Germany's Struggle with Energy Transition

Germany is falling behind in its efforts to transition its energy, transport, and heating sectors compared to other European nations. A recent study by the Bertelsmann Foundation highlights that countries like Denmark and Norway are making significant strides toward full decarbonization by mid-century. In contrast, Germany and the United Kingdom are not on track to complete their transition to renewable energy, heating, and road transport in time. The study, conducted with the Potsdam Institute for Sustainability Research, underscores the progress of these 'pioneer states' towards the 2050 climate neutrality goal derived from the Paris Agreement, to which the EU and Germany have committed.

Denmark and Norway are advancing rapidly in their power and heating transitions. Norway is also on the verge of completing the shift to individual e-mobility soon. Germany, however, has much catching up to do in all three areas. The transition to green electricity in Germany is hindered by inadequately expanded power grids. Official targets for expanding distribution networks and storage capacities, along with better coordination of transmission network goals, are needed for progress.

The immediate rise in the share of e-cars in Germany seems unlikely due to high prices and halted financial incentives. The expansion of charging infrastructure is also lagging. Regarding heating, Germany is performing well in building efficiency but needs to accelerate the phase-out of gas and oil heating to bring CO2 emissions on a climate-neutral course. To meet its self-imposed climate targets by 2030, the annual installation of heat pumps must double, contrary to current trends.

Denmark and Norway's heating transition benefits from high fossil fuel taxes and generous state subsidies for households. Additionally, all buildings in these countries will soon be equipped with smart meters. Germany must better align its political goals, regulations, and infrastructure changes to achieve the ambitious target of climate neutrality by 2050.