German Industry Warns of €5.4 Trillion Cost from Energy Transition by 2049

Germany’s influential industry association has cautioned that the country’s ongoing shift to renewable energy could carry a financial burden of nearly €5.4 trillion by 2049 if current policies and investment frameworks remain unchanged.

According to the group, the high costs stem from large-scale infrastructure upgrades, expansion of renewable power capacity, modernisation of the electricity grid, and the deployment of hydrogen and storage technologies. They argue that without more cost-efficient strategies, the energy transition could weigh heavily on households, businesses, and the wider economy.

The lobby stressed that Germany must ensure the transformation is both climate-friendly and economically viable, urging policymakers to focus on innovation, competitive energy pricing, and faster approval processes for projects. Industry leaders have also warned that global competitiveness could be undermined if German firms face disproportionately high energy expenses compared to their international peers.

While the transition to clean energy remains a central pillar of Germany’s climate agenda, the association’s report highlights the need for a balanced approach one that combines decarbonisation with economic stability and long-term affordability.

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