Publication
EIB Investment Report 2023/2024
Read and download the full report
What is it about?
Companies in the European Union (EU) have endured a prolonged energy crisis. This has presented both challenges and opportunities. The EU has responded with measures to ensure a stable energy supply while accelerating the transition to a greener economy. This analysis examines how EU firms, particularly in energy-intensive industries, have navigated the crisis, with a focus on their investments in energy efficiency and commitment to climate action. The report also examines the role of the Emissions Trading System in encouraging companies to reduce carbon dioxide emissions. The EU's high standards and policies for climate action are explored, revealing a gap between policy objectives and actual firm actions, with a current focus on climate mitigation over adaptation. Companies have made more strides in reducing their energy needs by investing in efficiency than they have on more general climate investments, such as protecting themselves against the risks of extreme weather, switching to clean energy sources or cutting emissions.
Why is it important?
The recent global energy crisis has made it more urgent for the EU to rethink its energy system and accelerate the green transition. The crisis has revealed challenges for EU companies, particularly those in energy-intensive industries, dealing with higher energy costs and decreased competitiveness. The report emphasizes the risk of a growing divide between leaders and slow adopters in the green transition, and the challenges of addressing short-term challenges while paving the way for long-term energy transformation.
The EU needs to take a "big picture" approach to transforming energy consumption and business models, as policy decisions will affect the stability of energy supply for millions of people and businesses. Governments need to use policy decisively and provide clear evidence of market demand and trends.
Perspectives
The digital and green transitions, combined with the growing roll-back of globalisation, are pushing the European economy to transform to be more sustainable, resilient, productive, and competitive. Now is the time to accelerate efforts to achieve those aims.
Debora
Revotella
European Investment Bank
