Germany Invests 1.5% of GDP to Reduce the Impact of Climate Change
“The German Landscape of Climate Finance,” a report recently released by the Climate Policy Initiative, provides an overview of how German businesses, households, and government finance renewable energy and energy efficiency.
The country invested EUR 37 billion to reduce the adverse impact of activities to the climate, or 1.5 percent of the country’s GDP.
The study says government incentives play a major role in unlocking private climate finance in Germany. Almost half of all private climate investments (EUR 16.5 billion) were supported by low-interest loans from public banks, such as KfW or Rentenbank.
“The task of the government is to create the conditions for businesses and households to invest in renewable energy and energy efficiency,” says Barbara Buchner, director, CPI Europe. “And indeed, government-backed low-interest loans and policies such as the feed-in-tariff seem to have played an important role in encouraging these private investments.”
The German government has committed to reduce greenhouse gas emissions by 80-to-95 percent by 2050 and phase out nuclear energy by 2022.
For complete details, visit http://climatepolicyinitiative.org/publication/german-landscape-of-climate-finance/.