The Institutional Investors Group on Climate Change (IIGCC), an investor coalition, has criticised the European Union’s green deal industrial plan for its “scarce” mention of private finance.
The plan, an industrial strategy that complements the green deal and the REPowerEU policy, is aimed at the dual goals of energy security and energy transition.
While the IIGCC welcomed the plan’s ambition and alignment with long-term energy transition objectives, it argued that it relies heavily on public finance.
A brief mention is given to private finance under the EU-backed budget guarantee.
However, the IIGCC says it will take a key message to Brussels as it seeks to engage Europe’s policymakers and unlock opportunities for private finance: “We welcome the industrial plan and its alignment with the union’s world-leading ambitions, but public finance alone cannot provide the trillions needed to facilitate the transition to net zero by 2050 in line with the goals of the Paris Agreement.”
