Survey: German firms not planning to spend more on climate measures

German companies have no significant plans to increase investments to mitigate the effects of climate change in the coming years, according to a survey by a leading think tank released on Monday.

German firms spent an average of 9.3% of all expenses on "climate change mitigation measures" in 2025, the Munich-based ifo Institute said in a statement.

This is set to rise slightly to 10.6% in 2026, before dropping again to 10.5% in 2027, the institute found in a survey conducted in May.

"Companies are not planning any significant increase – and this at a time when the need for climate-friendly investments is likely to peak in order to meet goals set out in the Paris Agreement and by the German government itself," ifo researcher Gerome Wolf said, referring to the 2015 agreement in which states committed to limit global warming to 1.5 degrees Celsius above pre-industrial levels.

The institute found different levels of commitment to taking action on climate change depending on the sector.

The highest investments are planned in the service sector, with 12.2% earmarked for 2026, followed by the construction sector with 10.5%, the manufacturing sector at 8.8% and trade at 8.5%.

Construction was identified as the only sector that also plans to increase its share in 2027, to 11.2%.

Ifo said the reasons for the lack of commitment to action on climate change were not immediately clear from the survey.

"It is conceivable that, against the backdrop of reduced competitiveness in export markets and increased geopolitical risks, companies have set different priorities," Wolf said.