Aiwanger warns: Climate policy threatens to deindustrialize Germany!

Aiwanger warns: Climate policy threatens to deindustrialize Germany!

The debate about climate policy in Germany and the EU is gaining momentum. Bavaria's Economics Minister Hubert Aiwanger has now clearly supported the criticism of the President of the German Chamber of Commerce and Industry (DIHK), Peter Adrian. Aiwanger described German climate policy as a “know-it-all” and emphasized that industry urgently needs to raise its voice to protect Germany as an industrial location. He warns of the effects of an ideological climate policy, which not only threatens the growth but also the competitiveness of the auto industry.

“The negative perception of our economy, especially the auto industry, has its origins in the diesel scandal,” said Aiwanger. He sees a critical connection between climate policy and the political division in the country. According to him, the current measures lead to a risk that Germany will lose market share while other countries with less stringent environmental standards produce and benefit.

Crisis in the car industry and EU regulations

The German auto industry is in a deep crisis that not only affects national interests, but also endangers the competitiveness of the entire European economy. In this context, the EU has adopted a step-by-step plan that regulates the reduction of CO2 emissions from new vehicles. Stricter fleet limits will come into force from 2025, and the target average emissions of 93.6 g CO2/km will only amount to 49.5 g CO2/km by 2030. Car manufacturers are facing major challenges as they come under pressure to adapt their models to the new specifications, while the market for electric cars has stagnated.

This development can also be seen in internal documents of the European automotive industry. According to a warning letter, the industry can hardly comply with the upcoming tightening of EU climate regulations. The industry faces possible fines running into billions if the set CO2 limits are exceeded. The current limit is 115.1 g CO2/km and will be reduced further in the coming years.

Consequences for employment

The situation could have serious effects on the labor market. It is estimated that failure to comply could result in millions of job losses. There are currently around three million people employed in automobile production in Germany, and a total of 13 million in the entire industry. This dimension makes it clear how much the mood in the industry is concerned about the future strictness of regulation.

Economics Minister Robert Habeck has also spoken out in favor of an earlier review of the CO2 fleet limits, while emphasizing that the standards should not be lowered. These discussions show a rapid change in thinking about the necessary steps to both achieve the climate goals and secure the economic base. The demands on the EU face resistance from industry representatives who are campaigning against a complete end to combustion engines.

The time pressure and the looming economic dangers raise the question of how Germany and the entire EU can find a balance. At its core, it is not just about environmental and climate goals, but ultimately about maintaining economic performance and employment in an increasingly globalized market.

The next few months will be critical as policymakers address industry challenges while driving necessary changes. The voices in business are getting louder, Aiwanger and Adrian have heard them and are calling for a pragmatic approach.