Climate Change Estimated to cost Germany 900 Billion Euros
Early this month, Reuters reported around a study that says that due to extreme weather caused by climate change, Germany could be looking at a bill of about 900 billion Euros in total damages by mid-century. This is a direct example of how sustainability and ESG are affecting the bottom line. The study, originally from economic research companies Prognos and GWS and Germany's Institute for Ecological Economic Research comes as Berlin works on a climate strategy that is supposed to be presented by the environment ministry.
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Climate change has already cost Germany at least 145 Billion Euros in between 2000 and 2021. 80 billion of that 145 grand total occurred in the last five years alone. Within the study, it is estimated that looking at extreme heat, drought, and floods, costs for Germany could be between 280 billion Euros and 900 billion Euros between 2022 and 2050 depending on how we progress with global warming. The costs are made up of loss of agricultural yields, damage of buildings and infrastructure, impairment of the transportation of goods as well as the impact on Germany’s health system. This estimate does not include non-financial damage such as health impairments, death, and loss in biodiversity. Not only is this an issue for the bottom line but for the health of people and planet as well.
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This report continues to say,
Possible damage costs could be reduced completely through climate adaptation measures such as carbon storing if climate change was only mild, the study found, adding that around 60% to 80% of costs could be spared under such measures depending on how strongly climate would change. - Reuters
While it’s unclear how much climate adaptation measures would cost Germany, it’s implied that the cost of climate change is going to be a lot greater.
