Despite the economic uncertainties caused by the energy crisis, investment by German enterprises in domestic climate action grew by a sizeable 18% in real terms in 2022, reaching EUR 72 billion. These are the findings of the 2023 KfW Climate Barometer. Investment in climate action is likely to have been boosted not only by the sharp rises in fossil fuel prices, which made investments in energy efficiency and the use of renewables more attractive, but by pull-forward effects resulting from the foreseeable increases in the cost of debt capital and rising prices for capital goods, particularly in the first half of 2022. The growth in climate protection investments last year was attributable to larger companies and SMEs with 10 or more employees. The findings also show that nearly two thirds of German companies have at least partly enshrined climate action in their business strategy. However, there is still upside potential for operationalisation. So far, 70% of businesses have not yet developed any concrete plans to reduce greenhouse gas emissions.This applies to small and medium SMEs in particular.

KfW Climate Barometer 2023(PDF, 540 KB, accessible)

Press release

Further information of the KfW Climate Barometer