KfW Research: German climate targets require €5 trillion investments

The German economy will need to invest around five trillion euros ($5,11 trillion) to achieve its national climate targets – a virtually CO2-neutral economy by 2045. Around ten percent of this, or €500 billion, will have to come from the public sector. Almost 60 percent of this public investment (€297 billion) is required in the energy sector, and the majority of this (€249 billion) is for renewable energy plants. These are the key findings of a brief study commissioned by public-law finance institute KfW Bank from market research and consulting company Prognos AG and evaluated by KfW Research.
The huge figures are put into perspective considerably when they are set in relation to other variables. Public investment, for example, is equivalent to around €20 billion per year, which, according to KfW, is »roughly equivalent to the interest expenditure on government debt.« Most importantly, 56 percent of these investments »must be made anyway,« and just need to be »steered in a climate-neutral direction.« The bottom line, says the Prognos study, is that for both public and private investments, »the overall economic effects are expected to be in the range of a ›black zero‹« and also have a positive impact on long-term economic growth.

Related News