Translated title: The Economic Opportunities of Climate Action. The Macroeconomic Effects of Investment-oriented Climate Protection Policy.
The Paris Agreement set the goal of limiting global warming to well below 2° Celsius and striving for warming of no more than 1.5° Celsius. Achieving this goal requires ambitious climate action. In 2010, the German federal government decided to reduce greenhouse gas emissions by 80 to 95 percent of 1990 levels by the year 2050.
In light of the Paris target of achieving global greenhouse neutrality in this century, the federal government has reaffirmed its long-term goals in the Climate Action Plan 2050 However, ambitious climate protection policy not only reduces greenhouse gas emissions; it also offers a wide range of macroeconomic opportunities. Public discussion of climate action often ignores this potential.
This study aims to quantify the macroeconomic effects of investment-oriented climate protection policy in selected areas up to the year 2030. To this end, it develops assumptions about future investment trends. Then, using a macroeconomic model of the Germany economy, the study determines the impact on growth, employment and estimated greenhouse gas emissions. The calculations are limited to the areas of activity essential to ambitious climate protection policy, areas that can be expected to result in high investment activity for the reduction of emissions.
The results are clear: climate protection pays. Along with the necessary investments in renewable energies, energy efficiency, building refurbishment and climate-friendly mobility, climate protection is making Germany fit for the future. Compared to a reference scenario, the investment ratio in a scenario with additional investment in 2030 is about five percent higher. As a result, gross domestic product also rises by around two percent compared to the reference figure, and creates 220,000 additional jobs.