Macro

Germany's carbon-neutral transformation requires 6 trillion euros of investment

Seetao 2021.09.18
  • One of the root causes of climate change is the massive consumption and heavy dependence of humans on fossil energy

In the context of the global acceleration of carbon neutrality goals, a research report by the German McKinsey Consulting Company shows that if Germany is to achieve climate neutrality by 2045, it must invest 6 trillion euros, with an average annual investment of 240 billion euros. . But only 1 trillion euros is the actual increase in additional investment, and the rest of the funds come from "reallocation", such as the conversion of fuel vehicle subsidies into electric vehicle subsidies. Experts believe that this is the only way to double the proportion of electric vehicles in 2030 compared to 2020. In June 2021, Germany's pure electric vehicle sales accounted for only 12%. Experts believe that to achieve the EU's 60% emission reduction target, the proportion of electric vehicles in Germany must reach at least 60% in nine years.

The report believes that in order to achieve the goal of climate neutrality by 2045, in addition to the large-scale promotion of electric vehicles, the German government also needs to expand wind and solar power generation equipment to three times the current size by 2030, promote the electrification of industrial processes, and rebuild electricity. Infrastructure for transportation and hydrogen transportation. Transformation is not only good for the climate, but also good for the economy. If the transformation is successful, the sum of cost savings and revenue before 2045 can offset the cost of decarbonization. The sustainable development of enterprises can not only achieve higher profits and stronger growth, but also bring higher valuations and dividends to shareholders. McKinsey experts also believe that achieving climate neutrality in the economy can promote employment growth, such as building renovation work and heat pump installation work, as well as solar and wind power equipment production and installation to create more jobs. One of the authors of the research report, Stefan Helmcke, said that the next decade will determine whether Germany can respond to climate change in a way that balances society and controls costs. Editor/Xu Shengpeng


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