Study: Many Companies Still at the Beginning of Decarbonization - Saxony's 2045 Climate Goal Hinges on Struggling Mid-Sized Businesses

Saxony aims to achieve climate neutrality by 2045, but many small and medium-sized enterprises (SMEs) in the region struggle to make their production processes carbon-free. A recent study highlights the technical and financial obstacles these businesses face.

The study analyzed 19 industrial sectors and skilled trades in Saxony, which together consume about 15.5 terawatt-hours of energy each year. Around 42 percent of this energy is already electrified, while renewables make up roughly 28 percent of the region's electricity use.

Large, energy-heavy industries have already planned their decarbonization, but mid-sized companies remain unsure about which technologies to adopt and where to invest. The paper, food and beverage, and IT equipment sectors are among the most energy-intensive, adding to the challenge.

Key strategies for reducing emissions include improving energy efficiency, increasing electrification, and switching to renewable fuels like biogas or green hydrogen. However, reliable grid access and affordable green energy are crucial for these changes to succeed. Sector-specific profiles were also created to outline possible decarbonization paths for different industries.

Many SMEs are still in the early stages of transitioning to climate-friendly operations. The report does not specify how many businesses are affected but confirms that uncertainties persist around technology, investment, and the role of electricity and hydrogen.

Saxony's 2045 climate neutrality goal relies heavily on the progress of its mid-sized businesses. Without clearer guidance on technology choices and secure access to green energy, the transition for many SMEs will remain challenging. The study emphasizes the need for targeted support to help these companies move forward.