Climate change may cost Europe’s biggest economy, Germany, about 900 billion euros in cumulative economic damage by 2050.
This is according to a study that came out on Monday, as Germany seeks climate adaptation measures to cut the damages bill that would be caused by the extreme weather conditions.
Reuters reported that this study by GWS, economic research companies Prognos and Germany’s Institute for Ecological Economic Research, follows Berlin’s work on strategies for climate adaptation which will soon be presented by the environment ministry.
It also occurs at a time when the government coalition is debating how Germany might reduce greenhouse emissions in difficult industries like transportation and construction to achieve carbon neutrality by 2045.
According to Reuters, 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, depending on the extent of global warming.”
The costs include decreased agricultural output, destruction of buildings and infrastructure as a result of severe rain and flooding, problems with the movement of products, and effects on the health system.
Meanwhile, it was reported that the study did not consider non-financial damage like health impairments, deaths from heat and floods and loss in biodiversity.
The economy ministry said, “Climate change extreme weather events 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.”
According to the study, “the cost of damage can be reduced by climate adaptation strategies such as carbon storing if climate change was only mild.”
Through these strategies, the study revealed that about 60% to 80% of costs could be saved depending on the level of change.
According to Retail, the report did not disclose the cost of climate adaptation measures to the Government.