Watchdog calls for a long-term European climate investment strategy\u00a0<\/p>\n
The EU needs a \u201clong-term climate investment strategy\u201d to ensure spending is aligned with carbon reduction goals, says the latest annual progress report from climate watchdog the European Climate Neutrality Observatory <\/p>\n
A \u201clong-term investment framework\u201d aligned with climate policies \u201cmust clarify the roles of public and private finance, using policy tools such as fiscal levers, de-risking mechanisms and regulation\u201d, Clara Calipel, ECNO finance expert and research fellow at think-tank the Institute for Climate Economics, tells Sustainable Views.<\/p>\n
In 2023, EU investment in clean technologies was \u20ac344bn short of the bloc\u2019s annual climate investment needs, analysis by the ECNO, a partnership of European research organisations, shows. <\/p>\n
A report<\/a> \u2014 The State of Europe\u2019s Climate Investment \u2014 published by I4CE in June found the bloc needs to invest \u20ac842bn annually to reach its target to reduce emissions by at least 55 per cent by 2030.<\/p>\n Meanwhile, the EU spent nearly twice as much on fossil fuel imports and subsidies in 2023, with subsidies rising 19 per cent compared with 2022 levels.<\/p>\n Key sectors needed to meet the bloc\u2019s climate targets \u2014 such as heat pumps<\/a>, building energy renovations and wind power \u2014 are experiencing a \u201cslowdown\u201d in investment, says the report. Sales of electric vehicles decreased in Europe in 2024, but seem to be showing signs of growth this year, it adds.<\/p>\n The analysis also warns that Europe is facing a trade deficit across key energy transition technologies including solar and batteries, while the size of its trade surplus in wind tech is shrinking. Competition from cheaper Chinese goods is putting pressure on Europe\u2019s domestic clean tech industry, it notes.<\/p>\n The failure to develop a comprehensive investment strategy would leave the EU at risk of \u201clocking in\u201d import dependencies on other countries, the report says.<\/p>\n It calls for strengthened public procurement criteria in the bloc\u2019s upcoming Industrial Decarbonisation Accelerator Act<\/a>, which was open for consultation until July and seeks to boost demand for EU-made clean tech products.\u00a0<\/p>\n The coalition also recommends the \u201crapid implementation\u201d of the Net Zero Industry Act<\/a> across member states. The law sets a target for Europe to manufacture 40 per cent of its net zero technologies by 2030.<\/p>\n