The state of Baden-Württemberg on the road to climate neutrality

The government of Baden-Württemberg has set itself the goal of making the state carbon-neutral by 2040. However, to meet this challenge, transformation efforts on an unprecedented scale are required. On behalf of the SPD parliamentary group in Baden-Württemberg, DIW Econ has analysed how much CO2 emissions need to be saved each year and what measures need to be taken in the buildings, transport, electricity and heat generation sectors to reach the goal of climate neutrality in 2040 by 2030.

The study examined the barriers to the project, both microeconomic and supply-related, and whether the current and planned measures of the state government are sufficient to remove these barriers.

The use of heat pumps in the building sector needs to be multiplied. In addition, energy-efficient renovations must be massively promoted. Public transport needs to be strengthened in the transport sector, and the share of battery-electric or hydrogen-powered vehicles needs to be increased. In electricity and heat production, renewable energies must be consistently expanded.

There are several obstacles to the implementation of these efforts. In particular, the lack of skilled workers in many sectors or the lack of economic viability of measures are currently hampering decarbonisation. In addition, excessive planning and approval procedures or existing infrastructure deficiencies also jeopardise the achievement of targets.

Existing public policies do not adequately address these barriers. In particular, on the supply side, there are insufficient measures in Baden-Württemberg to achieve the 2040 climate targets. On the microeconomic side, many measures already point in the right direction. However, implementation often lags behind announcements.

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