Germany needs 6 trillion euros in investment for its climate-neutrality target
According to a Prognos report, Germany must provide trillions of euros in financing over the next 20 years to meet its 2045 targets.
According to a report prepared for the German Development Bank, Germany is expected to invest a total of six trillion euros over the next twenty years and increase its current spending in order to become climate-neutral by 2045.
Details of the Report
The report, prepared by the research institute Prognos on behalf of the German Development Bank, has been made public.
Investment Need
It was noted that the country needs to more than double its current environmental and climate spending to reach its target.
It is projected that a total of six trillion euros will be invested over the next twenty years, providing an average annual financing of 290 billion euros.
Burden of the Green Transition
It was reported that the additional investment burden of the green transition for the country, which would need to renew its infrastructure even if it remained reliant on fossil fuels, is approximately 145 billion euros annually.
Sectoral Distribution
The highest financing requirement during the transformation process is seen in the transportation sector, ranging between 2.6 and 2.9 trillion euros.
It is planned to allocate resources ranging from 1.3 to 1.8 trillion euros to the energy sector.
Source of Financing
It is stated that the overwhelming majority of the investments will be undertaken by consumers, private households, and the business world.