Increasing energy efficiency is one of the prime energy policy objectives of the German government and international institutions. A reduction, or at least a limit to the increase, in energy consumption will help to conserve resources. Here, the manufacturing sector, which is responsible for a considerable proportion of total energy consumption, has an important role to play. Yet a comparison with other countries shows that German industry is already particularly energy efficient. Moreover, a detailed analysis makes clear that the curbing of energy consumption is a result not only of growing efficiency but also of changes in the structure of industry: A number of energy-intensive sectors show a clear decline in gross added value as well as energy consumption. Energy policy must not result in progress in energy efficiency in Germany being achieved at the expense of certain industries reducing their domestic production due to increasing energy prices and a consequent loss of compet-itiveness.

The Energy Efficiency of German Industry
IW-Trends
German Economic Institute

Hubertus Bardt: Energieeffizienz der deutschen Industrie
IW-Trends
German Economic Institute
More on the topic

Industry, climate protection and trade: Balancing different costs and prices for industrial climate protection
In interrelated markets for exchangeable goods there is - apart from transaction costs - only one single price. In contrast, international climate protection is characterized by very different prices for greenhouse gas emissions.
IW
Germany as a Business Location after the Grand Coalition
The demands of digitalisation and climate protection are creating an additional need for fundamental renewal of Germany’s capital stock.
IW