Options
2026
Presentation
Title
Even the smallest company can change the course of the future: small- and micro-enterprises in the face of ETS2 in Germany
Title Supplement
Presentation at eceee Zero Carbon Industry 2026, Rome, 04.02.-05.02.2026
Abstract
So far, the focus of the energy transition and the climate change policy field has mainly been on industry, particularly energy intensive industries, and on households with small- and micro-enterprises receiving less attention. Although they contribute less to the overall GDP than big companies, they are nevertheless an important part of the economy providing employment and income and stabilizing social structures especially on the local level.
The micro-enterprise subgroup has now received attention in the political sphere, as it is addressed alongside households in the social climate fund regulation. However, analyses conducted to prepare social climate plans have revealed that knowledge of this part of the economy is limited and data is lacking — a challenge exacerbated by the heterogeneity, ranging from one-person service providers to small-scale manufacturers and craftspeople.
The upcoming CO2 pricing under the European emissions trading system (ETS II), starting in 2027, is expected to significantly impact small- and micro-enterprises. Depending on their energy dependent activities—such as production, heating, or transportation—they will face cost rises, the need to adapt practices or make investments in productions facilities, building renovations, heating systems or electric vehicles. Some may face structural barriers, others may lack financial resources or the capacity to manage this change.
Our study examines the energy consumption and the impact of price increases due to the ETS on small- and micro-enterprises in Germany differentiating between different types of companies such as manufacturing or service providers. We combine survey data from 930 small- and micro-companies and their detailed sector-specific energy consumption patterns with energy cost projections based on selected CO2 price scenarios. We will discuss the extent to which rising costs may burden small enterprises, highlighting potential pathways to mitigate vulnerability.
The micro-enterprise subgroup has now received attention in the political sphere, as it is addressed alongside households in the social climate fund regulation. However, analyses conducted to prepare social climate plans have revealed that knowledge of this part of the economy is limited and data is lacking — a challenge exacerbated by the heterogeneity, ranging from one-person service providers to small-scale manufacturers and craftspeople.
The upcoming CO2 pricing under the European emissions trading system (ETS II), starting in 2027, is expected to significantly impact small- and micro-enterprises. Depending on their energy dependent activities—such as production, heating, or transportation—they will face cost rises, the need to adapt practices or make investments in productions facilities, building renovations, heating systems or electric vehicles. Some may face structural barriers, others may lack financial resources or the capacity to manage this change.
Our study examines the energy consumption and the impact of price increases due to the ETS on small- and micro-enterprises in Germany differentiating between different types of companies such as manufacturing or service providers. We combine survey data from 930 small- and micro-companies and their detailed sector-specific energy consumption patterns with energy cost projections based on selected CO2 price scenarios. We will discuss the extent to which rising costs may burden small enterprises, highlighting potential pathways to mitigate vulnerability.
Conference