Energy Transition: Businesses Need Clear Political Support and Less Bureaucracy

• According to a survey, almost 60 percent of private-sector decision-makers are dissatisfied with political support on their path to climate neutrality.
• The gas and hydrogen industry is calling for a feasible and sustainable policy that prioritizes both the competitiveness of our industry and climate protection.
• Kehler: "For a successful transformation, companies need simplified approval processes, targeted investment incentives, and a stable regulatory framework."

With its energy agenda, the CDU/CSU parliamentary group has introduced the first energy policy concept for the upcoming federal election campaign. This is a signal for Zukunft Gas, the gas and hydrogen industry association, to demand a policy for the next legislative period that centers on the competitiveness of our industry and climate protection. The energy transition requires realistic goals and practical measures. A recent survey shows that 58 percent of companies are dissatisfied with the political support they are receiving on their path to climate neutrality. Private sector representatives see an urgent need for political action to enable a successful transformation.

Simplified approval processes, investment incentives, and tax relief are, according to a survey, the most effective levers to support companies in transitioning to a low-carbon energy supply. These priorities are also reflected in the demands of the gas and hydrogen industry, which is pressing for accelerated planning and approval processes to quickly advance the development of new gases such as hydrogen and biomethane. The survey, conducted by the opinion research institute Civey, was commissioned by Zukunft Gas and included responses from 1,000 private sector decision-makers.

Another critical issue is the high costs that companies anticipate on the path to climate neutrality. Nearly two-thirds of respondents consider the additional costs to be high. This underscores the need for political measures that not only facilitate the transition but also alleviate the financial burden on companies. The industry association Zukunft Gas is relying on a combination of long-term investment incentives and market-driven conditions to ensure the economic sustainability of the transformation.

Dr. Timm Kehler, Chairman of Zukunft Gas, adds: "The energy transition needs realistic conditions, simple rules, and less bureaucracy. Companies are ready to contribute to climate neutrality, but they need clear political support. Simplified approval processes, targeted investment incentives, and a reliable regulatory framework are crucial to achieving a successful transformation."

Gas will continue to play a role in a successful transformation: 43 percent of private-sector decision-makers surveyed stated that their companies plan to continue relying on gases to meet their climate goals. This shows that a technology-neutral and market-oriented policy is necessary, recognizing both renewable electrons and green molecules as equally viable energy carriers. While non-decarbonized natural gas will increasingly decline in importance concerning climate goals, it will be replaced by new gases, such as biomethane, hydrogen, and its derivatives. Tools such as the CO2 price and green gas quotas are essential to facilitate this transformation.

To ensure that new gases, particularly hydrogen, reach their consumers, the industry is focusing on expanding hydrogen infrastructure – a priority that aligns with the interests of German companies. The survey reveals that connection to the hydrogen core grid and reducing bureaucratic barriers are decisive factors in advancing the use of hydrogen in industry. This supports the gas and hydrogen industry’s call for consistent implementation of the hydrogen strategy and the development of a robust infrastructure, including not only the planned hydrogen core network but also the transformation of distribution grid.

In the view of the gas and hydrogen industry, the survey results indicate that the next federal government must take decisive actions to support the energy transition. It must reduce bureaucratic hurdles and ease the cost burden for the industry. Only in this way can the transition to a climate-neutral economy succeed and the competitiveness of Germany as an industrial location be secured.