An interview with Folker Trepte. How Germany compares internationally on the energy transition, the tasks that lie ahead, and how energy utilities, companies, and the public sector can seize the opportunities of decarbonization.
Folker Trepte is a Partner and Head of the Energy Industry at PwC Germany. He supports clients in developing sustainable strategies, driving digital transformation, and achieving climate targets.
Mr. Trepte, the latest PwC study “The Changing Energy Order” shows that Germany holds a leading international position as a policy driver and technology innovator. At the same time, the energy transition is losing momentum . In your view, what are the key reasons for this development?
Folker Trepte: Germany has made impressive progress in expanding renewable energy in recent years and has established itself as a pioneer of the energy transition. However, the study shows that we are currently losing speed. A major reason is the short-term need to ensure security of supply while remaining dependent on fossil fuels. The energy crisis of recent years has clearly revealed how vulnerable our system is to external shocks. The energy transition also entails complex economic challenges: High investment costs for infrastructure and decarbonization weigh on companies and the public sector alike. At the same time, political support has stalled, creating uncertainty for investors and businesses.
Our study also underscores how strongly achieving – or failing to achieve – climate targets will affect our prosperity:
Consistent climate action could result in economic output in 2050 that is 10 percent higher than in a scenario with insufficient measures. However, if climate targets are missed, there is a risk of a 35 percent decline.
As you just noted, Germany as a location for energy-intensive industries faces particular challenges – especially when it comes to decarbonization and achieving net-zero targets. What specific measures do you consider necessary to overcome these challenges while safeguarding international competitiveness?
Folker Trepte: One thing is clear: There is no one-size-fits-all blueprint for decarbonization.
For Germany’s energy-intensive industries, decarbonization is a monumental task that goes far beyond the mere expansion of renewable energies.
What matters are technological innovations and the integration of new solutions into existing production processes. Germany must intensify its focus on research and development, especially in energy storage and energy efficiency.
For industry to become climate neutral, energy storage solutions and their integration into the energy infrastructure must be affordable. Green hydrogen is one example. Innovative financing solutions are also needed to facilitate access to capital and enable investments in the transformation. This is the only way Germany can remain attractive to international investors and secure its competitiveness. Collaboration between policymakers, businesses, and academia is essential to successfully manage the transformation and achieve net-zero targets.
How can Germany remain an attractive investment location for the energy transition, and what role does PwC play in supporting companies and decision-makers in the sector?
Folker Trepte: Germany faces the challenge of mobilizing the vast investments required for the energy transition and decarbonization. Investor appeal is created by stability, reliability, and innovative strength – underpinned by a clear strategy for scaling new technologies.
PwC supports companies, energy utilities, and the public sector end to end across the entire value chain of the energy transition.
We help develop customized strategies, implement innovative financing concepts, and navigate regulatory and technological hurdles. Our goal is to support the transformation sustainably and to deliver it together with our clients in both ecological and economic terms. A concrete example is our hands-on support in executing infrastructure projects.
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