German government could finance climate goals with little fiscal strain – consultancy
Germany can implement effective measures to mitigate climate change without straining its fiscal leeway too much in the coming decades, according to one scenario examined by consultancy Prognos. If Germany used its federal budget to come up with the additional investments needed to reduce greenhouse gas emissions by 80 percent by 2050 – 20 billion euros annually, as calculated by the Federation of German Industries (BDI) in its landmark climate study – it would still stay below the Eurozone ceiling of 60 percent for public debt, write the researchers. However, Germany might violate its balanced budget amendment – the so-called “debt break”. Prognos will release the full “Germany Report 2025|2035|2045” at the turn of the year.
Find the press release and first results in German here.
For background, read the CLEW article German industry says protecting climate can benefit economy.