Investment Shortfall Threatens Europe’s Green Transition

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President Biden's advisor, Heather Boushey, encourages the U.K. and Europe to increase their green technology investments, mirroring the ambitious U.S. Inflation Reduction Act.

Heather Boushey highlights how U.S. public funding through the Inflation Reduction Act has successfully driven private green investments.

The European Commission faces a significant funding gap in its climate goals, with experts suggesting Europe needs $1.06 trillion annually to achieve its 2050 targets.An advisor to President Biden is the latest to call on the U.K. and Europe to follow in the footsteps of the U.S. and increase their investment in green technology. The U.K.

The IRA provides $369 billion in clean energy and low-carbon technology funds, to tackle climate change and support a global green transition. Boushey emphasised the “race to the top” in climate investment, encouraging other governments to launch similar climate policies. She also highlighted the importance of providing funding early to ensure energy security in the future and not fall behind.

“No plan can be built that is not a rock of economic and fiscal responsibility … I will never play fast and loose with the public finances.” , “Without urgent government action, the UK will remain on the starting blocks of the race to capture the green industries of tomorrow.” The report calls for the establishment of a national investment scheme. The IRRP suggests a “Dragons’ Den” approach to supporting green business, with the aim of echoing Biden’s IRA.

 

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