The energy transition, key for European industry and financial stability, according to the ECB, EIB and IEA

MADRID, 29 Sep.

The energy transition, key for European industry and financial stability, according to the ECB, EIB and IEA


The European Central Bank (ECB), the European Investment Bank (EIB) and the International Energy Agency (IEA) have called this Friday on the leaders of the countries, the financial sector and the European industry to carry out carry out a clean energy transition that is "fair, rapid and maintains competitiveness."

In separate interventions before the plenary session of a conference held in Paris, Christine Lagarde (ECB), Werner Hoyer (EIB) and Fatih Birol (IEA) have encouraged increased financing to support "an orderly transition" and position themselves among other 'heavyweights'. 'of industry in the new economy.

"The ecological transition is a particularly complex political challenge, because the stakes are high if it fails and, even so, the path to success is very tortuous," said Lagarde, adding that it is important to "encourage the green financial market" that reduces the risks and costs of this type of investment.

To reach net zero emissions by 2050, the IEA predicts that the European Union will have to increase its investments in 'green' energy "considerably" by 2030. Similarly, climate stress tests published by the ECB about three weeks ago They have already warned that the negative economic impact of the ecological transition will be less the sooner it begins.

"Last winter I stressed that Europe needed a new industrial master plan to keep pace with other advanced economies. Despite its large internal market, its skilled workforce and its world-leading research and development, we have not yet seen how Europe will put its ambitions into practice," Birol highlighted.

Birol has referred to the competitive disadvantage of the European industry due to its comparatively high energy prices and the absence of industrial and supply security policies, such as those implemented in countries such as the United States, China, India, Japan or South Korea. South.

Thus, accelerating the ecological transition "will help Europe limit its dependence on the main producers of fossil fuels" and escape the volatility associated with these types of energy.

In this sense, the EIB led by Hoyer has increased its financing of clean energy projects to "unprecedented levels", for which it has committed an additional 45 billion to ordinary loans. The objective is for these public investments to attract private capital towards the decarbonization effort.

"Only massive and rapid investment in net zero technologies will ensure that Europe remains an attractive place to do business, a place where innovation thrives, where new ideas flourish and wealth and jobs are created," said Hower.

"It is also a challenge, as our industries must be quick and embrace change, or they risk being left behind," he summarized.

Date Of Update: 29 September 2023, 11:32