ECB: EU climate goals at risk without more green investment

To achieve its climate goals, the EU must significantly increase green investments, potentially by an additional €558 billion per year. Without this, the Union will not succeed in pursuing a successful green transition within the set timeframe (by 2050). This is the warning from the ECB (European Central Bank) report "Investing in Europe’s green future".

The document analyzes the green investment needs in Europe until 2030, highlighting how the green transition is “high capital intensive,” meaning a “capital-intensive process” that requires substantial funding. The Bank particularly examines the available estimates regarding the need for green investments by 2030 and analyzes the funding allocated so far, also focusing on issues related to the possible evolution of the investment landscape, the capital market, and the regulatory context. On this last topic, a crucial point for the ECB is the need to reduce regulatory burdens—which today weigh significantly on corporate performance—while safeguarding the EU's ambitious climate goals.