Impacts of climate change on public finances in Germany

Climate change will alter the basis of economic activity in Germany. It will therefore also affect public finances. On behalf of the Federal Ministry of Finance, Ecologic and INFRAS explored the extent to which the economic impacts of climate change might threaten the sustainability of public budgets in Germany. The results indicate that in the event of unabated climate change additional costs (higher expenses for infrastructure) and revenue losses (mainly less tax revenue) could amount to 0.6 to 2.5 percent of GDP. The executive summary (in English) and the final Report (in German) are now available on the website. See also excerpt from the monthly report of the German Ministery of Finance.