Germany’s climate package will create more jobs than a business-as-usual scenario while it is overall expected to have a slightly negative effect on economic growth, shows an analysis by the Institute for Employment Research (IAB).

The analysis foresees a loss of around four billion euros in Germany’s gross domestic product (GDP) by 2032, a drop that the institute calls “very insignificant” compared to Germany’s overall GDP, according to Clean Energy Wire.

Particularly two measures – the national CO2 price and incentives for the renewal of heating systems – are expected to affect jobs, as they influence the labour-intensive building industry. Although the IAB’s researchers expect the climate package to have a relatively small effect on economic growth and employment, it will still create substantial structural change in the labour market, where 44,000 jobs are expected to be cut and 70,000 created.