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.
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
you consent to the use of ALL the cookies. However you may visit Cookie Settings to provide a controlled consent. Read MoreREJECTACCEPTCookie settings