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EU must invest about €1.5tn a year to meet net zero targets, says Brussels

Spending plans and target of 90% emissions reduction by 2040 appear in draft document

The EU must invest about €1.5tn a year between 2031 and 2050 to meet its mid-century target of bringing greenhouse gas emissions down to zero, Brussels has said.

The figures are part of a draft document from the European Commission, seen by the Financial Times, that sets out Brussels’ plan for slashing emissions by 90 per cent by 2040 and reaching “economy-wide climate neutrality” by 2050.

The high level of investment would far outweigh the vast cost of inaction as the effects of global warming become increasingly apparent, the document said. Keeping temperature rises to within 1.5C above pre-industrial levels could save the EU €2.4tn in economic losses between 2031 and 2050 and cut net costs of fossil fuel imports by €2.8tn over the same period, it added.

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