Thursday 12 March 2020
European businesses must double their efforts to help reach net zero
Whilst news of companies investing billions in low carbon emissions paints a pretty picture, a new report suggests something different. It appears that despite their best efforts, European businesses must double low carbon spending to stay on track with the EU’s Net Zero target of 2050. At least that’s the suggestion in a new report published by non-profit CDP and global management consulting firm, Oliver Wyman
The report states that European companies invested €124 billion in new low carbon technology last year. However with that only equating to around 12% of overall capital expenditure (CAPEX) the report believes this amount should be closer to 25% per year.
882 stock-listed European companies feature in the report however the focus is largely on EV technologies, renewable energy, grid infrastructure and demand-side response programs for intelligent energy use – and he bulk of investment is also heavily concentrated in just a few key sectors. While that leaves a lot of work still left to do, the flip side suggests there are likely to be lots of avenues not yet explored.
