Financial implications of climate change

The report analyses the financial and organisational challenges of climate adaptation in Germany. It shows that the public investment requirement already runs into the billions today — with particularly high costs in flood protection — and will continue to rise. Existing financing instruments are insufficient to close the growing gap; financially weak municipalities in particular are reaching their limits. Furthermore, a lack of data, lengthy planning processes, and administrative hurdles complicate implementation. The report therefore also examines how adaptation measures can be prioritised using cost-benefit and multi-criteria analyses, and identifies key research needs — such as the further development of the financial architecture, practical assessment tools, and better integration of the costs of inaction.