WEBVTT

00:00:00.954 --> 00:00:02.804
Professor Schwab,
dear Klaus,

00:00:02.804 --> 00:00:05.304
ladies and gentlemen,

00:00:05.304 --> 00:00:08.012
What a difference a year makes!

00:00:08.264 --> 00:00:11.262
When I spoke to you last year
around this time,

00:00:11.513 --> 00:00:18.013
our discussions revolved around the
global economy’s path out of the pandemic.

00:00:18.013 --> 00:00:21.763
At the start of 2022,

00:00:22.013 --> 00:00:26.012
many people were expecting a boom–
or at least a substantial boost

00:00:26.262 --> 00:00:30.764
for our economies’ transition
toward climate neutrality.

00:00:30.764 --> 00:00:34.013
Then came February 24.

00:00:34.514 --> 00:00:35.764
Since then,

00:00:35.764 --> 00:00:40.265
Russia has been waging an
imperialist war of aggression,

00:00:40.265 --> 00:00:42.265
here on our doorstep in Europe.

00:00:42.265 --> 00:00:45.713
With dreadful consequences,

00:00:45.713 --> 00:00:49.714
that Ukrainians are
bearing more than anyone.

00:00:49.714 --> 00:00:57.713
Just today the Secretary of the
Interior and 15 other victims

00:00:57.713 --> 00:01:01.462
were killed in a
tragic helicopter crash.

00:01:01.715 --> 00:01:06.714
We are with their families.

00:01:06.714 --> 00:01:12.423
But the war is also having
an impact on all of us.

00:01:12.423 --> 00:01:15.422
For a while, energy prices
jumped to levels higher

00:01:15.672 --> 00:01:18.292
than we had ever seen before.

00:01:18.292 --> 00:01:19.043
Around the world,

00:01:19.293 --> 00:01:22.794
production costs and
consumer prices exploded.

00:01:23.893 --> 00:01:30.294
Many people fear that coal and oil will make
a lasting comeback all across the world.

00:01:30.792 --> 00:01:32.043
If that were to happen,

00:01:32.043 --> 00:01:37.543
the 1.5 degree target
would become meaningless.

00:01:37.793 --> 00:01:43.792
Our supply chains must be adapted
to new geopolitical realities –

00:01:43.792 --> 00:01:52.054
realities that you called a “messy patchwork
of powers” in your speech yesterday, Klaus.

00:01:52.305 --> 00:01:56.307
And over all of this hangs
a sword of Damocles:

00:01:56.307 --> 00:01:59.055
the danger of a new
fragmentation of the world,

00:01:59.055 --> 00:02:03.055
of deglobalization
and decoupling.

00:02:03.784 --> 00:02:05.933
And yet,
ladies and gentlemen,

00:02:05.933 --> 00:02:09.436
this is just one part of
the story of last year,

00:02:09.436 --> 00:02:15.935
just one part of the reality that
we are looking at here in Davos.

00:02:15.935 --> 00:02:19.436
The other part
of the story is this:

00:02:19.436 --> 00:02:25.683
Russia has already failed completely
in reaching its imperialist goals.

00:02:25.683 --> 00:02:28.433
Ukraine is
defending itself with great success

00:02:28.433 --> 00:02:30.684
and impressive courage.

00:02:30.684 --> 00:02:35.931
A broad international alliance – led
by the G7– is providing the country

00:02:35.931 --> 00:02:41.933
with financial, economic,
humanitarian, and military support.

00:02:41.933 --> 00:02:46.434
Germany alone made available
over 12 billion euro last year.

00:02:46.933 --> 00:02:53.936
And we will continue to support
Ukraine – for as long as necessary.

00:02:53.936 --> 00:02:56.934
In Berlin at the end of October,

00:02:56.934 --> 00:03:01.433
we worked with international
experts to draw up a Marshall Plan

00:03:01.433 --> 00:03:04.935
for the long-term
reconstruction of Ukraine.

00:03:04.935 --> 00:03:10.043
A platform of major donors is
coordinating the process and

00:03:10.043 --> 00:03:16.543
– in consultation with Ukraine –
ensuring that it is well implemented.

00:03:16.543 --> 00:03:20.542
Private-sector capital
will play a key role here.

00:03:20.542 --> 00:03:24.983
I know that many companies in
Germany and beyond are very aware

00:03:24.983 --> 00:03:31.984
of the opportunities that a Ukrainian
economic miracle could offer to them.

00:03:32.234 --> 00:03:35.483
Particularly as the country
moves toward the European Union

00:03:35.483 --> 00:03:37.733
after the end of the war.

00:03:38.334 --> 00:03:46.233
But in order for the war to end,
Russia’s aggression must fail.

00:03:46.233 --> 00:03:51.122
That is why we are continuously supplying
Ukraine with large quantities of arms,

00:03:51.373 --> 00:03:54.624
in close consultation
with our partners.

00:03:54.624 --> 00:04:00.802
This includes air defense systems
like IRIS-T or Patriot, artillery,

00:04:01.052 --> 00:04:04.053
and armored infantry
fighting vehicles,

00:04:04.053 --> 00:04:09.803
marking a profound turning point
in German foreign and security policy.

00:04:09.803 --> 00:04:13.555
And there’s another
part to the story of last year:

00:04:14.054 --> 00:04:16.555
Within a few months,

00:04:16.555 --> 00:04:20.803
Germany made itself completely
independent from Russian gas,

00:04:20.803 --> 00:04:24.304
Russian oil,
and Russian coal.

00:04:24.304 --> 00:04:27.803
We concluded new
partnerships– in Asia, Africa,

00:04:27.803 --> 00:04:32.804
and America– thus
lessening our dependence.

00:04:32.804 --> 00:04:37.554
And so, I can say that our energy
supply for this winter is secure

00:04:38.052 --> 00:04:40.303
– thanks to well-filled
storage facilities,

00:04:40.303 --> 00:04:43.303
thanks to improved
energy efficiency,

00:04:43.553 --> 00:04:47.522
thanks to remarkable
solidarity within Europe,

00:04:47.522 --> 00:04:50.154
and thanks to the
readiness of our companies

00:04:50.154 --> 00:04:54.154
and of millions of
citizens to save energy.

00:04:54.154 --> 00:05:01.402
As a result, energy prices
have recently seen a huge drop.

00:05:01.402 --> 00:05:04.904
Our measures to reduce the burden
on private citizens, companies,

00:05:04.904 --> 00:05:06.655
and businesses are working.

00:05:06.655 --> 00:05:12.404
Inflation is falling
slowly – thanks, incidentally,

00:05:12.404 --> 00:05:16.652
also to resolute moves
by the central banks.

00:05:16.652 --> 00:05:20.153
Industrial production in Germany
has remained stable

00:05:20.153 --> 00:05:24.403
over the past few months,
against all the odds.

00:05:24.403 --> 00:05:30.903
Our employment rate is at record levels
and has recently increased even further.

00:05:30.903 --> 00:05:35.902
Most importantly, our transformation
toward a climate-neutral economy–

00:05:35.902 --> 00:05:44.653
the fundamental task of our century – is
currently taking on an entirely new dynamic.

00:05:44.653 --> 00:05:48.153
Not in spite of,
but because of the Russian war

00:05:48.153 --> 00:05:53.153
and the resulting pressure on us
Europeans to change.

00:05:53.652 --> 00:05:57.152
Whether you are a business
leader or a climate activist,

00:05:57.152 --> 00:06:03.153
a security policy specialist or an
investor– it is now crystal-clear

00:06:03.153 --> 00:06:09.673
to each and every one of us that the
future belongs solely to renewables.

00:06:09.673 --> 00:06:13.925
For cost reasons,
for environmental reasons,

00:06:14.423 --> 00:06:17.925
for security reasons,
and because in the long run,

00:06:18.424 --> 00:06:21.173
renewables promise
the best returns!

00:06:21.673 --> 00:06:28.424
So: Yes, the past year brought
fundamental change for Germany and Europe.

00:06:28.424 --> 00:06:33.843
But Germany itself has
fundamentally changed as well!

00:06:33.843 --> 00:06:39.093
We are resolutely pushing forward with
the decarbonization of our industry.

00:06:39.343 --> 00:06:42.343
We want to be
climate-neutral by 2045.

00:06:42.593 --> 00:06:44.093
And at the same time,

00:06:44.344 --> 00:06:49.094
we will remain a country with
a strong manufacturing sector.

00:06:49.094 --> 00:06:53.095
And despite all the difficulties
this past year showed us:

00:06:53.095 --> 00:06:56.845
we can and we
will succeed in that.

00:06:56.845 --> 00:06:59.594
In less than seven months,

00:06:59.594 --> 00:07:05.342
we built up an entirely new import
infrastructure for LNG in Wilhelmshaven.

00:07:05.342 --> 00:07:08.514
In the future it
can also be used for hydrogen.

00:07:09.013 --> 00:07:16.513
Just last Saturday, I opened our second LNG
terminal within just a few weeks, in Lubmin.

00:07:16.513 --> 00:07:21.513
The day after tomorrow another
terminal-ship is expected to arrive

00:07:21.513 --> 00:07:23.016
at the port of Brunsbüttel.

00:07:23.512 --> 00:07:26.263
More will follow.

00:07:26.513 --> 00:07:29.516
This is not only good
news for our energy security

00:07:29.516 --> 00:07:34.433
and that of our European neighbors who
will be receiving gas from these terminals.

00:07:35.283 --> 00:07:37.433
Above all,
it shows:

00:07:37.433 --> 00:07:44.183
Germany can be flexible; we can be
unbureaucratic; and we can be fast.

00:07:44.183 --> 00:07:50.923
I spoke of a new Deutschland-Geschwindigkeit
in this regard, a new “German speed”.

00:07:50.923 --> 00:07:54.673
We will make this German
speed the benchmark –

00:07:54.673 --> 00:07:58.674
also for the transformation
of the economy as a whole.

00:07:58.674 --> 00:08:02.674
Your companies can
hold us to this standard.

00:08:03.172 --> 00:08:07.673
A new law mandates that
the expansion of wind power,

00:08:07.673 --> 00:08:08.673
solar energy,

00:08:08.673 --> 00:08:14.424
as well as electricity and hydrogen
networks now take priority.

00:08:14.424 --> 00:08:21.173
We will make available no less than two
percent of our country for wind power

00:08:21.173 --> 00:08:24.173
– with a
minimum of red tape.

00:08:24.173 --> 00:08:28.923
We have streamlined our processes
so that approvals for electricity grids

00:08:28.923 --> 00:08:36.422
– to name just one example – are granted
on average two years faster than before.

00:08:36.422 --> 00:08:40.173
And we intend to step
up the pace even more.

00:08:40.423 --> 00:08:43.423
You can also
rely on our targets.

00:08:43.423 --> 00:08:46.984
The obstacles have
been swept aside.

00:08:46.984 --> 00:08:50.483
For 2023, we have more
than doubled the volume

00:08:50.483 --> 00:08:55.734
of calls for tender for
onshore wind farms alone.

00:08:55.734 --> 00:08:56.983
By the year 2030,

00:08:57.233 --> 00:09:00.983
80 percent of our electricity production
will come from renewable sources

00:09:00.983 --> 00:09:05.234
– again,
double what it is at present.

00:09:05.234 --> 00:09:06.233
At the same time,

00:09:06.483 --> 00:09:09.234
our electricity requirements
are increasing –

00:09:09.234 --> 00:09:15.733
from 600 terawatt hours today
to 750 by the end of the decade.

00:09:15.733 --> 00:09:20.983
And we are expecting them to
double, yet again, in the 2030s.

00:09:20.983 --> 00:09:24.233
This is a massive increase.

00:09:24.732 --> 00:09:29.232
That’s why the Federal Network
Agency has been given a clear mandate

00:09:29.232 --> 00:09:33.483
to prepare and expand
our electricity grids accordingly.

00:09:33.483 --> 00:09:36.733
We will regularly review
the progress made.

00:09:36.733 --> 00:09:41.314
If it’s not on schedule,
the measures will be adjusted.

00:09:41.812 --> 00:09:46.814
However, electricity alone is not
enough to run Germany’s industry.

00:09:46.814 --> 00:09:50.063
I am thinking, for instance,
of steel production.

00:09:50.063 --> 00:09:54.564
Hydrogen will play
a decisive role there.

00:09:55.062 --> 00:09:58.315
And that is not
a far-off scenario.

00:09:58.315 --> 00:10:01.814
Last fall, Thyssenkrupp
gave the green light to build

00:10:01.814 --> 00:10:06.813
a direct reduction plant for
low-carbon premium steel.

00:10:06.813 --> 00:10:10.813
With a capacity of
2.5 million metric tons,

00:10:11.063 --> 00:10:17.064
the plant will save 3.5 million
metric tons of CO2 per year.

00:10:17.064 --> 00:10:22.313
This is just one example of
Europe’s strength in innovation.

00:10:22.313 --> 00:10:26.813
Europe is the world’s number
one in hydrogen patents.

00:10:26.813 --> 00:10:31.564
And one in ten global
applications comes from Germany.

00:10:31.564 --> 00:10:38.063
The first supply chains for green hydrogen
are currently being built up in our country.

00:10:38.063 --> 00:10:39.813
For our own production,

00:10:39.813 --> 00:10:43.063
we are using offshore
wind in the North Sea.

00:10:43.063 --> 00:10:48.314
In parallel, we are concluding
hydrogen partnerships worldwide.

00:10:48.812 --> 00:10:54.063
For as long as quantities are small and the
costs of production correspondingly high,

00:10:54.562 --> 00:10:59.813
the state will bring prices
down to a level lucrative for the industry.

00:10:59.813 --> 00:11:05.062
Our goal is nothing
less than an electrolysis boom.

00:11:05.313 --> 00:11:07.314
And,
as quantities increase,

00:11:07.314 --> 00:11:11.812
a hydrogen-powered industrial
sector will emerge that preserves

00:11:12.063 --> 00:11:19.063
the climate and is independent of
volatile prices for fossil fuels.

00:11:19.063 --> 00:11:21.813
Because one thing
is absolutely certain:

00:11:22.311 --> 00:11:29.202
Energy must remain affordable – in
Germany, in Europe, and worldwide.

00:11:29.202 --> 00:11:35.204
In Germany, we decided to cap electricity and
gas prices for private citizens and companies.

00:11:35.204 --> 00:11:39.954
These measures
will run until 2024.

00:11:39.954 --> 00:11:45.194
Annually, we will use around
2.2 percent of our GDP for this,

00:11:45.194 --> 00:11:49.193
a total of up to
200 billion euro.

00:11:49.193 --> 00:11:53.194
That is both forceful
and proportionate.

00:11:53.194 --> 00:11:57.693
It will give your companies
the reliable energy prices

00:11:57.693 --> 00:12:02.442
and the planning certainty you need
to invest in Germany’s transformation.

00:12:02.442 --> 00:12:04.693
In the European Union,

00:12:04.693 --> 00:12:09.443
we have agreed on joint
targets for gas filling and saving.

00:12:09.443 --> 00:12:14.693
We will purchase gas jointly more
often and coordinate storage better.

00:12:15.294 --> 00:12:21.194
And we will use our market power to ensure
that European prices do not decouple completely

00:12:21.194 --> 00:12:22.944
from the world market.

00:12:22.944 --> 00:12:28.443
Moreover, we are also aware
of our global responsibility.

00:12:28.443 --> 00:12:34.194
Let me say this expressly to
our friends and partners in Asia,

00:12:34.693 --> 00:12:37.943
Africa,
Latin America and the Caribbean:

00:12:37.943 --> 00:12:42.443
The fact that we Europeans
purchase LNG on the world market,

00:12:42.443 --> 00:12:45.943
must not lead to
scarcity elsewhere.

00:12:45.943 --> 00:12:52.696
We will need alternatives for the
roughly 120 billion cubic meters of gas

00:12:53.194 --> 00:12:56.663
from Russian pipelines
missing from the world market –

00:12:56.663 --> 00:13:02.413
more renewables, of course, but also,
temporarily, additional gas resources.

00:13:02.663 --> 00:13:05.916
Otherwise there is a danger
that without affordable gas,

00:13:05.916 --> 00:13:10.414
emerging economies in particular
might switch back to coal.

00:13:10.414 --> 00:13:15.164
This would be even more
harmful to the environment.

00:13:15.414 --> 00:13:19.662
Of course,
we must avoid new lock-ins,

00:13:19.913 --> 00:13:26.664
new path dependencies at all costs
– by making new projects HO2-ready

00:13:26.664 --> 00:13:32.665
from the very outset and by
expanding renewables in parallel.

00:13:32.665 --> 00:13:37.162
In the short term this
may lead to higher costs.

00:13:37.162 --> 00:13:42.915
In the long term
we all stand to save

00:13:42.915 --> 00:13:47.164
if the impact of climate
change is less dramatic.

00:13:47.164 --> 00:13:53.415
In Germany, too, switching to a
climate-friendly economy will take efforts.

00:13:53.415 --> 00:13:57.665
We are talking about investments
around 400 billion euro

00:13:57.665 --> 00:14:02.915
for the expansion of renewables
between now and 2030.

00:14:02.915 --> 00:14:07.665
Investments, by the way,
which are already well underway.

00:14:07.665 --> 00:14:12.672
The most recent example is a
contract worth billions for Siemens Energy

00:14:12.672 --> 00:14:16.673
to connect a new
offshore wind park to the grid.

00:14:16.673 --> 00:14:21.175
And this is just one example
illustrating why this turning point

00:14:21.175 --> 00:14:26.674
towards a climate-friendly industry is
not the end of our industrial powerhouse.

00:14:26.674 --> 00:14:28.673
But a new start!

00:14:28.673 --> 00:14:33.926
After all, even before the energy
crisis that Russia triggered,

00:14:33.926 --> 00:14:40.422
Germany’s business model was not only based on
the energy-intensive mass production of aluminum,

00:14:40.674 --> 00:14:43.424
cement, or crude steel.

00:14:43.424 --> 00:14:48.043
But on highly specialized research- and
technology-intensive industrial products.

00:14:48.542 --> 00:14:52.294
Products that are needed
all around the world.

00:14:52.294 --> 00:14:54.794
All the more so,
actually,

00:14:54.794 --> 00:14:58.795
when the world is now transitioning
towards a climate neutral future.

00:14:58.795 --> 00:15:01.795
Even before Russia’s
war of aggression,

00:15:02.045 --> 00:15:06.292
Germany’s energy
prices were not the lowest.

00:15:06.292 --> 00:15:09.546
And yet Germany was
and remains competitive.

00:15:10.044 --> 00:15:16.294
This is because of thousands of small and
medium-sized enterprises all across the country.

00:15:16.294 --> 00:15:20.295
Enterprises that are highly
innovative and adaptable –

00:15:20.295 --> 00:15:24.795
which explains why they are
so often global leaders.

00:15:24.795 --> 00:15:28.793
This is thanks to high public and private
investment in research and development,

00:15:28.793 --> 00:15:35.543
which, for example, ensured that the
first COVID-19 test and the first safe

00:15:35.543 --> 00:15:40.793
and effective COVID-19 vaccine
were developed in Germany.

00:15:40.793 --> 00:15:42.294
Just in December,

00:15:42.794 --> 00:15:44.794
a team at the Helmholtz
Center in Berlin

00:15:44.794 --> 00:15:49.546
set a new world record for
the efficiency of solar cells.

00:15:49.546 --> 00:15:52.045
And now,
just a few weeks later,

00:15:52.045 --> 00:15:58.045
our companies are already setting up pilot
lines for the use of these tandem cells.

00:15:58.045 --> 00:16:00.543
That,
ladies and gentlemen,

00:16:00.543 --> 00:16:03.545
is and remains the
German business model –

00:16:04.432 --> 00:16:11.333
particularly now as we chart our
path to a climate-neutral future.

00:16:11.333 --> 00:16:17.084
Where else is there such broad consensus
between businesses, employees, and politics

00:16:17.084 --> 00:16:20.834
that the path to climate neutrality
is not just ecologically necessary

00:16:20.834 --> 00:16:26.585
but also offers new opportunities
in global competition?

00:16:26.585 --> 00:16:31.085
When it comes to basic and professional
training for employees, for example,

00:16:31.085 --> 00:16:35.835
politics, business, and trade unions
in Germany are working hand in hand.

00:16:35.835 --> 00:16:38.833
And before the year is out,

00:16:38.833 --> 00:16:43.585
our country will finally benefit
from modern immigration legislation.

00:16:43.585 --> 00:16:49.335
After all, if we want to remain
competitive as a leading industrial nation,

00:16:49.335 --> 00:16:54.082
we need experienced practitioners
– qualified engineers,

00:16:54.082 --> 00:16:56.334
tradesmen,
and mechanics.

00:16:56.833 --> 00:17:00.833
Those who want to roll up their
sleeves are welcome in Germany.

00:17:01.083 --> 00:17:03.584
That is our message!

00:17:03.584 --> 00:17:10.333
For decades now, the forecasts have been
predicting a shrinking German population.

00:17:10.333 --> 00:17:13.834
But it is up to us to decide
whether this happens.

00:17:14.332 --> 00:17:18.835
So far it certainly hasn’t.

00:17:18.835 --> 00:17:24.083
Today Germany has more inhabitants
and employed persons than ever before.

00:17:24.584 --> 00:17:29.083
And this is precisely the
trend we are going to continue.

00:17:29.083 --> 00:17:33.085
Ladies and gentlemen, a climate-neutral
future is, needless to say,

00:17:33.583 --> 00:17:37.835
not something any single
country can achieve on its own.

00:17:37.835 --> 00:17:44.332
That is why our dialogue and a
forum like Davos are so crucial.

00:17:44.583 --> 00:17:48.763
What we are doing in Germany also
serves the goal of making Europe

00:17:48.763 --> 00:17:53.015
the first climate-neutral
continent by 2050.

00:17:53.515 --> 00:17:54.765
At a European level,

00:17:54.765 --> 00:18:00.015
we are going to lower our net greenhouse
gas emissions by at least 55 per cent

00:18:00.015 --> 00:18:04.263
by 2030 compared to 1990.

00:18:04.263 --> 00:18:07.013
This decision stands.

00:18:07.013 --> 00:18:10.016
Here,
we are relying on the market,

00:18:10.016 --> 00:18:12.265
on competition,
and on innovation.

00:18:12.265 --> 00:18:16.765
The EU’s emissions trading
system is a case in point.

00:18:16.765 --> 00:18:22.034
Even today we are using it to
cut permissible emission levels

00:18:22.034 --> 00:18:25.032
in a way that is
predictable for all.

00:18:25.032 --> 00:18:26.035
At the same time,

00:18:26.531 --> 00:18:30.532
this system is serving as
a catalyst for innovation.

00:18:33.533 --> 00:18:38.035
But to ensure the most
ambitious are not disadvantaged,

00:18:38.533 --> 00:18:44.784
we prepare a carbon border
adjustment mechanism in Europe.

00:18:44.784 --> 00:18:49.802
At the same time however, Europe
remains open for international trade.

00:18:49.802 --> 00:18:52.302
I am doing my
utmost to ensure

00:18:52.552 --> 00:18:56.553
that the free trade agreements we have
successfully negotiated with Canada,

00:18:56.804 --> 00:19:01.302
Korea, Japan, New Zealand, and Chile
will soon be followed by new ones:

00:19:01.302 --> 00:19:05.053
with MERCOSUR,
India, and Indonesia.

00:19:05.053 --> 00:19:08.554
And we are also open to
discuss a tariff agreement

00:19:08.554 --> 00:19:11.556
for the industrial sector
with the United States.

00:19:12.054 --> 00:19:17.304
Through these agreements we are
creating a level playing field

00:19:17.304 --> 00:19:19.557
and we are preventing
high-emission industries

00:19:19.557 --> 00:19:24.306
from heading off to countries with less
ambitious climate targets.

00:19:24.306 --> 00:19:28.322
This is also the aim of the
international Climate Club

00:19:28.573 --> 00:19:32.074
we launched during
Germany’s G7 Presidency.

00:19:32.074 --> 00:19:38.824
A Secretariat has recently been set up at
the OECD and the International Energy Agency.

00:19:39.322 --> 00:19:44.075
So the Club is now open to new,
ambitious members.

00:19:44.075 --> 00:19:48.325
In the United States,
this ambition has a name:

00:19:48.325 --> 00:19:52.075
the Inflation Reduction Act.

00:19:52.575 --> 00:19:58.823
Some 370 billion dollars have been earmarked
for energy and climate change mitigation

00:19:58.823 --> 00:20:01.823
over the next ten years.

00:20:01.823 --> 00:20:06.075
I very much welcome
this investment.

00:20:06.075 --> 00:20:09.075
Through the German Climate and
Transformation Fund

00:20:09.574 --> 00:20:17.323
we have made almost 180 billion euro
available ourselves for the period 2023 to 2026.

00:20:17.575 --> 00:20:21.074
But local content
requirements for certain products

00:20:21.074 --> 00:20:25.824
must not result in discrimination
against European businesses.

00:20:25.824 --> 00:20:29.003
Protectionism hinders
competition and innovation

00:20:29.003 --> 00:20:33.002
and is detrimental to
climate change mitigation.

00:20:33.002 --> 00:20:38.063
We, as EU members, are talking
to our American friends about this.

00:20:38.063 --> 00:20:39.064
And at the same time,

00:20:39.562 --> 00:20:42.473
we are looking at what
we ourselves can do

00:20:42.473 --> 00:20:46.974
to further improve investment
conditions here in Europe.

00:20:46.974 --> 00:20:47.972
The Chips Act,
for instance,

00:20:48.223 --> 00:20:51.473
has brought about a new start
for chip manufacturing in Europe.

00:20:51.973 --> 00:20:57.474
Investors are starting new production
plants for billions of euros.

00:20:57.474 --> 00:21:02.223
They can build on an existing
semi-conductor industry.

00:21:02.223 --> 00:21:05.473
This could become a model
for other key technologies –

00:21:05.473 --> 00:21:09.475
particularly in the digital
and climate sectors.

00:21:09.475 --> 00:21:13.473
And the funding is
there for the taking.

00:21:14.323 --> 00:21:19.473
To date, only 20 percent of
the more than 700 billion euro

00:21:19.974 --> 00:21:23.472
in the European Recovery Fund 
has been paid out.

00:21:23.723 --> 00:21:26.973
Its full impact will thus
emerge over the coming years.

00:21:27.472 --> 00:21:29.722
To remain competitive,

00:21:29.722 --> 00:21:35.723
we will have to make European legislation
on state aid more agile and flexible –

00:21:35.723 --> 00:21:39.474
just as European Commission President
Ursula von der Leyen has proposed

00:21:39.474 --> 00:21:42.722
and reaffirmed here yesterday.

00:21:43.222 --> 00:21:47.723
So that investors know in
advance what support to expect –

00:21:48.223 --> 00:21:51.975
and don’t have to wait until years after
their investment to find out.

00:21:53.353 --> 00:21:54.752
Ladies and gentlemen,

00:21:55.252 --> 00:21:59.253
the past year challenged
us as seldom before.

00:21:59.503 --> 00:22:00.753
Yet at the same time,

00:22:00.753 --> 00:22:05.504
we changed and moved
things forward as seldom before.

00:22:06.003 --> 00:22:08.854
Germany itself is changing.

00:22:09.353 --> 00:22:12.755
If I may make a prediction:

00:22:12.755 --> 00:22:21.503
My successor will address you at the
World Economic Forum in 2045. Sure:

00:22:21.503 --> 00:22:23.853
He or she will present Germany

00:22:24.351 --> 00:22:28.604
as one of the world’s first
climate-neutral industrial nations.

00:22:28.813 --> 00:22:33.463
Energy supplies in Germany and Europe
will then be sourced almost exclusively

00:22:33.463 --> 00:22:37.462
from green
electricity, heat, and hydrogen.

00:22:37.462 --> 00:22:40.713
We will be moving emission-free
on our roads and railroads.

00:22:40.713 --> 00:22:43.462
Our buildings will
be energy efficient.

00:22:43.962 --> 00:22:48.212
Our businesses will be producing
on a climate-neutral basis.

00:22:48.212 --> 00:22:49.463
And what is more,

00:22:49.463 --> 00:22:53.211
they are the ones who will
have driven this transition,

00:22:53.211 --> 00:22:57.213
who will continue to drive it.

00:22:57.213 --> 00:23:02.463
So, if you ask me today where you
can invest in the future sustainably

00:23:02.463 --> 00:23:05.464
with a high return,
my answer is:

00:23:05.464 --> 00:23:06.965
Don’t look any further!

00:23:06.965 --> 00:23:09.215
Come to us, to Germany,
and to Europe!

00:23:09.713 --> 00:23:11.313
Thank you very much.