Options for a Climate-Neutral and Sustainable Basic Industry in Germany

  • Project no.152672
  • Duration 01/2022 - 08/2022

With the Federal Climate Change Act, Germany has committed itself to achieving climate neutrality by 2045. The industrial sector is currently the second largest emitter of greenhouse gases in Germany after the energy sector. A large part of this sector’s emissions are caused by a few branches in the basic industry – in particular steel, cement and basic chemicals production.

Against this background, the Office of Technology Assessment at the German Bundestag (TAB) commissioned a report from the consulting firm Prognos that identifies the preconditions for a successful transformation of the basic industries of steel, cement and high value chemicals (HVC) in Germany and discusses the main socio-economic and ecological effects to be expected from such a transformation. Prognos involved the Wuppertal Institute as a subcontractor in the preparation of the report.

The Wuppertal Institute's task was to conduct predominantly qualitative analyses of the economic implications, risks and opportunities of the upcoming transformation for the steel and cement sectors as well as for HVC production and to derive insights for the design of appropriate policy instruments. The methodology used was based on an evaluation of available scientific studies and several interviews with experts from basic industry, plant construction and industry associations. The findings of the Wuppertal Institute's qualitative analyses complemented the quantitative and model-based work carried out by Prognos on the socio-economic implications of the transformation.

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