02/19/25 Energy efficiency Renewable energies Legal framework Heating transition Transforming the economy Safety

Key areas of action for the next legislative period

dena-CEO Corinna Enders with recommendations for energy and climate policy action

On 23 February, the citizens of our country will elect the 21st German Bundestag. The signs of this election are very different from the previous one in September 2021: the geopolitical order is in a state of fundamental upheaval, fierce controversies are dominating the social debate and the previous coalition broke up prematurely.

Even if the issues of climate protection and the energy transition are less at the centre of electoral preferences, this does not change the urgency and scale of the associated tasks.

We have drawn up 12 guidelines for the areas of action that dena considers crucial in order to make climate neutrality in Germany a success story:

Financing the transformation
The key role of local authorities
Electricity grids: Expansion, financing and security
Infrastructure for hydrogen and CO2
Heating grids: Financing and municipal participation
Digitalisation of the energy industry
Multimodal transport infrastructure
Energy industry and generation
Buildings: efficiency through refurbishment
Innovations and start-ups
Transformation of the industry
Sustainable mobility system

Which guiding principles keep us on course for climate neutrality

In order to master the complex challenges, a cross-party and cross-institutional vision of climate neutrality is needed. This also means not wasting energy on paralysing debates about targets. Climate neutrality 2045 has been set and the joint effort is focussed on stringent management and implementation. This is precisely where courage to take new paths and a willingness to change are needed. The growing complexity of the tasks also requires more centralised management and coordination within the federal government, for example through the resumption of the Climate Cabinet, as well as more intensive coordination and efficient division of tasks between the federal, state and local authorities.

Above all, the various instruments need to be further developed in a more targeted and socially balanced manner. Combined with stable financing of the accompanying funding programmes that extends beyond individual government periods, this creates the necessary planning security, triggers private investment and increases acceptance of the transformation.

The as yet unresolved task of permanently financing the transformation - be it through an adjustment of the debt brake, a special fund or an adequately resourced energy transition fund - therefore needs a decision on direction quickly.

What instruments we need

We need an effective, efficient energy transition that is supported by society. This does not require an ‘either or’ approach between the state and the market. We need both: a state that sets and supports clear guidelines and a market that generates innovation and utilises competitive efficiency. The key lies in striking the right balance between political control and freedom for market players to compete for the best solutions. At the same time, of course, there is no one-size-fits-all solution; instead, balanced solutions are needed depending on the sector and initial situation.

A central guiding instrument in which the two levels interact is the CO2 price. The state sets rules and targets, which mobilises private capital and steers investments in the market. The carbon price can only be fully effective if its role is reliably defined in the long term, including a roadmap for including as many climate-damaging emissions as possible in the system. At the same time, it is the task of the state to recognise and cushion any social hardship arising from the rising price level at an early stage.

Federal subsidy for energy-efficient buildings. The combination of a legal framework and accompanying subsidies opens up a broad scope for market-based offers. The state provides guidance for the market as to which standards and technical solutions can be used for future construction.

The regulatory guard rails through to regulatory law, the state promotion of market ramp-ups of new technologies such as the necessary infrastructure and the social balancing of burdens remain a central public task. This, in turn, requires state actors that are capable of acting and have sufficient personnel and financial resources at their disposal.

Download “12 Leitplanken für die nächste Legislatur” (PDF, in German, 514 KB)

It is only logical for the public sector to set a good example and encourage others to follow suit. So far, however, this role model function has not been practised enough. Although the objective has been formulated in numerous legislative proposals with corresponding tasks, the motivation, information and support required for successful implementation by the public authorities is lacking. In particular, there is a lack of communication on specific measures and best practice.

This role model is particularly relevant in the municipalities. There, the state can be experienced directly. The climate-neutral refurbishment of a school, new transport options, the commissioning of a heat pump or a solar energy system, for example, are occasions to emphasise the relevance of such measures not only for climate protection, but also for local value creation.

The federal government cannot fulfil its role model function on its own. This requires close cooperation with the federal states and local authorities. With the existing regional networks, such as the energy and climate protection agencies or chambers of industry and commerce, there is a broad circle of actors that can play a part. The federal government should strengthen these locally anchored structures.
Energy efficiency is the long runner for climate protection and the energy transition - sometimes arduous, but indispensable for an overall systemically efficient path to climate neutrality. It is important not to lose momentum here, but to keep on running consistently. Previously unutilised savings potential in industry, trade and service companies, particularly in systems or processes such as process heat, must be exploited more consistently. Energy efficiency and climate protection networks are a simple yet effective measure. Over the past ten years, more than 350 company networks and over 100 municipal networks have achieved many terawatt hours of energy savings through the exchange of experience and a five-digit number of energy efficiency measures alone.

Another very effective measure is subsidised energy advice. In the building sector, it will be very important to reduce demand through efficiency measures. If this potential can be realised, it will have a direct impact on security of supply, energy costs and the dimensioning of infrastructure expansion.

Digitalisation is the backbone of the energy transition. In the previous legislature, important steps were taken in this area with smart meters and the control of generators and consumers. What is still missing is a trend-setting vision for the overall system. A central component of this is how the flow of data between the sectors and their respective players can function in a decentralised energy system. If the principles of digitalisation are integrated into the transformation processes - interoperability, data orientation, automation and security - this will bring significant cost benefits.
If the principles of digitalisation are integrated into the transformation processes - interoperability, data orientation, automation and security - this will bring significant cost benefits.
The past legislative period has also shown this: The transformation can be felt by everyone - in the economy as well as in our own homes and immediate surroundings. This is exemplified by the disputes surrounding the Heating Act.

One consequence of this is that we need to take a closer look at the real burdens, obstacles, reservations and wishes across society. Otherwise, we run the risk of jeopardising the continued broad acceptance of the energy transition and climate protection.

Communication is key - well-founded, targeted, at eye level and with the consistent involvement of local stakeholders. We experienced this during the nationwide campaign for Heat Pump Week, which was supported by more than 30 regional partners. Together, we were able to inform tens of thousands of people directly about switching their heating system to renewable energies. Local and regional energy agencies played a central role in this.

The second central aspect: greater participation of citizens at various levels. One measure would be a nationwide regulation on the financial participation of stakeholders in local energy transition projects. Further simplification of tenant electricity projects, energy sharing or direct local procurement can also achieve valuable involvement.

Third aspect: socially staggered and targeted support for financially weaker households. A socially designed climate money can be used to support people who are disproportionately burdened by high CO2 prices. Any support in the form of direct subsidies for citizens should be targeted, degressive according to social criteria and reliably available in sufficient amounts.

Download “12 Leitplanken für die nächste Legislatur” (PDF, in German, 514 KB)