German industry could be close to climate-neutral by 2050 with investments of around 52 billion euros ($57.04 billion), according to a study by Allianz Trade to which Reuters had access on Thursday.
"In Germany, the manufacturing sector is an important determining factor for an ultimately successful energy transition and compliance with climate targets," said Allianz Trade economist Markus Zimmer.
The sectors that would need more investments for the transition are iron and steel (16.7 billion euros), pulp and paper (16.3 billion euros) and chemical (9.51 billion euros), according to the report.
"Decarbonization comes at a price, but it could help the local industry to significantly improve security in planning and at the same time pave the way to a successful future," Zimmer said.
The industrial sector is responsible for roughly a quarter of global greenhouse gas emissions, and the decarbonization of the sector worldwide will require cumulative investments of 2.7 trillion euros until 2050, the study said.
With these investments, the manufacturing sector could avoid well over 90% of emissions by 2050. To capture and store the remaining CO2 emissions, further investments of around 2.8 trillion euros would be needed, the study said.
($1 = 0.9117 euros)
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99 w
That is a huge investment, but it is worth it to achieve the goal of being climate-neutral. Europe and Germany especially have some of the most ambitious climate goals, and this money would be a vital part of meeting them. With the rising cost of energy and energy efficiency, these investments could pay off in the long run.
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Hope measures necessary be taken to achieve goals
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The cost is worth it , Germany industry should consider making this possible.
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These investments are necessary but once they transition, operations will become cheaper and the future will be well taken care of.
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@tabitha_kimani very true