Germany's climate neutrality goal requires investments of five trn euros

2021-10-07 18:05:55 GMT2021-10-08 02:05:55(Beijing Time) Xinhua English

BERLIN, Oct. 7 (Xinhua) -- Germany would need to invest around five trillion euros (5.8 trillion U.S. dollars) in order to reach its goal of achieving climate neutrality by mid-century, according to a study published by Germany's development bank KfW on Thursday.

Assuming that the sum would be evenly distributed by 2045, investment requirements in Germany would average 191 billion euros annually, or 5.2 percent of Germany's gross domestic product (GDP).

"That is a massive amount, but it is doable. In order for us to meet this challenge, public investment funds must be used in a targeted manner, and private investment must be mobilized," said Fritzi Koehler-Geib, chief economist at KfW, in a statement.

The calculations included investments that were already planned, plus an additional investment in climate protection of 72 billion euros per year.

In order for Germany to achieve climate neutrality, a "comprehensive transformation" is required in all sectors of the economy, the study found. The largest portion of climate investment, 2.1 trillion euros, needs to be made in the transport sector.

For Germany to achieve its climate protection targets, CO2 emissions from transport must fall significantly, the German government noted at the end of September. A new law on further reducing the greenhouse gas quota in transport came into force in October. (1 euro = 1.16 U.S. dollars) Enditem