By Andrea Thomas
Dow Jones-Germany could make investments in climate neutrality cost-effective. According to a study by researchers from the Copernicus project Ariadne, the additional effort of the transformation through cost-effective climate protection, depending on the scenario, could be limited to an average of EUR 16 to 26 billion to the targeted climate neutrality in 2045. This corresponds to 0.4 to 0.7 percent of current economic output. The energy transformation offers the opportunity to make Germany and Europe fit for important future markets.
“Decarbonization, i.e. the departure of oil, coal and gas, requires a profound conversion of our economy. This renovation leads to annual investments in the three-digit billionth height,” says Gunnar Luderer, Head of the Energy Transition Lab at the Potsdam Institute for Climate Illic Research and Vice-Presentation of the Ariadne project funded by the Federal Ministry of Education and Research. “But gross investments should not be confused with net costs. If the switch to innovative and efficient technologies is consistently continued and these are intelligently networked, there are high savings in fossil energy.”
Due to the transition to a more modern and efficient energy system, the high ongoing fuel expenses decreased. And the climate damage costs caused by Germany from 2025 to 2045 would be more than halved, according to the study.
In their investigation, the researchers compared various scenarios, which differ in the hydrogen requirement, to the degree of direct use of electricity and in the general amount of energy demand.
Gross, i.e. if the savings in fossil fuels have not yet been counted towards, the energy transition leads to investments from average of 116 to 131 billion euros by 2045 for renewable energies, energies, energetic renovation and the electrification of industrial production, building heat and road traffic. Of these, 95 billion would be induced by measures that have already been adopted to this day. A large part of the investments will be financed from private means that the state will play a role, especially in the case of infrastructure, the market launch of new CO2-neutral technologies and to reduce additional burdens in private households.
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(End) Dow Jones Newswires
March 05, 2025 18:00 ET (23:00 GMT)