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Companies in Germany are planning to spend an average of 11 percent of their total investments on climate protection measures in 2025, a similar figure to last year, a recent ifo found. Measures to increase energy efficiency, reduce CO2 emissions and expand renewable energies were the most important motives behind company investments in climate protection. 鈥淔or the energy and industrial transition to succeed, however, the pace must be increased, and the necessary capital mobilised in a targeted manner,鈥� said ifo researcher Gerome Wolf.

Clear obstacles to further investments in climate protection include uncertainty around subsidies, planning and approval procedures and CO2 pricing mechanisms, said Wolf. Reliable targeted funding, clear framework conditions and more international coordination are needed, he added.

The new German government聽has said they plan to prioritise聽energy infrastructure investments, and details on the government's plan for an agreed 500 billion euro-investment package in infrastructure and climate neutrality are expected to become clearer within the next months.聽Integrating finance into climate and energy policy has become a central challenge for governments around the world, as emission reduction plans need proper funding.