The European Commission has discovered a gap of approximately €633 billion per year in funding for the ecological and sustainable transition in the European Union. According to the new Strategic Forecast plan that will be presented by the Community Executive this Wednesday and to which EFE has had access, most of that capital must come from private investments.
In order to concretely achieve the objectives of the European Green Deal, which imply a 55% reduction in carbon dioxide emissions by 2030 compared to 1990 levels and the development of a more sustainable economy, it will be necessary to have “m about 620,000 million euros” additional per year.
In addition, another 92,000 million euros are added for the period 2023-2030 for the Net Zero Emissions Industry Law. This law aims to offset the large subsidies granted by the United States, China and Japan to green technologies. The European Union has already allocated 30% of its budget for the period 2023-2027 to the European Green Pact, which represents a total of 578,000 million euros.
The EC seeks to unblock the path of financing
But it will not be enough, according to the strategic analysis of the European Commission, based on a scientific work prepared by the Joint Research Center of the EU (JRC, for its acronym in English).
“We must unblock financing from the public and private sectors, creating the conditions for companies and the financial sector to provide and expand the necessary investments,” he said in a talk with various media outlets, including EFE, the vice president of the European Commission for Interinstitutional Relations, Maros Sefcovic.
Among the ways to explore to straighten the course, the Commission proposes granting a new mandate to the European Investment Bank, so that it continues to be a “triple A” financial vehicle but at the same time reinforces its action to go where the private financial entities.
The strategic reflection document, in principle, will be the subject of a discussion between the heads of State and Government of the EU and the presidents of the community institutions at the European summit to be held in Granada next October.
