Six trillion euros for German climate neutrality – “downright ridiculous,” says the FDP

According to a study, in order to achieve the climate target for 2045, around 6,000 billion euros would have to be invested in Germany, i.e. six trillion euros. This was calculated by the Prognos research institute on behalf of the development bank KfW.

FDP General Secretary Martin Hagen calls this amount “downright ridiculous” to “Bild”.

Energy economist Manuel Frondel expects costs to be even higher. “I think six trillion euros is the lower limit,” says the head of the “Environment and Resources” department at the RWI to the newspaper. The calculation assumes that old systems will only be replaced at the end of their service life. In addition, the switch from natural gas to green hydrogen is likely to put a strain on energy-intensive companies and encourage their migration, says the economist.

Michael Eilfort, board member of the Market Economy Foundation, also predicts competitive disadvantages. “No country in the world has yet copied the German ‘energy transition’ with the exit from both fossil coal and CO2‑free nuclear power,” he tells “Bild”. He also warns of the consequences for citizens: “We should honestly say to the population: ‘Continue as is’ with heating, flying, driving and welfare state levels as well as climate neutrality in 2045 are simply impossible.”

By 2045, Germany wants to be climate neutral, meaning it will not emit more greenhouse gases than can be stored. This is enshrined in law. According to new calculations by the Prognos research institute, companies, the state and private households would have to invest 290 billion euros per year for Germany's climate target - far more than currently. The majority of the investments would have to come from consumers and companies, with the state only accounting for 12 percent.

KfW CEO Stefan Wintels spoke of a “demanding but feasible challenge”. The majority, namely 45 percent, will occur in the transport sector, followed by the energy (25 percent), buildings (22 percent) and industry (eight percent) sectors.

According to KfW, Germany is the second largest exporter of climate protection goods. "The market is growing rapidly and German companies can benefit from it. Switching to climate-friendly technologies should also reduce energy costs, with positive effects on companies and private households."