14.10.2016 31.12.2022
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Economics of Climate Change (Phase II)

With the "Paris Agreement" under the United Nations Framework Convention on Climate Change (UNFCCC), the international community has set itself ambitious climate protection goals: to limit global warming to well below 2 °C, preferably to 1.5 °C, to strengthen the capacity for adaptation and to align financial flows with the goals of the agreement.

The challenge now is to actually achieve this ambitious goal. What do sustainable and feasible transformation paths towards a carbon-neutral society look like? How effective are different climate policy instruments and policy measures and what does an efficient policy mix look like? How can we deal with remaining climate risks, how can we make international climate policy even more successful?

(Climate) economic research makes important contributions to this and develops practicable proposals for solutions within the framework of the funding priority. At the same time, smart approaches to achieving the goals set out in the Paris Agreement offer the opportunity to become a modernisation programme for the economy and society, through which our quality of life and economic strength can be strengthened and made sustainable in the long term. Against the backdrop of the Paris Agreement, but also the ongoing climate policy processes at the national (e. g. Climate Action Plan 2050, Climate Change Act 2021) and European (Green Deal, European Climate Law) levels, applied economic and social science research on climate change is increasingly in demand.

To this end, the BMBF has been funding 29 projects and an accompanying process with a total of € 25 million since mid-2018 as part of the announcement of the funding priority "Economics of Climate Change", building on the results of the first funding phase (2011-2015). The following thematic priorities will be addressed:

  • Climate protection and transformation: decarbonisation - competitiveness - quality of life
  • Climate protection: instruments and policies after COP21
  • Dealing with climate risks
  • International climate policy

In addition, there is a cross-cutting theme "Financial markets, financial sector and finance".

An overview of the funded projects can be found on the respective pages of the thematic priorities or the cross-cutting theme.

In order to support the knowledge transfer of the results and to intensify the exchange between research and practice, the scientific work of the funding priority is accompanied by a "Dialogue on the Economics of Climate Change". The "Dialogue on the Economics of Climate Change" strengthens the practical relevance of scientific research in the entire funding priority through an exchange with experts from business, politics, administration and society. Further information and an overview of previous and planned activities in the "Dialogue on the Economics of Climate Change" can be found here.

On behalf of the BMBF, the DLR Project Management Agency's Environment and Sustainability Department provides technical and administrative support for the "Economics of Climate Change" funding measure.

Further information and an overview of the projects and activities of the first phase of the funding priority can be found here.

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