Obama’s Race Against Time: The Climate Action Plan, and its impact on biofuels

Attitudinal Changes, Concerns and Criticisms

The German voting public and the German business community originally embraced Energiewende as a bold plan not just to fight climate change and curb GHG emissions. They also believed it would give Germany the opportunity to become a leader in energy-efficient and green technologies. But attitudes quickly changed and German business community now believes that this plan could cripple industry, lead to energy blackouts, with higher energy costs threatening the competitiveness of its export economy as well as placing unnecessary burdens on the German consumer. These concerns appear to be valid as there is sufficient evidence to indicate that there have been price distortions and a significant surge in electricity costs since the inception of Energiewende.

Unforeseen Consequences and Actions Taken: Nuclear Policy

The phase out timetable of nuclear plants originally set for Year 2022 was lengthened to cover each plant’s “working life”, in order satisfy power sector critics as being too costly and unrealistic.

But after Japan’s Fukushima disaster, public pressure forced the CDU led German government to change course and to accelerate closure of 8 nuclear plants by 2022. Economically, this created much uncertainty in the power sector and caused an unprecedented rush toward use of renewable sources, at a significantly higher cost.