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(birds chirping)

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(pleasant music)

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- The BDI is the Federation
of German Industries.

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From cars to the chemical
industry and manufacturers,

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we represent about 100,000 companies

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with about 8 million employees,

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and represent around a
quarter of the German GDP.

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(pleasant music)

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We decided to tackle climate
change because first of all,

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it's one of the major
challenges humanity is facing.

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But there is another case, so
we think that German industry

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has always been strong on
complex technology systems,

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and we think that we can
provide a lot of solutions

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for a world which has to
switch to climate neutrality.

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(cheerful music)

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We chose BCG as a partner because
there was ample experience

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and cooperation with BCG.

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BCG is a real global player,

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and has been focusing on
this issue, clearly visibly.

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- In our study we focused
on one key question,

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how can Germany achieve its
ambitious new climate targets

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that it just adopted in 2021?

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Germany wants to halve emissions by 2030

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and achieve net zero by 2045.

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Currently, we are not on
track to achieving this.

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What we wanted to find out
is, what would a program need

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to look like that achieves these targets?

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Which technological levers would need

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to be implemented, by when,

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and how can we ensure a fair transition?

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- We chose a very collaborative approach.

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We worked together with representatives

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of the entire German economy,

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and as you can imagine, they had,

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at the start of the project,
very diverse opinions of

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what Germany needs to
do to get to net zero.

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We had 40 day-long workshops.

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We had hundreds of bilateral alignments.

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We had drafts of our report

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that were commented on
by hundreds of people.

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And after half a year, we
converged together with them

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on one consistent set
of policy instruments

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to get to net zero.

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- [Elisabeth] Germany is
facing its biggest transition

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since the Second World War.

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And in order to achieve our
ambitious climate targets,

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we need to take a lot of
decisions very differently

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than we have been taking them in the past.

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We need to stop investments

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in fossil assets wherever possible, now.

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We need to build up a new
national hydrogen infrastructure.

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We need to shut down a
third of our blast furnaces

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and rebuild them using green technologies.

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We need to double the speed
of our building renovation.

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Already by 2030, essentially all
newly sold cars need to be electric.

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And of course, very importantly,

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we need to massively increase
our renewables capacities.

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We need to build more
renewable grids than ever,

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and we need to build
more thermal capacities

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than have ever been
built in Germany before.

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We need to invest around 860
billion euros by 2030 alone.

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- It's a huge amount of money
that needs to be allocated,

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but Germany has mastered
such challenges before.

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The real challenge is
to make this all happen.

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To coordinate the infrastructure build out

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with the regulations, that's
I think the much larger

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challenge that we face compared
to the financial challenge.

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(pleasant music)

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- [Elisabeth] Germany
has the fourth largest

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economy in the world.

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And while we are currently
still a net importer

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of fossil fuels, we are at
the same time an exporter

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of technologies and industrial assets.

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If Germany manages the
transition to a net-zero economy

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while remaining competitive globally,

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I believe we could serve as a blueprint

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for many more other
countries in the world.

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- I'm very optimistic about
the future of this work.

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We have with this study, an approach,

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which is absolutely fact-based, realistic,

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to keep our economies intact,

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and to reach those common
goals of climate protection.

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(pleasant music)