Industry in crisis: Green transformation is stalling – what now?

Industry in crisis: Green transformation is stalling – what now?

The transformation towards a climate-friendly industry faces significant challenges. Despite the urgency to reduce CO₂ equivalents, change is stalling in many industries. According to a report by Blackout News shows that companies that have increasingly relied on sustainable production methods in recent years must rethink their investment strategies due to ongoing economic weakness. The situation is further exacerbated by geopolitical developments, according to a study by EY This means that 17 percent of companies have already postponed concrete decarbonization measures.

Significant investment cuts are being observed, with over half of companies reporting that their willingness to invest in sustainability projects has decreased. Only 52 percent are currently making fewer investments than originally planned, according to the EY study. This development contradicts the urgent need to accelerate change, particularly in key industries such as steel, chemicals and cement.

The current status of climate initiatives

Another finding from the study shows that companies primarily invest in measures that promise a quick payback. This includes converting to LED lighting and using waste heat. Over 90 percent of the companies surveyed have already converted their lighting to LED, and 73 percent now use waste heat or heat recovery technologies. Investments also flow into more efficient production techniques; over 70 percent use technologies with higher energy efficiency.

The study results also show that 63 percent of companies purchase green electricity, while 66 percent have switched to photovoltaics. The average energy consumption reduction target is 14 percent, with larger companies with annual sales of over 1 billion euros aiming for an even higher reduction of 16 percent.

Bureaucratic hurdles and political uncertainty

Despite the diverse approaches to improving energy efficiency, bureaucratic hurdles remain a serious problem. 85 percent of companies see bureaucracy as the biggest external obstacle to their decarbonization goals. Slow approval processes and unclear responsibilities make it difficult to implement even simple projects. Furthermore, political uncertainty means that many companies are unable to make long-term planning, which makes Germany increasingly unattractive as a location in international comparison.

The positive development is also slowed by concerns about a global recession, which 30 percent of the companies surveyed see as a threat to their climate goals. Financing remains a key issue as companies need a clear business case for costly sustainable measures. The delay in implementing the energy transition is perceived as a structural threat to the economy, jobs and climate goals.