Hans-Werner Sinn criticizes German energy transition and climate goals

Economist Hans-Werner Sinn, former president of the ifo Institute, has characterized Germany’s climate neutrality goals for 2045 as unrealistic. Speaking at the University of Lucerne, Sinn warned that the current energy transition path could lead to further deindustrialization due to high energy costs and excessive regulation.

While Sinn stated he does not dispute the climatic impact of CO2, he argued that the chosen methods must be technically feasible and economically sustainable. He suggested that European-only climate protection efforts are ineffective and called for international agreements instead of EU-wide CO2 fleet limits for the automotive industry.

Germany’s Climate Protection Act mandates a 65 percent reduction in greenhouse gas emissions by 2030 and net neutrality by 2045. Sinn noted that while emissions have already fallen by approximately 48 percent compared to 1990 levels, the remaining reductions required in a shorter timeframe are, in his view, impossible to achieve through current trajectories.