The climate crisis is already burdening the public budget with costs worth billions per year. This is the result of a study by the Economic Research Institute (Wifo) on behalf of Climate Protection Minister Leonore Gewessler (Greens).
The scientists Angela Köppl and Margit Schratzenstaller come to the conclusion that the budgets are already burdened with 5.4 to seven billion euros per year. These are the result of inaction. These costs would increase significantly in the following years if no change is made. This refers to extreme weather events caused by climate change.
The direct costs of inaction include climate-related health damage, adaptation costs, counterproductive subsidies, the purchase of emissions certificates, contributions to international climate financing and also costs due to increased climate-related immigration. As a result, the costs of national debt would also rise, economic growth would suffer and state assets would lose value.
Public measures already cost one billion euros per year. This amount is expected to double by 2050. In addition, there are climate-damaging subsidies that cost the public budget 4.1 to 5.7 billion euros. The longer Austria takes to eliminate the climate-damaging measures, the greater the increase in costs. The higher the international CO2 price becomes, the more painful the financial burden will be for those countries that do not achieve their goals.
Minister Gewessler sees her policy confirmed by the study. CO2 emissions fell by almost seven percent last year. Promoting climate protection measures would not only do something for the climate, but also for the economy, says Gewessler.
