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Targeted, Ecological and Social? Evaluation of energy policy relief measures

Due to the impact of the COVID-19 pandemic, Russia’s war of aggression on Ukraine, renewed curfews in China, and the consequences of these events on global supply chains, the inflation rate has reached historic levels in reunified Germany since the beginning of the year. The German government has already adopted two comprehensive measures to cushion the impact of rising prices for energy, food and mobility. However, given the increasing uncertainty in the energy supply and continuing high inflation rates, these do not seem to be enough.

Social welfare associations, in particular, have criticized that the relief measures have so far not considered lower income groups and pensioners sufficiently. At the same time, climate experts fear that individual interventions such as the fuel rebate will create false incentives in the fight against climate change.

Against this background, DIW Econ, together with Prof. Dr Claudia Kemfert, on behalf of the Climate Alliance Germany, has evaluated the existing relief measures and provides an outlook on how ecological and distributional effects can be considered together in a new relief package. This is done based on an analysis of five measures in the areas of energy & heat, transport & mobility and food, which are currently being discussed politically and in the media in anticipation of a further relief package.

Recommendation for the further development of the Berlin Energy and Climate Protection Program 2030

The amendment to the Berlin Climate Protection and Energy Turnaround Act (EWG Bln) sets binding climate targets for Berlin: A reduction of CO2 emissions by at least 70 per cent by 2030 and by at least 90 per cent by 2040 compared to the reference year 1990, and the achievement of climate neutrality by 2045 at the latest.

The Berlin Energy and Climate Protection Programme (BEK 2030) is the central instrument for achieving Berlin’s climate targets. According to the Berlin Climate Protection and Energy Turnaround Act requirements, the BEK is to be further developed regularly, and the draft is to be submitted to the Berlin House of Representatives no later than one year after the constitution of the parliament.

G7 Gas Reduction Plan

The recent geopolitical developments have again shown how geographic concentration of fossil fuel production creates global dependencies and affects economies worldwide. Among the G7 countries, the European states are the most dependent on fossil gas supplies from Russia.

DIW Econ’s recent study “G7 Gas Reduction Plan”, commissioned by Greenpeace, on the occasion of the G7 Summit under the German Council Presidency, presents potential climate-neutral technology options implemented by coordinated multilateral action of the G7 states until 2025 to support a reduction of fossil gas demand in the G7 states. The analysis focuses on carbon-neutral options without substituting gas with other fossil fuels or biofuels or significantly reducing industrial production.

2. Online participation: Further development of the Berlin energy and climate protection programme

Since 16.02. to 16.03.2022, the 2nd public participation phase of the further development of the Berlin Energy and Climate Protection Programme (BEK) is possible for the citizens of Berlin, in which suggestions and comments on the further development as well as concrete measures can be submitted and evaluated. Participation is requested through the participation platform of the state of Berlin, mein.berlin.de!

Further development of the Berlin energy and climate protection program for the implementation period 2022 to 2026 – meinBerlin

Supporting Green Economy in Kazakhstan and Central Asia for low carbon economic development – TIMES, CGE, SD –

During the Winter 2021 semi-annual Energy Systems Analysis Program (ETSAP) Meeting on 29th – 30th November 2021, DIW Econ presented a novel approach to integrate three different models – energy system TIMES model, macroeconomic CGE model and sectoral system dynamics (SD) model –into a hybrid integrated assessment model to support the elaboration of a long-term low-emission development strategy (LEDS) for Kazakhstan.