Europe is off-track to meet its 2030 climate targets, with political resistance and shrinking fiscal resources stalling critical progress.
Achieving a 55% emissions reduction requires rapid investment in clean energy, transport systems and industrial decarbonisation, yet public funding constraints pose serious challenges.
The report, by policy analysts Bruegel, says the end of the NextGenerationEU funds (brought in post pandemic) and strict fiscal rules, leave little room for green investment. Meanwhile, rising populist scepticism and growing trade-offs between decarbonisation, competitiveness and security further complicate the path forward.
On average EU members spent 5.8% of GDP between 2011 – 2020 on decarbonisation of energy supply, transport and efficiency. They now need to increase spending to 7.7% between 2021 and 2030 to hit the mandated targets.
Without urgent action, they say Europe risks missing its 2030 goals and jeopardising climate neutrality by 2050.
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