ESG Investment Quick-Check

EU ETS 2 from 2028 (planned start date): The new CO₂ price for buildings and transport is expected to start at a mid-to-high double-digit amount per tonne and may rise significantly in subsequent years. Companies without an ESG strategy must expect considerable additional costs – strategic investments can significantly reduce this burden.

Note: CO₂ price developments are subject to considerable uncertainties and may vary significantly due to market dynamics, political decisions, and market stability reserve interventions.

Massive Investment Gap: While German mid-sized companies already invest considerable sums in climate protection, estimated needs are significantly higher¹. This substantial gap is your market opportunity.

TOP Digitalization & Green IT leads with above-average ROI and short payback time (additional potential through savings in many CO₂ price scenarios)

SOLID Energy Efficiency offers attractive ROI with manageable payback period (considerable potential through savings in many CO₂ price scenarios)

STABLE Renewable Energy achieves solid returns with long-term planning security (strong potential through avoidance in many CO₂ price scenarios)

*ROI ranges based on industry averages (McKinsey Sustainability Report 2024, Boston Consulting Group Green Tech Study 2024). Actual returns vary significantly depending on project execution, location, financing conditions, and individual circumstances.

Important Note on Price Volatility: EU ETS 2 price development is subject to considerable uncertainties. The scenarios mentioned here are based on current market analyses (as of January 2025), but may deviate significantly due to political decisions, market stability reserve interventions, or changed economic conditions. Plan for various scenarios.

EU ETS 2 Cost Projections – Example Calculation for Mid-Sized Company

What the Investment Check Provides:

• ROI Guidance: Based on your project data and industry benchmarks
• EU ETS 2 Impact: Assessment of possible avoided CO₂ costs from 2028
• Payback Analysis: Indicative value for amortization period (incl. CO₂ price effect)
• Risk Assessment: Evaluation of uncertainty factors
• Grant Rates: Integration of possible subsidies into calculation
• Benchmark Comparison: How does your project compare to industry standards?

Important Notice:

The Quick-Check is an initial guidance tool and does not replace professional investment advice, detailed economic calculations, or legally binding grant consulting. EU ETS 2 projections are based on current market analyses but are subject to considerable uncertainties and may deviate significantly. ROI values are average values and vary considerably depending on individual project execution.

Double Advantage: With government grants up to 40%, your payback period is considerably reduced. Additionally, you avoid rising EU ETS 2 costs from 2028 in many scenarios. The calculator considers both effects automatically.

Quick-Win Strategy for SMEs with EU ETS 2 Focus

1. Immediate: Review E-Mobility - High EU ETS 2 avoidance potential in transport sector in many scenarios
2. Short-term: Energy Efficiency - Direct cost savings for building heating
3. Medium-term: Renewables - Largely independent of CO₂ price developments
4. Long-term: Circular Economy - Additional resilience against raw material prices

Regulatory Timeline (Overview)

• 2025: Large companies subject to CSRD reporting
• 2028: EU ETS 2 starts (planned introduction)
• 2028: Additional large companies subject to CSRD
• 2029: Listed SMEs (many exempted through Omnibus Package)
• 2030+: CO₂ price significantly higher possible in various scenarios
• From Early 2030s Onwards: Likely more market-based, without clearly defined cap today

Proactive Rather Than Reactive: Instead of spending considerable amounts annually on external CSRD consulting plus possible high EU ETS 2 costs, invest in ESG projects with measurable benefits. The Quick-Check shows you which projects can pay off in multiple ways: support compliance, reduce CO₂ costs, AND generate returns.

Important Limitations of the Calculator

• Simplified Modeling: No comprehensive scenario analysis or Monte Carlo simulation
• EU ETS 2 Projections: Based on current analyses, subject to considerable uncertainties
• No Guarantees: Actual results may deviate significantly
• No Investment Advice: Does not replace professional financial or grant consulting
• Benchmark-Based: Individual factors only considered to a limited extent

What is EU ETS 2 and how does it affect my company?

EU ETS 2 is the new emissions trading system for buildings and transport. It is politically agreed and planned to start in 2028; details may still change through further EU decisions. Market analyses expect a start with mid-to-high double-digit amounts per tonne of CO₂, with possible significant increases in subsequent years. All companies with fossil fuel heating, diesel vehicles, or process heat under 20MW are affected. Mid-sized companies can expect considerable additional costs – the exact amount depends on individual consumption and actual price development.

How does EU ETS 2 affect the economics of ESG investments?

In many CO₂ price scenarios, business cases for sustainability projects can improve significantly: Digitalization & Green IT can achieve above-average returns, Energy Efficiency offers solid ROIs, and Renewable Energy achieves stable returns with the advantage of long-term planning security. In higher CO₂ price scenarios, payback periods shorten accordingly – in lower scenarios, the effect is smaller. Actual development is subject to considerable uncertainties.

What funding can I plan for?

Federal programs fund up to 40% of investment amounts (max. €10 million) for energy and resource efficiency. Development banks offer credits up to €25 million with redemption grants and favorable interest rates below market level. Transformation concept modules cover up to €90,000 for consulting services with attractive grant rates. New: Additional bonuses for CO₂ avoidance are considered. Please note that funding conditions may change and professional grant consulting is recommended.

Are ESG investments worthwhile for small companies?

Yes! SMEs in particular can benefit disproportionately: They can profit from better financing terms when ESG profiles are convincing, receive better access to financing from the large majority of banks that consider ESG data, have first-mover advantages as only a smaller portion of SMEs have already invested, and can avoid considerable EU ETS 2 costs from 2028 in many scenarios.

Which ESG project should I tackle first?

With EU ETS 2 in mind, the following priority often makes sense: 1) E-Mobility – high CO₂ cost avoidance potential in transport sector in many scenarios, 2) Energy Efficiency for quick savings in building heating, 3) Renewable Energy for largely independence from CO₂ price developments. The calculator helps you identify the optimal project for your specific situation.

Can I still avoid EU ETS 2?

EU ETS 2 is politically agreed and planned to start in 2028; details may still change through further EU decisions. However, the associated costs can be largely avoided through strategic investments: switch to renewable energy, building renovation, e-mobility, or efficient heat pumps. Early action not only secures funding but can also avoid rising CO₂ costs from 2028 in many scenarios – although the exact cost development depends on various factors and can vary considerably.

Does the Quick-Check replace professional investment advice?

No. The Quick-Check is an initial guidance tool based on industry averages and simplified assumptions. It does not replace professional investment advice, detailed economic calculations, or legally binding grant consulting. For specific investment decisions, we recommend consulting specialist advisors who can consider individual circumstances, current market conditions, and specific risks.