22. December 2020 | 09:49 CET
Daimler, dynaCERT, Tesla, Volkswagen - state-subsidized share gains
The German energy transition and the change in mobility can be summarized in one sentence: maximum effort for minimum success. While the impact of the German population on global environmental responsibilities is marginal, the financial burden is enormous. The introduction of battery cars has already failed and is now only getting off the ground thanks to unprecedentedly high premiums on a new purchase. The original selling point that battery cars are better for the environment has failed miserably. The federal government is now engaging in damage control and appealing to subsidy hunters. On top of that, the acquisition is now sweetened with a state-subsidized charging station. Speculators are rubbing their hands.
time to read: 2 minutes by Mario Hose
Competitive disadvantages due to politics
When politics interferes in the economy, it threatens to incur costs that often have to be borne by taxpayers. In Germany, citizens and companies are already paying the highest electricity prices, and there is no end in sight. The reason lies primarily in the levies and fees for building a grid with renewable energies. Only 45% of the electricity in Germany comes from renewable sources.
Electricity does not originate in the socket
The shutdown of Germany's safe nuclear power plants means that consumers are becoming more dependent on neighbouring countries. As long as coal-fired power plants are still allowed to be on the grid in Germany, they will fill the supply gap caused by the loss of nuclear energy. Energy suppliers have received hefty compensation from the Merkel government for shutting down nuclear power plants.
A drop in the bucket
Subsidies for battery cars are putting Daimler and Volkswagen and their suppliers under increasing pressure. While Berlin-Brandenburg's political celebrities celebrate the construction of a Tesla plant, families in Bavaria and Baden-Württemberg are left out in the cold, as the government-initiated transformation causes job losses and uncertainty there. More and more new names of battery car manufacturers are appearing on the stock lists, benefiting from subsidies from various nations and giving shareholders a share price firework display.
Environmental protection comes first
The earth is our planet, and it must be cared for - environmental protection is, therefore, a top priority. Against this background, it is abstruse that politicians are using taxpayers' money to promote a technology that will create more electricity demand and significantly change the procurement of raw materials. The overexploitation of Mother Earth becomes a burden for the people affected. Also, battery disposal is a problem that will assume significant proportions in the coming years. How will the quantities of pollutants from the batteries be disposed of and who will pay for it?
An environmentally friendly alternative
A viable solution that makes an uncomplicated contribution to environmental protection comes from dynaCERT. The Canadian CleanTech Company has brought to market a hydrogen technology for retrofitting diesel engines that significantly increases efficiency and reduces emissions of pollutants. The Company is working with the United Nations, and well-known investors, like Eric Sprott, are already invested. Until there are viable alternatives to diesel engines in many areas of transportation, the dynaCERT technology will be more than just a bridging technology. CO2-based tolling may be another market opportunity for the product.