Deutsche Bank reports: Germany leads the way in creating a clean energy economy

Germany has become an excellent example of how comprehensive climate change policy can result in economic stimulus. A recent report by Deutsche Bank highlights the steps Germany took to reduce their carbon emissions and explores policy options for other regions. The article also includes many insightful graphs and illustrations of the German experience.

When is comes to generating massive private investment, Deutsche Bank stresses the importance of providing investors with “transparency, certainty and longevity”.  Germany has exemplified how governments can play a major role in facilitating the transition to a clean energy economy. Various German policy initiatives, including a guaranteed connection to the power grid, have led to steady growth in the renewable energy sector, job creating and overall economic growth.

The article also offers several policy recommendations for the United States. One of the major criticisms of the current U.S. approach to clean energy policy is the emphasis on short-term incentives and solutions, which lead to uncertain conditions for investors. A federal cap-and-trade system would be an example of a more long-term strategy for encouraging significant investment in the clean-energy sector.  

For more information you can read the report by Deutsche Bank in its entirety.