Bavaria's companies are struggling with climate goals: investments are stagnating!

Bavaria's companies are struggling with climate goals: investments are stagnating!

In Germany, uncertainty about achieving climate goals is growing, while the economy is stagnating for the third year in a row. A current survey by the Ifo Institute shows that companies continue to invest 11% of their investments in climate protection, although this rate remains unchanged compared to the previous year. Bertram Brossardt, Managing Director of vbw, praises the companies' commitment to environmental issues, but also emphasizes the obstacles caused by bureaucracy and high electricity prices. These factors often slow down necessary investments and cause many Bavarian companies to act hesitantly and sometimes prefer to invest abroad.

In the Bavarian economy, around 85% of companies see climate neutrality as a specific goal, while in 2021 only 45% stated this. Nevertheless, many companies are faced with the challenge of finding the missing funds to actually implement climate protection measures. Particularly alarming is the warning from the ifo Institute that climate goals in the transport sector, including car manufacturers, are at risk. BMW plans to reduce its CO2 emissions by 90% by 2050 compared to 2019 and is increasing investments this year to over 9 billion euros.

Ambitious goals and challenges

Despite optimistic voices that Germany is largely on track to achieve its emissions targets by 2030 and 2045, the path there is rocky. Agora Energiewende describes the 2030 goal as ambitious, while the 2045 goal is currently considered far away. Ifo researcher Gerome Wolf emphasizes that the pace of climate protection measures must increase in order not to miss the desired goals. He criticizes the particularly difficult situation in the areas of traffic and buildings.

Economic policy uncertainties, such as those surrounding funding programs and CO₂ pricing, represent obstacles that make it difficult for companies to give their climate protection measures the necessary emphasis. At the same time, the federal government is calling for a program of measures to achieve the climate target for 2040 within twelve months of an electoral term. The plan, which is due by the end of March 2026, requires clear framework conditions and reliable funding to support companies.

Focus on efficiency and renewable energy

The main motives that drive companies to take climate protection measures are increasing energy efficiency, reducing their own CO₂ emissions and expanding renewable energies. These approaches are crucial to achieving national climate goals. However, the independent expert council for climate issues sees a significant need for action. There are fears that the ambitious climate targets for 2040 and the goal of climate neutrality from 2045 will likely be missed.

Overall, the situation remains tense: while investments in climate protection remain stable, the current situation requires faster, diverse initiatives in order to successfully overcome the challenges of global warming. The Bavarian economy is struggling with uncertainties and bureaucratic obstacles that have a strong impact on commitment to climate protection.