Climate Action 2009-2010

POLICY
GREEN ECONOMY 34
than the impacts of both world wars and the Great
Depression combined.
In relation to this massive damage potential, effective
climate protection – and this is the second piece of good
news – is much cheaper. According to Stern’s review,
the costs of climate protection equal only one per cent
of the gross world product while the EU Commission
estimates 0.5 per cent between 2013 and 2030.
GERMAN CLIMATE PROTECTION
PHILOSOPHY
Germany is a pioneer in climate protection. In the
framework of the Kyoto Protocol, between 2008 and
2012 greenhouse gas emissions in Germany will be
reduced by 21 per cent below their 1990 level. As a
2020 target, Germany will go further and achieve 10
percentage points more than Europe: Germany aims to
reduce its emissions by 40 per cent by 2020.
“
Moving away from coal, oil
and gas towards solar power,
wind power, biomass and
efficiency – that is the motto
for the future
“
Implementing European and national climate
protection targets up to and beyond 2020 requires
nothing less than the fundamental modernisation
of our industrial society. It is a question of a third
industrial revolution: we must organise the transition
from the old, fossil-based energy industry with a
high energy consumption to a modern, low-carbon
society based on renewable energies and high energy
efficiency. Moving away from coal, oil and gas towards
solar power, wind power, biomass and efficiency
– that is the motto for the future. Economic growth
must be decoupled from the emission of greenhouse
gases. For this, we need state-of-the-art technology,
clearly defined measures and targets and binding
timeframes. Accelerating technological progress and
the development and dissemination of sustainable
technologies is an important component of our
climate protection strategy. However, we will not be
able to stop climate change through the promotion of
technological progress alone.
SETTING THE FRAMEWORK
The role of the federal government is to lead the
way in setting the frameworks for climate policy. We
cannot rely on appeals, voluntary agreements or pure
research funding to trigger the necessary innovations
and modernisation drive in energy supply, transport
and building remediation. We have to create economic
incentives and use regulatory law. Success will only be
achieved through a combination of clear regulatory and
fiscal measures, support programmes and intelligent
economic instruments such as emissions trading.
In addition to this, we need independent monitoring
which enables strategies to be reassessed. Every year
in Germany, a balance of greenhouse gas emissions is
drawn up, the success of measures is evaluated and
new measures are taken if necessary. Climate policy is
able to ‘learn’ and react appropriately to the needs of
the economy.
However, the basic prerequisite is that environmental
policy must no longer be perceived as a hindrance for
the economy. These days the best economic policy is
a smart environmental policy. Germany as a major
industrialised country and the world’s export leader
has successfully decoupled continuous economic
growth and greenhouse gas emissions. It combines
the protection of the natural foundations of life, the
efficient use of finite resources and the preservation of
nature’s regenerative capacity with the modernisation
of the economy. It is a helper, an inspiration and a
driving force for innovation.
Framework conditions which enable markets to develop
their strength are our first choice. Where price signals
from the market are not enough, we choose additional
instruments.
BENEFITS FOR THE GERMAN ECONOMY
Its ambitious climate policy makes Germany fit and
competitive for the future. Our approach is to increase
energy efficiency and expand the use of renewable
energies. These are the export technologies for the lead
markets of the future and will generate employment
and economic growth in Germany. An economy based on
efficiency and renewables is less vulnerable when the
oil price rises well above the 100 dollar per barrel mark.
German companies are proving this time and time again
– now more than ever.
Experts of the Fraunhofer Institute for Systems and
Innovation Research and the Potsdam Institute for
Climate Impact Research have calculated what a
programme for reducing greenhouse gases by 40
per cent by 2020 compared to 1990 can mean for the
economy. They based their study on the German
‘Integrated Energy and Climate Programme’ (IECP) and
other national and European measures. The figures
show that climate protection is good for growth and
employment in Germany.
} In total, the measures will reduce energy imports by
nearly €20 billion per year in 2020, and by €35 billion
per year in 2030.
} The climate protection programme will raise net
investments in Germany by over €30 billion per year.
By 2030, average annual gross domestic product will
be more than €50 billion higher than the reference
case. Thus, in macroeconomic terms, the IECP and
other measures will lead to more growth.
} By 2020 at least 500,000 additional jobs will be created
in Germany; in 2030 it could be more than 800,000.
} In 2020 the specific avoidance costs of the -40 per
cent climate protection strategy will be minus €40/t
CO 2
as an overall average. That is to say, the climate
programme has an economic benefit in the form of
long-term cost relief of €40 per avoided tonne of CO 2
.
VISIT: WWW.CLIMATEACTIONPROGRAMME.ORG