sabine mauderer : green transition in germany – short - term needs and long - term opportunities speech by dr sabine mauderer, member of the executive board of the deutsche bundesbank, at the kfw " capital markets conference on energy transition for germany ", frankfurt am main, 9 july 2024. * * * check against delivery 1 introductory remarks ladies and gentlemen, last friday, we found out that germany is not going to be the next european football champion. unfortunately. but what i can tell you today is that – fortunately – germany is the european champion when it comes to registered patents. and it is competing at the top level globally, too. as you know, germany has been through challenging times in recent years : 2020 marked the beginning of the global covid - 19 pandemic that triggered a severe supply shock. in early 2022, war broke out in europe, causing, first and foremost, immense human suffering in ukraine, but also economic disruption across the continent. at that time, it also became painfully clear how dependent germany had become on importing fossil fuels. this also translated into higher prices. in october 2022, inflation in the euro area reached an all - time high of 10. 6 %. 2 situation today so, let's have a look at the situation today. we overcame the pandemic, thanks in part to a vaccine developed in germany. and as for the economic fallout, luckily only a small percentage of companies went bust. this year, the economy has started to pick up again. the eurosystem managed to bring inflation in june down to 2. 5 %, less than two years after inflation peaked. representatives from twenty different european countries worked together to set monetary policy in a way that brought euro area inflation back towards its 2 % target. this shows that europe works! i expect the same dedication to complete the capital markets union. at the same time, the labour market has been robust. according to eurostat, the unemployment rate in may is stable at 6. 4 % in the euro area, and just 3. 3 % in germany. 1 german businesses are well aware that international recruitment is needed to manage the demographic challenges. numerous ceos have made that very clear. 1 / 3 bis - central bankers'speeches our political system in germany is an anchor of stability. these days, we all know how important that is, also from an investor's point of view. furthermore, germany's fiscal situation is sound

bis - central bankers'speeches let me emphasise that the costs of climate change for our economies will become so great that, at some point, we will see climate policy action. it is just a matter of time. 3 concluding remarks ladies and gentlemen, i started my intervention with football and i would like to end on that note. germany is not going to be the next euros champion. but, more importantly, our team have shown they can compete at an international level. the same can be said of our economy. thank you! 1 see eurostat, euro area unemployment at 6. 4 %, july 2024. 2 see for example the " lazard levelized cost of energy + " database, levelized cost of energy +, june 2024. 3 see falck, o. and akash kaura ( 2023 ), green skills in german manufacturing, cesifo econpol policy brief 55. germany stands out within europe as the largest single contributor, accounting for nearly 37 % of europe's international patent families ( ipfs ) in cleantech, followed by france and the uk with 14. 5 % and 8. 5 %, respectively. see also european patent office and european investment bank ( 2024 ), financing and commercialisation of cleantech innovation, april 2024. 4 see eurostat, r & d expenditure - statistics explained, march 2024. 5 germany accounts for nearly half of all hydrogen - related ipfs in the eu. see also european patent office and international energy agency ( 2023 ), hydrogen patents for a clean future : a global trend analysis of innovation along hydrogen value chains, january 2023. 6 kotz et al. ( 2024 ) : global warming and heat extremes to enhance inflationary pressures, communications earth & environment, vol. 5 ( 116 ). 3 / 3 bis - central bankers'speeches