Financial experts: Northerners demand compliance with funding commitments for the energy transition

Financial experts: Northerners demand compliance with funding commitments for the energy transition

According to a report by www.sueddeutsche.de, the five northern federal states have called on the federal government to keep its funding commitments for the energy transition. Hamburg's mayor Peter Tschentscher emphasized that the federal government's commitments to promote innovation projects must be implemented. This was decided at an energy convention in Hamburg, which aims to strengthen industry and accelerate the energy transition. The states of northern Germany see themselves as well positioned for a successful energy transition, but they are demanding a bridge electricity price for energy-intensive companies in order to remain competitive as important locations for the basic industry.

Well, the federal government's current goals are ambitious and necessary so that Germany remains competitive. But the Federal Constitutional Court has banned the federal government from reallocating around 60 billion euros in loans originally intended for Corona measures for climate protection. This puts numerous projects from the federal climate and transformation fund in question. This represents an enormous challenge as commitments that have already been made must be kept.

In addition, the President of the Hamburg Chamber of Commerce and Industry, Norbert Aust, and the Chairwoman of the DGB North, Laura Pooth, have different views on the suspension of the federal debt brake. Pooth called for the suspension, while Aust described such demands as a completely wrong signal and emphasized that financial stability is one of the most important prerequisites for economic prosperity. The mayor of Hamburg rejected a suspension of the debt brake in principle, as emergency decisions do not call the debt brake itself into question.

The climate-friendly transformation of industry in northern Germany has already made progress. Companies like Aurubis have found ways to save CO2 in the production of copper, particularly through the use of hydrogen. Nevertheless, the higher cost of hydrogen compared to natural gas poses a challenge, as hydrogen is three to four times more expensive. An increase in the CO2 price will not change this because it only applies in the EU.

The demands of the northern German states and their decisions will have a major impact on the financial sector, especially with regard to the promotion of innovation projects and the financing structure for the energy transition. If the federal government's commitments are not kept, this could lead to a decline in investments in climate projects and a slowdown in the energy transition. This political and economic uncertainty could affect the willingness to invest in the region and lead to a deterioration in the location for energy-intensive industries.