Panel discussion with four speakers at a conference, audience visible in the foreground, colorful backdrop.

A socially fair energy transition – Consumers at the core of the transformation

Dialogue Forum in cooperation with the “Initiative Klimaneutrales Deutschland (IKND)”

17 March 2026 | 6:00 PM | Munich

When it comes to climate protection, the building and transport sectors in Germany are lagging behind. They are responsible for a significant proportion of greenhouse gas emissions, yet are making little progress in reducing CO₂ emissions. As both sectors have a major impact on people’s daily lives, the transition must be designed to be fair, affordable and sustainable. Only in this way can broad social acceptance of the necessary changes be achieved.

The transport and building sectors remain problem areas for the energy transition in Germany. According to the Federal Environment Agency, CO₂ emissions in both sectors actually has risen in 2025. This is due, on the one hand, to the sluggish transition to electric cars and, on the other, to the continued widespread use of gas and oil for heating. This has consequences for climate protection: although enshrined in law, there is a growing gap in CO₂ savings by 2045. “We are moving further away from the targets we want to achieve,” warned Carolin Friedemann, founder and managing director of the Climate-Neutral Germany Initiative (IKND), in her keynote speech. In this context, she asked: “How far does freedom extend in the boiler room, and how far behind the wheel?”

A speaker in a patterned blazer stands at a table with water bottles, presenting in front of a colorful backdrop.

When reading the news, one sometimes gets the impression that no one cares about climate protection anymore. Yet, the figures show that this isn’t the case.

Carolin Friedemann

Initiative Klimaneutrales Deutschland

High level of support for the energy transition

Despite the squabbles and political U-turns surrounding the Heating Act – or, to be precise, the Building Energy Act – and the subsidies for PV systems and electric cars, the majority of the population supports the energy transition. “Support has remained at a relatively high level of over 80 per cent in recent years,” said Friedemann. At around 60 per cent, the willingness to take action is lower, but also at a stable level. “Although I sometimes get the feeling that nobody is interested in climate protection anymore, the figures show that this is not the case.”

According to Friedemann, the high upfront costs, for example for heat pumps or electric cars, are the biggest obstacle to more climate-friendly behaviour. “It’s a question of money, rather than technology.” With PV systems, there is also a lack of awareness of just how affordable they have become. Nevertheless, the fundamental problem remains: “As long as fossil fuels are cheaper than renewables, one has to ask: is it worth it?” An increase in the tax on CO₂ emissions could further tip the balance in favour of renewable energy.

A woman gestures while speaking at a round table discussion, with two other women partially visible.

Postponing climate targets undermines planning certainty for households and industry.

Karen Pittel

ifo Zentrum für Energie, Klima und Ressourcen

Climate protection doesn’t come for free

Prof. Dr Karen Pittel, Head of the ifo Centre for Energy, Climate and Resources, took a critical view of the one-year postponement of the launch of the European Emissions Trading Scheme for Buildings and Transport (ETS 2) to 1 January 2028. This means the CO₂ price for buildings and transport will remain below the level originally envisaged. “Postponing climate targets robs households and industry of planning certainty. It creates the impression that we still have plenty of time,” she fears. In a few years’ time, she said, we would then find ourselves in the same situation as we are in today . Various levers, such as the special fund, are available to make infrastructure climate-resilient. The problem is that the costs are incurred in the short term, but the benefits only materialise in the long term. “That makes it difficult to put into practice what sounds good in theory. It makes me cringe when I hear that climate protection has to be fun. It will also cost money; we have to accept that,” the ifo expert was convinced.

A group of individuals is engaged in discussion at a conference. One person, wearing a black blazer and a lanyard, sits with hands clasped, displaying a watch. Another individual, with long hair, listens attentively. The background features a colorful banner and a presentation screen, enhancing the professional atmosphere.

Environmental incentive taxes such as the carbon tax place a disproportionate burden on lower-income households; they must therefore be accompanied by financial compensation.

Astrid Schaffert

Zukunft KlimaSozial

A social framework with four pillars

To make climate protection socially inclusive, Astrid Schaffert from the Institut Zukunft KlimaSozial proposed four pillars. This is because not everyone has the same opportunities to reduce their CO₂ costs, for example as a tenant or a resident in rural areas. There, people are more reliant on cars without being able to afford an expensive electric car straight away. “As the first pillar, we need a well-developed infrastructure for local public transport (LPT) or district heating, so that everyone can behave as climate-neutrally as possible,” said Schaffert. Secondly, socially tiered subsidy programmes are needed so that less well-off households can also undertake climate-friendly renovations of their homes. Thirdly, regulatory legislation with rules and prohibitions is needed, which everyone must adhere to. “And we need sensible environmental incentive taxes such as the CO₂ levy,” she explained. As this is regressive and places a disproportionate burden on poorer households, it must be accompanied by financial compensation.

Schaffert was unable to assess what the federal government’s new Building Modernisation Act will mean for consumers, as relevant sections are not due to be finalised until August. For example, it remains unclear what specific quotas are planned for biogas and how tenants can be protected from excessive costs.

A person with long, light-colored hair gestures while speaking at a panel discussion. They wear a dark blazer over a white top. In the foreground, several glass water bottles are arranged on a table. The background features a colorful display with text, creating a vibrant setting for the conversation.

We need greater certainty for consumers regarding investments, pathways and the political direction.

Sigrid Goldbrunner

Verbraucherzentrale Bayern e.V.

A shift in thinking due to rising oil and gas prices

“We need greater certainty for consumers regarding investments, pathways and the political direction,” added Sigrid Goldbrunner, Head of the Energy, Environment and Sustainability Department at the Bavarian Consumer Advice Centre. People coming in for advice were interested in both the technical aspects of heat pumps and questions regarding subsidies or billing issues with PV systems. “The key question is: is it worth it for me?” Goldbrunner emphasised. Whilst freedom of choice regarding heating systems has now been restored, she warned that anyone opting for a fossil fuel heating system now is taking on unknown risks regarding future running costs. The war in Iran, with the resulting sharp rise in oil and gas prices, appears to be prompting a rethink. “In recent weeks, we have seen a sharp rise in demand for PV solutions and for heating system replacements,” she reported. The planned abolition of the feed-in tariff for solar installations has so far not led to any significant reaction from consumers.

A group of people sitting in an audience, mostly facing forward, with blurred faces for privacy. — We welcomed around 140 visitors to the Dialogue Forum.

Economic expert Pittel welcomed the government’s intention to better align grid capacity with feed-in. However, she noted that grid expansion would be unavoidable, a fact of which many people are not yet aware. “This is likely to result in high costs for consumers in the future,” she said. “I would like to see a social safety net in such cases, because tenants cannot really control their costs here,” demanded Schaffert. The social imbalance in the climate policy of the past was also due to the fact that control was exercised via consumer prices, which placed a particular burden on low-income households. “Many costs associated with nuclear power and coal-fired electricity used to be covered by the state budget,” she pointed out.

Lump-sum payments for low-income households

Pittel criticised the German government’s Climate and Transformation Fund (KTF) – which is intended to drive forward energy-efficient building renovation, the decarbonisation of industry and the expansion of renewable energies – for numerous windfall effects. “Here, one could save massive amounts of money at one end and distribute it at the other,” she argued with conviction. Furthermore, she noted that the latest energy crisis following Russia’s attack on Ukraine had shown that the data required for a socially just distribution of costs was often lacking. “I am not in favour of lowering high prices through intervention,” she said. Instead, she argued, the conditions must be created to provide relief to low-income households through lump-sum payments.

A conference audience with one person raising their hand to ask a question, others seated and listening. — Questions from the audience were discussed on stage.

Better informing consumers about their options

Schaffert was also critical of the KTF. “Only a small proportion of the payments have a social component.” Furthermore, there is no single model for making the energy transition socially acceptable. Rather, policy should be guided by the four pillars mentioned. Consumers should be better informed about their options, added Goldbrunner, so that they do not, for example, remain on the expensive basic electricity tariff or forego the income bonus when switching heating systems. For tenants, on the other hand, Schaffert argued it would make sense if rent increases were linked to energy efficiency improvements in buildings, or if higher subsidies were offered in return for moderate rent rises.

A conference audience with one person raising their hand, while another stands with a microphone. — Discussion and dialogue with our guests are at the heart of the Dialogue Forums.

The good thing about climate policy is that all the elements are in place: from technology and concepts to socially tiered subsidy programmes. Now it is up to politicians to set the right course. The panellists had concrete ideas: “If I were Minister for Economic Affairs, I would advocate for a CO₂ price with per capita redistribution and taxation,” explained ifo expert Pittel. Schaffert added: “As Minister for Social Affairs, I would give everyone receiving tax-funded social benefits a nine-euro ticket for public transport as well.” “If I were Minister for Consumer Protection, I would push for investment in climate adaptation so that as many households as possible can protect themselves from the effects of global warming,” concluded Goldbrunner. This provided the perfect lead-in to our next event in the series: our next dialogue forum will take place on 21 May on the topic of “Making local authorities climate-resilient – how adaptation protects our health”.

Video of the Dialogue Forum (German)

Munich Re Foundation