Climate protection programme will lead to savings of five billion euro

The German government’s climate protection programme will lead to savings of five billion euro in private households and industry by 2020. This is the finding of the interim report on a cost-benefit analysis of the government’s integrated energy and climate programme. The interim report was presented today by Prof. Andreas Troge, President of the Federal Environment Agency and Federal Environment Minster Sigmar Gabriel.

According to the study, the measures adopted by the German cabinet in August in Meseberg will lead to savings of over 36 billion euro for coal, oil and gas. In contrast, the additional costs for corresponding investments will amount to only 31 billion euro. On average, every tonne of CO2 saved has a saving effect of 26 euro ("negative avoidance costs"). The study proves: climate protection pays off. "We would be wasting money were we not to implement the Meseberg decisions on climate and energy policy in full," commented Minister Gabriel.

The Federal Environment Agency carried out two calculations. Firstly, the climate protection impacts of the integrated energy and climate programme were analysed. According to this, with the adopted measures CO2 emissions in Germany can be reduced by 36 percent by 2020 compared with the base year 1990 - if the measures are fully implemented. "The findings show: Germany’s climate protection target of minus 40 percent by 2020 is achievable. The Meseberg package alone brings us very close to our 2020 targets," noted Minister Gabriel.

Secondly, an expert team, under the lead responsibility of the Fraunhofer Institute for Systems and Innovation Research in Karlsruhe, carried out an economic assessment of the central measures of the integrated energy and climate programme.
The key findings are:

• All measures in the field of energy efficiency lead to net savings; the savings in energy costs outweigh the additional investments required.
• CO2 avoidance costs through combined heat-power generation and through increased use of renewables in the electricity sector are moderate.
• The costs in the heat and biofuel sector are higher. Here we are still at the beginning of a technological development similar to the development we triggered for renewables in the electricity sector five to ten years ago.
• In total, the package leads to savings for industry and for households. The government’s support programmes (e.g. building modernisation programme) will ensure that any possibly high start-up investments can be borne by households.

Federal Environment Minister Gabriel: "We will adopt the implementation of the key elements of the Meseberg package in the cabinet before the international climate change conference in Bali at the beginning of December. By doing this we will send an important signal for international negotiations: climate protection pays off."

Further information:

• Key Elements of an Integrated Energy and Climate Programme
• Background paper: Costs and benefits of the German government’s energy and climate package
• Press release as of 24.08.2007: Sigmar Gabriel: climate protection also benefits consumers and the economy
• Press release as of 19.09.2007: Gabriel welcomes European Commission's legislative package for the EU electricity and gas markets