Climate change could cost Germany 900 billion euros by 2050

According to a study commissioned by the Federal Ministry of Economics, climate change could cause economic damage of up to 900 billion euros in Germany by 2050. As the "Handelsblatt" reported, citing the paper prepared by several institutes, the authors expect consequential costs of 280 to 900 billion euros, depending on the extent of global warming. "Climate changes are already having serious economic consequences that can increase massively," said State Secretary for Economic Affairs Stefan Wenzel (Greens) of the newspaper.

The Institute for Ecological Economic Research (IÖW), the Society for Economic Structure Research (GWS) and Prognos AG had worked on the study, which was to be presented on Monday.

While the calculation of consequential damage from climate change usually takes into account destruction caused by flooding, for example, the paper commissioned by the Ministry of Economic Affairs also takes into account damage beyond pure reconstruction costs, according to the “Handelsblatt”. For example, the authors took into account additional burdens due to limited production options or interrupted supply chains.

According to State Secretary for Economic Affairs Wenzel, the federal government is working on a “Climate Adaptation Act” to reduce the financial impact of the climate crisis. Economist Hubertus Bardt from the German Economic Institute (IW) told the “Handelsblatt” that in addition to “global efforts to protect the climate”, “local measures to adapt to the changed climate” are also necessary.