Extra €406bn needed annually to hit EU’s 2030 climate target: report

(EurActiv, 21 Feb 2024) Even though green investments have gained momentum in recent years, a gap of €406 billion remains to be filled annually in order to meet the EU’s 2030 climate goals, according to new research published on Wednesday (21 February).

The figure was released as part of the “European Climate Investment Deficit report” by the Institute for Climate Economics (I4CE), an independent think-tank chaired by Jean Pisani-Ferry, a former chief advisor to the French government.

The report is the first of its kind to comprehensively track public and private investments in economic sectors considered key to the EU’s decarbonisation goals – energy, buildings, and transport.

According to the research, at least €813 billion is needed annually across 22 economic sectors to meet the EU’s decarbonisation target – a 55% net reduction in greenhouse gas emissions by 2030 compared to 1990 levels.

But even though green investments have increased over the years, they are currently falling short of the 2030 goal, the researchers found.

“As real-economy investments reached €407 billion in 2022, this leaves a European climate investment deficit of €406 billion per year, or 2.6% GDP,” the report states, adding that investments “must still double for the EU to hit 2030 climate targets”.

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EurActiv, 21 Feb 2024: Extra €406bn needed annually to hit EU’s 2030 climate target: report