Germany wants to become climate neutral by 2045. The climate target not only requires restructuring in all economic sectors, but also a huge investment boost.
According to a study, a total of around 5 trillion euros in investments is required for Germany to become climate-neutral in 2045, as it is striving for.
“That’s a huge sum, but it can be done. In order for the challenge to succeed, public investment funds must be used in a targeted manner and private investments must be mobilized, ”said KfW chief economist Fritzi Köhler-Geib.
However, the study carried out on behalf of the state development bank puts the actual additional investment requirement significantly lower at a total of 1.9 trillion euros. To this end, investments that are already required must be increasingly directed towards alternatives that make a contribution to climate neutrality.
The climate target requires an extensive transformation in all economic sectors, from transport to industry to private households, according to the study carried out by the Prognos Institute, Nextra Consulting and the Institute for Sustainable Investments (NKI).
The transport sector in particular requires high levels of investment
The analysis sees the largest part of the investments in the area of transport with 2.1 trillion euros. For the most part, however, it is a matter of realigning the already pending reinvestments in this area. The actual additional investments are therefore significantly lower at 153 billion euros.
The second highest investments are therefore required in the energy sector with 840 billion euros. Private households account for around 636 billion euros. According to the calculations, around 254 billion euros of this is additional investments, especially for a climate-friendly housing stock.
The industrial sector will face 620 billion euros. Of this, 462 billion euros are actual additional investments. Production techniques can often only be converted in a climate-friendly way with great effort, it was said to justify.
In the area of commerce, trade and services, around 237 billion euros are relatively low investments in climate protection, around 113 billion euros are additional investments.
From KfW’s point of view, climate protection investments also offer the opportunity to improve Germany’s competitiveness, for example by developing new technologies. This could strengthen the export-oriented business location Germany in the long term.
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
