How to address Europe’s green investment gap

This policy brief presents the combined findings of the three policy studies on climate investment […]

Policy Brief

10/05/2022

This policy brief presents the combined findings of the three policy studies on climate investment in the European Union that have been published as part of the research project ‘A fiscally sustainable public investment initiative in Europe to prevent climate collapse‘.

Combining the results from the three policy studies, the brief discusses the European Union’s investment needs to limit global warming to 1.5°C above pre-industrial levels as well as two funding options to raise the revenues for the direct provision of green infrastructure. With regards to the investment needs, the analysis concludes that the European Commission’s modelling of required investment needs is overly optimistic as the EU faces an investment gap of €11,670 to €16,320 billion between 2020 and 2050.

To close this investment gap two funding options are explored. The first option is a European wealth tax. A progressive European wealth tax has the potential to raise revenues of between €164 billion and €357 billion annually, while not increasing inflationary and Covid-related pressures on low- and middle-income households. A wealth tax can also reduce extreme levels of wealth inequality and build administrative capacities to fight corruption and organised crime.

The second policy option consists of issuing government bonds. This option can raise revenues instantly and will generate a significant economic impulse. This policy brief estimates a long-run investment multiplier of 5 for a co-ordinated fiscal expansion at the EU level. The magnitude of the multiplier also means that public finances will improve in the long term.

Find all related publications
Publications
20/06/2022

Talking Green in Europe

Lessons on re-framing the public debate on the climate crisis
13/06/2022

Just Transition & Revitalisation – A New EU Strategy for Rural Areas

How can EU actions support the revitalisation of rural areas? How can EU institutions put […]
28/03/2022

Talking Green Hungary

Public perception of a just green transition in Hungary
24/02/2022

The Circular Economy and Green Jobs in the EU and Beyond

The circular economy is a model of production and consumption that is underpinned by a […]
Find all related events
Events
Past
03 - 04/06/2022
Stockholm (Sweden)

Just Transition: The path to a healthy planet for the prosperity of all

Stockholm (Sweden), 3 June 2022 Urgent action is needed to prevent the breakdown of our climate and […]
12/05/2022

Policy Measures for a Just Transition

12 May 2022 Ideas for Designing a Structural Transformation to Reduce Inequalities Policy discussions in […]
25/04/2022

Circular Economy Book Launch (Latvian version)

25 April 2022 FEPS is glad to release the English version of the panel discussion hosted by the Freedom […]
Find all related news
News
28/09/2021

FEPS joins the European Alliance for a Just Transition

We are delighted to announce that FEPS joins the European Alliance for a Just Transition […]
28/04/2020

FEPS article series on intergenerational solidarity and the need for climate justice

This article series aims to inform on the ways in which intergenerational solidarity can be […]
27/04/2020

New Policy Report on the Green Deal: achieving sustainability and equity in a post-COVID-19 era

The Foundation for European Progressive Studies (FEPS), together with the Institute for European Environmental Policy […]
28/10/2019

UNited for Climate Justice – New York Conference

On the occasion of this year’s annual conference taking place on the fringes of the […]
Find all related in the media
In the media

Leaders Must Choose a Just Energy Transition and a Social Europe

by Euractiv 30/05/2022

The circular economy and green jobs

by ENCOMPASS 25/05/2022

Da Prodi a Rodrigues, domani al via la ’Terza conferenza sul futuro dell’Europa’

by La Nazione 25/05/2022

€10 trillion in green public investments to grow out of climate change

03/11/2021