Important security note: Warning of attempted fraud in the name of DWS
We have detected that fraudulent individuals are misusing the "DWS" trademark and the names of DWS employees on the internet and social media. These fraudsters are operating fake websites, Facebook pages, WhatsApp groups and Mobile Apps. Please be aware that DWS does not have any Facebook Ambassador profiles or WhatsApp chats. If you receive any unexpected calls, messages, or emails claiming to be from DWS, exercise caution and do not make any payments or disclose personal information. We encourage you to report any suspicious activity to info@dws.com, including any relevant documents and the original fraudulent email. Additionally, if you believe you have been a victim of fraud, please notify your local authorities and take steps to protect yourself.
14/3/2025
Europe's economies wasted billions of euros through the inefficient use of energy
Europe’s political leaders are responding to geopolitical developments: Germany is planning substantial infrastructure and defence investments[1] while the EU is also supporting defence investments. However, in our opinion, there is an area of investment and public policy that needs greater recognition for its role in supporting security, economic competitiveness, and resilience: smarter and less wasteful energy use.
Our Chart of the Week highlights how Germany, France, Italy and Poland wasted at least EUR 328bn in 2019 of fossil fuels going up in smoke and waste heat. Energy is lost and wasted producing fuels, generating, and transporting electricity and when energy is used to heat buildings or transport goods.
Efficient energy use is smart for defence. A range of technologies including insulation, electric vehicles, and heat pumps, might significantly cut energy use and keep the economy running. Lower energy use helps protect Europe from spiking energy price risks.
For instance, Russia is suspected of at least 56 acts of sabotage, influence operations or targeted violence[2] across Europe since 2022. Several of the attacks targeted power and communications cables. Infrastructure disruption is a serious risk.
Political and trade disputes are also an energy price risk. The U.S. President has called for Europe to import more U.S. oil and gas[3] and that the U.S. would guarantee gas exports[4]. However, we have seen the President’s position change rapidly. It could be possible for U.S. gas exports to be drawn into a dispute, leading to higher energy prices.
57% of France, Germany, Italy, and Poland’s energy use, worth EUR 328bn, was wasted in 2019
Sources: RMI analysis (2025), based on RMI “The incredible inefficiency of the fossil energy system” as of 6/4/2024: IEA; De Stercke (2014); Energy Institute Statistical Review; and Ember European Wholesale Electricity Price Data.
The chart summarizes energy flows, and the approximate economic value of energy losses for France, Germany, Poland, and Italy in the year 2019. Primary and final energy values, and energy production and transportation loss values, are based on IEA World Energy Balances. Useful energy values, as well as energy use loss values, are based on De Stercke (Dynamics of Energy Systems 2014). The economic value of energy production and transportation loss are estimated based on wholesale energy prices (e.g. spot prices) in Europe, retrieved from the Energy Institute and Ember. Economic energy value information for biomass, nuclear, geothermal, is omitted due to lack of primary energy price data. Economic value is measured in EUR 2019 (current), not adjusted for inflation.
Efficient energy use is smart for the economy. A survey of central bank and finance officials[5] found that economic growth and lower emissions could be stimulated with green infrastructure and building retrofit investments. A stronger economy is needed to pay for defence and infrastructure loans. And energy efficiency is part of the solution to Europe’s energy prices being 2-3x higher than in the U.S. and China.[6]
A DWS European Transformation report highlighted how energy efficiency is a cross-asset class investment: owning or lending to real estate and direct loans to small and medium sized enterprises can support building renovation. Owning or lending to specialist infrastructure companies supports technology solution providers.
Improving private financing of energy efficiency is the goal of the European Commission’s Energy Efficiency Finance Coalition which recently held its first official meeting. DWS Alternatives GmbH is proud to be a founding member with other major financial institutions.[7]
In our view, unlocking investment requires misinformation about heat pumps to be dispelled[8], stories of effective renovations[9], new public-private financing instruments that help millions of homeowners and small businesses with affordable renovations, and energy taxes that create a level playing field[10] for efficient, low carbon technologies.
Europe: the wake-up call has been heard (dws.com)as of 3/6/25
The Parliament as of 1/21/25 “Hybrid threats: Russia’s shadow war escalates across Europe”
oilprice.com as of 1/21/25 “Trump urges EU to buy more US LNG”
Reuters as of 1/23/25 “Trump says US will guarantee LNG supplies for Europe”
Oxford Review of Economic Policy as of 5/8/20 “Will Covid-19 fiscal recovery packages accelerate or retard progress on climate change”
Brugel as of 12/5/24 “Decarbonising for competitiveness: four ways to reduce European energy prices”
European Commission “Energy efficiency finance coalition” as of December 2023
CarbonBrief “Factcheck: 18 misleading myths about heat pumps” as of 3/21/24
Renovate Europe “Renovation case studies” as of 3/11/25
Regulatory Assistance Project “Levelling the playing field: Aligning heating energy taxes and levies in Europe with climate goals” as of 7/18/22
This information is subject to change at any time, based upon economic, market and other considerations and should not be construed as a recommendation. Past performance is not indicative of future returns. Forecasts are based on assumptions, estimates, opinions and hypothetical models that may prove to be incorrect. Alternative investments may be speculative and involve significant risks including illiquidity, heightened potential for loss and lack of transparency. Alternatives are not suitable for all clients.
Important information – EMEA, APAC & LATAM
DWS is the brand name of DWS Group GmbH & Co. KGaA and its subsidiaries under which they do business. The DWS legal entities offering products or services are specified in the relevant documentation. DWS, through DWS Group GmbH & Co. KGaA, its affiliated companies and its officers and employees (collectively “DWS”) are communicating this document in good faith and on the following basis.
This document is for information/discussion purposes only and does not constitute an offer, recommendation or solicitation to conclude a transaction and should not be treated as investment advice.
This document is intended to be a marketing communication, not a financial analysis. Accordingly, it may not comply with legal obligations requiring the impartiality of financial analysis or prohibiting trading prior to the publication of a financial analysis.
This document contains forward looking statements. Forward looking statements include, but are not limited to assumptions, estimates, projections, opinions, models and hypothetical performance analysis. No representation or warranty is made by DWS as to the reasonableness or completeness of such forward looking statements. Past performance is no guarantee of future results.
The information contained in this document is obtained from sources believed to be reliable. DWS does not guarantee the accuracy, completeness or fairness of such information. All third party data is copyrighted by and proprietary to the provider. DWS has no obligation to update, modify or amend this document or to otherwise notify the recipient in the event that any matter stated herein, or any opinion, projection, forecast or estimate set forth herein, changes or subsequently becomes inaccurate.
Investments are subject to various risks. Detailed information on risks is contained in the relevant offering documents.
No liability for any error or omission is accepted by DWS. Opinions and estimates may be changed without notice and involve a number of assumptions which may not prove valid.
DWS does not give taxation or legal advice.
This document may not be reproduced or circulated without DWS’s written authority.
This document is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, including the United States, where such distribution, publication, availability or use would be contrary to law or regulation or which would subject DWS to any registration or licensing requirement within such jurisdiction not currently met within such jurisdiction. Persons into whose possession this document may come are required to inform themselves of, and to observe, such restrictions.
For institutional / professional investors in Taiwan:
This document is distributed to professional investors only and not others. Investing involves risk. The value of an investment and the income from it will fluctuate and investors may not get back the principal invested. Past performance is not indicative of future performance. This is a marketing communication. It is for informational purposes only. This document does not constitute investment advice or a recommendation to buy, sell or hold any security and shall not be deemed an offer to sell or a solicitation of an offer to buy any security. The views and opinions expressed herein, which are subject to change without notice, are those of the issuer or its affiliated companies at the time of publication. Certain data used are derived from various sources believed to be reliable, but the accuracy or completeness of the data is not guaranteed and no liability is assumed for any direct or consequential losses arising from their use. The duplication, publication, extraction or transmission of the contents, irrespective of the form, is not permitted.
© 2025 DWS Investment GmbH
Issued in the UK by DWS Investments UK Limited which is authorised and regulated in the UK by the Financial Conduct Authority.
© 2025 DWS Investments UK Limited
In Hong Kong, this document is issued by DWS Investments Hong Kong Limited. The content of this document has not been reviewed by the Securities and Futures Commission.
© 2025 DWS Investments Hong Kong Limited
In Singapore, this document is issued by DWS Investments Singapore Limited. The content of this document has not been reviewed by the Monetary Authority of Singapore.
© 2025 DWS Investments Singapore Limited
In Australia, this document is issued by DWS Investments Australia Limited (ABN: 52 074 599 401) (AFSL 499640). The content of this document has not been reviewed by the Australian Securities and Investments Commission.
© 2025 DWS Investments Australia Limited
Financial Professional
Individual Investor
Institutional Investor
U.S. Persons are not eligible to invest in shares of such investment funds which are stated on the following websites. By clicking on “I accept”, I confirm that I am not a citizen of the United States, that neither my place of residence nor place of business is in the United States and especially I am not a person that is a “U.S. Person” as such term is defined under Regulation S of the U.S. Securities Act of 1933.
The use of this Website is subject to (i) the German law and (ii) the Terms of Use of this Website. Please read the Terms of Use carefully.
By entering this Website, you agree to accept the Terms of Use of this Website.
We use cookies and similar technologies that are essential to operate our websites. With your consent, we will use cookies for performance analysis of our websites. This enables us to detect and fix errors and usability issues as soon as possible and to constantly improve our website. Furthermore we use marketing cookies to measure the success of our marketing measures and personalize our contents to your needs as precisely as possible, potentially also outside of our websites. In the settings you can find detailed information on the different types of cookies and object to the use of cookies. As an asset manager, the security of your data is highest priority to us. You can find further information in our privacy notice.
