Germany's Economic Future Hinges on Embracing Green Transition, Experts Warn

Experts caution that Germany's economic future depends on embracing the green transition, as the country's economy has shrunk for two consecutive years, impacted by high energy prices and international competition. Despite concerns about climate action hindering economic growth, research indicates that climate-protection measures can create economic advantages, such as job creation in the renewable energy sector, which has already generated almost 400,000 jobs. The Federation of German Industry supports climate policies, recognizing green technologies as crucial for Germany's industrial success. Experts emphasize that delaying investment in climate action poses risks to competitiveness and could lead to higher fossil-fuel costs. They also point out that Germany's reliance on fossil fuels drives up electricity prices, not the expansion of renewables. Political uncertainty surrounding climate policies hinders planning security for businesses. Economic damage caused by climate change is estimated to be significantly higher than the investment needed for emissions reduction. The only option for the German economy is to proactively embrace the challenges and opportunities of the green transition.