Details
- Identification
- Economic Brief 083
- Publication date
- 27 January 2025
- Authors
- Theo Aphecetche | Directorate-General for Economic and Financial Affairs
Description
This paper identifies three key investment barriers - legislative, skills-related, and operational - and outlines potential policy measures and market-based solutions to address them.
Highlights
- Current climate finance, estimated at 1.5 trillion USD in 2022, falls short of the 11.7 trillion USD needed annually by 2035 for the 1.5°C scenario.
- The challenge is not only to attract more capital, where global capital and liquidity would appear enough to close the investment gaps but to also address the persistent barriers that impede investment in green projects.
- Unstable and complex regulations hinder green investments; consistent policies are crucial for reducing investment risks.
- A lack of expertise in green finance and project preparation limits the development of viable green projects.
- High costs and perceived low returns deter investment; innovative financial instruments are needed to enhance attractiveness.
Information and identifiers
Economic Brief 083. January 2025. Brussels. PDF 18 pp. Tab. Graph. Bibliogr. Free.
KC-01-25-035-EN-N (online)
ISBN 978-92-68-12539-7 (online)
ISSN 2443-8030 (online)
doi:10.2765/50647 (online)
JEL classification: E61, G28, 024.
Disclaimer
European Economy Economic Briefs are written by the staff of the European Commission’s Directorate-General for Economic and Financial Affairs to inform discussion on economic policy and to stimulate debate. The views expressed in this document are solely those of the author(s) and do not necessarily represent the official views of the European Commission.
