Scope, scale and strategy: Insights from the evaluation of company specific decarbonization plans

This paper presents the first scientific analysis of Germany’s Module 5 funding program, which supports companies in developing strategic decarbonization plans for individual or multiple sites in Germany. Introduced in 2021 as part of the federal funding scheme “Energy and Resource Efficiency in the Economy,” Module 5 focuses exclusively on planning rather than technical implementation. It supports the development of greenhouse gas (GHG) reduction pathways aligned with the GHG Protocol, covering Scope 1 (direct emissions), Scope 2 (indirect emissions from purchased energy), and optionally Scope 3 (value chain emissions). The analysis builds on data from 175 transformation plans evaluated in 2024 as part of an official program review commissioned by the Federal Ministry for Economic Affairs and Climate Action (BMWK). While the dataset and basic evaluation originate from that review, the aggregation, interpretation, and reassessment presented here were conducted independently by the authors. Findings confirm that most companies met or exceeded the program’s requirement to demonstrate a 40% reduction potential in Scope 1 and/or Scope 2 emissions over ten years, largely through photovoltaic installations, renewable electricity procurement, and process optimization. Scope 3 was addressed in approximately 35% of the plans but contributed little to overall reductions. Some companies included broader Scope 3 categories beyond travel or energy procurement, though methodological consistency varied. This study offers new insights into the evaluation of planning-based climate policy instruments. It highlights methodological limitations due to the absence of implementation tracking and provides policy recommendations regarding SME inclusion, Scope 3 integration, and ex-post verification mechanisms.