Investments in climate protection

Six trillion euros for climate neutrality: Our study, commissioned by KfW, shows that the transition is possible by 2045, but will require substantial investment.

In total, Germany will need around 5.7 to 6.4 trillion euros between 2025 and 2045 to transform its energy system and economy – that is, around 270 to 300 billion euros per year. However, climate protection investments will, at least in part, replace investments in fossil fuel technologies; the necessary additional net investments amount to 135 to 153 billion euros per year.

Necessary climate protection investments by sector

• Transport: The largest share of investment is accounted for by transport. Here, the necessary investment up to 2045 totals 2.6 to 2.9 trillion euros, primarily due to the electrification of road transport and the replacement of conventional passenger cars. However, net investment amounts to only 0.4 to 0.7 trillion euros, as investment in vehicles with internal combustion engines would no longer be required.
• Energy: In the energy sector, 1.3 to 1.8 trillion euros are required – primarily for renewable energy, grids, hydrogen and district heating.
• Buildings: Around one trillion euros is required for the buildings sector, particularly for energy-efficiency refurbishments and new heating systems.
• Industry: Industry requires comparatively less investment, at around 500 billion euros. This is concentrated on energy-intensive sectors such as steel, chemicals and cement – which face high individual risks and significant pressure on competitiveness.

Who will invest?

The bulk of the investment would have to be borne by private households and businesses, e.g. by installing heat pumps in houses and office buildings. The public sector accounts for around 11 to 13 percent (approximately 650 to 800 billion euros) in the areas of infrastructure, rail transport and municipal energy systems. This primarily affects publicly owned companies rather than public budgets directly. Small and medium-sized enterprises would also make a significant contribution, accounting for 15 to 28 percent.

It is important to note that investment is not the same as cost: a considerable proportion of the investment is due to be made anyway, for example to replace existing technology. Furthermore, efficiency gains can reduce energy costs in the long term and offset part of the additional investment.

Our approach

The analysis updates previous calculations for KfW (2021) and is based on a comparison of key energy scenarios, including the Energy Efficiency Roadmap 2045, the Climate-Neutral Germany 2045 scenario and the long-term scenarios of the Federal Ministry for Economic Affairs. The analysis took into account all investments in technologies that contribute directly to reducing greenhouse gas emissions.

Links and downloads

To the study (PDF, in German)

Further information on the KfW website

View the previous study

Project team: Jana Breitenstein, Andreas Brutsche, Dr Andreas Kemmler, Sven Kreidelmeyer, Jan Limbers

Last updated: 12.10.2026