More German companies invest in climate protection, but less money

German companies spent less on climate protection in 2024. This is shown by the Climate Barometer 2025 from KfW Research. According to the report, the total sum of relevant expenditures by all German companies fell by six percent to 80 billion euros. However, the sum is still above the level of 2022 (75 billion euros). For the sub-area of improving the energy efficiency of existing buildings, German companies significantly increased their spending in 2024 (+63% to 13 billion euros).

Adjusted for inflation, KfW calculates a decline in overall climate protection investments by eight percent. This is approximately equivalent to the decline in total investments; climate protection spending was therefore reduced only slightly more than other private sector investments.

Both large and medium-sized companies saw more businesses engaged in climate protection, but average spending fell. Nevertheless, there is a significant difference between large companies (at least half a billion euros in annual revenue) and medium-sized companies.

SMEs Invest More

According to the survey, 86 percent of large companies carried out climate protection projects in 2024, a higher proportion than ever before. However, the average amounts spent on these projects have fallen significantly compared to 2023. KfW Research reports an overall decline in relevant investments by large companies by 19 percent to 42 billion euros. Among them, the share of climate protection investments in all investments fell from 18 to 15.8 percent.

KfW Research observes an even greater discrepancy with medium-sized companies: the proportion of companies investing in climate protection has nearly doubled to around 15 percent. In contrast, the average investment sum per company has fallen from 146,000 euros in 2023 to 91,000 euros in 2024. The total sum, adjusted for prices, increased by eight percent to 38 billion euros. The share of climate protection investments in all investments grew from 15.9 to 17.3 percent.

“More large companies than before report that other issues take precedence for them over climate protection,” says KfW Chief Economist Dirk Schumacher. “Companies also perceive that their customers are less strongly demanding a contribution to climate protection from them and are reacting accordingly.” The biggest wish of companies for political support for climate protection investments is lower electricity prices. KfW Research is the department of Kreditanstalt für Wiederaufbau that researches economic developments through analyses and surveys, deriving forecasts and recommendations for action.

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