ABN AMRO Highlights Early Decarbonisation Investments as Key to Long-Term Financial Gains

ABN AMRO Highlights Early Decarbonisation Investments as Key to Long-Term Financial Gains

(IN BRIEF) ABN AMRO’s research emphasizes the financial advantages of early investment in decarbonisation technologies. Companies that invest before 2029 are expected to benefit from lower costs and enhanced competitiveness, helping them meet climate goals. Available technologies, such as electrification, energy efficiency measures, and renewable energy, can help businesses reduce emissions, with new innovations expected in the coming decades. While grid congestion and a lack of knowledge or funding are barriers, collaboration and technological progress can overcome these challenges. ABN AMRO also plans to address decarbonisation solutions at its upcoming Decarbonisation Summit, aiming to inspire clients to act on sustainability.

(PRESS RELEASE) AMSTERDAM, 29-Jan-2025 — /EuropaWire/ — As the Netherlands accelerates its transition to low- and zero-carbon operations, businesses have a critical opportunity to invest in decarbonisation technologies now, reaping financial rewards in the process. Research from ABN AMRO’s Group Economics department highlights that companies making these investments before 2029 will benefit from lower costs and improved competitiveness, helping them meet climate targets while strengthening their financial standing. The report, titled It Pays to Invest in Low-Carbon Technology, underlines the growing business case for early decarbonisation, showing that companies prioritising sustainability measures tend to see better operating margins.

Decarbonisation technologies are already available for businesses to adopt, including electrification, energy efficiency improvements, and renewable energy solutions. New technologies are expected to emerge in the coming decades, but they are still limited in number. The upcoming extension of the emissions trading system in 2027 will push most Dutch companies to reduce emissions, creating additional urgency to invest. However, a survey by ABN AMRO found that a lack of sufficient knowledge or financial resources prevents many companies from acting. Additionally, grid congestion is cited as a major barrier, although ABN AMRO believes that collaboration between businesses could help resolve this issue. As grid capacity improves, demand for low-carbon technologies is expected to rise, along with their prices, further motivating early investment.

Many sectors are still struggling to reduce their greenhouse gas emissions in line with the European Green Deal’s climate neutrality target for 2050. Seven sectors, including air transport and construction, have seen emissions stagnate or even increase, with the aviation industry standing out with an 8% rise. Industrial sectors such as oil, food, and chemicals are also lagging behind in achieving emissions reductions. These industries face complex decarbonisation challenges, with varying requirements depending on the sector.

While government regulation and investments in energy infrastructure will play a key role in accelerating decarbonisation, technological innovation is equally important. Advancements in hydrogen, carbon capture, and electrification are making low-carbon technologies more accessible, but some remain in the early stages of development. Casper Burgering, Senior Economist for Sustainability Research at ABN AMRO, emphasized, “For many businesses, making decarbonisation investments now is more financially advantageous than waiting for the medium term. Achieving climate goals depends on affordable transitions, reliable infrastructure, grid capacity, and financial incentives for green solutions.”

As part of its ongoing commitment to sustainability, ABN AMRO has organised its second Decarbonisation Summit, taking place on 5 February 2025, during the ABN AMRO Open tennis tournament in Ahoy Rotterdam. This event will bring together experts and clients to discuss the challenges and solutions surrounding decarbonisation, aiming to inspire businesses as they work towards achieving climate goals.

Media Contact:

Casper Burgering
Senior Economist Sustainability
casper.burgering@nl.abnamro.com
06 -109 760 34

SOURCE: ABN AMRO