Legal framework and monitoring

Your expert for questions

Michael H. Küper
Head of Energy Law for Industry at PwC Germany
Tel: +49 211 981-5396

A constant focus on the latest changes to energy and climate protection law

The German Federal Government has constantly expanded and updated the regulatory framework conditions regarding climate protection and energy in recent years, as part of its efforts to drive the energy transformation forward. Many aspects of the legal framework are mapped out by European law. In Germany, the legal requirements related to energy and climate cover a wide range of laws, statutes and regulations – including the German Renewable Energy Sources Act and the resulting tariff, for example.

The number of amendments and the speed of change make it difficult for network operators and industrial companies to analyze and implement the legal requirements. Permanent monitoring of energy and climate protection law is one approach that aims to reduce risks and drive forward a company’s sustainable development, while also revealing new opportunities such as privileges or access to funding.

"Companies will only be able to succeed in international competition and create an additional competitive advantage if they understand the latest energy and climate protection laws."

Michael H. Küper, Head of Energy Law for Industry at PwC Germany

Understanding the potential impact and recognizing the opportunities

The climate and energy-related legal requirements on the European and German national level affect almost every company and institution in the economic landscape. Even companies that do not appear to be directly addressed by a law at first glance can be affected indirectly. This can create significant challenges. Whether directly or indirectly affected, the way a company approaches topics including the environment, renewable energy, sustainability, climate protection and energy law is a decisive factor in its competitive position. For this reason, it is important to understand how a company will be affected – and to know what options are available.

Your situation

To what extent will my company be affected?

Companies across industries – not just those in the energy sector – must now identify the specific impact of energy and climate protection law, and must then develop possible solutions. In this context, they should take the following considerations into account:

  • Is my company addressed by climate law and the related legal requirements?
  • What areas of my company will be directly or indirectly affected?
  • What potential (competitive) disadvantages will my company face if it is affected?
  • What can we do to avoid or reduce the burden?
  • Is my company eligible for funding to make it more sustainable, climate-friendly, environmentally-friendly and energy efficient for the future?
  • What is the interplay between legal requirements and my company’s individual targets for sustainability and climate protection?
  • Will energy and climate laws generate a competitive disadvantage in my company’s domestic market?
  • How can I compensate or minimize the financial implications if my company is affected?
  • Is my company eligible to claim financial compensation or other privileges?

Our services

Monitoring every aspect of the legal framework and managing its implications

Companies will only be able to take the necessary actions and reactions to the challenges described above if they know the extent to which they are directly or indirectly affected by energy and climate protection laws. In this regard, it is important that they do not carry the entire cost of climate change and that the burdens on their core business are not too heavy. To achieve this, companies need to take a professional approach to the requirements of climate protection and energy law – and must tap into the related opportunities.  

The legal experts at PwC support you by conducting comprehensive and company-specific analysis of the legal framework conditions and the available financial compensation opportunities.

Our services include:

  • Comprehensive analysis of the relevant legal requirements related to climate protection law, and evaluation of the direct and indirect impact on your company or institution.
  • Legal support with identifying and claiming any compensation or other privileges that your company is eligible for (e.g. relate to emissions trading regulations or in the context of the German Renewable Energy Sources Act, etc.).
  • Accompanying processes with government authorities and supporting communications with authorities such as the German Emissions Trading Authority, the German Federal Office for Economic Affairs and Export Control, or the German Federal Network Agency for Electricity, Gas, Telecommunications, Post and Railway.
  • Support with engagement in shaping the legislative process, for example by developing positioning statements for consultation processes.
  • Conducting a "Cheaper Check" to identify the best available compensation opportunities or other relevant privileges.
  • Conducting due diligence audits with a focus on climate and energy law, including audits within the scope of transactions or company valuations.
  • Accompanying projects to reduce CO2 emissions (e.g. through innovative self-supply projects, hydrogen technology, Power Purchase Agreements etc.).
  • Further optimization of the CO2 footprint through instruments including electricity labelling and proof of origin certificates.

Our promise

What you can expect from us

The legal experts at PwC support you in achieving your targets for sustainability and climate change, adapting your procurement strategy, reacting to market changes quickly and effectively, and reducing costs in the long-term. Our specialists have deep expertise related to opportunities for compensation or other privileges, and have many years of experience of communicating with government ministries and authorities. We take a committed and dedicated approach to every project.

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