MNI BRIEF: Investment Pick-Up Needed For Green Transition- ECB
MNI (LONDON) - Europe’s “green transition” requires additional investments of 2.9% to 4.0% of EU GDP each year until 2030, the European Central Bank said in a paper published on Wednesday.
With investment falling well short of these levels, future investment needs will only rise, while failure to reduce emissions would impose increasingly higher adaption costs, the paper said. Most funding should come from the private sector, with euro area banks playing a key role.
While quantifying green investment needs is subject to high levels of uncertainty, it is essential given its potential impact on the economy and the financial sector, the paper said.
ECB Executive Board member Frank Elderson will discuss topics related to the green economy, monetary policy and financial stability at an MNI webcast on Feb 12.