German minister Habeck says ‘gloves will be off’ for share of green economy

Competition must also embrace collaboration to ensure a fair share of new jobs and technologies he tells Berlin summit

Germany’s Federal Minister for Climate Action, Dr Robert Habeck, has warned that “the gloves will be off” between continents and regions for a share in the global green economy.

Which is why, he said, it is vital there are clear rules set to ensure it is a fair fight for competition while also embracing collaboration.

Speaking this morning on the second day of the Berlin Energy Transition Dialogue, Habeck called for an “inclusive approach to climate policy” that would also enable the energy transition to be a workforce transition.

He said that “all the technology we need on the industrial side – from cars to steel to energy – is changing”.

“Tradespeople and craftsmen will learn new technologies and forget old technologies.”

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This new industrial revolution to clean energy would have “dramatic repercussions for all regions”, most being positive. However, he cautioned that “some regions may lose out” in the competition for green industry and workers.

It is this concern, he said, that was one of the drivers behind the foundation of the Climate Club, an institution formed in December 2022 by the G7 countries yet open to any nation to join.

Haback said: “Transitioning industry to climate-friendly processes and technologies is essential. This is an issue that affects not only the members of the G7.

“In the Climate Club, committed states can become the international drivers of emissions reduction in industry.

“We want to bring climate-friendly commodities, such as green steel, onto the market more quickly and to improve the opportunities for them worldwide.

“In this context, the club is intended to advance international partnerships and co-operation agreements with a view to supporting countries in their transformation.”

Birgit Schwenk, the federal Director General for Climate Action, described it as “an inclusive forum sitting at eye level”, while Hans Peter Lankes of the London School of Economics said the club “is a process that has the potential to unblock global climate action”.

The phrase ‘climate action’ was singled out by Habeck.

“It’s called ‘climate action’ because it demands action. It’s not called ‘climate sit-and-wait’,” he said.

And he added that one of the challenges of this action was an honest discussion. He said Germany had to be honest with itself about very recent mistakes it had made around energy security and climate.

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He highlighted how last year, as the war in Ukraine plunged much of Europe into a gas crisis, Germany was still funding the installation of domestic gas heating systems.

“It’s impossible to explain how that could be so stupid,” he said.

He said a change of mind-set was required within governments towards energy.

“Energy policy has always been about power politics,” he said, with governments looking inwards.

He called for a “new network of partnerships where we trade together”.

He said the recent IPCC Report “is both an admonishment and a motivation to do just that. What is crucial now is that we make real progress in pushing the energy transition forward.

“One of the pre-requisites for that is international cooperation. The climate crisis requires more, not less co-operation towards the climate-neutral transformation of the energy systems and the decarbonisation of industry, which is now the next challenge we need to tackle.

“We need uniform standards for green hydrogen grids, for green steel manufacturing and the climate-friendly production of building materials.

“We know what has to be done to contain the climate crisis. What’s now needed is the political will to get it done without delay.”

And having tackled the phrase ‘climate action’, he fine-tuned the phrase ‘climate protection’.

“The climate does not need protecting. The climate is the climate. It is the people we are protecting. The point of protecting the climate is to have a democratic, liberal, trust-based existence between people. That’s the task of climate action and protection.”