No industrial policy is no solution eith • Table.Briefings

By Henning Vöpel, André Wolf and Götz Reichert

Henning Vöpel, Porträtfoto im Anzug vor hellem Hintergrund, schreibt mit Kollegen über die Transformation der Industrie zur Klimaneutralität. — Henning Vöpel is Director of the Center for European Policy and Professor of Economics at the BSP Business and Law School.

The transformation of the industry to climate neutrality involves a conflict of goals between climate protection and competitiveness. To overcome this quickly, what is needed is not a classic industrial policy but a reliable regulatory framework that sets appropriate incentives in the market and creates stable expectations in competition, write Henning Vöpel, André Wolf and Götz Reichert of the Center for European Policy (cep).

The specter of deindustrialization is haunting Germany and Europe. Regardless of whether the fear is justified or exaggerated, the climate and energy policy transformation is now recognizably at a critical point: Investments are flowing abroad and location decisions are increasingly being made against Germany and Europe. Contrary to what politicians like to sell, the industrial transformation to climate neutrality is not a foregone conclusion, because the path to it is unstable.

No industrial policy is no solution either

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