# BASF

Chopping Wood and Buying Time: How Germany Is Paying to Keep Its Industry and Climate Goals Alive

Germany’s energy shock since the Russian gas cutoff has forced a costly rebalancing: households are reverting to wood stoves while the state bankrolls industry and presses ahead with decarbonisation. Berlin’s mix of emergency purchases, subsidies, and long‑term investments in heat pumps and green hydrogen aims to reconcile security, affordability and climate goals — a socially and fiscally intensive experiment whose outcome will shape Europe’s industrial future.