Financial expert Andreas Löschel on the costs of climate change and restructuring the economy

Financial expert Andreas Löschel on the costs of climate change and restructuring the economy

According to a report by www.tagesspiegel.de,
Transformation costs money, and that is missing now. Because the Federal Constitutional Court has shown the government the red card and removed 60 billion euros from the climate and transformation fund because of budget tricks. But does the transition to a climate-neutral economy actually have to be so expensive? Climate economist Andreas Löschel says in the climate podcast Gradmesser where the state - and its finances - are called upon to transform the economy, whether that's it with climate protection and where perhaps less public money can be used.

Andreas Löschel emphasizes that the transformation will continue, although the missing billions represent a major challenge. Although electrification could be detrimental to the German economy, Löschel does not believe this is convincing and points to possible solutions.

The climate economist also sees the problem that the market alone does not provide adequate solutions. He explains how a CO2 price can also encourage people who are not interested in climate protection to behave in a climate-friendly manner. He also makes it clear that around 90 percent of investments come from the private sector and discusses what is necessary for the money to flow here and how the state can improve its finances.

The Federal Constitutional Court's decision will undoubtedly have an impact on climate protection and the financial sector. The canceled 60 billion euros will make the transformation into a climate-neutral economy more difficult and could lead to delays in the implementation of climate goals. This could also be a challenge for companies that rely on investments from the climate and transformation fund. It is therefore crucial that alternative financing options are found to further advance climate protection and support the economy.