Climate protection is not (yet) scaring industry away
Climate protection is dear to German industry - and expensive. Very few companies covered by the EU Emissions Trading Scheme have relocated their production to countries outside the EU to date.28 May 2019 David Schahinian
The Mercator Research Institute on Global Commons and Climate Change (MCC) has conducted a study of outward migration trends based on microdata from the German Central Bank. The researchers concluded that, based on empirical data, there is currently no evidence that climate protection is driving industry “out of the country”. Relocation is quite unusual in energy-intensive industries because it is very expensive. The mechanical engineering sector has a slightly greater wanderlust because it is geographically more mobile. According to the study, however, “very few companies” have actually relocated overseas due to climate policy. The authors nevertheless recommend continued monitoring of the situation: future relocation could cost domestic jobs while producing even higher emissions abroad.
As the Federal Ministry of the Environment reports , Germany’s industrial sector emitted about 193 million tons of CO2 equivalents in 2017. The plan is to reduce emissions not only by means of EU emissions trading, but also by promoting efficiency measures and regulating climate-relevant gases.
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