Green Investment Needs and Financing in Europe

This technical report discusses the substantial investment requirements for achieving a green transition in the EU economy by 2030 and beyond. It outlines the various sectors that require significant funding, including renewable energy, grid infrastructure, and sustainable mobility. The report highlights the need for increased private sector investment to meet the estimated annual green investment needs, which range from 2.7% to 3.7% of EU GDP. It details the current financing landscape, emphasizing the role of banks and capital markets in supporting green investments. The report also identifies obstacles to funding, such as high costs and insufficient fiscal support, which hinder firms' access to finance for green initiatives. Additionally, it discusses the importance of public sector funding and policy options that can facilitate the transition, including structural reforms and tailored financing instruments. The findings underscore the urgency of mobilizing additional investments to address climate change effectively and ensure a sustainable energy future.