Germany to face severe economic losses due to climate change: study
A study conducted jointly by the German Ministry for Economic Affairs and Climate Action (BMWK) and the Ministry for the Environment, Nature Conservation, Nuclear Safety and Consumer Protection (BMUV) has found that Germany is expected to lose up to 900 billion euros (960 billion US dollars) by 2050 due to climate change related damages to its economy. Even if a moderate rise in temperatures occurs, the best-case scenario still forecasts losses of around 280 billion euros in the same period.
The report also warns of "numerous health impairments, deaths from heat waves and flooding, a strain on ecosystems, a loss of biodiversity, and a reduction in quality of life" as non-financial consequences of climate change. According to Stefan Wenzel, the parliamentary state secretary, climate change is already having severe economic consequences and investments in climate protection could reduce the future costs of extreme weather events.
The reinsurer Munich Re reported that worldwide natural disasters such as hurricanes and floods caused damages worth 270 billion US dollars in 2022. The German National Academy of Sciences Leopoldina called on the government to accelerate the energy transition in Germany to help meet the Paris climate targets. Germany aims to be climate neutral by 2045 by increasing the share of renewable energy sources in gross electricity consumption from around 44 percent in 2022 to at least 80 percent by 2030. However, a study by the German Association of Energy and Water Industries (BDEW) and the consulting firm Ernst and Young (EY) has found that the transition to renewable energy sources is not progressing quickly enough.
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