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German CEOs Urge Government to Stay the Course on Energy Transition

Germany’s corporate elite sent a rare unified and blunt message to the federal government: stick with the Energiewende-but establish conditions under which business can remain competitive and fit for the future, too. The appeal, part of an industry-backed 12-point call that came out today, underlines the growing urgency within German industry as companies navigate an increasingly complex mix of rising energy costs, global competition, and accelerating climate obligations.

The statement, co-signed by CEOs across industries such as retail, engineering, construction, aerospace, and industrial technology, makes one thing clear: German business leaders do not view climate action and industrial strength as mutually exclusive. Instead, they affirm that climate-neutral growth will only be achieved if policymakers prioritize clarity, stability, and reduced bureaucratic hurdles.

A Push for Predictability and Practicality

A key point in the CEOs’ appeal is the one on the need for a stable and predictable policy environment. Businesses operating in energy-intensive sectors report that their long-term investment decisions depend a great deal on regulatory certainty. Without clear timelines, consistent rules, and predictable incentives, companies said they fear Germany is at risk of falling behind more business-friendly nations in North America and Asia.

The executives underlined that they agree with the key goals of the “Energiewende” — Germany’s ambitious transition toward renewable energy and a low-carbon economy. On the other hand, they warn that inconsistent policy, delays in approvals, and fluctuating subsidy frameworks create an environment that discourages forward-looking investments.

Energy Prices: Still Hurting by Benjamin McLennan

Probably the most powerful message in the appeal is that of German electricity prices, among the highest in Europe. Energy bills now account for a sizeable and growing proportion of operating costs for manufacturers in such sectors as chemicals, automotive components, heavy engineering, and metals.
Chief executives cautioned that if Germany hopes to stay an industrial powerhouse — as competitors elsewhere in the world are racing ahead with competitive tax breaks and access to cheaper energy — it needs to reform its system for pricing electricity. Suggested measures include:

targeted relief for energy-intensive sectors.

Expansion of renewable capacity without burdening the consumers.

and reforms that stabilize the European Emissions Trading System.

For many signatories, reducing energy costs is not simply a matter of preference but of urgency in securing major production facilities on German soil.

Accelerating Innovation: Hydrogen, CCUS, Electrification

The letter of the CEOs calls on the Committee to accelerate action in the deployment of climate technologies, comprising industrial decarbonisation. This includes :

Hydrogen infrastructure for transport, heating, and industry;

Carbon capture, utilization, and storage for industries where complete abatement is technologically difficult;

Industrial electrification would require enormous expansions of renewables and grid capacity.
The executives say that Germany has the necessary scientific capability and industrial base to be a world leader in those areas-but only if the government acts decisively. Bottlenecks created by slow permitting processes, unclear certification standards and fragmented policy direction stall progress.

Bureaucracy: The Barrier Everyone Agrees On

Much of the appeal focuses on Germany’s notorious bureaucratic delays, especially in planning, environmental approvals, and infrastructure development. Most renewable energy projects – whether solar installations, offshore wind farms, or power grid upgrades – face multi-year waiting times due to administrative backlogs.

CEOs underscore that reducing bureaucracy is not weakening environmental safeguards but about making the systems digital, faster, and more efficient. The streamlining of procedures would not only speed up projects on green transition but also strengthen investor confidence.

Why This Appeal Matters Now

Germany has reached a critical juncture: What was once Europe’s strongest economy is seeing weak growth, high energy prices, and hesitant investment. Meanwhile, ambitious 2030 climate targets would demand rapid progress in both the adoption of renewables and carbon reduction.

What all these industrial leaders have indicated is that while Germany cannot afford to slow down the energy transition, it cannot pursue it in a manner that would undermine industrial competitiveness.

Broader Implications

This appeal carries wider significance beyond Germany: many industrial economies, such as Japan, South Korea, and India face the same problems of maintaining growth in conjunction with the green transition. Germany’s approach, shaped heavily by industry feedback, might serve as a blueprint for countries seeking to modernize manufacturing while meeting climate commitments.

Conclusion German chief executives do not oppose the transition to clean energy-they are reinforcing it. Their message is one of partnership: Politicians should work together with industry to create a climate-neutral economy that is technologically advanced, economically powerful, and globally competitive. The next steps the government takes will play a major role in determining whether Germany will remain an industrial powerhouse in the decades ahead.

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