Series of Articles: General information on transformation plans and their preparation

To achieve Germany’s climate targets (65% reduction in emissions by 2030 and climate neutrality by 2045), all sectors, including industry, must make their contribution. In the past, some measures to increase energy efficiency and save energy have already been implemented in the industrial sector. The next step is now to transform the energy supply as completely as possible. Transformation plans are being developed to systematically implement this and provide companies with support.

General information on transformation plans and their preparation

All sectors, including industry, must make their contribution to achieving Germany’s climate targets (65 % reduction in emissions by 2030 and climate neutrality by 2045). In the past, a number of measures to increase energy efficiency and save energy have already been implemented in the industrial sector. The next step is now to transform the energy supply as completely as possible. Transformation plans are being developed to systematically implement this and provide companies with assistance.

As part of the creation of a transformation plan, various options for reducing emissions are examined and combined to create useful concepts. These concepts are then compared in terms of energy, emissions and economics. The aim is to provide the company with a basis for deciding which individual measures and which combinations of measures could be expedient for the site. Ultimately, the most suitable concept (or variant) is selected, for which a prioritized implementation schedule is drawn up.

However, as companies often lack the human resources and time to draw up a transformation plan internally, companies are supported by a funding program that reduces the financial barrier to using external expertise. The Federal Ministry for Economic Affairs and Climate Protection supports the creation of transformation plans via Module 5 of the Energy Efficiency in Business funding program. Depending on the size of the company, funding of 40 % to 60 % is possible, with a further 10 % for companies participating in an IEEKN network. In addition, there is a maximum funding amount of €60,000 (or €90,000 for IEEKN participants). As a rule, German companies use this funding to have a transformation plan drawn up externally. Among other things, the costs of preparing (and, if necessary, certifying) a carbon footprint are funded. In addition, the costs for energy consulting and additional consulting costs in connection with the development of the transformation plan are also eligible costs. In particular, this includes the introduction of implementation processes in the company, such as climate protection management, as well as the costs for necessary measurements, data collection and data procurement as part of the creation of the transformation plan. Based on these points, the aim is to identify and design measures in the form of a transformation plan including a roadmap.

As a framework condition, the promotion of a transformation plan entails a number of requirements in terms of content. These include the balance limits, the actual analysis (greenhouse gas balance), the target setting and the accompanying measures as the most important component. These topics are briefly discussed below. For detailed and official descriptions of all requirements for the transformation plan, please refer to the documents for Module 5. The defined balance sheet boundary must include at least one company location, which is considered in its entirety (no exclusion of processes or spatial areas permitted). Other locations may also be considered and, in certain cases, locations of other companies. However, all locations considered must be located in Germany. This means that sites located outside the Federal Republic of Germany are not eligible for funding. Certain accounting methods must be applied for the location under consideration. This is done either in accordance with the GHG Protocol or ISO 14064-1. This means that the accounting of emissions from Scopes 1 and 2 is mandatory, while Scope 3 remains voluntary. For Scopes 1 and 2, all Kyoto greenhouse gases (CO₂, CH₄, N₂O, HFC, PFC, SF₆, NF₃) and emissions of non-methane volatile organic compounds (NMVOC) must be recorded (information on greenhouse gases in the following article).

Once the assessment of the status quo based on data from one of the last two years prior to the application has been completed, the actual transformation plan is drawn up. Two time-limited requirements are specified here, which are also the minimum requirements of Module 5: Within 10 years, the transformation plan must achieve a reduction in emissions of at least 40 % and the company must commit to greenhouse gas neutrality by 2045. Both targets must be supported by action plans, making their achievement credible through the implementation of specific measures. In addition to the technical action plan, it must be described how the transformation plan is structurally and culturally anchored in the company and how it is ensured that a basis is created for the implementation of the measures to transform the company.

A further article deals with the specific procedure for the creation of transformation plans by FfE.