European climate investments must double to hit 2030 EU targets
This week, I4CE launches the first European Climate Investment Deficit report. During a year’s research, we analysed investments in 22 sectors of the EU27 economy that are critical for the EU to deliver its 2030 climate and energy security objectives. The European Green Deal is gaining economic momentum, as climate investments in the EU grew 9% in 2022, reaching €407Bn per year in those 22 sectors. Those investments in renewable energy, building renovation and electric vehicles ensure lower European greenhouse gas emissions in the years to come. However, to reach the EU 2030 objectives, we would need to see an average yearly investment of €813Bn.
We conclude that the European Climate Investment Deficit is at least 407Bn€, or 2.5% of the EU GDP. In other words, investments in modernising energy, transport, and buildings must double for the EU to hit 2030 climate targets.
I4CE therefore calls on EU policy makers to better address and assess the climate investment deficit. In our launch event in Brussels, we discussed the potential policy solutions. Ideas such as an EU Long-term Climate Invesment Plan, an EU permanent investment capacity and a ‘Juncker Plan on steroids’ were raised. Clearly, there is a growing consensus that investments should be at the centre of the future of the European Green Deal.
I4CE will continue to provides evidence to nurture this debate. 100 days ahead of the 9 June EU elections, it is time for Europeans to discuss the investment pathway to build the future they want.