EPICO KlimaInnovation is accompanied by a broad-based, independent Advisory Board with high-level members from politics, business, science, and civil society. The Board advises EPICO’s experts on guidelines and the fundamental orientation of the think tank.
With this interview series, we want to introduce the work, expertise, and motivation of each Member of the Advisory Board, as we delve deep into the main questions concerning the future of Europe’s energy transition.
We are pleased to introduce Markus Hümpfer. As a Member of the German Bundestag, he is committed to driving the energy transition and shaping a sustainable, future-proof economy. His focus is on grid expansion, a modern electricity market design, and the promotion of renewable energies – aiming to balance climate protection and competitiveness.
Markus, why did you decide to join the EPICO Advisory Board?
Climate change is the greatest challenge facing humanity. Meeting the 1.5-degree target and achieving the climate goals – in Germany and worldwide – are the foundations of our future. At the same time, the fight against climate change is also solving other geopolitical and social problems. There is an opportunity to generate sustainable growth in this area of tension that will maintain our prosperity in a changing world. However, this requires the right instruments. Because it is clear that we will not succeed in finding a solution without taking society with us.
To develop these instruments, we need forward thinkers – people who think and act “out of the box”. EPICO offers a platform for such people. Innovative ideas and strategies are developed here. This holistic and innovative approach motivated me to become a member of the Advisory Board.
After all, the task of politics is nothing less than shaping the future with the means of the present. The better and more innovative the solutions of the present, the better and faster we can achieve the goals we have set ourselves for the future. This is particularly important when it comes to climate change. When I look at the latest natural disasters, I know that time is running out. That's why we need to act now.
EPICO provides independent support from the heart of society.
What political decisions will be crucial in the next legislative period to balance climate action and competitiveness?
Climate protection and competitiveness can go hand in hand. In fact, they must if we want to ensure long-term economic success. Our companies and our society are in the midst of the biggest transformation since industrialisation. In the coming years, no stone will be left unturned. At the same time, we must preserve the basis of our existence – this one planet.
In view of the global challenges we face, it will be necessary to establish new green lead markets. This includes the hydrogen economy, for example. We must succeed in ramping up the hydrogen market to enable the use of green gases in the long term and thus produce climate-neutral products.
In recent months, we have already launched the hydrogen backbone. The task now is to set up this backbone as quickly as possible and to do everything we can to make the production and distribution of hydrogen significantly faster and cheaper. To this end, the “use instead of curtailment” instrument must be evaluated and adapted where necessary.
However, this also requires an incentive to provide flexibility in the energy system. A significant increase in electrolysis capacity is necessary to enable this flexibility. At the same time, the chicken-and-egg problem must be solved. Producers of green hydrogen are also dependent on consumers.
Therefore, in addition to the decarbonisation of the steel industry, the construction of urgently needed capacity in the form of H2-ready gas-fired power plants is crucial to boost the ramp-up of the hydrogen economy. However, this will only be possible through capacitive elements in the electricity market. A new electricity market design and a transitional power plant strategy therefore remain urgently needed.
It is also important to keep an eye on the overall price situation. Energy must be affordable. This requires a long-term cap on grid fees, an industrial electricity price and a climate fee. We must not leave anyone behind on the long road to climate neutrality. The support of society as a whole is the key to the success of the energy transition.
How can the transformation of the steel and heavy industry succeed without risking jobs and economic value?
The transformation of our steel and heavy industry into a green industry is necessary. This is the only way to secure skills, jobs, and our prosperity in the future.
There is no question that these industries in particular need green lead markets. To manage the ramp-up and enormous investments, we will not be able to avoid subsidies.
At the beginning, there is always the question of whether we can afford the relocation of industry and with it the migration of a wide range of fundamental sectors as Germany. In view of the global challenges, increasing trade barriers, and the resilience of our supply chains, we can only come to the conclusion that both the steel and chemical industries are of great importance to Germany.
Building on this, we must ask ourselves: How can we organise and finance this transformation? To remain at the forefront of global technology leadership, the right framework conditions are needed. In a difficult geopolitical environment, I believe that local content regulations are needed to protect our domestic industry. This is the only way to counter unfair competition. However, this alone will not be enough. In the long term, we need cheap energy prices and uncomplicated support mechanisms. Tax refunds for investments in Germany should therefore be examined and implemented where necessary.
At EPICO, we are actively addressing key energy transition challenges. We believe that climate and energy policy driven by competition and innovation is essential to efficiently reducing CO2 and other greenhouse gases, while also balancing environmental protection, sustainable economic growth, and socially just equitable outcomes. Discover our latest publications, and upcoming events, and stay tuned for more Advisory Board interviews.