Germany is experiencing the effects of global climate change, with rising temperatures and increased risk of floods, heavy rainfall, and other weather events. A research project conducted by the Federal Ministry for Economic Affairs and Climate Protection, in collaboration with Prognos, the Institute for Ecological Economic Research, and the Society for Economic Structural Research, has revealed the monetary impact of climate change on the country. Since 2000, the average annual cost of damage caused by climate change in Germany has been €6.6 billion, with a total of at least €145 billion in damages from 2000 to 2021. These damages include losses to buildings and infrastructure, reduced agricultural yields, and indirect costs such as decreased forestry and agriculture. The study did not account for the health effects of heat or the impact on the environment.
The 2018 and 2019 heatwaves and the 2021 floods accounted for more than half of the calculated damages, with the floods alone causing over €40 billion in damages in North Rhine-Westphalia and Rhineland-Palatinate. The authors note that the reported figures are minimum estimates, and that distinguishing between the effects of climate change and typical extreme weather events can be difficult. The heat and drought primarily affected forestry and agriculture, causing damages of around €25.6 billion in extreme years. Additionally, the industry and commerce sectors suffered €9 billion in damages due to reduced productivity caused by the heat.
The study’s authors emphasize the need for comprehensive climate protection efforts in all sectors, as well as a reliable climate adaptation strategy to protect the population, infrastructure, and economy from heat, floods, and other weather fluctuations. Economic and Climate Minister Robert Habeck stresses the importance of these efforts, stating, “We will and must intensify our efforts towards comprehensive climate protection in all sectors. Secondly, we need a reliable climate adaptation strategy that protects our population, infrastructure, and economy from heat, floods, and strong weather fluctuations.” Environment Minister Steffi Lemke also announced a National Water Strategy to address the impact of climate change on water resources.
