Germany’s growth and prosperity face multiple challenges from climate change and demographic shifts. Active policy measures and digitalisation have the potential to alleviate these problems and promote climate-friendly innovations. However, the transformation requires significant investments and infrastructure development. Unclear framework conditions and a lack of skilled IT experts hinder progress. To achieve digital green growth, Germany needs a mix of technological innovations, robust infrastructure and regulatory support. Making these challenges a high political priority will enable sustainable growth and prosperity in the face of the ongoing structural transformation.