Germany has for a long time been very progressive with regards to green initiatives such as recycling and use of renewable energy.
A new study* from Mckinsey looks at the economics behind Germany’s efforts to reduce emissions, and finds that the country can reduce emissions to 70% of 1990 levels without impacting economic growth or quality of life for German people. In fact with the right measures, such as better insulation and increased use of renewable energy, there will even be a profit for investors.
Germany already has the world’s largest capacity of installed wind power, which limits future potential from this relatively economical source of renewable energy. Reductions of more than 30% from 1990’s levels will entail some difficult trade-offs and potentially high costs. However this is a good indication that up to a certain level, reducing emissions does not have to mean forfeiting growth.
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About the authorLucy