Strict environmental regulations

Germany has strict environmental regulations. Business activ-
ities which are inherently dangerous, polluting, or otherwise
clearly harmful to the environment require special authorization.
The Federal Pollution Control Act (Bundesimmissionsschutzge-
setz – BImSchG) is at the center of such legislation.

Industrial facilities and their modifcations must comply with strict stan-
dards, which are defined in “Technical Directives”. The licensing
procedure for such special business permits is very formal.
Investors often complain about the complexity of the licensing
procedure. This, in turn, has led to a review of the procedure by
governmental and legislative bodies in Germany with the aim of
reducing the complexity and burden for the investor.