Benefits from the climate transition will be only unlocked if public expenditure across Europe doubles to €510 billion a year, Institut Rousseau research finds, economists say ongoing reform of EU fiscal rules should exclude investments in decarbonisation, such as clean transportation and building renovation.

A Institut Rousseau study, involving more than 150 experts, researchers and volunteers from 20+ organisations across Europe, including economists, engineers and public policy experts from across Europe, reveals that €40 trillion investment is needed to put Europe on the path to climate neutrality, while keeping Europe in the global race for competitiveness, in line with the EU’s strategic autonomy agenda. The study assesses both public and private investments (and extra-investments, compared to a baseline scenario extending current trends and policies) needed for the EU to meet its climate targets. Seven major countries are studied in detail: France, Germany, Italy, Spain, the Netherlands, Poland and Sweden. These countries represent approximately three-quarters of EU-27 GDP and domestic emissions. The research team analysed 37 decarbonisation levers and 70+ public policies. All modelling outputs (emissions reductions, public and private investments and extra-investments) are computed both at the country scale (for each of the 7 countries) and at the EU-27 scale.

Links:
Road to Net Zero : Bridging the green investment gap

Onderzoek: EU komt jaarlijks 360 miljard tekort voor groene plannen