Finance for decarbonisation
2 August 2021
Decarbonizing the European energy sector is an investment challenge. According to estimates by integrated assessment models, reaching the two-degree target (set by the 2015 Paris Agreement) requires annual investments between 80 and 200 billion EUR in the European electricity sector alone (and even more to reach the 1.5-degree target). While the required capital is generally available from multiple sources and there is no “finance gap” per se, policy makers need to ensure, public and private investments are (re-)directed towards low-carbon energy assets. This INNOPATHS policy brief sets out that financing the European low-carbon energy transition requires strong, consistent policies and low interest rates.
INNOPATHS is a European Union Horizon 2020 research project running from 2016-2021, led by UCL, looking at the innovation required for large-scale reductions in greenhouse gas reductions in Europe and the rest of the world. It has published nine policy briefs on different aspects of its work, on Innovation; Power generation; Industry; Buildings; Transport; Finance; Labour markets; Biochar; and Decarbonisation Pathways.
- Visit the INNOPATHS website, where you can access all the publications from the project (the Deliverables and abstracts of over 50 journal papers).
- Read the other INNOPATHS policy briefs
Read 'Finance for decarbonisation'