After years of growth, climate investments stagnate in Europe

After several years of sustained growth, climate-friendly public and private investment in the EU has increased from €491 billion in 2022 to €498 billion in 2023, according to the report, virtually stagnating.

And the first data collected for 2024 suggests "a drop in investments," the research institute estimates.

This report counterbalances the "good news" recently put forward by the European Commission, which considers that Europe is on track to achieve its greenhouse gas emission reduction targets by 2030.

Brussels based its calculations on the energy and climate plans of the member states.

But while it is "easy to set objectives, it is much more difficult to implement them politically," warns economist Jean Pisani-Ferry, who chairs the I4CE.

The institute calculated investments in four sectors: energy, transport, construction and clean industry.

According to the I4CE, 842 billion euros would be needed each year to achieve European objectives by 2030, far from the 498 billion mobilized in 2023.

And some sectors are particularly below the targets, notably wind power and the renovation of old buildings.

Conversely, solar energy is on the right trajectory, believes the institute, which also welcomes the energy performance of new housing.

The lack of investment is a "cause of concern," acknowledged European Commission Vice-President Teresa Ribera, who was present at the start of the discussions.

"We can do better," she said. "Europe has many strengths that it is not fully exploiting."

After a long period of uncertainty, the European Commission could present its target for reducing greenhouse gas emissions by 2 on July 2040.

In this report, as in its past assessments, the I4CE did not take into account investments in the nuclear sector.

"Nuclear energy was not included because there are no EU objectives for this specific sector," the French institute points out, while acknowledging that there is a "major debate" on the subject between European countries.

Illustrative image of the article via Depositphotos.com.