Europe’s green ambitions will largely hinge on being able to finance a transition away from polluting energy sources. But where will the money actually come from?
The impact of the transition to net-zero emissions will be positive for the European economy as a whole, despite the significant additional investments it will require, the European Commission said in its 2050 climate strategy, unveiled in November last year.
This includes a positive impact on the economy “equivalent to 2% of GDP by 2050,” the EU executive said. Overall, savings from a reduced fossil fuel import bill “will amount to €2-3 trillion over the period 2031-2050, freeing resources for further potential investments into the modernisation of the EU economy,” the Commission argued.
The transition to clean energy will also bring an estimated €200 billion a year in health cost savings, and a net increase of one million jobs, both by 2050, according to EU estimates.