Germany Carbon Neutral Market: Industry Analysis and Forecast (2024-2030)

  • Germany Carbon Neutral Market size was valued at US$ 1.49 Bn. in 2023 and the total revenue is expected to grow at a CAGR of 3.5% through 2024 to 2030, reaching nearly US$ 1.89 Bn.

  • Format : PDF | Report ID : SMR_241

Germany Carbon Neutral Market Overview:

A growing number of people are becoming aware of climate change. The climate is changing, and environmental regulatory frameworks are being implemented, as well as social trends towards climate-friendly consumerism. Companies are seeking aggressively to reduce their carbon footprint, in response to shifting stakeholder demands and needs for products and services, as well as government initiatives. Utility companies have a unique opportunity to play a key role in lowering carbon emissions as well as profiting from the transition to a carbon-neutral economy.


Though market forecasting through 2030 is based on real output, demand and supply of 2020, 2020 numbers are also estimated on real numbers published by key players as well all-important players across the world. Market forecasting till 2030 is done based on past data from 2018 to 2022 with the impact of global lock down on the market in 2020 and 2021.


Germany Carbon Neutral Market


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Germany Carbon Neutral Market Dynamics:

A carbon-neutral Germany is committed to achieving by 2045. Germany has declared intentions to become carbon-neutral by 2045, marking a significant shift in climate policy prompted by a recent constitutional court ruling that demanded more precise emissions targets after 2030. The German government coalition agreed to decrease emissions by 65 percent by 2030 (up from a previous target of 55 percent), 88 percent by 2040 (currently no objective), and become climate neutral by 2045 (up from a previous target of 55 percent) (brought forward from 2050).


The country's first national climate law, which was passed in 2019 and revised in 2021, sets annual reduction objectives for individual sectors like industry and transportation through 2030. These are in accordance with European aims to reduce greenhouse gas emissions. If a target is missed or exceeded, the difference will be shared evenly among the sector's remaining annual carbon budgets until 2030 and beyond, with additional targets set for 2040 and 2045. Germany's national climate targets can be raised but not lowered in ambition.


According to Germany's climate law, new emission budgets for the years beyond 2030 will be created in 2024, and they must be in line with the law's goals as well as the European Union's standards — climate neutrality by 2050. Germany is one of only a few countries in the world to have made climate neutrality a national objective by or before 2050. Around 40 other countries have committed to reaching net-zero emissions by at least 2050 through legislation or policy documents, including the European Union, which included the 2050 objective in its 2021 climate law.


Some of these stated their goals in terms of CO2 emissions alone, but the EU and Germany refer to all greenhouse gases - a significant distinction. Under Germany's national climate law, "net greenhouse gas neutrality" is defined as the "balance between anthropogenic greenhouse gas emissions and their removal by sinks." The IPCC's (Intergovernmental Panel on Climate Change) message in 2018 inspired the 2050 net-zero goal: Global net human-caused CO2 emissions should be brought to 'net zero' by three decades to keep global warming to 1.5°C.


The rollout of renewable energies, lowering energy consumption, and stopping the use of fossil fuels in all sectors of the economy are the most crucial measures for Germany to meet its emission reduction targets. In order to accomplish so, the country has set a number of energy transition goals, the majority of which concern the expansion of renewable energy sources and the reduction of energy demand.


In terms of renewable energy growth, Germany has achieved great progress. Renewables have progressed from a marginal technology to the dominating player in the power mix since the introduction of support payments in the country's Renewable Energy Act in 2000.


In 2020, renewables provided more than 46% of the country's electricity, greatly above the target of 35% set for that year. In the new renewables law, the government now aims for a 65 percent share by 2030. Renewables now account for 19.6% of the country's gross final energy consumption, exceeding the 2020 target (18 percent). The government plans for a 30 percent share by 2030. These are the key drivers that are expected to drives the growth of the Germany Carbon Neutral Market during the forecast period 2024-2030.


Germany Carbon Neutral Market Segment Analysis:

Based on the Carbon Neutral Fuel, the market is segmented into Biodiesel, Bio-ethanol, Bio-butanol, and others. Biodiesel segment is expected to grow rapidly at a CAGR of xx% during the forecast period 2024-2030. Biodiesel is a cleaner, greener fuel that may be used to replace any diesel engine. Biodiesel is also a nontoxic, biodegradable fuel that is free of sulphur and other hazardous aromatic chemicals. When compared to petroleum and diesel, it can lower greenhouse gas emissions by up to 86% over the course of their lives.


In 2020, Germany produced approximately 3.4 million tonnes of biodiesel. Germany was the world leader in biodiesel and pure plant oil production. In 2021, Germany's biodiesel as a fuel market was worth $3,397 million dollars, with a volume of 1,081 million gallons. Between 2017 and 2021, the country's market value increased at a CAGR of 3.2%, while the underlying market volume grew at a CAGR of 2.3%. In recent years, the country's market has experienced constant growth, whereas other major markets have experienced swings. These factors are expected to drive this segment of the Germany Carbon Neutral market during the forecast period 2024-2030.


Germany Carbon Neutral Market


Based on the Vertical, the market is segmented into Manufacturing, Energy and Utilities, Residential and Commercial Buildings, Transportation and Logistics, IT and Telecom, and others. Energy and Utilities segment is expected to hold the largest market shares of xx% by 2030. One of the most essential energy carriers for Germany's energy transition is green hydrogen, which is created using renewable energy. The German Federal Ministry of Education and Research (BMBF) has launched numerous lead initiatives to boost the hydrogen economy.


For its fleets of electric vehicles and trucks, public transportation, electrified heating, and the production of hydrogen and e-fuels that will fly planes and build cement, Germany will require more power in the future than it does today. This sharp and rapid drop-off throws Germany's energy system into uncharted territory, where the interests of energy providers, environmentalists, politicians, and grid operators clash strongly. There are several ways to balance the grid, and each will have far-reaching ramifications for Germany's carbon-neutral journey. These are the key drivers that are expected to drives the growth of the energy and utilities vertical segment in the Germany Carbon Neutral market during the forecast period 2024-2030.


Germany Greenhouse Gas Emissions by Sector:

Germany 2030 Sector Targets for Greenhouse Gas Emission Reduction and 2020 Status


2020 Status (Cut from 1990 Levels)

2030 Target (Cut from 1990 Levels)























The objective of the report is to present a comprehensive analysis of the Germany Carbon Neutral Market to the stakeholders in the industry. The report provides trends that are most dominant in the Germany Carbon Neutral Market and how these trends will influence new business investments and market development throughout the forecast period. The report also aids in the comprehension of the Germany Carbon Neutral Market dynamics and competitive structure of the market by analyzing market leaders, market followers, and regional players.


The qualitative and quantitative data provided in the Germany Carbon Neutral Market report is to help understand which market segments, regions are expected to grow at higher rates, factors affecting the market, and key opportunity areas, which will drive the industry and market growth through the forecast period. The report also includes the competitive landscape of key players in the industry along with their recent developments in the Germany Carbon Neutral Market. The report studies factors such as company size, market share, market growth, revenue, production volume, and profits of the key players in the Germany Carbon Neutral Market.


The report provides Porter's Five Force Model, which helps in designing the business strategies in the market. The report helps in identifying how many rivals are existing, who they are, and how their product quality is in the Market. The report also analyses if the Germany Carbon Neutral Market is easy for a new player to gain a foothold in the market, do they enter or exit the market regularly if the market is dominated by a few players, etc.


The report also includes a PESTEL Analysis, which aids in the development of company strategies. Political variables help in figuring out how much a government can influence the Market. Economic variables aid in the analysis of economic performance drivers that have an impact on the Market. Understanding the impact of the surrounding environment and the influence of environmental concerns on the Germany Carbon Neutral Market is aided by legal factors.


Germany Carbon Neutral Market Scope:

Germany Carbon Neutral Market  

Market Size in 2023

USD 1.49 Bn.

Market Size in 2030

USD 1.89 Bn.

CAGR (2024-2030)


Historic Data


Base Year


Forecast Period


Segment Scope

By Carbon Neutral Fuel

  • Biodiesel
  • Bio-ethanol
  • Bio-butanol
  • Others

By Vertical

  • Manufacturing
  • Energy and Utilities
  • Residential and Commercial Buildings
  • Transportation and Logistics
  • IT and Telecom
  • Others

By Component

  • Solutions
  • Services


Germany Carbon Neutral Market Key Players

  • ECG (Germany)
  • Normative (Sweden)
  • GUTcert (Germany)
  • SSE plc (UK)
  • Enablon (France)
  • SAP (Germany)
  • Schneider Electric (France)
  • ENGIE (France)
  • Puragen Activated Carbon (France)
  • Silcarbon Aktivkohle GmbH (Germany)

Frequently Asked Questions

The segments covered in Germany Carbon Neutral Market report are based on Carbon Neutral Fuel, Vertical, and Component.

Chapter 1 Scope of the Report
Chapter 2 Research Methodology

      2.1. Research Process
      2.2. Germany Carbon Neutral Market: Target Audience
      2.3. Germany Carbon Neutral Market: Primary Research (As per Client Requirement)
      2.4. Germany Carbon Neutral Market: Secondary Research
Chapter 3 Executive Summary
Chapter 4 Competitive Landscape

      4.1. Market Share Analysis, By Germany, 2023-2030(In %)
      4.2. Market Dynamics
            4.2.1. Market Drivers
            4.2.2. Market Restraints
            4.2.3. Market Opportunities
            4.2.4. Market Challenges
            4.2.5. PESTLE Analysis
            4.2.6. PORTERS Five Force Analysis
            4.2.7. Value Chain Analysis
      4.3. Germany Carbon Neutral Market Segmentation Analysis, 2023-2030 (Value US$ MN) 
            4.3.1.Germany Market Share Analysis, By Carbon Neutral Fuel, 2023-2030 (Value US$ MN)
            4.3.2. Germany Market Share Analysis, By Vertical, 2023-2030 (Value US$ MN)
         Energy and Utilities
         Residential and Commercial Buildings
         Transportation and Logistics
         IT and Telecom
            4.3.3. Germany Market Share Analysis, By Component, 2023-2030 (Value US$ MN)
Chapter 5 Stellar Competition Matrix
      5.1. Germany Stellar Competition Matrix
      5.2. Key Players Benchmarking 
            5.2.1. Key Players Benchmarking By Product, Pricing, Market Share, Investments, Expansion Plans, Physical Presence and Presence in the Market.
      5.3. Mergers and Acquisitions in Industry
            5.3.1. M&A by Region, Value and Strategic Intent
Chapter 6 Company Profiles
      6.1. Key Players
            6.1.1. ECG (Germany)
         Company Overview
         Source Portfolio
         Financial Overview
         Business Strategy
         Key Developments
            6.1.2. Normative (Sweden)
            6.1.3. GUTcert (Germany)
            6.1.4. SSE plc (UK)
            6.1.5. Enablon (France)
            6.1.6. SAP (Germany)
            6.1.7. Schneider Electric (France)
            6.1.8. ENGIE (France)
            6.1.9. Puragen Activated Carbon (France)
            6.1.10 Silcarbon Aktivkohle GmbH (Germany)
      6.2. Key Findings
      6.3. Recommendations

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