Supplementary Study on 'New Paths for the Energy Transition': Better Governance Required for a Successful Energy Transition

Study highlights the institutional improvements required to make the energy transition more efficient and cost-effective.

The study 'New Paths for the Energy Transition', published by the DIHK in September, demonstrates that the current direction of the energy transition in Germany poses economic challenges that are difficult for industries to bear. Beyond reducing direct and indirect energy costs, more efficient legislation and governance are necessary. This includes improved coordination between authorities, federal and state levels, faster approval processes, and clearer funding schemes. The supplementary study II 'Institutions', commissioned by the DIHK, examines the institutional improvements needed to make the energy transition more efficient and cost-effective.

The study offers eight specific recommendations for governance, structural, and process improvements:

  1. Implement EU directives ‘1:1’ – Avoid gold-plating
  2. Harmonise target years for climate neutrality within the EU
  3. Utilise an ‘Energy and Climate Cabinet’ as a coordination body
  4. Strengthen independence in monitoring the energy transition
  5. Merge operational tasks into an 'Energy Transition Agency'
  6. Modernise operations in authorities – digital, project-oriented, agile
  7. Accelerate approval and planning procedures
  8. Enhance efficiency and effectiveness of public funding programmes

"The study outlines how a capable, digital, and adaptable state can simultaneously maintain international competitiveness, effective climate protection, and supply security," states Achim Dercks, Deputy Chief Executive Officer of the DIHK. "We must move away from state micromanagement and towards strategic guidelines with streamlined implementation. Only in this manner can we achieve climate neutrality without sacrificing prosperity and competitiveness."

The study is available for download on the Website of Global Energy Solutions (only available in German).

Relevant in topic:
Key areas:
  • Klima

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Julia Löffelholz

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