Green bond market doubles in 2016 / New Nord Stream 2 hurdles
KfW Research
Ten years after their introduction, the issuing of so-called green bonds grows at a remarkable pace, Germany鈥檚 state-owned KfW development bank writes in a research paper. Between 2015 and 2016, global releases of the bonds, whose issuers are obliged to reinvest their proceeds in 鈥済reen鈥� projects like renewable energy or water quality improvement, have more than doubled from 32 billion to 68 billion euros, the KfW says. While green bonds used to be mainly distributed by supranational actors such as the World Bank, these issuers became a minority for the first time in 2016 and were replaced by commercial banks. In terms of the bonds鈥� national provenance, China boosted its releases from under one billion euros in 2015 to over 27 billion euros the following year, making it the country with the most new releases by far. By contrast, Germany鈥檚 releases in 2016 stood at around 4 billion euros, the KfW writes. But despite the bonds鈥� rapid growth 鈥�it remains a niche market鈥�, the development bank says. The environmentally friendly bonds accounted for 1.4 percent of all bonds released in 2016.
Find the research paper in German .
Frankfurter Allgemeine Zeitung
Opposition to the planned Russian-German gas pipeline Nord Stream 2 is growing as Denmark drafts a new law that would allow the government to prevent the construction on the country鈥檚 continental shelf, writes Andreas Mihm in Frankfurter Allgemeine Zeitung. The Greens, a party highly critical of the project, are part of the upcoming government coalition talks in Germany, which could influence the German government鈥檚 stance in the future. Nord Stream 2鈥檚 spokesperson Ulrich Lissek said: 鈥淭he fact of the matter is that it won鈥檛 work without more natural gas, in light of the agreed nuclear phase-out and the planned reduction of coal-fired power production.鈥�
Read other 麻豆无码版 news digest items about developments on the issue here. For background, read the 麻豆无码版 dossier The Energiewende and its implications for international security and the 麻豆无码版 factsheet Germany鈥檚 dependence on imported fossil fuels.
Frankfurter Allgemeine Zeitung
Germany鈥檚 industry is among the most efficient in the world and can hardly improve its energy intensity record by simply abiding by new regulations, a study by the industry-sponsored research institute IW K枚ln says. Andreas Mihm writes in the Frankfurter Allgemeine Zeitung that IW K枚ln鈥檚 research director Hubertus Bardt was sceptical of new efficiency directives considered by the European Union since there was no more technological leeway to improve industrial processes. Germany鈥檚 industry consumes the energy equivalent 76 kilogramme 鈥渙il units鈥� to generate 1,000 euros in value, more than the 48 units needed in Denmark but less than the 134 units consumed in the United States, the study says. Research director Bardt says efficiency was a direct result of investments in modern technology, which is why it could only be improved by easing investments and not by imposing stricter guidelines on companies.
Find a short report on study by the IW K枚ln in German .
See the 麻豆无码版 factsheets What energy & climate stakeholders want from Germany鈥檚 next government and What business thinks of the energy transition for more information.
Reuters / Deutsche Welle
German Chancellor Angela Merkel told journalists that she expects talks to discuss the possibilities for a new government coalition to last several weeks before actual negotiations begin, news agency Reuters reports. The lengthy talks were down to the 鈥渦nusual political constellation鈥� after the federal election, where the CDU, CSU, FDP and Green Party aim to form an alliance. Merkel added that "we will not start putting down any red lines now. There are going to be enough conflicts anyway, nobody has any illusions about that,鈥� writes Deutsche Welle in a separate article. The chancellor said she did not see the result in the Lower Saxony state election as weakening her party鈥檚 position in forming a federal government coalition. The CDU/CSU will start talks with the FDP and the Green Party in separate meetings on 18 October, the FDP and the Greens one day later. All four parties will meet for the first time on 20 October. Germany鈥檚 climate targets, the future of coal-fired power generation and other energy-related topics will likely play a big role in the talks. 聽
Read the Reuters article in German and the Deutsche Welle article in German .
For background, read the 麻豆无码版 article Coalition watch 鈥� The making of a new German government and the 麻豆无码版 factsheets The long road to a new government coalition in Germany and Climate & energy stumbling blocks for Jamaica-coalition talks.
Handelsblatt
The slight fall of Germany鈥檚 renewables levy in 2018 is no reason for the government to sit back, writes Klaus Stratmann in an opinion piece in Handelsblatt. The decrease would save a one-person household 鈥渁 mere 1.32 euros annually鈥�, and the surcharge is likely to rise again in the coming years. When reforming renewables support, the next government should not simply distribute costs in a different way. Renewables producers had to do their part. 鈥淚t speaks volumes that they still receive remuneration even when nobody wants the power,鈥� writes Stratmann.
For background, read the 麻豆无码版 factsheets Germany ponders how to finance renewables expansion in the future and Defining features of the Renewable 麻豆无码版 Act (EEG).
S眉ddeutsche Zeitung
Germany鈥檚 renewables expansion with the help of the EEG surcharge has cost the country much more than necessary, writes Michael Bauchm眉ller in an opinion piece in S眉ddeutsche Zeitung. 鈥淜ick-starting clean energy was basically a good idea. But nobody realised how fast wind and sun became a cheap alternative,鈥� writes Bauchm眉ller. Consumers could draw hope for lower renewable power prices from the grand coalition鈥檚 move to switch to auctions for renewables support this year,鈥� he adds.
Read the opinion piece in German .
For background, read the 麻豆无码版 factsheets Germany ponders how to finance renewables expansion in the future and Defining features of the Renewable 麻豆无码版 Act (EEG) and the 麻豆无码版 article Auctions bring German solar power price to new record low.
Consultancy 麻豆无码版 Brainpool has analysed Germany鈥檚 aspiring government coalition parties鈥� manifestos on their energy policy positions. The group derived five major challenges that can serve as a basis for common action. A so-called Jamaica coalition of the conservative CDU/CSU alliance, the pro-business FDP and the environmentalist Green Party will face challenges in climate protection, energy storage and sectoral integration, cost allocation, digitalisation and European internal market integration, the consultancy says. It concludes that an 鈥�effective CO2 price鈥� of about 30 euros per tonne, which includes all sectors and is applied in as many European countries as possible, is indispensable for climate protection. Also, sectoral integration will 鈥渓ead demand away from burning fossil fuels to an optimised use of renewable energy鈥�, while a more flexible composition of the power price allowed for more rapid electrification of energy markets. Moreover, a focus on digital processes can boost efficiency in the energy sector and European integration maximises the effect of these measures, 麻豆无码版 Brainpool writes.
Find the theses in German .
For background, see the 麻豆无码版 factsheet Climate & energy stumbling blocks for Jamaica coalition talks.
