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Meta-analysis on necessary investment shifts to reach net zero pathways in Europe

Author

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  • Lena Klaaßen

    (Climate Finance and Policy Group, ETH Zurich)

  • Bjarne Steffen

    (Climate Finance and Policy Group, ETH Zurich
    Institute for Science, Technology and Policy, ETH Zurich
    Massachusetts Institute of Technology)

Abstract

Reaching a pathway towards net zero GHG emissions requires rapid and massive investments in low-carbon infrastructure. To redirect finance flows accordingly, particularly the European Union places an emphasis on sustainable finance regulation. However, the specific investment shifts required are not fully understood, which could lead to an insufficient steering effect for crucial technologies. Here we conduct a meta-analysis to derive the required technology-level investment shifts for climate-relevant infrastructure until 2035. We find a steep uptick in overall investment need, with almost €90 billion yr−1 being required already within the very near term (2021–25). Investment shifts are most drastic for power plants, electricity grids and rail infrastructure, which is even increased by the ambitions to become independent from Russian gas imports. Our findings highlight the need for sustainable finance policies that take into account the financing structures of these sectors specifically.

Suggested Citation

  • Lena Klaaßen & Bjarne Steffen, 2023. "Meta-analysis on necessary investment shifts to reach net zero pathways in Europe," Nature Climate Change, Nature, vol. 13(1), pages 58-66, January.
    • Handle: RePEc:nat:natcli:v:13:y:2023:i:1:d:10.1038_s41558-022-01549-5
    DOI: 10.1038/s41558-022-01549-5
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    Citations

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    Cited by:

    1. Marco Due~nas & Antoine Mandel, 2024. "Are EU low-carbon structural funds efficient in reducing emissions?," Papers 2408.01782, arXiv.org.
    2. Gumber, Anurag & Zana, Riccardo & Steffen, Bjarne, 2024. "A global analysis of renewable energy project commissioning timelines," Applied Energy, Elsevier, vol. 358(C).
    3. Goran Durakovic & Hongyu Zhang & Brage Rugstad Knudsen & Asgeir Tomasgard & Pedro Crespo del Granado, 2023. "Decarbonizing the European energy system in the absence of Russian gas: Hydrogen uptake and carbon capture developments in the power, heat and industry sectors," Papers 2308.08953, arXiv.org.
    4. Laszlo Szabo & Magda Moner- Girona & Arnulf Jäger-Waldau & Ioannis Kougias & Andras Mezosi & Fernando Fahl & Sandor Szabo, 2024. "Impacts of large-scale deployment of vertical bifacial photovoltaics on European electricity market dynamics," Nature Communications, Nature, vol. 15(1), pages 1-16, December.
    5. Waidelich, Paul & Steffen, Bjarne, 2024. "Renewable energy financing by state investment banks: Evidence from OECD countries," Energy Economics, Elsevier, vol. 132(C).
    6. Umer Zaman, 2023. "Seizing Momentum on Climate Action: Nexus between Net-Zero Commitment Concern, Destination Competitiveness, Influencer Marketing, and Regenerative Tourism Intention," Sustainability, MDPI, vol. 15(6), pages 1-19, March.
    7. Sunil Tiwari & Sana Bashir & Tapan Sarker & Umer Shahzad, 2024. "Sustainable pathways for attaining net zero emissions in selected South Asian countries: role of green energy market and pricing," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-13, December.
    8. O'Connell, Marguerite & Abraham, Laurent & Oleaga, Iñigo Arruga, 2023. "The legal and institutional feasibility of an EU Climate and Energy Security Fund," Occasional Paper Series 313, European Central Bank.
    9. Giulia Ulpiani & Enrique Rebolledo & Nadja Vetters & Pietro Florio & Paolo Bertoldi, 2023. "Funding and financing the zero emissions journey: urban visions from the 100 Climate-Neutral and Smart Cities Mission," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-14, December.

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