- EU aims for 1.5 trillion euros annually for 2050 net-zero emissions.
- Research by Green EU lawmakers and Institut Rousseau supports the funding target.
The European Union (EU) targets 1.5 trillion euros ($1.6 trillion) annually for its 2050 net-zero emissions goal. The European Commission plans a 90 per cent cut in net emissions by 2040, needing more upfront investments. Research by Institut Rousseau suggests redirecting 1.16 trillion euros per year from existing spending. This includes divesting from polluting sectors and boosting green initiatives. Philippe Lamberts, Co-President of Green Lawmakers, stresses massive divestment from climate-harming projects.
A draft Commission model suggests that 1.5 trillion euros per year is needed for a cleaner energy transition by 2040. Researchers say private sector investment is crucial, but public spending on the green transition must double to 490 billion euros per year. Currently, the EU spends 359 billion euros annually on fossil fuel subsidies.