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News from 2022-07-19 / KfW Research

Public investment required to achieve climate neutrality in Germany

The public sector will need to invest nearly EUR 500 billion in order for Germany to become climate neutral by 2045 – or around EUR 20 billion in climate investment each year. The highest amounts to be invested by the public sector will be in energy (EUR 297 billion), transport (EUR 137 billion) and buildings (EUR 47 billion). These amounts can definitely be funded from the public budgets, but even so, they represent a sixfold increase on the current investment level. Unless the responsibilities, financial flows and competences between the federal, state and local government levels are systematically realigned, it will hardly be possible to launch a sustained increase in necessary climate action investments.

Public investment required to achieve climate neutrality in Germany(PDF, 396 KB, accessible)

Press release


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Economic Research

Economic Research

Economic development in Germany and around the world, studies on topics relevant to society such as environmental and climate protection, demography, globalisation, innovation and sustainability, impact of KfW promotional programmes.

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