Energy Monitor | Investment flows vindicate EU climate policy

Analysis of foreign direct renewable energy investment shows the EU accounting for a rapidly rising share of the global total. However, what particularly stands out is the extent to which Europe is attracting a greater proportion of investment.

These numbers are certainly impressive, though not entirely surprising. Through its EU Green Deal and Recovery Fund, the bloc has shown a remarkable degree of commitment to the transition towards a climate-neutral Europe by 2050.

Dr Daniel Atzori, Research Partner

The EU Green Deal involves a commitment to reach net-zero emissions by 2050.
As well as a proposal from the European Commission to raise the EU’s 2030 emissions reduction target to 55% below 1990 levels. This is up from a 40% target at present. The European Parliament has voted to increase this even higher, to 60%.

Although the final deal reached in July has its limits, the strong message is that the EU sees no dichotomy between post-Covid-19 economic recovery and decarbonisation. The EU’s clear direction of travel is arguably giving several international investors the confidence they need for their long-term investment decisions.

Dr Daniel Atzori, Research Partner

Energy Monitor