Germany’s energy transition strategy could place a financial burden of up to €5.4 trillion ($6.3 trillion) on businesses and households by 2049, according to the German Chambers of Industry and Commerce (DIHK). The group issued the warning on Wednesday, cautioning that the costs threaten the country’s competitiveness.
The government in Berlin is targeting 80% renewable power by 2030 as part of its plan to achieve climate neutrality by 2045. While progress in wind and solar capacity has been strong, electricity prices remain among the highest in Europe, raising concerns about future affordability.
DIHK President Peter Adrian said current policies risk driving energy-intensive industries abroad, ultimately weakening Germany’s economic base. He urged policymakers to reconsider the approach to avoid undermining growth and jobs.
A study by Frontier Economics, commissioned by DIHK, showed annual private investments in energy, transport, buildings, and industry will need to rise sharply—between €113 and €316 billion by 2035—compared to an average of €82 billion in recent years.
Between 2025 and 2049, energy system costs alone are projected at €4.8 to €5.5 trillion, with grid expansion accounting for €1.2 trillion and imports reaching as high as €2.3 trillion.
The findings come ahead of a government review of its energy demand and transition plans. The DIHK says this is a crucial moment to introduce cost-saving measures and improve international cooperation.
Among the proposed solutions are stronger reliance on carbon trading, lighter regulation, and extending existing gas networks for hydrogen and decarbonised gas use. Such measures could, the study estimates, save Germany up to €910 billion by 2050.
The total savings could even surpass €1 trillion if the country opts to ease its climate neutrality targets. Advocates argue this would balance sustainability with competitiveness.
Business leaders stress that cost efficiency must remain central to the energy transition to avoid economic setbacks. Without adjustments, the DIHK warns, the green transition risks becoming an unsustainable financial strain.
The report underscores the tension between Germany’s climate ambitions and its industrial strength, setting the stage for a heated policy debate in the months ahead.