Energy Efficiency Policy in Germany

Policy Brief No. 1

Germany is globally leading in energy efficiency and it belongs to the top 5 countries with regard to the lowest energy intensity of GDP. In 2019, the German economy used 71 grammes of oil equivalent to produce one US-Dollar of GDP; while for example, the Iranian economy required 179 grammes to produce the same one US-Dollar of GDP. In other international rankings, Germany is also usually ranked as the most energy-efficient industrial country.

Germany continues to pursue ambitious energy efficiency improvements and has set itself the goal to reduce by 50% its primary energy consumption by the year 2050 compared to the level of 2008. To achieve this aim, Germany has implemented an energy efficiency strategy based on a variety of different policy instruments, including regulatory policies and cap-and-trade approaches. Germany has not introduced a single, separate energy-efficiency market comparable to the Iranian M3E, but it relies on a policy mix of different energy savings instruments. Many energy efficiency measures for 2021-2030 are set out in the “National Action Plan Energy Efficiency 2.0 ”, published in 2019 and focusing on the demand side of the energy system.

This policy brief describes the different energy efficiency policy instruments used in Germany.

Link to Policy Brief [1.4 MB | en]