The fight against climate change is not only a moral imperative but also a financial one, as a new study warns that the worst-case scenario of global warming could cost Germany up to 900 billion euros by 2050. The study, conducted by the Institute for Ecological Economy Research, the Society for Economic Structural Research, and Prognos AG on behalf of the Federal Ministry for the Environment, analyzed various scenarios of how climate change will affect Germany in the coming decades. The study found that the worst-case scenario could result in costs of up to 900 billion euros, while the best-case scenario would still result in costs of 280 billion euros.
The study also revealed that extreme weather events such as heatwaves and floods, which have become more frequent due to climate change, have already caused 6.6 billion euros in damages in Germany in 2022. The models used in the study predict that the average annual costs of such events could increase by up to five times by 2050, leading to a 0.6 to 1.8 percent decrease in Germany’s gross domestic product (GDP) by mid-century. A separate study by the London Imperial College, the London School of Economics, the University of Cambridge, and ETH Zurich warns that the global GDP could even decrease by up to 51 percent due to climate change.
The authors of the study emphasize that their projections are not exact figures but rather provide an impression of the different scenarios of climate change and their consequences. They also note that the economic costs are likely to be underestimated, as not all the impacts of climate change can be modeled, and not all costs can be measured. However, the study suggests that measures such as creating more green spaces in cities to reduce temperatures could significantly reduce the economic costs of climate change.
