Europe’s top companies need to more than double their current level of spending on low-carbon projects to meet the European Commission’s flagship goal of “climate neutrality” by 2050, according to a report released recently.
The major study of 882 publicly traded companies across multiple sectors by climate research provider CDP and consultancy Oliver Wyman showed they spent 124 billion euros (US$134.1 billion) on capital investment and research and development in 2019, report agencies.
That amounted to around 12 per cent of total investment. To be on track to meet the goal of net-zero emissions by 2050 however, that figure needs to jump to 25 per cent, said CDP Europe’s Managing Director Steven Tebbe.
The biggest areas for new investment were electric vehicle technologies, with spend of around 43 billion euros, renewable energy, at 16 billion euros, and energy grid infrastructure, at 15 billion euros, the report said.
“Some European companies are making bold new low-carbon investments to roll out renewables, build greener infrastructure, buy electric vehicles and make manufacturing more energy-efficient,” Tebbe said.
“But there is a huge opportunity to do more, and we need to see more action across the board.”