Search
00
GBAF Logo
trophy
Top StoriesInterviewsBusinessFinanceBankingTechnologyInvestingTradingVideosAwardsMagazinesHeadlinesTrends

Subscribe to our newsletter

Get the latest news and updates from our team.

Global Banking & Finance Review®

Global Banking & Finance Review® - Subscribe to our newsletter

Company

    GBAF Logo
    • About Us
    • Profile
    • Privacy & Cookie Policy
    • Terms of Use
    • Contact Us
    • Advertising
    • Submit Post
    • Latest News
    • Research Reports
    • Press Release
    • Awards▾
      • About the Awards
      • Awards TimeTable
      • Submit Nominations
      • Testimonials
      • Media Room
      • Award Winners
      • FAQ
    • Magazines▾
      • Global Banking & Finance Review Magazine Issue 79
      • Global Banking & Finance Review Magazine Issue 78
      • Global Banking & Finance Review Magazine Issue 77
      • Global Banking & Finance Review Magazine Issue 76
      • Global Banking & Finance Review Magazine Issue 75
      • Global Banking & Finance Review Magazine Issue 73
      • Global Banking & Finance Review Magazine Issue 71
      • Global Banking & Finance Review Magazine Issue 70
      • Global Banking & Finance Review Magazine Issue 69
      • Global Banking & Finance Review Magazine Issue 66
    Top StoriesInterviewsBusinessFinanceBankingTechnologyInvestingTradingVideosAwardsMagazinesHeadlinesTrends

    Global Banking & Finance Review® is a leading financial portal and online magazine offering News, Analysis, Opinion, Reviews, Interviews & Videos from the world of Banking, Finance, Business, Trading, Technology, Investing, Brokerage, Foreign Exchange, Tax & Legal, Islamic Finance, Asset & Wealth Management.
    Copyright © 2010-2026 GBAF Publications Ltd - All Rights Reserved. | Sitemap | Tags | Developed By eCorpIT

    Editorial & Advertiser disclosure

    Global Banking & Finance Review® is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

    Home > Finance > EU climate plans at risk from public funding gap, ECB paper shows
    Finance

    EU climate plans at risk from public funding gap, ECB paper shows

    Published by Global Banking & Finance Review®

    Posted on January 8, 2025

    2 min read

    Last updated: January 27, 2026

    This image depicts a graph highlighting the projected public funding gaps for the EU's climate plans, emphasizing the financial challenges outlined in the ECB study. The article discusses the essential public and private investments needed to meet climate neutrality by 2050.
    Graph illustrating EU public funding gaps for climate goals - Global Banking & Finance Review
    Why waste money on news and opinion when you can access them for free?

    Take advantage of our newsletter subscription and stay informed on the go!

    Subscribe

    Quick Summary

    The EU may fall short of public funds needed for climate goals, with a potential 54 billion euro gap by 2030, according to an ECB study.

    EU Climate Plans Threatened by Public Funding Shortfall, ECB Finds

    FRANKFURT (Reuters) - The European Union risks falling significantly short later this decade of the public funds it needs to achieve its climate goals, a study published by the European Central Bank showed on Wednesday.

    The EU aims to be climate-neutral by 2050 but this will involve huge investment, driven mostly by private firms, supplemented by public incentives, ranging from direct funding to tax brakes.

    Green investment is already too little to meet the EU's 2030 climate target, meaning even more investment is required later, and implying higher transition costs, the paper said.

    While the necessary public funding for this year and next is in place, a gap could open up from 2027, potentially exacerbated by governments' need to repay funds received from the Next Generation EU fund, the bloc's post-COVID recovery package.

    "A noticeable shortfall of EU public funds may materialise after the (Recovery and Resilience Facility) expires at the end of 2026, which increases to around 54 billion euros ($55.49 billion) by 2030," the study, which does not necessarily represent the views of the ECB-POLICY-3fdc7763-f2c0-4c30-b494-8614852eaf43>ECB, said.

    The ECB-POLICY-3fdc7763-f2c0-4c30-b494-8614852eaf43>ECB estimates the public sector share's of additional climate-related investment needs to be around 83 billion euros per year through 2030.

    While national governments may provide some of the missing money, they will be burdened by having to repay 175 billion euros in Next Generation EU Funds between 2028 and 2035, the ECB-POLICY-3fdc7763-f2c0-4c30-b494-8614852eaf43>ECB added.

    ($1 = 0.9732 euros)

    (Reporting by Balazs Koranyi; editing by Barbara Lewis)

    Key Takeaways

    • •EU risks missing climate targets due to funding gaps.
    • •Public funding shortfall could reach 54 billion euros by 2030.
    • •Private investment is crucial for EU's climate goals.
    • •Next Generation EU fund repayments may strain budgets.
    • •National governments face financial burdens post-2026.

    Frequently Asked Questions about EU climate plans at risk from public funding gap, ECB paper shows

    1What is the main topic?

    The article discusses the EU's potential shortfall in public funding needed to meet its climate goals by 2050, as highlighted by an ECB study.

    2What are the financial challenges mentioned?

    The EU faces a potential 54 billion euro funding gap by 2030, exacerbated by the need to repay Next Generation EU funds.

    3How does private investment factor in?

    Private investment is essential to meet the EU's climate targets, supplementing public funding and incentives.

    More from Finance

    Explore more articles in the Finance category

    Image for French miner Eramet's finance chief steps aside temporarily, days after CEO ouster
    French miner Eramet's finance chief steps aside temporarily, days after CEO ouster
    Image for Ukraine's Zelenskiy calls for faster action on air defence, repairs to grid
    Ukraine's Zelenskiy calls for faster action on air defence, repairs to grid
    Image for Goldman Sachs teams up with Anthropic to automate banking tasks with AI agents, CNBC reports
    Goldman Sachs teams up with Anthropic to automate banking tasks with AI agents, CNBC reports
    Image for Analysis-Hims' $49 weight-loss pill rattles investor case for cash-pay obesity market
    Analysis-Hims' $49 weight-loss pill rattles investor case for cash-pay obesity market
    Image for Analysis-Glencore to focus on short-term disposals as Rio deal remains elusive
    Analysis-Glencore to focus on short-term disposals as Rio deal remains elusive
    Image for Belgium's Agomab Therapeutics valued at $716 million as shares fall in Nasdaq debut
    Belgium's Agomab Therapeutics valued at $716 million as shares fall in Nasdaq debut
    Image for Big Tech's quarter in four charts: AI splurge and cloud growth
    Big Tech's quarter in four charts: AI splurge and cloud growth
    Image for EU hikes tariffs on Chinese ceramics to 79% to counter dumping 
    EU hikes tariffs on Chinese ceramics to 79% to counter dumping 
    Image for AI trade splinters as investors get more selective
    AI trade splinters as investors get more selective
    Image for EU extends tariff suspension on $109.8 billion of US imports for six months
    EU extends tariff suspension on $109.8 billion of US imports for six months
    Image for Dog food maker Ollie acquired by Spain’s Agrolimen
    Dog food maker Ollie acquired by Spain’s Agrolimen
    Image for Salzgitter to take over HKM steel joint venture, end clash with Thyssenkrupp
    Salzgitter to take over HKM steel joint venture, end clash with Thyssenkrupp
    View All Finance Posts
    Previous Finance PostTwo bids made for Glencore stake in New Caledonia's Koniambo Nickel
    Next Finance PostShell warns of weaker fourth quarter LNG, oil trading