400 billion euros of investment per year are missing in the EU to achieve our climate objectives, according to a study

Investments vary depending on the sector: if they have “increased significantly” in solar panels and electric cars, they have “collapsed in 2022” in wind energy.

There is a shortage of 400 billion euros in investments from European Union member countries each year to achieve our 2030 climate objectives, according to a study by the Institute of Economics for the Climate on Thursday February 22. The EU must double its current efforts, estimates this study published Wednesday and consulted by France Culture.

The researchers compared the levels of public and private investment in the 27 EU countries in 22 sectors (wind energy, building renovation, electric cars, etc.) in 2022 with the investment levels needed to achieve EU targets. EU. These necessary investments are “at least 813 billion euros” each year, however, investments in the real economy have “reaches 407 billion euros in 2022”. “The European investment gap in the climate field thus amounts to 406 billion euros per year, or 2.6% of GDP”note the researchers.

Furthermore, investments vary depending on the sector: if they have “increased significantly” in solar panels and electric cars, they have “collapsed in 2022” in wind energy.

A lack of clarity of European objectives

To write this study, the scientists compiled scientific literature and specialized reports but they regret the lack of available data on the subject. Sectors as crucial as industry or agriculture had to be excluded from the analysis, due to lack of sufficient data or an adequate methodology. “For industry, as these are investments via private companies, it is quite difficult to precisely measure the investments they are making. In agriculture, there are a whole bunch of issues around changes in consumption mode, which are not captured by investments”explains Clara Calipel, co-author of the report, interviewed by France Culture.

The scientists also highlight the lack of clarity of European objectives and suggest in particular establishing more detailed roadmaps, sector by sector. The Scientific Advisory Council on Climate, created by the 2021 European climate law, called in January to gather more information on the investments made, as well as those required.