CO₂ emissions in Germany will be at their lowest level since the 1950s in 2023 - financial expert analyzes negative effects

CO₂ emissions in Germany will be at their lowest level since the 1950s in 2023 - financial expert analyzes negative effects

According to a report by www.fr.de, CO₂ emissions in Germany have fallen to their lowest level in over 60 years. This is largely due to the economic weakness caused by the crisis. CO₂ emissions were 46 percent lower than in the reference year 1990 and amounted to 673 million tons in 2023.

However, think tank Agora Energiewende warns that only about 15 percent of reduced CO₂ emissions are “permanent” savings, while the majority is unsustainable. The experts attribute the decline largely to the unexpectedly sharp decline in coal consumption and crisis-related declines in production in the energy-intensive industry. They also emphasize that the falling emissions are partly due to economic and crisis-related causes and are not sustainable.

Economics and Climate Protection Minister Robert Habeck is still pleased about the decline in CO₂ emissions, but is pushing for more investments in the climate-friendly restructuring of the economy.

The effects on the market and the financial sector are diverse. An unexpected decline in coal consumption and crisis-related declines in industrial production could have positive short-term effects on the environment and climate. However, the think tank Agora Energiewende warns against unsustainable savings and a possible shift of emissions abroad. This could have long-term economic and environmental impacts. In addition, the tendency for climate targets to be missed in the transport and building sectors shows that further political and economic adjustments are required to stop climate change.