German energy transition dents business confidence, DIHK survey finds
DIHK survey of 3,100 firms finds higher energy costs, delayed investments and relocation risks as Germany’s energy transition strains competitiveness.
The German energy transition is weighing on corporate sentiment, with a new DIHK barometer showing a plurality of firms view the Energiewende as a competitive burden. The survey of roughly 3,100 companies, conducted in June, found widespread concern over rising energy prices and a growing reluctance to commit to new investments. Companies across services, industry and trade reported impacts on operating costs and future planning that threaten both competitiveness and climate-related spending.
Survey Reveals Broad Business Skepticism
The DIHK study found 40 percent of companies rate the effects of the energy transition as negative or very negative, while 35 percent see them as neutral and just 24 percent view them positively. Respondents were drawn from a representative cross-section: more than half provide services, about one quarter operate in industry and roughly 14 percent work in trade. Those proportions shape the overall assessment, with high-energy users and firms exposed to long value chains reporting the most strain.
Rising Energy Costs Hit Operating Budgets
Nearly half of participating companies said their electricity costs increased over the past 12 months, while two-thirds reported rising bills for gas, district heating or heating oil. Respondents cited higher material, transport and logistics costs driven by energy-price inflation, squeezing margins where price increases cannot be passed on to customers. The combined effect has left many firms reassessing short-term budgets and day-to-day operating decisions as energy bills climb.
Investment Plans Postponed, Climate Projects Delayed
Cost pressures have already altered investment behavior: about one third of companies said they postponed investments in core processes, and one quarter put the brakes on investments in climate-protection measures. Companies cited uncertainty over future energy and commodity prices as a key reason for delaying modernization and efficiency projects. The postponements risk creating a vicious circle in which lack of capital spending slows improvements in energy efficiency and resilience.
Industry Shows Heightened Relocation Intentions
Concerns about competitiveness translate into relocation risk. Some 20 percent of companies report either moving production abroad or seriously considering it, a share higher than in prior years. The figure jumps to roughly 40 percent among industrial firms, underlining how energy-intensive manufacturers feel particularly vulnerable. DIHK President Peter Adrian warned that “global crises meet unresolved structural challenges at Germany’s economic location,” saying the result is rising costs, deferred investments and the relocation of production capacities.
Regional Differences in Perception of the Energiewende
Perceptions of the energy transition vary across Germany, the survey shows, with firms in the north more likely to view the transformation positively for the first time in years. In northern regions, the expansion of renewables has become a visible economic factor and a source of local industrial activity. By contrast, companies in the west and south report that the practical hurdles of transformation—higher input costs and strained infrastructure—are more salient and immediate, shaping a more cautious outlook.
Businesses Call for Fiscal and Infrastructure Relief
Companies voiced clear policy demands in the DIHK poll: nearly 80 percent called for further reductions in taxes and levies on electricity and for a faster build-out of energy infrastructure. The requests reflect a view that fiscal relief and quicker grid and permitting improvements are necessary to reconcile climate goals with industrial competitiveness. Adrian and DIHK officials framed those demands as central to avoiding loss of production and investment to jurisdictions with lower energy-related burdens.
The survey paints a picture of a business community that broadly supports the goal of climate neutrality but fears the pace and design of the transition are eroding competitiveness. Facing higher costs and constrained demand, many firms are caught between the need to decarbonize and the imperative to preserve margins and secure investment. Policymakers will confront growing pressure to balance support for renewables and infrastructure expansion with measures to shield companies from cost shocks that could drive activity overseas.
