Opening Speech at the „Renewable Energy Conference – Made in Germany“,
German House, June 5, 2007

It gives me great pleasure to welcome you today to this 3rd conference on “Renewable Energy,” organized by the German American Chamber of Commerce.

Energy concerns are today the number one issue in the world arena. And whatever different governments may think about the question of which energy policy should be followed -- especially with respect to the question of global warming -- nobody questions the fact the innovation, technology and renewable energy sources will play a major role in solving the issues before us.

As you are well aware, tomorrow the German Chancellor, Angela Merkel, will welcome the G8 country leaders in Heiligendamm (Germany) to discuss, among other topics, climate change and possible approaches to reducing global emissions. Climate protection is the key issue of Germany’s G8 and European Union presidencies. The German government sees climate change as a challenge for all mankind. The most recent scientific studies have mercilessly reminded us that we must act fast to significantly reduce greenhouse gas emissions. Germany is therefore campaigning hard for the further formulation of international climate policy for the period after 2012. Even if interests diverge at the international level – this was highlighted very clearly by the discussions at the G8 Environment Ministers Meeting and at the EU-U.S. Summit in late April – it is important that the major industrialized nations take the lead on this issue.

Now, luckily, the tone of the discussion has started to change. The old debate between those irreconcilable opposites, the “economy” and “ecology,” has mutated into a debate in which it has become clear that if we do things in the right way, both sides, the environment and business, stand to gain.

On our way ahead, increasing energy efficiency, developing new technologies for power stations, creating energy-saving facilities and environmentally friendly fuels and engines as well as renewable energy sources will contribute to judicious energy security and climate protection.

In March, the European Union decided at its Spring Summit to increase energy efficiency by 20 % and to raise the share of renewable energy in the energy supply to 20% by 2020. In her speech to the European Parliament at the end of March, Chancellor Merkel pointed out “that these binding targets “should enable us […] to present a united front in the international negotiations ahead […]”

But if other partners go along, the willingness of the European Commission to reduce CO2 emissions by 30 % will invite even more ambitious benchmarks.

German climate protection policies have already had an important impact on our policies at home and have helped the German environmental industry take the lead in a number of important fields. And it would be surprising otherwise. Thomas Friedman of the NY Times proclaimed himself a “Green” a few weeks ago. But we should not forget that Germany has had a national Green Party since 1980, and that it has been in our national parliament for almost 25 years and has had seven years in governmental responsibilities – as well as a Chancellor, Angela Merkel, who herself was Minister of Environment under Helmut Kohl. But this is only the beginning of a process and the German Government is doing a great deal in order to favour the development of new technologies, e.g. with the EEG (Renewable Energy Sources Act ). As a result, in the last few years, renewable energy technologies in Germany have developed into an important industrial sector, with high annual growth rates, creating more than 100,000 new jobs.

The German federal government will be launching a package of new measures this coming year as part of its climate protection program, with the aim of implementing the decisions taken by the European Union. Eight policies will be at the center of this program:

- Renewing the power plant park
- Doubling the share of combined heat and power
- Increasing the share of renewable energies
- Promoting energy efficiency in power consumption
- Reducing heat consumption by modernizing buildings and adopting efficient heating systems and production processes
- Generating heat from renewable energy sources
- Increasing efficiency and renewable energy in the transport sector
- and addressing non-energy-related measures.

As you see, renewable energies will be a prime focus of German governmental policy.

The proportion of electricity generation accounted for by renewable energies has already doubled in Germany in a very few years – to about 12% in 2006. According to a major 2007 study on the expansion of renewable energies, renewable sources could account for about 27% of power generation by 2020. The main features will be the continued expansion of wind farming (especially offshore, with repowering on land) and the use of biomass in power plants. In Germany, the Renewable Energy Sources Act has proven to be a very effective instrument in the promotion of renewable energies. The basic principle – a guarantee that power fed into the grid will be remunerated at a fixed price – has proven to be better value for money and to produce more effective results than any other instrument in Europe. The Act will be amended to ensure that the substantial spread of renewable energies will continue.

Promoting renewable energies for heating purposes can also liberate great potential. It is here that renewable energies have the greatest ground to make up. The German government’s aim is to at least double the share of renewables (biomass, solar thermal, geothermal) in the production of heat from the current level of 6 %, by 2020.

The transport sector, which accounts for a quarter of energy consumption in Germany, could also use more renewables. The EU has agreed that by 2020 renewable energies should account for at least 10 % of fuel consumption in Europe. Studies conducted on behalf of the German government indicate that a proportion of 17 % can be achieved by 2020. Second-generation biofuels, such as biogas and BTL (biomass to liquid), will play a decisive role in this process.

It is encouraging that the question of climate change, but also of renewable energies and energy efficiency, is now getting so much attention on this side of the Atlantic. It is encouraging to see the interest that German technology finds in some U.S. states promoting new ecological policies. Two weeks ago, New York hosted the C40 Large Cities Climate Summit and 16 cities (e.g., New York, London, Berlin) agreed to support the Clinton Climate Initiative’s “Energy Efficiency Building Retrofit Program.” With former President Bill Clinton and former Vice President Al Gore, the U.S. now has two very popular figures who are putting all their efforts in raising public awareness of the most important issue of the 21st century.

It is necessary for the leading countries in industry and technology to join forces to continue to develop and use renewables to the best of their capabilities.

Today, you will discuss market developments in key fields of renewable energies. I wish you successful and fruitful talks and new perspectives of cooperation in our common interest. Thank you very much.