Extreme weather events caused by changing of the climate they can cost Germany according to a study published today, Monday, it will exceed $900 billion by the middle of the century.

The study, by economic research firms Prognos and GWS and the Institute for Environmental Economic Research, comes as Berlin is developing a climate change adaptation strategy soon to be unveiled by the environment ministry, and amid standoffs in government. A coalition on how Germany could cut greenhouse gas emissions from energy-intensive sectors such as transport and construction to become carbon neutral by 2045.

The ministries of economy and environment cited the study as evidence that extreme heat, drought and flooding could cost the country between 280 and 900 billion euros between 2022 and 2050, depending on the extent of global warming.

These costs include loss of crops, damage to or destruction of buildings and infrastructure due to heavy rains and floods, problems with the transportation of goods, and damage to the health care system.

The study does not assess non-economic damages such as loss of life from heat waves and floods, and loss of biodiversity.

According to the Economy Ministry, extreme weather events have already cost Germany at least 145 billion euros between 2000 and 2021, of which 80 billion have been lost in the past five years.

Potential damage costs can be fully reduced by climate change adaptation measures such as carbon storage in the event of moderate climate change, with 60-80% damage cost savings depending on its intensity.

Source: Reuters.