 Dear Federal Chancellor Olaf Scholz, we last met in May here, around three months after the onset of Russia's aggression against Ukraine. Apart from immeasurable suffering for the Ukrainian people, the war has also had drastic consequences for the rest of Europe. Many prices skyrocketed, inflation made a comeback, and the energy security is the order of today. In order to defend Europe's independence and security, Germany, under your leadership, Mr. Chancellor, initiated a site-invender with consequences for foreign and security policy, and also with the promise of a massive acceleration of the transition to renewable energy sources. This is why we are particularly looking forward to your participation this year, and hearing from you once again, welcome, Chancellor. Professor Schwab, dear Klaus, ladies and gentlemen, what a difference a year makes. When I spoke to you last year around this time, our discussions revolved around the global economy's path out of the pandemic. At the start of 2022, many people were expecting a boom, or at least a substantial boost for our economy's transition toward climate neutrality. Then came February 24. Since then, Russia has been waging an imperialist war of aggression here on our doorstep in Europe, with dreadful consequences that Ukrainians are bearing more than anyone. Just today, the Secretary of the Interior and 15 others, other victims, were killed in a tragic helicopter crash. We are with their families. But the war is also having an impact on all of us, for a while energy prices jumped to levels higher than we had ever seen before. Around the world, production costs and consumer prices exploded. Many people fear that coal and oil will make a lasting comeback all across the world. If that were to happen, the 1.5 degree target would become meaningless. Our supply chains must be adopted to new geopolitical realities. Realities that you called a messy patchwork of powers in your speech yesterday, Klaus. And over all of this hangs a sword of Damocles, the danger of a new fragmentation of the world of de-globalization and decoupling. And yet, ladies and gentlemen, this is just one part of the story of last year. Just one part of the reality that we are looking at here in Davos. The other part of the story is this. Russia has already failed completely in reaching its imperialist goals. Ukraine is defending itself with great success and impressive courage. A broad international alliance led by the G7 is providing the country with financial, economic, humanitarian and military support. Germany alone made available over 12 billion Euro last year, and we will continue to support Ukraine for as long as necessary. In Berlin at the end of October, we worked with international experts to draw up a Marshall Plan for the long-term reconstruction of Ukraine. A platform of major donors is coordinating the process and in consultation with Ukraine, ensuring that it is well implemented. Private sector capital will play a key role here. I know that many companies in Germany and beyond are very aware of the opportunities that the Ukrainian economic miracle could offer to them, particularly as the country moves toward the European Union after the end of the war. But in order for the war to end, Russia's aggression must fail. That is why we are continuously supplying Ukraine with large quantities of arms in close consultation with our partners. This includes air defense systems like IRST or Patriot, artillery and armored infantry fighting vehicles, marking a profound turning point in German foreign and security policy. And there is another part to the story of last year. Within a few months, Germany made itself completely independent from Russian gas, Russian oil and Russian coal. We concluded new partnerships in Asia, Africa and America, thus lessening our dependence. And so I can say that our energy supply for this winter is secure. Thanks to well-filled storage facilities, thanks to improved energy efficiency, thanks to remarkable solidarity within Europe and thanks to the readiness of our companies and of millions of citizens to save energy. As a result, energy prices have recently seen a huge stop and drop. Our measures to reduce the burden on private citizens, companies and businesses are working. Inflation is falling slowly, thanks incidentally also to resolute moves by the central banks. Industrial production in Germany has remained stable over the past few months against all the odds. Our employment rate is at record levels and has recently increased even further. Most importantly, our transformation toward a climate neutral economy, the fundamental task of our century, is currently taking on an entirely new dynamic. Not in spite of, but because of the Russian war and the resulting pressure on us Europeans to change. Whether you are a business leader or a climate activist, a security policy specialist or an investor, it is now crystal clear to each and every one of us that the future belongs solely to renewables. For cost reasons, for environmental reasons, for security reasons and because in the long run renewables promise the best returns. So yes, the past year brought fundamental change for Germany and Europe. But Germany itself has fundamentally changed as well. We are resolutely pushing forward with the decarbonisation of our industry. We want to be climate neutral by 2045 and at the same time we will remain a country with a strong manufacturing sector. And despite all the difficulties this past year showed us, we can and we will succeed in that. In less than seven months we built up an entirely new import infrastructure for LNG in Wilhelmshaven. In the future it can also be used for hydrogen. Just last Saturday I opened our second LNG terminal within just a few weeks in Lubmin. The day after tomorrow another terminal ship is expected to arrive at the port of Wunsbüttel. More will follow. This is not only good news for our energy security and that of our European neighbours who will be receiving guests from these terminals. Above all it shows Germany can be flexible, we can be unbureaucratic and we can be fast. I spoke of a new Deutschlandgeschwindigkeit in this regard in new German speed. We will make this German speed the benchmark also for the transformation of the economy as a whole. Your companies can hold on us to this standard. A new law mandates that the expansion of wind power, solar energy as well as electricity and hydrogen networks now take priority. We will make available no less than two percent of our country for wind power with a minimum of red tape. We have streamlined our processes so that approvals for electricity grids to name just one example are granted on average two years faster than before. And we intend to step up the pace even more. You can also rely on our targets. The obstacles have been swept aside. For 2023 we have more than doubled the volume of calls for tender for onshore wind farms alone. By the year 2030 80 percent of our electricity production will come from renewable sources again double what it is at present. At the same time our electricity requirements are increasing from 600 terawatt hours today to 750 by the end of the decade. And we are expecting them to double yet again in the 2030s. This is a massive increase. That is why the Federal Network Agency has been given a clear mandate to prepare and expand our electricity grids accordingly. We will regularly review the progress made. If it's not on schedule the measures will be adjusted. However, electricity alone is not enough to run Germany's industry. I'm thinking for instance of steel production hydrogen will play a decisive role there. And that is not a far off scenario. Last fall Tissen Krupp gave the green light to build a direct reduction plant for low carbon premium steel. With a capacity of 2.5 million metric tons the plant will save 3.5 million metric tons of CO2 per year. This is just one example of Europe's strength and innovation. Europe is the world's number one in hydrogen patents and one in 10 global applications come from Germany. The first supply chains for green hydrogen are currently being built up in our country. For our own production we are using offshore wind in the North Sea. In parallel we are concluding hydrogen partnerships worldwide. For as long as quantities are small and the cost of production correspondingly high the state will bring prices down to a level lucrative for the industry. Our goal is nothing less than an electrolysis boom. And as quantities increase a hydrogen powered industrial sector will emerge that preserves the climate and is independent of volatile prices for fossil fuels. Because one thing is absolutely certain. Energy must remain affordable in Germany, in Europe and worldwide. In Germany we decided to cap electricity and gas prices for private citizens and companies. These measures will run until 2024. Annually we will use around 2.2% of our GDP for this a total of up to 200 billion euro. That is both forceful and proportionate. It will give your companies the reliable energy prices and the planning certainty you need to invest in Germany's transformation. In the European Union we have agreed on joint targets for gas filling and saving. We will purchase gas jointly more often and coordinate storage better. And we will use our market power to ensure that European prices do not decouple completely from the world market. Moreover we are also aware of our global responsibility. Let me say this expressly to our friends and partners in Asia, Africa, Latin America and the Caribbean. The fact that we Europeans purchase LNG on the world market must not lead to scarcity elsewhere. We will need alternatives for the roughly 120 billion cubic meters of gas from Russian pipelines missing from the world market. More renewables of course but also temporarily additional gas resources. Otherwise there is a danger that without affordable gas emerging economies in particular might switch back to coal. This would be even more harmful to the environment. Of course we must avoid new logins, new path dependencies at all costs. By making new projects H02 ready from the very outset and by expanding renewables in parallel. In the short term this may lead to higher costs. How longer in the long term we all stand to save if the impact of climate change is less dramatic. In Germany too switching to a climate friendly economy will take efforts. We are talking about investments around 400 billion Euro for the expansion of renewables between now and 2030. Investments by the way which are already well underway. The most recent example is a contract worth billions for Siemens energy to connect a new offshore wind park to the grid. And this is just one example illustrating why this turning point towards a climate friendly industry is not the end of our industrial powerhouse but a new start. After all even before the energy crisis that Russia triggered Germany's business model was not only based on the energy intensive mass production of aluminium, cement or crude steel. But on highly specialized research and technology intensive industrial products, products that are needed all around the world. All the more so actually when the world is now transitioning towards a climate neutral future. Even before Russia's war of aggression Germany's energy prices were not the lowest. And yet Germany was and remains competitive. This is because of thousands of small and medium sized enterprises all across the country. Enterprises that are highly innovative and adaptable which explains why they are so often global leaders. This is thanks to high public and private investment in research and development which for example ensured that the first COVID-19 test and the first safe and effective COVID-19 vaccine were developed in Germany. Just in December a team at the Helmholtz Center in Berlin set a new world record for the efficiency of solar cells. And now just a few weeks later our companies are already setting up pilot lines for the use of these tandem cells. That ladies and gentlemen is and remains the German business model. Particularly now as we chart our path to a climate neutral future. Where else is there such broad consensus between businesses, employees and politics that the path to climate neutrality is not just ecologically necessary but also offers new opportunities in global competition. When it comes to basic and professional training for employees for example politics business and trade unions in Germany are working hand in hand. And before the year is out our country will finally benefit from modern immigration legislation. After all if we want to remain competitive as a leading industrial nation we need experience, practice, qualified engineers, tradesmen and mechanics. Those who want to roll up their sleeves are welcome in Germany that is our message. For decades now the forecasts have been predicting a shrinking German population. But it is up to us to decide whether this happens. So far it certainly hasn't. Today Germany has more inhabitants and employed persons than ever before. And this is precisely the trend we are going to continue. Ladies and gentlemen a climate neutral future is needless to say not something any single country can achieve on its own. That is why our dialogue and a forum like those are so crucial. What we are doing in Germany also serves the goal of making Europe the first climate neutral continent by 2050. At the European level we are going to lower our net greenhouse gas emissions by at least 55% by 2030 compared to 1990. This decision stands. Here we are relying on the market, on competition and on innovation. The use emission trading system is a case in point. Even today we are using it to cut permissible emission levels in a way that is predictable for all. At the same time this system is serving as a catalyst for innovation. But to ensure the most ambitious are not disadvantaged we prepare ground to carbon border adjustment mechanism in Europe. At the same time however Europe remains open for international trade. I am doing my utmost to ensure that the free trade agreements we have successfully negotiated with Canada, Korea, Japan, New Zealand and Chile will soon be followed by new ones with Makosua, India and Indonesia. And we are also open to discuss a tariff agreement for the industrial sector with the United States. Though these agreements we are creating a level playing field and we are preventing high emission industries from heading off to countries with less ambitious climate targets. This is also the aim of the International Climate Club we launched during Germany's G7 presidency. A secretariat has recently been set up at the OECD and the International Energy Agency. So the club is now open to new ambitious members. In the United States this ambition has a name, the Inflation Reduction Act. Some 370 billion dollars have been earmarked for energy and climate change mitigation over the next 10 years. I very much welcome this investment. Through the German Climate and Transformation Fund we have made almost 180 billion Euro available ourselves for the period of 2023 to 2026. But local content requirements for certain products must not result in discrimination against European businesses. Protectionism hinders competition and innovation and is detrimental to climate change mitigation. We as EU members are talking to our American friends about this. And at the same time we are looking at what we ourselves can do to further improve investment conditions here in Europe. The CHIPS Act for instance has brought about a new start for chip manufacturing in Europe. Investors are starting new production plants for billions of Euros. They can build on an existing semiconductor industry. This could become a model for other key technologies particularly in the digital and climate sectors. And the funding is there for the taking. To date only 20% of the more than 700 billion Euro in the European Recovery Fund has been paid out. Its full impact will thus emerge over the coming years. To remain competitive we will have to make European legislation on state aid more agile and flexible. Just as European Commission President Ursula von der Leyen has proposed and reaffirmed here yesterday. So that investors know in advance what support to expect and don't have to wait until years after their investment to find out. Ladies and gentlemen, the past year challenged us as seldom before. Yet at the same time we changed and moved things forward as seldom before. Germany itself is changing. If I may make a prediction. My successor will address you at the World Economic Forum in 2045. Sure, he or she will present Germany as one of the world's first climate neutral industrial nations. Energy supplies in Germany and Europe will then be sourced almost exclusively from green electricity, heat and hydrogen. We will be moving emission free on our roads and railroads. Our buildings will be energy efficient. Our businesses will be producing on a climate neutral basis. And what is more, they are the ones who will have driven this transition who will continue to drive it. So if you ask me today where you can invest in the future sustainably with a high return, my answer is don't look any further. Come to us, to Germany and to Europe. Thank you very much. Thank you, Mr. Chancellor. We have some questions from the floor. We have a microphone. I just want to say I look forward to chair the session with your successor. I'm sure you will. No, Chancellor, maybe until it's set up, you mentioned the patchwork of powers. But maybe one of the first question would be how is Germany positioning itself in this patchwork of powers? First, I think we will live in a multipolar world in 10, 20, 30 years. We already do, but this will be something we will understand much more in the years to come. And I'm sure that there will be not a bipolar world again with camps around two big nations or so. But the big task of all of us is that we make it feasible that this will be not a world with a lot of different strong powers, but also a world where cooperation is the reality. And this is why we have to work to make it multilateral, which I think is something about politics. And hopefully we started this year to make this happen. When I had the chance to preside G7, I invited democracies, Indonesia, India, South Africa, the head of the African Union Senegal, the head of the speaker of the Latin American and Caribbean nations, Argentina, to the G7 meeting in Elma in Germany. And this was intended to start on a dialogue on the same level, on understanding that they will be relevant and very important nations and more to come to join them in the world and that we cooperate. And the place of Germany in this world is being, supporting these processes, working very hard to make this good cooperation between nations from Asia, Africa, South of America and West of Europe and North America and others working. But also understanding that this will only work if we do it as part of the European Union, that the strong and geopolitical sovereign European Union will be one of the important actors in this world. Thank you. Let's see, let's collect maybe two or three questions. Someone with the microphone? And if you would introduce yourself, please. Can you hear me? Yes? Hi, my name is Masih Alinejad. I'm an Iranian woman. As you know these days, Iranian women are getting killed in the street just because of peacefully protesting and asking for dignity, democracy and freedom. Revolutionary guards are killing innocent people in the street. I myself, I was a target of revolutionary guards in the United States of America, the FBI charged four people who were trying to kidnap me. The revolutionary guards send drones to Putin to kill innocent Ukrainians. Why Germany doesn't designate the revolutionary guards as a terrorist organization? Because you just called American friends. American government did that three years ago. Thank you. Let's take a second on self-question. Thank you very much. My name is Aya Khilfan. I'm the global chair of this community representing Amman Hub in Jordan. Thank you so much. It's a very inspiring speech actually to hear about German's role in energy transition and energy efficiency. In Jordan, we have like energy is a low-hanging fruit. There's a great potential. We have basically signed the National Determined Contributions, the NDCs. We have produced national energy action plans. Answer question, please. Yes. So we want to talk about the role of youth. What kind of skills do you think are needed for youth to have today so that they can be able to run and be leaders in the energy sector? Thank you. Chancellor, we take your self-question, maybe, and send it. Peter Salmaev, Ukraine. Mr. Chancellor, thank you so much for your country's contribution to the effort of Ukrainians to defend their country. It seems that it's only a matter of time that Ukraine must get the heavy tanks, including the Lapperts, that are absolutely necessary for Ukraine to successfully defend its territory. We were expecting today to hear you finally decide on this. It seems that Germany's western allies, the U.S. and other countries are ready to step up and it's only German hesitancy that has prevented it. So my question to you is why hesitate and why wait? Thank you. Mr. Chancellor, one, two. Thank you for the three questions and I would like to answer to them. First, we very much support the people of Iran in their activities and fight for democracy, especially the women, but all the others and especially young people doing so. And to be very clear, I think it is very necessary for all of us to understand that the Iranian government is really shooting its own people and this is the reality. And this is also why we are very strong in what we say and what we are doing together with our friends in the European Union where we are very coordinated to act and with all our other allies where we are working to deal this question also aside of the European Union, for instance, the U.K. or the United States. And because of that, we are very strict and we decided on new sanctions as we did in the past and the decisions are the ones we speak together with others and new sanctions have been established shortly. And we will continue to look at the situation and to do the next decisions necessary. And as in this way, it is necessary that we are always acting together, looking at the situation and what we decided and decide will be together with especially the Europeans. The question of the skills needed for this turn to renewables and the turn to become climate friendly if I got it right in the different countries and especially yours, for instance, I think the question is really important because if we want to make it up to the midst of the century, it is not a long time since then. If we look at 2050 or in Germany to 2045 and we want to become climate neutral, we want to produce CO2 neutral, this means the biggest industrial modernization and process we ever had since possibly nearly the beginning of the industrialization 200 years ago. Possibly we can compare to the uprise of industrialization and some countries in Europe in the end of the 19th and the beginning of the 20th century. So this is a really big task for the whole world and so we have to develop the technologies, we have to do the necessary innovations to make this happen and we have to invest billions, billions, billions that this is making, that this progress is really happening. And this will be not just linked to one country or the other. Germany can serve in a way that we are willing to do it, that we are ready to do it, that our industry is willing to do it and whilst we are acting in this way, we are able to develop technologies that can be used not just for us but also as cheap alternatives to fossil resources and fossil mechanisms we know today. And in this case I think it's important that we support countries and the development of vocational training for instance to be good engineers in the field of these modern technologies and also to have those who want to learn these qualifications at universities. And this is our understanding what one can do and in our support to other countries this will be an important aspect. Looking to Ukraine, as I mentioned already in my speech and I will repeat it again, Germany is between the biggest supporters. Yes, the United States are doing the most and this is not really surprising because I think they invest 800 billion dollars into their defence budget. This is much more as all the European member states together and there is even more than Germany is having as its own budget though we are increasing it now to 2% of our GDP and though we have a special fund of 100 billion to go to this past and invest in new technologies and weapons. But we decided very early to change our political strategies. We are not just supporting Ukraine with financial means with humanitarian aid but also with a lot of weapons. And if we look at that, we are between the ones that are doing the most. The United States are the number one obviously because of this what I said but the next are the United Kingdom and Germany. And we will continue to be this big supporter. As you know, we decided that we will supply not just weapons but those who are very effective and the artillery coming from Germany with our howitzer and called Panzerowitz 2000 and the multi rocket launcher we delivered are very effective in this war helping the Ukraine to defend its integrity and sovereignty and you should or you realise that it is only the United States, UK and Germany that delivered a multi rocket launcher so far and we will continue to do so. We delivered a lot of weapons which are very important to defend to the air defence of the Ukraine. It's the flag tank gap and the munition necessary for that and we continue to do that. It's smaller weapons but it's also the very famous iris T system from Germany which is having a nearly 100% effectiveness in getting down missiles sent by Russia to destroy Russia and to destroy Ukrainian houses, streets, railroads and energy production sites. And we will continue to this. I think many people thought this is possibly the best to get and we will increase the production with our industry to deliver more of that. And most recently we decided to gather with the United States and we're very much aligned with our French friends that we will deliver similar weapons which as I already mentioned to the Bradley from the United States and the Mada from Germany and this is the strategy we have that we are strategically interlocked together with our friends and partners that we are working together with them, that we are discussing with them and that we are never doing something just by ourselves but together with others especially the United States which are very important in this common task to defend the Ukrainian independence and sovereignty. As I said in my speech we will continue to do this as long as necessary and while we are doing this and showing that the Ukrainians can rely on our support for the courageous fight it is also clear that we will avoid that this is becoming a war between Russia and NATO. I think this is something which is also the view of the Ukrainians as far as I understand with all my talks and we will continue to be active in this way to do this. My willingness, the willingness of Germany, the willingness of the European Union and all the supporters of the Ukrainian nation is that they will be able to become an independent free democratic nation which will go the way to the European Union and will join it and this is what we do. Thank you Mr. Chancellor. This concludes our session. Please join me in expressing our appreciation for your speech and we look forward to seeing you with success stories soon again. And you will meet someone in 2045. I hope to see you also in 2045.