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    What is a Climate Transition Plan?

    What is a Climate Transition Plan or transformation concept and how is it structured? How do you create a transformation plan that is eligible for funding? These questions are answered on this knowledge page.

    A Climate Transition Plan is a company's plan to reduce greenhouse gas emissions and become climate-neutral in the long term.

    A Climate Transition Plan is made up of three different areas. First, the current situation must be presented, then reduction targets are defined, from which an action plan is finally drawn up.

    In order for a transformation plan to be eligible for funding in Germany, it must meet certain requirements.

    Transformation concept? Transformation plan? Climate Transition Plan? Transition plan for climate protection? What does this mean?

    These are all different terms that more or less refer to the same thing: a company's action plan to achieve climate neutrality. The BAFA refers to it as the transformation plan when granting funding. In the CSRD, the plan is called the Climate Transition Plan or transition plan for climate protection. At Enit, we refer to it as the Transformationskonzept in German or the Climate Transition Plan in English.

    In the following, you can understand these terms as synonyms.

     

    Companies on the path to climate neutrality: classification of the Climate Transition Plan

    Developing an effective climate strategy in the company

    The development of a climate strategy for companies begins with an assessment of their current environmental impact. This includes analyzing CO2 or greenhouse gas emissions, identifying the main sources of these emissions and evaluating existing sustainability practices. A solid climate strategy includes concrete targets for reducing greenhouse gas emissions, plans for implementing more environmentally friendly processes and products and the commitment of the entire management team.

    Develop and implement a transformation plan within the company

    A transformation plan is a comprehensive plan that builds on the climate strategy. It sets out detailed steps on how a company can restructure its operations and decarbonize energy flows to become more environmentally friendly. The most common steps and reduction measures include investing in renewable energy, electrifying processes and facilities, and optimizing logistics and production processes.

    Why do companies need a Climate Transition Plan to achieve climate neutrality?

    In a world that is increasingly confronted with the challenges of climate change, it is becoming more and more important for industry and SMEs to understand their carbon footprint and develop effective climate strategies. This is the only way to reduce a company's ecological footprint and promote sustainable growth at the same time.

    The transformation - captured in a company's climate strategy - begins with precise emissions data collection, a detailed analysis of the corporate carbon footprint (CCF) and culminates in the creation of a customized Climate Transition Plan.
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    What Enit can do for you

    The experts at Enit will be happy to advise you without obligation.

    Get in touch

    How is a Climate Transition Plan structured?

    The current status is usually representedby a CO2 balance sheet, a corporate carbon footprint, or CCF for short. This must show the company's direct emissions (Scope 1) and indirect energy-related emissions (Scope 2), with a particular focus on the company's energy and mobility. To this end, it is recorded in detail how the energy used in the company is generated and made available. The consumption side is also examined in detail so that it can be used as a basis for considering measures.

    The objectives set out in the transformation concept are divided into two levels. The first level concerns a medium-term target. This states a reduction in emissions of at least 40% in the first 10 years after establishing the current situation. The second level concerns the long-term target. The focus here is on formulating a GHG neutrality target by 2045.

    In addition to the two periods mentioned, companies are free to formulate further interim targets. Companies also often have their own greenhouse gas reduction targets and these should be brought into line with the prescribed targets.

    The action plan is the most comprehensive part of a transformation concept. It is individually tailored to each company and must lead to the declared goals within the framework of what the company can achieve. The action plan is based on the recorded current situation. Individual measures are considered in terms of ecology, economy and feasibility. These individual measures are then used to develop an action plan that ensures both emission avoidance and emission reduction.
    This action plan is brought into line with the defined targets at the time level.

    The individual measures also include the development of a concept for at least one measure from the fourth module of the federal funding for energy and resource efficiency in the economy.
    These include, for example
    - Process & procedure conversion
    - Avoidance of energy losses in the production process
    - Utilization of process waste heat

    It is important to note that CO2 compensation or a reduction in production, for example, do not count as measures that can be taken into account. However, past measures implemented prior to the presentation of the current status can be taken into account.

    Is a transformation plan subsidized?

    If your Climate Transition Plan meets all the conditions, it will be funded by the Federal Office of Economics and Export Control (BAFA). Once an application has been submitted, there is one year to develop a transformation plan before it is reviewed and the funding amount is paid out. Up to 50,000 euros or 40% for companies without SME status, 50% for medium-sized companies and up to 60% for small companies are covered.

    For companies that are registered in a network of the "Energy Efficiency and Climate Protection Networks (IEEKN)" initiative and are actively involved, the funding amount increases by 10% and the maximum amount to EUR 80,000.

    Facts about funding

    The company's own services, those of affiliated companies or partner companies are not funded, nor are services that are legally required. Consulting services that are already funded by other funding programs are also not eligible for funding.

    Everything in a nutshell about the transformation concept

    In our Enit Insights video series, we explain quickly and clearly what a transformation concept should look like and what benefits it offers.

    Watch it now!

    How does the creation of a Climate Transition Plan work?

    First, the application must be prepared and qualified. Any queries and uncertainties are clarified before approval is granted. This is usually available after around six weeks.

    After approval, a transformation concept must be drawn up within one year, which is made up of the components already described above.

    The final concept is reviewed and supplemented with other evidence such as receipts. If there are no anomalies, the funding is paid out.

    What do companies gain from a Climate Transition Plan?

    - Cost savings

    Sustainable measures can lead to considerable cost savings. By increasing efficiency in resource consumption, such as energy and water savings, companies can reduce their operating costs. Implementing sustainable practices can also lead to optimization of supply chains and processes, resulting in cost savings.

    - Risk mitigation

    Sustainability helps companies reduce their dependence on limited resources and minimize risks associated with price volatility, supply fluctuations and environmental impacts. By transitioning to renewable energy or diversifying suppliers, companies can strengthen their resilience and better prepare for future challenges.

    - Access to markets and customers

    A growing number of consumers and markets prefer sustainable products and services. By introducing sustainable practices, companies can tap into new market segments, increase their competitiveness and improve their market position. Customer loyalty and customer acquisition can be strengthened by demonstrating a responsible approach to environmental and social issues.

    - Attractiveness for investors

    Sustainability has become an important criterion for many investors. Companies that improve their sustainability performance have a better chance of attracting capital from sustainability-oriented investors. Sustainability reports and transparent environmental, social and governance practices can boost investor confidence and improve the company's rating.

    - Legal and regulatory requirements

    Many countries have introduced laws and regulations to promote sustainable practices and reduce environmental impacts. Companies that take early action to meet these requirements can prevent legal and regulatory risks and avoid potential penalties or sanctions.

    - Employee motivation and talent attraction

    Sustainability is an important concern for many employees. Companies that are committed to sustainability can increase their employee motivation and attract talented professionals. A strong corporate culture based on values such as sustainability can also increase employee retention.

    Do you need a Climate Transition Plan?

    The experts at Enit will be happy to advise you without obligation.

    We are a trustworthy and reliable partner when it comes to submitting applications and developing the Climate Transition Plan.

    An example of sustainable success with a Climate Transition Plan

    When is a Climate Transition Plan successful?

    A Climate Transition Plan is always successful when the targets set have been achieved. It is therefore important to base the climate strategy on realistic targets, to plan specific measures in line with the business strategy and to review and, if necessary, readjust the achievement of targets. In addition to the usual reduction measures, a successful transformation concept often also includes the introduction of new technologies (e.g. a suitable energy monitoring system such as the Enit agent), training employees in sustainability and adapting business models to promote sustainable development .

    Which companies have already implemented a Climate Transition Plan?

    A success story from our customer, the SFB Group: numerous successes have been achieved since 2016 with the help of Enit's energy monitoring system, reducing peak loads and base loads and cutting standby consumption. In 2022, the SFB Group took the next step towards the future and, together with Enit, drew up a carbon footprint and a transformation concept to make the group of companies climate-neutral by 2045. How? Find out in our customer interview!