Review of Climate Lunch April 13, 2010
Low Carbon Economy
On April 13, ESMT hosted the first climate lunch in cooperation with WWF (World Wide Fund for Nature) and BDI (Bundesverband der deutschen Industrie) initiative Business for Climate Protection focusing on the structures we need on our way towards a low carbon economy while competing in a global economy. The speakers were Regine Günther, head of climate protection and energy policy, WWF; Carsten Rolle, head of energy and natural resources, BDI; Christoph Burger, faculty member, ESMT. For the panel discussion, the presenters were joined by Hans-Peter Boehm, vice president government affairs, Siemens AG, and Bernd-Michael Zinow, head economy and politics, EnBW. The event was moderated by Gerhard Irmler of Deutschlandradio.
In an analysis provided by ESMT, Christoph Burger portrayed the climate and R&D performance of 16 European energy incumbents: E.ON, Iberdrola, and RWE were leaders in the increase of energy production per t CO2; Dong energy was best in R&D investment, followed by RWE and EDF. Compared to Asian energy providers (Japan and South Korea) spending between 0.8% and 3% of market capitalization on R&D, the European companies lag behind with only 0.1 to 0.8%. Hence the danger – particularly for the German providers – to drop back in the field of innovators, especially when it comes to CCS i.e. carbon dioxide capture and storage, smart grids, decentralized generation, e-mobility, battery and fuel cell where the danger of losing access to future energy markets is high.
In the same vein, Regine Günther presented the WWF study on "climate protection in Germany up to the year 2050" made it clear that a continuation of the current level of carbon dioxide reduction will lead to an 82% gap between reality and our reduction targets for 2050. WWF recommendations focus on increased product innovation in the areas of energy efficiency, new renewable energy sources, electro mobility, production and use of biomass, smart grids, CCS, energy storage, and the development of new building insulation material. Necessary investments, regulatory frameworks, and step by step fulfillment of these goals within the next 4 decades, said Regine Günther, are vital if we don’t want to lose the environmental battle or eventually face costs, we won’t be able to cover at all.
In essence, Carsten Rolle – and later Hans-Peter Boehm and Bernd-Michael Zinow - agreed with these assessments, but also referred to the competitive requirements industrial players need to respond to. According to the industry representatives, Germany’s leading role in environmental protection can only be sustained, if regulation is extended beyond our borders and ensures the creation of an international level playing field. Christoph Burger concluded that this international playing field is exactly where Germany has to use its leading edge and export the environmental know-how both on the business and regulation side rather than worrying whether industry or the taxpayer is supposed to carry the costs of environmental R&D.
The series of climate lunches will be continued. For further information: christoph.burger@esmt.org
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