Climate protection needs reliable framework conditions

The progress report is based on a survey conducted by the Association of German Chambers of Commerce and Industry (DIHK) and the German Chambers of Commerce Abroad (AHKs), polling over 2,200 German businesses in 43 countries.

"In terms of climate protection, companies are often the trailblazers, as they are the ones who must implement measures first," explains Volker Treier, DIHK's Head of Foreign Trade. "Many of our businesses see significant opportunities here – but only if the conditions are right. Unfortunately, this is often not the case."

The survey results reveal that in some countries, awareness of the need for significant increases in renewable energy has improved compared to two years ago. Nearly a quarter of the businesses surveyed (24 percent) confirm the presence of a credible climate strategy in their host countries, up from one-fifth in the previous survey. Nevertheless, a central problem remains. "At many locations, the right structures and incentives are missing to drive real transformation," says Treier.

 

Business Opportunities and Public Perception

Over 86 percent of AHK companies worldwide recognize business opportunities in climate protection, energy transition, and mobility transition. Respondents in the Eurozone and South and Central America are particularly optimistic, with 90 percent in each region citing business prospects. In contrast, confidence is more subdued in Greater China, where nearly a quarter of businesses see no opportunities in climate protection at all.

Another key finding is that climate protection does not dominate public discourse in any country. The topic holds the greatest significance in the Eurozone (average score of 4.1 on a 1–6 scale) but plays a less prominent role in Eastern and Southeastern Europe (3.1). "This trend could also be influenced by political changes – such as in the U.S. – which might dampen global willingness to advance climate protection," Treier emphasizes.

 

Carbon Pricing as a Challenge

"A harsh reality of these framework conditions is that EU carbon pricing often compels businesses to reconsider their locations," Treier continues.

While 34 percent of companies expect the market share of European products to rise in their host countries due to the EU's carbon pricing – up significantly from 2022 – many are simultaneously relocating production as a result. Countries like India, Morocco, and Vietnam are particularly attractive for such shifts, a trend confirmed by the survey results.

 

"The results show that companies see great potential in climate protection," Treier concludes. "However, stable framework conditions and the right incentives are crucial to seize these opportunities."

The DIHK urges policymakers worldwide to create reliable and investment-friendly conditions to advance climate protection.

The full survey results are available for download here:

AHK-Climate Action Compass 2024 (PDF, 4 MB)