Germany needs to invest a total of six trillion euros by 2045 to achieve climate neutrality, according to a new study released by KfW four weeks before the UN Climate Change Conference. The study estimates that the annual investment requirement will be 290 billion euros. The transport sector is projected to account for the largest share at 45 percent, followed by energy (25 percent), buildings (22 percent), and industry (eight percent).
Stefan Wintels, Chairman of the Management Board at KfW, noted that Germany faces “challenging, but achievable” tasks. He emphasized that the required investment of six trillion euros by 2045 represents a “huge effort.” However, he added that this figure is moderated by the fact that Germany would also have to invest heavily in retaining fossil technologies. He also highlighted that investments in climate protection offer economic benefits, reducing the rising costs associated with climate change, while simultaneously providing significant opportunities for the German economy through climate technologies.
The study indicates that the investment need has increased by one trillion euros compared to the predecessor study from 2021. This rise is attributed to price increases and an existing backlog of investments. While an average of 110 billion euros has been invested annually in recent years, a gap of 180 billion euros per year must be closed to reach climate neutrality. Businesses in the energy supply sector and private households, in particular, must undertake major investments to implement the necessary changes.
