German industry says protecting climate is good for economy

German industry believes the world’s fourth largest economy can boost its status as a manufacturing powerhouse by protecting the climate. Reducing emissions by 80 percent by 2050 is good for the economy even if Germany goes it alone, the Federation of German Industries (BDI) says in an in-depth study. As long as energy-intensive businesses are no longer burdened with additional costs which harm their international competitiveness, “industrial companies will benefit from ambitious climate protection,” Germany’s most important industry association says in a press release. BDI President Dieter Kempf called this finding “surprising” during a press conference.

But cutting emissions by 95 percent by 2050 compared to 1990 levels – the upper end of Germany’s climate targets – is only realistic if other industrialised countries make similar efforts, according to the BDI.

The study, conducted by management advisers Boston Consulting Group (BCG) and consultancy Prognos, also found that cutting emissions by 80 percent would require urgently needed cumulative total investment of 1,500 billion euros. The association stressed this figure must not be considered cost, but rather investment that would on balance benefit the economy.

Find the study in German here.

Please note: The Clean Energy Wire will publish an article on this topic later today.