It will cost EUR 5 trillion for Germany to achieve its stated goal of becoming climate neutral by the year 2045 – that’s the conclusion reached by German state developmental bank KfW in a new study.
“It’s a massive sum, but it’s doable,” said KfW head economist Fritzi Köhler-Geib in a statement. “For us to successfully meet this challenge, public investments have to be carefully targeted and private investments mobilized.”
The study says that the largest sector of needed investment will be transport with EUR 2.1 trillion. That’s followed by energy at EUR 840 billion and industry with EUR 620 billion. Some of this money, the KfW pointed out, has already been approved by the government.
Costly though it may be, the KfW adds, Germany’s more environmental future makes economic sense. The bank predicts that a 95 percent reduction in CO2 emissions in all of Germany’s 16 regional states by 2050 would bolster growth and employment.