The expansion of renewable energies must be pushed ahead in order to reduce dependence on oil, gas and coal.
(Photo: dpa)
Berlin When he took office, the Federal Minister for Economics and Climate knew that the challenges in his new position would not be small. Green politician Robert Habeck described the necessary climate-friendly restructuring of the economy as the “task of the decade”. Little did he know that shortly thereafter the challenges of the Russian war of aggression against Ukraine would intensify.
On Wednesday, Habeck presented his plan for the expansion of renewable energies in a timely manner, which also commands respect from economists: “The ministry is setting an impressive pace in order to tackle the challenges of the energy transition,” said Veronika Grimm, a member of the German Advisory Council for the Assessment of Overall Economic Development Thursday. “And against the background that the ministry is currently dealing with many other areas of action with great urgency, above all the Russian war of aggression in Ukraine.”
Ottmar Edenhofer, climate economist and director of the Potsdam Institute for Climate Impact Research (PIK), spoke of an “important package” with which the expansion of renewable energies could go ahead.
In a guest article for the Handelsblatt, Grimm and Edenhofer, together with Andreas Loeschel, Professor of Environmental/Resource Economics and Sustainability at the Ruhr University Bochum, spoke out in favor of examining the financing of renewable energies and adapting the support system. “Now it is important not to override market mechanisms,” say the economists.
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Both Grimm and Edenhofer miss the European perspective in the Easter package. “The war is forcing us to increase our potential in Germany, but also in Europe,” said Grimm. Germany must increasingly seek cooperation with neighboring European countries in the expansion of renewable energies, she said. “Here one would wish that this would be pursued ambitiously.”
In Europe, there are “excellent locations” for the production of renewable energies and, in the future, also for the production of green hydrogen, according to the economy. It is therefore essential to think beyond the national level.
1.5 degree target at risk
Edenhofer warned not to let up on the expansion of renewables: “This week we not only received the Easter package, but also the report from the Intergovernmental Panel on Climate Change.” so much climate-damaging CO2 that without countermeasures the door to the 1.5-degree target will be irrevocably slammed shut.
According to Edenhofer, this also has fundamental implications for the European level. The fact that the price of gas is currently rising faster than the price of coal gives Europe an incentive to rely more on coal-fired power plants. However, as long as Europe does not shake the permitted upper limit for emissions, emissions will not increase despite greater use of coal-fired power plants.
Ottmar Edenhofer and Veronika Grimm believe that Germany must increasingly seek cooperation with neighboring European countries in the expansion of renewable energies.
(Photo: imago images (2))
Edenhofer therefore sees the greater challenge in quickly establishing emissions trading for transport and heat in Europe. “This is the path to reducing dependency on oil and gas.”
As an alternative to stopping imports of oil and gas from Russia, Edenhofer again brought up a tax on Russian energy imports. In order to ensure the most effective enforcement possible, Europe should agree on this together. At least some of the revenue from the taxation could be paid into a trust fund that would later be available for Ukraine’s reconstruction.
Gas imports could also be taxed. However, oil is much more important for the Russian state budget than gas.
Relief for low-income households
In view of rising energy prices, both Grimm and Edenhofer spoke out in favor of supporting low-income households in particular. The previous relief pacts were not sufficient.
The economists also recommend a new look at the industry. Especially in areas where the energy source gas should serve as a bridging technology on the way to climate-neutral green hydrogen, the transformation paths should be reconsidered and adapted. “It’s getting more difficult now, and you need answers,” said Grimm. The Easter package has not yet been able to answer these questions, she said.
More: Comment: Habeck’s “Easter package” raises expectations that can hardly be fulfilled