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Study Proves: Climate Protection Pays; 5 Billion by 2020

Homes: Photovoltaic panels on roofs are one example of the growing use of renewables.
© BMU/Brigitte Hiss

The German government’s climate protection program will lead to savings of 5 billion euros in private households and industry by 2020. This is the finding of the interim report on a cost-benefit analysis of the government’s integrated energy and climate program. The interim report was presented by Prof. Andreas Troge, President of the Federal Environment Agency, and Federal Environment Minster Sigmar Gabriel on October 31.

According to the study, the measures adopted by the German cabinet in August in Meseberg will lead to savings of over 36 billion euros for coal, oil and gas. In contrast, the additional costs for corresponding investments will amount to only 31 billion euros. On average, every ton of CO2 saved has a savings effect of 26 euros (“negative avoidance costs”).

The study proves: climate protection pays. “We would be wasting money were we not to implement the Meseberg decisions on climate and energy policy in full,” Minister Gabriel said.

Analyses and Key Findings

Environment Minister Gabriel

The Federal Environment Agency carried out two calculations. Firstly, the climate protection impacts of the integrated energy and climate program were analyzed. Carbon dioxide emissions in Germany can be reduced by 36 percent by 2020 compared with the base year 1990 - if the adopted measures are fully implemented, according to the analysis.

“The findings show: Germany’s climate protection target of minus 40 percent by 2020 is achievable. The Meseberg package alone brings us very close to our 2020 targets," Minister Gabriel said.

Secondly, an expert team, under the lead responsibility of the Fraunhofer Institute for Systems and Innovation Research in Karlsruhe, carried out an economic assessment of the central measures of the integrated energy and climate program. The key findings are

All measures in the field of energy efficiency lead to net savings; the savings in energy costs outweigh the additional investments required.
CO2 avoidance costs through combined heat-power generation and through increased use of renewables in the electricity sector are moderate.
The costs in the heat and biofuel sector are higher. Here we are still at the beginning of a technological development similar to the development we triggered for renewables in the electricity sector five to ten years ago.
In total, the package leads to savings for industry and for households. The government’s support programs (e.g. building modernization program) will ensure that any possibly high start-up investments can be borne by households.

Federal Environment Minister Gabriel: "We will adopt the implementation of the key elements of the Meseberg package in the cabinet before the international climate change conference in Bali at the beginning of December. By doing this we will send an important signal for international negotiations: climate protection pays off."

Source: Federal Ministry for the Environment, Nature Conservation and Nuclear Safety

November 2, 2007

Links

Quantum Leap in Climate Policy at Meseberg Meeting
(August 2007)

Key Elements of Integrated Energy and Climate Program; Decision of German Cabinet on August 23 & 24, 2007, at Meseberg (PDF)

G8 Environment, Energy Ministers Meet in Berlin for Gleneagles Dialogue
(September 2007)

Federal Environment Agency (in English)

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