On October 9, 2025, experts from research, industry, financial markets, and NGOs gathered at the Climate Congress of the Federation of German Industries (BDI) in Berlin to discuss the future of the German economy in times of climate transformation. What at first glance may have seemed like just another mandatory event on the calendar turned out to be an insightful look behind the scenes of an industry under pressure and provided exciting insights into technologies where Europe still has a lead over the US and China, but is in danger of losing it.
Warm words, lack of action
As expected, the political representatives from the CDU/CSU, SPD and the Green Party in attendance delivered many warm words but little substance. In contrast, the presentations from science and industry were characterised by clear openness. The message to the government is: Recognize the urgency and create clear framework conditions as quickly as possible! The market demands reliable structures and targeted financing, but not overregulated and overly detailed specifications. This applies to the decarbonization of the energy sector as well as to infrastructure expansion and the question of which path to take in terms of heating and insulation in the building sector.
On the brink of crisis: Leibinger's wake-up call
BDI President Peter Leibinger delivered what was probably the most urgent message of the day. His diagnosis: The German industry is on the brink of an existential crisis. His proposal: Berlin and Brussels must show leadership – with a clear line and a unified message that makes it clear where the climate-friendly transformation is headed. At the same time, a genuine European single market for capital and energy must be created so that Europe can present a united front in global competition.
“Those who produce themselves innovate best,” Leibinger emphasized, calling on politicians to show “commitment and flexibility” and to be tolerant of other opinions in what is often an ideologically charged debate. At a time when climate policy discussions are often polarized and hardened, this is a meaningful signal. He also criticized the fragmented EU requirements for sustainability regulation – a point that was raised several times throughout the day.
Industry calls for a pragmatic energy transition
In the panel discussion “Climate protection under pressure” participants predicted that the EU's competitiveness would be threatened by the expected rise in CO2 prices in the coming years and by market-based climate instruments such as the Emissions Trading System and CBAM. Marc Spieker, COO of E.ON, criticized the “normative distortion of reality by the EU” while Uwe Lauber, CEO of Everllence (formerly MAN Energy Solutions) and member of the German government's National Hydrogen Council, complained that hydrogen plants, for example, were being overregulated by the EU.
The general tenor of the roundtable: Allow the technological openness so often cited by Chancellor Merz and create broad transformation paths. Since the era of baseload power plants is over, for example, the future lies in a combination of renewable energies, flexible (battery) storage, and backup gas-fired power plants. Here, he said, it is necessary to be pragmatic, avoid ideological discussions, and not get bogged down in specific technologies.
Between responsibility and relativization
However, it is also clear that when BDI President Leibinger, in agreement with Chancellor Merz, cites Germany's current low global share of CO2 emissions (around 2%) as an argument for why Germany's measures to reduce emissions have a comparatively low impact in a global context, he should bear in mind that the greenhouse effect depends primarily on the concentration of CO2 in the atmosphere and that, historically speaking, Germany has been one of the largest emitters since the era of the industrialization.
BASF CEO Markus Kamieth even questioned the point of legally binding climate targets, arguing that it was irrelevant whether climate neutrality was achieved in 2045, 2047, or 2048. Of course, one could argue that a few years don't matter when it comes to achieving such an ambitious and significant goal. But the CEO of the world's largest chemical company in terms of sales should be particularly aware of the communicative significance and importance of targets for a specific point in time when it comes to driving change within organizations such as companies.
Transition finance instead of green perfection
And then, of course, there is the question: How is all this to be financed? One encouraging fact: in 2024, for the first time ever, more private than public capital was invested in climate protection worldwide. The financial sector is working to further increase this share. Simplification of regulation is the keyword here – because banks are also simplifying reporting for their customers when it comes to incorporating sustainability criteria into lending.
Lavinia Bauerochse, Global Head of Sustainable Finance at Deutsche Bank, demands: “We must shift the focus from compliance to implementation.” The bank is focusing on transition finance and no longer just on green activities – a pragmatic response to the reality that most of the economy is not yet climate-neutral.
A positive sign came from Andreas Steidle, Head of Energy Management at Evonik. He emphasized that his company currently has no problem raising money. Green bonds, i.e., bonds for financing sustainable and climate-friendly projects, are even regularly oversubscribed. But there are also industries that do not yet have this luxury problem.
Wishful thinking or real potential?
One of the most exciting discussions revolved around nuclear fusion, which is on the verge of industrialization. Europe must act now to avoid losing its strategic advantage, it was said. “We don't need another demonstration power plant, but the first commercially viable one,” demanded Dr. Markus Roth, co-founder of Focused Energy. The state should promote competition between start-ups and view funding as an investment in the future. This would create jobs, generate tax revenue, and achieve technological leadership. Representatives of the fusion industry agreed that the German government's nuclear fusion action plan, with additional funding of €750 million, does not go far enough. Around ten billion US dollars are currently being invested in nuclear fusion worldwide, with the majority of this funding coming from the US and China.
In addition to nuclear fusion, another topic of future importance was discussed: energy generation using high-altitude winds at heights of 400 to 600 meters, also known as airborne wind energy, as already practiced by the German company SkySails Power. But here, too, there is a warning: China could overtake Germany if targeted investments are not made soon, as this technology is also part of China's 10-year plan.
Conclusion: Speed instead of paragraphs
At the end of the congress, there was consensus: It is time to take action in order to avoid falling further behind in global competition. The market demands clear framework conditions and targeted financing from politicians as a basis for a successful transformation.
Jan Brorhilker from EY Germany emphasized that we must take the corporate culture of other countries as a model and be willing to make mistakes in order to learn from them. Germany still has the best engineers, and examples such as Munich as an innovation hub gave him cause for optimism. However, Europe must say goodbye to being a global pioneer in renewable energies and green technology. “Take a four-week trip through China,” BASF CEO Markus Kamieth provocatively suggested.
The congress showed that transformation is not a question of ‘if’ but of “how” – and above all, of pace. Europe's ability to transform is becoming a matter of survival in the race with other global powers. Whether climate protection and economic growth can be reconciled remains to be seen. The outcome of the auto summit held in parallel with the climate congress, at which the phase-out of combustion engines by 2035 was once again put to the test, suggests, at least at first glance, that the prayers and fears of an important economic sector, which has always been one of the guarantors of prosperity in Germany and Europe, have already been heard.
