Germany Faces Up to 1,250 Trillion Won Loss by 2050 Due to Climate Change

Experts have projected that Germany could suffer losses of up to 900 billion euros (approximately 1,250 trillion won) by 2050 due to climate change.

On the 6th (local time), according to the German Ecological Economic Research Institute and the Economic Structure Research Association, an estimate commissioned by the German government on the economic losses caused by global warming in Germany predicted that losses could reach between 280 billion and 900 billion euros (approximately 389 trillion to 1,250 trillion won) by 2050.

The estimated maximum loss of 900 billion euros is about twice the German government’s budget of 475 billion euros (approximately 660 trillion won) for this year. The estimate broadly includes not only direct damage recovery costs from climate change-related events such as floods and windstorms but also burdens caused by production disruptions and supply chain interruptions.

According to expert models, losses are expected to increase further. Their estimate suggests that annual losses from extreme disasters such as heatwaves or floods could increase by at least 1.5 times and up to 5 times compared to the past 20 years by 2050. Previously, the German government’s estimate of the flood damage in the Ahrtal region during the summer of 2021 alone amounted to 40 billion euros (approximately 56 trillion won).

Experts warned that if preemptive measures against global warming are not taken, the German economy could contract even under the best-case scenario. However, they explained that economic losses could be reduced by 60 to 100% through proactive measures such as expanding urban green spaces.

Stefan Wenzel, Deputy Minister of the German Federal Ministry for Economic Affairs and Climate Action, emphasized, "Climate change is already causing significant economic costs today, and these could increase. Every cost invested in climate protection can reduce the economic losses that may arise in the future due to extreme climate events."

This content was produced with the assistance of AI translation services.