EU needs trillions of investment for 2050 climate target - research
(Reuters, 29 Jan 2024) The European Union will need 1.5 trillion euros ($1.6 trillion)per year of investments to meet its 2050 net zero emissions target, research backed by Green EU lawmakers said on Monday.
The European Commission is set to recommend next week that the EU cuts net emissions 90% by 2040, from 1990 levels, and outline the huge upfront increase in investments needed to get Europe on track to have zero net emissions by 2050.
Most of the funding needed for net zero - 1.16 trillion euros per year - could be secured by redirecting existing spending, much of it on polluting activities, according to the research by the Institut Rousseau think-tank, which was commissioned by Green EU lawmakers. That would imply a huge divestment from areas like combustion engine cars, fossil fuel production and new airports, and a jump in investments into public transport, renovating buildings and expanding renewable energy, the researchers said. "Much of the money needed is out there, but we need massive divestment from climate killing projects," said Philippe Lamberts, Co-President of the Green lawmakers group in the European Parliament.