Tracking climate adaptation spending in Germany

The publication examines the development of a methodology to estimate federal expenditure on climate adaptation in Germany. Since the adoption of the German Strategy for Adaptation to Climate Change (DAS) in 2008 and its subsequent action plans, numerous adaptation measures have been implemented. However, there has been no comprehensive assessment of federal spending on these initiatives. To address this gap, the second DAS progress report in 2020 prioritized the creation of an analytical framework. The report presents a combined analysis methodology that integrates both top-down and bottom-up approaches, developed through literature reviews, expert workshops, and interviews. This methodology was then applied to the 2022 federal budget to conduct a pilot assessment of adaptation-related expenditures.

The findings revealed that 255 budget titles contained funding for climate adaptation, totaling €45.6 billion, or 9.2% of the federal budget. However, when assessing specific adaptation shares, the estimated expenditure ranged between €2.07 billion and €3.41 billion, representing only 0.42% to 0.69% of the total budget. This discrepancy highlights a significant shortfall in adaptation financing when compared to the expected costs of climate change impacts. The report underscores the need for improved investment in adaptation measures and calls for the continued refinement and regular application of the methodology. It also suggests that systematically analyzing public spending on climate adaptation can help integrate it more effectively into broader social and policy frameworks.