A study published on Monday shows extreme weather brought about by climate change could cost Germany up to 900 billion euros in cumulative economic damage by 2050, as the country seeks climate adaptation measures to cut the damages bill.
The study was done by economic research companies Prognos and GWS and Germany’s Institute for Ecological Economic Research, and it is coming as the German government continues to work on a climate adaptation strategy that will be presented by the environment ministry in due time and also amid debates in the ruling coalition on how Germany could cut greenhouse emissions in challenging sectors such as transportation and construction to become carbon neutral by 2045.
Depending on the extent of global warming, Germany’s economy and environment ministries cited the study as showing that extreme heat, drought and floods could cost between 280 billion euros ($297.81 billion) and 900 billion euros between 2022 and 2050, including loss of agricultural yields, damage or destruction of buildings and infrastructure due to heavy rain and flooding, impairment of goods transportation and impact on the health system.
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However, the study did not account for non-financial damage such as health impairments, deaths from heat and floods and loss in biodiversity.
Meanwhile, the economy ministry said climate change has led to extreme weather events that have already cost Germany at least 145 billion euros between 2000 and 2021, 80 billion of which were in the past five years only, including the 2021 floods in the states of Rhineland-Palatinate and North Rhine-Westphalia and this new study shows the trend might not be over yet for Europe’s biggest economy.
Although the study finds possible damage costs could be reduced completely through climate adaptation measures such as carbon storing if climate change was only mild, and around 60% to 80% of costs could be spared under such measures depending on how strongly climate would change, it did not mention how much climate adaptation measures could cost the federal and state governments.
Story was adapted from Reuters.
