HAMBURG (dpa-AFX) - According to a study, the climate-friendly conversion of Germany's residential buildings by 2050 would cost around 1.4 trillion euros. "Decarbonizing the real estate sector is a very tough nut to crack," said Arne Holzhausen of Allianz Research. But the sooner it is tackled, the better, he emphasized, referring to a joint study by the insurance group Allianz and the credit insurer Allianz Trade.
1.4 trillion euros needed for climate-friendly restructuring
In the four largest European economies, Germany, France, Italy, and Spain, investments of around 3 trillion euros will be necessary by 2050. "Around half of this, or 1.4 trillion euros, will be needed in the German housing sector alone to finance the necessary renovations and energy efficiency improvements," said Holzhausen.
According to the data, residential buildings account for around 14 percent of all CO2 emissions in Germany, not including indirect emissions. This makes the sector a significant contributor to greenhouse gas emissions—and an important lever for achieving climate neutrality.
This is also the purpose of the Building Energy Act, often referred to as the Heating Act, which is still being reformed by the traffic light coalition. It stipulates that 65 percent of all newly installed heating systems must be powered by renewable energies. This can, but does not have to be, a heat pump. The CDU, CSU, and SPD announced in their coalition agreement that they would abolish the law. However, it is unclear what exactly will happen now. There is likely to continue to be a building energy law.
Real estate prices would probably rise by 0.5 percentage points
According to the study, climate-friendly renovation would increase real estate prices by around 0.5 percentage points. But it would still be worth it. "In Germany alone, value creation in the real estate sector could be one trillion euros higher in 2050 – and create around 107,000 new jobs," said Holzhausen. This would reduce the unemployment rate by an average of 0.2 percentage points.
According to the study, this could be achieved through a combination of higher CO2 prices, targeted financial support, and improved political framework conditions. However, the authors of the study are convinced that CO2 pricing alone will not be sufficient as a control instrument. Only prices significantly above 300 euros per ton would lead to the expected cost savings covering the high upfront costs. Currently, the price is 55 euros per ton of carbon dioxide emitted./klm/DP/zb
