Research supported by Green EU lawmakers unveiled on Monday indicates that the European Union is facing a hefty investment challenge, needing about 1.5 trillion euros ($1.6 trillion) annually to achieve its ambitious 2050 goal of net-zero emissions.
With the European Commission poised to push for a drastic reduction in net emissions—aiming for a 90% cut by 2040 from 1990 levels—the spotlight is on the significant financial uplift required to steer Europe towards a carbon-neutral future by mid-century.
The bulk of the investment needed to reach this net-zero ambition, approximately 1.16 trillion euros each year, can be mobilized by reallocating funds currently spent on activities tat contribute to pollution. This insight comes from a study conducted by the Institut Rousseau think-tank, initiated by members of the Green faction in the EU Parliament.
This financial strategy suggests a significant shift away from investments in industries and infrastructures that are detrimental to the climate, such as combustion engine vehicles, fossil fuel extraction, and the construction of new airports. Instead, it emphasizes the need for enhanced funding in sustainable transport, building renovations for energy efficiency, and the expansion of renewable energy sources.
Philippe Lamberts, the Co-President of the Green lawmakers group in the European Parliament, emphasized the availability of the required funds but highlighted the urgent need for a substantial divestment from projects that exacerbate climate change.
As the EU grapples with the escalating costs and destruction caused by extreme weather events, the urgency for climate action is becoming increasingly central to political discourse, especially with the upcoming EU elections where climate policy is anticipated to be a major battleground.
