This study investigates the challenges facing Europe up to 2050 in the transformation to a low-carbon economy. The primary purpose of the study is to provide greater insight into the factors setting the pace of decarbonisation, with a particular focus on capital, investments and how revenues are generated.
The outcome of our analysis underlines the sheer size of the challenge of reducing greenhouse gas emissions by 80-95% and the far-reaching consequences that this entails for society. To achieve this aim, annual overall investment levels will have to increase to about 2% of GDP on average. Compared with the 2013 levels of investment in low-carbon technologies, efforts need to be increased by a factor 5, as things stand at the moment, and these efforts will have to be maintained for the next 35 years.