Soil is a vital resource, but is increasingly under threat. According to the European Soil Observatory (EUSO), around 76% of soils in Germany alone are degraded. Soil degradation has many causes: Erosion, intensive agriculture, monocultures, chemical fertilizers, pesticides and urbanization have all contributed to upsetting the balance in the soil - with serious consequences for agriculture, climate and nature.
The transport sector causes about one fifth of Germany’s greenhouse gas emissions, with more than 95% due to road traffic. As we move towards climate neutrality, the mobility sector is facing a fundamental transformation, with the car at its centre. According to the Kraftfahrt-Bundesamt, there were more than 49 million registered cars in Germany in 2023. The number of e-cars is still low. Their share of the passenger car population is 2.1 %.
Construction is one of the most resource-intensive sectors in Germany. 90% of mineral raw materials are used for the production of building materials and products, and the building sector accounts for about 40% of total greenhouse gas emissions in Germany. Three quarters of these emissions are caused by the use and operation of buildings, while the rest is caused by the construction materials industry and construction activities themselves.
With around 2,100 companies, the chemical industry is one of the most important sectors of the German economy. In 2023, the number of people working in the chemical industry was more than 479,500. Major international corporations such as BASF and Evonik have their headquarters in Germany. These key players generate the bulk of the chemical sector’s annual turnover (2023: 225.5 billion euros). The chemical industry produces and sells a staggering 30,000 or more different products.
With the energy transition, the German Federal Government intends to considerably increase the share of renewable sources of energy. To ensure that the energy supply continues to be reliable, secure and affordable, the Federal Government has set up the Energy and Climate Fund (EKF). The programme supports projects on renewable energies, national and international climate and environmental protection, electromobility and investments into boosting energy efficiency (including building refurbishment).
Agriculture and forestry are important industries. According to the BMEL, in 2020, Germany counted almost 263,000 agricultural enterprises and around 29,000 forestry enterprises. Agriculture and forestry are responsible for a large part of the value created in rural areas. Farmers and foresters manage and maintain more than three quarters of the land. Apart from their primary task of growing food and feed, they also produce bio-based raw materials for industry and biomass for the generation of renewable energy.
Mechanical and process plant engineering has always been one of the mainstays of the German economy. In a bio-based economy, technical systems, machines and process technology are essential for resource-efficient and sustainable management. The particular engineering challenge lies in having to reconciliate technical and biological requirements. Depending on the specification, biological materials require dedicated machines, plants or processes.
With around 6,000 companies and 645,000 employees, the food industry is one of the largest sectors in Germany. According to the Federation of German Food and Drink Industries (BVE), the total turnover in 2023 was almost 230 billion euros. The sector is very much characterised by small and medium-sized enterprises, with 90% of the companies employing fewer than 250 people.
According to the Federal Statistical Office, private consumption in Germany amounts to around 31,000 euros per household. With around 14 billion euros, clothing and food as well as personal care and hygiene products accounted for the largest shares of private consumption in Germany in 2020. Around 4.6 billion euros were spent on detergents and cleaning products. The bioeconomy has been an intrinsic part of the consumer goods industry for some time. Many industrial manufacturing processes rely on natural raw materials or bio-based processes.
Pharmaceutical companies are increasingly resorting to knowledge about biology for the production of medicines. Although chemically synthesised active ingredients still make up the largest share of the German pharmaceutical market, so-called biopharmaceuticals are catching up. Biopharmaceuticals are biomolecules that are too large to be produced chemically, or at least their production would not be efficient.