Climate issues tend to take a back seat in the upcoming European elections on 9 June. Chiara Martinelli, head of the climate action network CAN Europe, laments a “backlash against climate and energy issues” and a threat to democracy. Bernhard Pötter spoke with Martinelli about gaps in the Green Deal and a climate action investment plan. She believes that such a plan would also make a good instrument for strengthening Europe’s competitiveness.
The heating transition also requires large investments. However, the German heat pump industry fears stagnation for 2024. Although there are state subsidies for switching to the clean heating alternative, associations complain that the subsidy regulations are too complex. Company representatives now call for tax incentives, Carsten Hübner reports.
The International Energy Agency also proposes political incentives in support of green technologies. In a new report, the IEA shows which sectors need to expand their production capacities to ensure a successful energy and heating transition. Our chart of the week shows which sectors are already well positioned and where there is still some catching up to do.
Ms Martinelli, there was a “green wave” in the EU elections five years ago. Now, the mood has turned against environmental and climate issues. Are you worried about the election result?
Unfortunately, we see a backlash against climate and energy issues in the EU. It’s mainly driven by fossil fuel industry lobbies and private interests. That is a threat to democracy. Because after the usual procedure for reaching consensus and involving the Council, the actions against the Nature Restoration Law, the pesticide regulation or the farmers’ protests were violations of the normal consensus-building process in the EU.
How satisfied are you with the Green Deal?
The Green Deal is an unprecedented climate and energy package. Naturally, it could have been even better, but we must build on the strengths and not go backward. We still see gaps in the legislation and more money is needed for the just transition to socially cushion the Green Deal.
What improvements would you like to see?
The Green Deal has a big gap because it does not address EU agricultural policy. We have not yet exhausted all possibilities when it comes to restoring nature, either. But most importantly, we lack an investment plan that implements and secures the measures of the Green Deal. We need a strategic agenda in which competitiveness and the investment plan go hand in hand and do not work against each other. Such a plan for implementing the Green Deal is the best competitive instrument. The EU summit in late June must adopt this.
Why is there now such a backlash against the Green Deal? Has the climate and environmental movement become weaker?
No, I don’t think so. We got the Green Deal after 2019 because the youth movement was so strong on the streets. Then came Covid, that didn’t help. However, there is also frustration among the younger generation because the EU hasn’t delivered enough of what they asked for.
Maybe it’s the other way around. Because the Green Deal, the emissions trading reform, and all the other things have been pushed through, there may not be so much left to do. Was the climate movement too successful?
I don’t think so. First of all, we need to wait and see how many more people we can yet get on the streets. Big campaigns are planned for the weekend of last May. The climate movement is also fighting differently today than in 2019/2020. At that time, we put the climate crisis on the agenda. Now, the debate is different; it’s about implementing these policies and not taking a break from regulation. And that is much more up to the member states and the people at the local level. That’s where people notice the changes. It is easier to demand a different policy than to then implement it with all its consequences. That doesn’t make change any easier. And that is precisely why we need an investment plan to support this.
Let’s look at the global level: Finance is an issue this year, and the national climate plans NDCs next year. What calls will CAN make?
Internationally, the aim is to adopt the NDCs as quickly as possible. And these plans must tangibly reflect the results of COP28 – for example, the fossil fuel phase-out. For Europe, this means that the EU must finally set a deadline for phasing out coal, oil and gas across all member states. Then there is financing: the loss and damage fund has started its work and we are seeing progress. But there is still no indication of how much money will be available. As CAN, we are calling for the fund to be filled before COP29 and for a new climate finance target, the NCQG, to be adopted at COP29 in Baku. And the climate movement is calling ever louder for climate taxes on carbon emissions and wealth. We need a format for this in the UNFCCC.
How much money should the new climate target at COP29 call for?
This is not just a mathematical question but one of justice. We need a change in our economic system for this, which goes further than the new financial target. It is about wealthy countries accepting their responsibility for the ecological debt and paying it back.
The climate movement calling for this has internal problems. In Dubai, there were protracted and difficult discussions about the climate movement’s stance on the Hamas attack and Israel’s war in Gaza. A deep divide became apparent, particularly between German NGOs and other groups. How divided is the climate movement?
The international climate movement is not divided. We are growing, we are sticking together, we are in dialogue and we are trying to move forward. We are focusing on internal dialogue and working on the big challenges we see worldwide. Compared to years past, the climate movement is much more aware that we must change the entire system. We are calling for systemic change instead of climate change. We can’t just talk about ecological change or carbon reduction. That is very important, but it is only part of the overall change we need towards more human rights and justice.
These complex debates caused a lot of frustration, at least among the German groups, during and after COP28 in Dubai. The clashes between pro-Israeli and pro-Palestinian views affected the work at COP.
All I see is that the climate movement across all countries and continents is clearer than ever: We demand climate justice, peace and human rights everywhere.
Is there a definition of climate justice that everyone in the movement can agree on?
Climate justice means we view all demands on climate policy and the energy transition through the justice lens. This applies, for example, to climate financing: It must be fair in the sense that it considers the respective countries’ fair share globally along with their historical emissions. It must also take into account the human rights of all people.
What does climate justice mean regarding Palestine?
Climate justice means changing the system. We cannot respond to a systemic crisis in the economic, ecological and social spheres solely by providing answers from the various silos. Climate justice means standing in clear solidarity with people who are suffering and whose human rights are being violated. Our solutions to the climate crisis must be rooted in ensuring a dignified life for all, securing financial aid, making polluters pay and preventing the most vulnerable communities, who contribute hardly anything to the crisis, from paying a high price.
Will CAN take a united stance on the Palestine/Israel issue?
CAN Europe, like our colleagues from other continents, stands in solidarity with all victims of violence. We call for an immediate ceasefire and immediate access to humanitarian aid.
Has this debate weakened the movement?
No, the climate movement is absolutely not weakened. It is a pivotal moment in the movement’s history. We must continue to grow in our call for climate justice.
Chiara Martinelli is the Director of the Climate Action Network Europe (CAN). She heads the coalition of over 200 European environmental and development associations, representing around 1700 NGOs with around 40 million members from 40 European countries.
The quarterly figures published by the Federation of German Heating Industry (BDH) last week mark a trend reversal. After the heat pump market grew steadily for more than ten years, sales slumped by 52 percent in the first quarter of 2024 compared to the previous year. While 96,500 heat pumps were sold in Germany from January to March 2023, only 46,000 devices were sold in the same period this year.
The BDH expects the negative trend to continue in the coming months. In 2023, a total of 356,000 heat pumps were sold. The association expects fewer than 200,000 units to be sold this year. Michael Hilpert, President of the German Sanitation, Heating and Air Conditioning Association (ZVSHK), also expects a similar figure. ‘If we’re lucky, we might manage between 180,000 and 200,000 units,’ Hilpert told the German press agency dpa. This means that the ‘accelerated heat pump ramp-up’ proclaimed by the German government coalition is on the verge of failing shortly after its launch.
Overall, 2023 was still a record year with an overall increase of over 50 percent. However, criticism from certain media outlets and the opposition around a year ago, known as the “heating hammer” debate, led to widespread uncertainty. On top of this, the subsidy structure remained uncertain for a long time. Sales started to decline from the middle of the year. In December 2023, it was down more than 40 percent year-on-year. Simultaneously, sales of fossil natural gas and oil heating systems rose sharply in the second half of 2023.
“The current market development is a setback for the heating transition as a whole,” says BDH Managing Director Markus Staudt, blaming “the protracted and public political debate about the legal framework and subsidy measures.” The heating industry, on the other hand, has done its homework. “In the past year, manufacturers have built up unprecedented heat pump production capacities in Europe with investments totaling billions,” says Staudt.
Heating and cooling buildings and providing hot water alone account for around 18 percent of all greenhouse gas emissions in Germany. According to a study by the German Association of Energy and Water Industries (BDEW), the share of gas heating systems in Germany is 45 percent, while oil central heating systems account for 23 percent. Heat pumps, on the other hand, only account for just under six percent. This puts Germany at the bottom of the European rankings.
A spokesperson for heat pump manufacturer Stiebel Eltron described the current market situation as an ‘extreme challenge’ to Table.Briefings: ‘We have honored our part of the agreement with politicians to massively expand production capacity in the heat pump sector. However, Germany is still a long way from the expected 500,000 heat pumps after 2024″. As a result, the Stiebel-Eltron Group has reduced working hours in some areas. In total, around 2,000 of the approximately 2,500 employees are affected.
Meanwhile, German heating specialist Buderus has launched a discount campaign. Anyone buying a heat pump from German coffee retailer chain Tchibo by the end of November 2024 will receive 1,000 euros cashback.
The current sales collapse for heat pumps is not only due to a lack of customer confidence, but also to changed economic conditions. On the one hand, the price of natural gas has dropped again. On the other hand, building construction has slowed as interest rates have increased.
According to the German Consumer Advice Center, the price of a heat pump, including installation, ranges between 20,000 and 50,000 euros: “This is significantly higher than the price of the fossil fuel alternatives that are currently still allowed to be installed. The cost advantage of a heat pump only materializes after a few years of use.”
Against this backdrop, the German Heat Pump Association (BWP) welcomes the funding guideline, which has been in force since the beginning of the year and enables subsidies of up to 70 percent. However, they acknowledge that it is difficult to understand.
“The new heating subsidy has been improved in many respects and is very attractive, but it is not widely known and is in some cases too complex,” says BWP Managing Director Martin Sabel. “These framework conditions are being met by uncertain citizens who have lost track of which rules now apply to them.” A representative survey conducted by the opinion research institute Civey on behalf of the manufacturer Vaillant also revealed that more than one-third of homeowners were not aware of the subsidy. More than two-thirds of those surveyed indicated that they wanted to wait and see whether their municipality would build a district heating network.
Monetary aspects also play an important role in the “Berlin Declaration,” signed by company representatives at the end of April. In their view, a key tool could be reducing electricity tax and VAT to achieve a ratio of electricity to gas prices of less than 1:2.5. Experience from other European countries has shown that this would make investments in renewable heat more attractive. ch
Climate issues tend to take a back seat in the upcoming European elections on 9 June. Chiara Martinelli, head of the climate action network CAN Europe, laments a “backlash against climate and energy issues” and a threat to democracy. Bernhard Pötter spoke with Martinelli about gaps in the Green Deal and a climate action investment plan. She believes that such a plan would also make a good instrument for strengthening Europe’s competitiveness.
The heating transition also requires large investments. However, the German heat pump industry fears stagnation for 2024. Although there are state subsidies for switching to the clean heating alternative, associations complain that the subsidy regulations are too complex. Company representatives now call for tax incentives, Carsten Hübner reports.
The International Energy Agency also proposes political incentives in support of green technologies. In a new report, the IEA shows which sectors need to expand their production capacities to ensure a successful energy and heating transition. Our chart of the week shows which sectors are already well positioned and where there is still some catching up to do.
Ms Martinelli, there was a “green wave” in the EU elections five years ago. Now, the mood has turned against environmental and climate issues. Are you worried about the election result?
Unfortunately, we see a backlash against climate and energy issues in the EU. It’s mainly driven by fossil fuel industry lobbies and private interests. That is a threat to democracy. Because after the usual procedure for reaching consensus and involving the Council, the actions against the Nature Restoration Law, the pesticide regulation or the farmers’ protests were violations of the normal consensus-building process in the EU.
How satisfied are you with the Green Deal?
The Green Deal is an unprecedented climate and energy package. Naturally, it could have been even better, but we must build on the strengths and not go backward. We still see gaps in the legislation and more money is needed for the just transition to socially cushion the Green Deal.
What improvements would you like to see?
The Green Deal has a big gap because it does not address EU agricultural policy. We have not yet exhausted all possibilities when it comes to restoring nature, either. But most importantly, we lack an investment plan that implements and secures the measures of the Green Deal. We need a strategic agenda in which competitiveness and the investment plan go hand in hand and do not work against each other. Such a plan for implementing the Green Deal is the best competitive instrument. The EU summit in late June must adopt this.
Why is there now such a backlash against the Green Deal? Has the climate and environmental movement become weaker?
No, I don’t think so. We got the Green Deal after 2019 because the youth movement was so strong on the streets. Then came Covid, that didn’t help. However, there is also frustration among the younger generation because the EU hasn’t delivered enough of what they asked for.
Maybe it’s the other way around. Because the Green Deal, the emissions trading reform, and all the other things have been pushed through, there may not be so much left to do. Was the climate movement too successful?
I don’t think so. First of all, we need to wait and see how many more people we can yet get on the streets. Big campaigns are planned for the weekend of last May. The climate movement is also fighting differently today than in 2019/2020. At that time, we put the climate crisis on the agenda. Now, the debate is different; it’s about implementing these policies and not taking a break from regulation. And that is much more up to the member states and the people at the local level. That’s where people notice the changes. It is easier to demand a different policy than to then implement it with all its consequences. That doesn’t make change any easier. And that is precisely why we need an investment plan to support this.
Let’s look at the global level: Finance is an issue this year, and the national climate plans NDCs next year. What calls will CAN make?
Internationally, the aim is to adopt the NDCs as quickly as possible. And these plans must tangibly reflect the results of COP28 – for example, the fossil fuel phase-out. For Europe, this means that the EU must finally set a deadline for phasing out coal, oil and gas across all member states. Then there is financing: the loss and damage fund has started its work and we are seeing progress. But there is still no indication of how much money will be available. As CAN, we are calling for the fund to be filled before COP29 and for a new climate finance target, the NCQG, to be adopted at COP29 in Baku. And the climate movement is calling ever louder for climate taxes on carbon emissions and wealth. We need a format for this in the UNFCCC.
How much money should the new climate target at COP29 call for?
This is not just a mathematical question but one of justice. We need a change in our economic system for this, which goes further than the new financial target. It is about wealthy countries accepting their responsibility for the ecological debt and paying it back.
The climate movement calling for this has internal problems. In Dubai, there were protracted and difficult discussions about the climate movement’s stance on the Hamas attack and Israel’s war in Gaza. A deep divide became apparent, particularly between German NGOs and other groups. How divided is the climate movement?
The international climate movement is not divided. We are growing, we are sticking together, we are in dialogue and we are trying to move forward. We are focusing on internal dialogue and working on the big challenges we see worldwide. Compared to years past, the climate movement is much more aware that we must change the entire system. We are calling for systemic change instead of climate change. We can’t just talk about ecological change or carbon reduction. That is very important, but it is only part of the overall change we need towards more human rights and justice.
These complex debates caused a lot of frustration, at least among the German groups, during and after COP28 in Dubai. The clashes between pro-Israeli and pro-Palestinian views affected the work at COP.
All I see is that the climate movement across all countries and continents is clearer than ever: We demand climate justice, peace and human rights everywhere.
Is there a definition of climate justice that everyone in the movement can agree on?
Climate justice means we view all demands on climate policy and the energy transition through the justice lens. This applies, for example, to climate financing: It must be fair in the sense that it considers the respective countries’ fair share globally along with their historical emissions. It must also take into account the human rights of all people.
What does climate justice mean regarding Palestine?
Climate justice means changing the system. We cannot respond to a systemic crisis in the economic, ecological and social spheres solely by providing answers from the various silos. Climate justice means standing in clear solidarity with people who are suffering and whose human rights are being violated. Our solutions to the climate crisis must be rooted in ensuring a dignified life for all, securing financial aid, making polluters pay and preventing the most vulnerable communities, who contribute hardly anything to the crisis, from paying a high price.
Will CAN take a united stance on the Palestine/Israel issue?
CAN Europe, like our colleagues from other continents, stands in solidarity with all victims of violence. We call for an immediate ceasefire and immediate access to humanitarian aid.
Has this debate weakened the movement?
No, the climate movement is absolutely not weakened. It is a pivotal moment in the movement’s history. We must continue to grow in our call for climate justice.
Chiara Martinelli is the Director of the Climate Action Network Europe (CAN). She heads the coalition of over 200 European environmental and development associations, representing around 1700 NGOs with around 40 million members from 40 European countries.
The quarterly figures published by the Federation of German Heating Industry (BDH) last week mark a trend reversal. After the heat pump market grew steadily for more than ten years, sales slumped by 52 percent in the first quarter of 2024 compared to the previous year. While 96,500 heat pumps were sold in Germany from January to March 2023, only 46,000 devices were sold in the same period this year.
The BDH expects the negative trend to continue in the coming months. In 2023, a total of 356,000 heat pumps were sold. The association expects fewer than 200,000 units to be sold this year. Michael Hilpert, President of the German Sanitation, Heating and Air Conditioning Association (ZVSHK), also expects a similar figure. ‘If we’re lucky, we might manage between 180,000 and 200,000 units,’ Hilpert told the German press agency dpa. This means that the ‘accelerated heat pump ramp-up’ proclaimed by the German government coalition is on the verge of failing shortly after its launch.
Overall, 2023 was still a record year with an overall increase of over 50 percent. However, criticism from certain media outlets and the opposition around a year ago, known as the “heating hammer” debate, led to widespread uncertainty. On top of this, the subsidy structure remained uncertain for a long time. Sales started to decline from the middle of the year. In December 2023, it was down more than 40 percent year-on-year. Simultaneously, sales of fossil natural gas and oil heating systems rose sharply in the second half of 2023.
“The current market development is a setback for the heating transition as a whole,” says BDH Managing Director Markus Staudt, blaming “the protracted and public political debate about the legal framework and subsidy measures.” The heating industry, on the other hand, has done its homework. “In the past year, manufacturers have built up unprecedented heat pump production capacities in Europe with investments totaling billions,” says Staudt.
Heating and cooling buildings and providing hot water alone account for around 18 percent of all greenhouse gas emissions in Germany. According to a study by the German Association of Energy and Water Industries (BDEW), the share of gas heating systems in Germany is 45 percent, while oil central heating systems account for 23 percent. Heat pumps, on the other hand, only account for just under six percent. This puts Germany at the bottom of the European rankings.
A spokesperson for heat pump manufacturer Stiebel Eltron described the current market situation as an ‘extreme challenge’ to Table.Briefings: ‘We have honored our part of the agreement with politicians to massively expand production capacity in the heat pump sector. However, Germany is still a long way from the expected 500,000 heat pumps after 2024″. As a result, the Stiebel-Eltron Group has reduced working hours in some areas. In total, around 2,000 of the approximately 2,500 employees are affected.
Meanwhile, German heating specialist Buderus has launched a discount campaign. Anyone buying a heat pump from German coffee retailer chain Tchibo by the end of November 2024 will receive 1,000 euros cashback.
The current sales collapse for heat pumps is not only due to a lack of customer confidence, but also to changed economic conditions. On the one hand, the price of natural gas has dropped again. On the other hand, building construction has slowed as interest rates have increased.
According to the German Consumer Advice Center, the price of a heat pump, including installation, ranges between 20,000 and 50,000 euros: “This is significantly higher than the price of the fossil fuel alternatives that are currently still allowed to be installed. The cost advantage of a heat pump only materializes after a few years of use.”
Against this backdrop, the German Heat Pump Association (BWP) welcomes the funding guideline, which has been in force since the beginning of the year and enables subsidies of up to 70 percent. However, they acknowledge that it is difficult to understand.
“The new heating subsidy has been improved in many respects and is very attractive, but it is not widely known and is in some cases too complex,” says BWP Managing Director Martin Sabel. “These framework conditions are being met by uncertain citizens who have lost track of which rules now apply to them.” A representative survey conducted by the opinion research institute Civey on behalf of the manufacturer Vaillant also revealed that more than one-third of homeowners were not aware of the subsidy. More than two-thirds of those surveyed indicated that they wanted to wait and see whether their municipality would build a district heating network.
Monetary aspects also play an important role in the “Berlin Declaration,” signed by company representatives at the end of April. In their view, a key tool could be reducing electricity tax and VAT to achieve a ratio of electricity to gas prices of less than 1:2.5. Experience from other European countries has shown that this would make investments in renewable heat more attractive. ch
