The switch to renewables in Germany is saving money and creating jobs, according to a new economic analysis by the international consulting firm PricewaterhouseCoopers (PwC). The report finds that the German government’s 2015-2020 climate action plan and energy efficiency measures will save about 149 billion euros.
Research that appeared last month in Earth Systems Science Data suggested that global carbon dioxide emissions will be growing slowly, thanks in part to reduction moves by China and the United States. Several research projects have that a downturn in the use of fossil fuels in the United States that would come from switches to renewable energy could save U.S. consumers money, but coal’s not dead yet. President-Elect Donald Trump insisted during the campaign season that supporting the U.S. coal industry will help the economy and create jobs. Meanwhile, India plans to double coal production by 2020.
Germany’s goal is to lower its greenhouse gas emissions by 40 percent by 2020. Both the World Wildlife Fund (WWF) and even Germany’s environment ministry have raised doubts about whether the government can actually reach the target in time, but its proposed measures include using more renewables, improving energy efficiency in buildings, and reducing agriculture or vehicle emissions.
Overall, PwC estimates that 79 specific measures from Germany’s plan will create investments of 125 billion euros in new technology infrastructure, leading to €274 billion in savings—a net savings of €149 billion, Deutsche Welle reports.
The PwC report finds that the energy sector would lose about €10 billion, but other business sectors would save about €84 billion and the state would save about €26 billion; an extra €73 billion would come to the government from related tax revenues. Consumers would end up saving about €25 billion.
PwC estimates that the program will also create 430,000 additional jobs.
All in all, that would be good news for Germany. The federal environment minister said in a press release that the climate action program is kind of like an economic stimulus package.