Economical routes to attaining climate neutrality in Germany by 2045, as outlined in the Ariadne report.

The energy transition towards a climate-neutral Europe is a significant undertaking, requiring average annual investments of €116 to €131 billion by 2045, according to recent estimates. This transition is crucial for minimizing costs and achieving the new federal government's goal of climate neutrality by 2045.

The cost of climate protection is heavily influenced by the development of energy demand. Expanding renewable energies and electricity grids is key to creating a cost-efficient energy system in Europe. By doing so, Europe can tap into a significant potential for exporting green technologies, such as electric cars, heat pumps, electrolysers, battery and heat storage systems, wind turbines, and control units.

The heating transition, particularly in the building sector, demands annual investments of €41 to €50 billion. Additional costs primarily come from necessary building renovations to accommodate more efficient heating systems. However, investments in these areas can secure Germany's future as a business location by modernizing its economy.

Heat pumps, for instance, provide space heating more economically than fossil heating systems over their entire lifecycle. An accelerated transition to electromobility is also cost-efficient and presents an opportunity for industrial policy. By 2030, electric vehicles are expected to be economically advantageous for almost all end users, with battery-electric cars and trucks reaching an annual market volume of €80 billion in Germany.

However, the transition is not without challenges. Clinging to fossil fuels would miss climate targets and lose competitive edge. Additionally, there are projected additional burdens in industry, primarily due to higher operating costs in sectors that are difficult or impossible to electrify.

The institutions involved in the Ariadne project, which aims to calculate the costs for a climate-neutral Germany by 2045, include primarily the Potsdam Institute for Climate Impact Research (PIK) as a key participant within the Kopernikus project framework. The project focuses on cost-efficient pathways to climate neutrality in Germany.

European coordination of energy and climate policy plays a key role in minimizing costs. By working together, Europe can create a more efficient and cost-effective energy system, while also securing its position as a leader in green technologies.

The wholesale electricity price is expected to stabilize at an annual average of €70 to €80/MWh, making electricity an increasingly affordable primary energy carrier. The potential for exporting green technologies could further offset these costs, making the energy transition a viable and cost-effective solution for a climate-neutral future.

Economical routes to attaining climate neutrality in Germany by 2045, as outlined in the Ariadne report.