL ACHIEVE ONLY HALF OF THE AGREED GHG REDUCTION

5. A BROAD MIX OF TARGETED POLITICAL INSTRUMENTS IS NEEDED

6. CLIMATE PATHS 2.0 PROPOSES A PROGRAM FOR ACHIEVING CLIMATE TARGETS

7. INDUSTRIAL COMPETITIVENESS MUST BE MAINTAINED

8. SOCIAL COMPENSATION MUST DISTRIBUTE HIGHER BURDENS ON PRIVATE HOUSEHOLDS FAIRLY

9. IN 2030, APPROXIMATELY €50 BILLION OF ADDITIONAL PUBLIC SPENDING WILL BE NEEDED

10. CLIMATE POLICY SHOULD BE COORDINATED ON A EUROPEAN AND INTERNATIONAL LEVEL

11. GERMANY NEEDS EFFECTIVE CLIMATE GOVERNANCE QUICKLY

12. BECOMING A CARBON-NEUTRAL INDUSTRIALIZED COUNTRY IS A HISTORIC OPPORTUNITY

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