High energy costs are becoming a serious challenge for more and more businesses: investments are being postponed, production capacities are relocating abroad, and the competitiveness of Germany as an economic location is under pressure. This is evidenced by the latest Energy Transition Barometer from the German Chambers of Commerce and Industry (IHK organisation). The results are based on responses from around 3,100 companies across all sectors and regions as of June 2026.

At the same time, businesses are not questioning the energy transition itself. They generally support the goal of climate neutrality but also expect a climate policy that combines transformation with competitiveness. According to many companies, there is considerable need for action in this area. Energy-intensive companies in particular are facing increasing burdens exacerbated by international crises and ongoing structural weaknesses in the local environment.

Energy Transition Impacts Competitiveness

Over the past 12 months, energy costs have continued to rise: 49% of businesses report higher electricity costs, and 67% report increased heating costs, especially for gas and heating oil. As a result, the value of the Energy Transition Barometer, which measures the impact of the energy transition on competitiveness, has deteriorated. Following a temporary recovery, the value for 2026 is at minus 11.5 points on a scale from minus 100 to plus 100.

The assessment is particularly critical in the industrial and trade sectors, both of which show a value of minus 22 points. While the industry directly suffers from high energy costs, trade is affected indirectly through increasing costs for materials, transport, and logistics. At the same time, the declining purchasing power of many consumers weakens demand.

Regionally, the picture is mixed. In Northern Germany, the impact of the energy transition is partially viewed more positively, as renewable energies are increasingly becoming an economic factor there. In Western, Southern, and Eastern Germany, however, the evaluation has worsened compared to the previous year.

Deindustrialisation Becomes Reality

The investment situation is problematic. Around one-third of businesses are postponing expenditures for their core processes because high energy costs limit financial flexibility. Climate protection measures and research and innovation projects are also being delayed. The restraint is particularly pronounced in the industrial sector, where 35% of companies report postponing necessary investments due to high energy costs.

The financial pressures also have a direct impact on business competitiveness: more than 40% of companies see their market position weakened by unfavourable cost structures, and this number rises to around two-thirds in the industrial sector. At the same time, business closures are continuing: around 20% of all companies are considering ceasing economic activities in Germany, or have already initiated or implemented such steps. In the industrial sector, this applies to 40% of companies, and for large industrial enterprises, nearly 60%. The risk of creeping deindustrialisation is increasing.

Political Countermeasures Desired

Against this background, many businesses support measures to bolster the energy infrastructure, accelerate grid expansion, and reduce taxes and levies on electricity. Additional burdens through regulatory requirements or rising CO₂ costs are critically assessed. The debate surrounding the reform of the European Emissions Trading System also shows that awareness of the economic consequences of the transformation is growing, and the question of balancing climate protection with competitiveness is becoming increasingly significant.