Recycling and Energy Efficiency Measures Top Climate Mitigation Actions by EU Firms, Says EIB Report

Recycling and Energy Efficiency Measures Top Climate Mitigation Actions by EU Firms, Says EIB Report

(IN BRIEF) The European Investment Bank (EIB) has released its Climate Investment Report for 2022-23 (EIBIS Climate), which shows that the share of European firms investing in climate has increased by 10 percentage points in the last year, reaching an average of 53%. Central and Eastern Europe and small-medium enterprises have experienced the most significant increases, with a rise of 15 and 11 percentage points, respectively. Recycling and energy efficiency are the most popular climate mitigation measures taken up by 88% of EU firms. However, the report also highlights that businesses face significant challenges in adapting to the physical risks of climate change. Almost 60% of European firms face physical climate risks, while only 33% have taken at least one action to protect their business from those risks.

(PRESS RELEASE) LUXEMBOURG, 13-Apr-2023 — /EuropaWire/ — The European Investment Bank (EIB), the lending arm of the European Union, has released its Climate Investment Report for 2022-23 (EIBIS Climate), which highlights an accelerated rise in the share of European firms engaging in climate action, including energy efficiency. This trend has continued post-pandemic and is expected to keep growing.

The report shows that the share of European firms investing in climate has increased by 10 percentage points in the last year, reaching an average of 53%. Central and Eastern Europe and small-medium enterprises have experienced the most significant increases, with a rise of 15 and 11 percentage points, respectively. Additionally, 48% of energy-intensive manufacturers are currently investing, while 57% are planning to invest in the near future.

Whilst European companies are fuelling the climate transition, the report shows mixed views on the impact of the climate transition on their business. While 29% of them are optimistic about the transition, around 32% are pessimistic. EIBIS Climate also shows that high uncertainty is dampening readiness to invest in energy efficiency, with a 4 percentage point drop compared to 2021.

Recycling and energy efficiency are the most popular climate mitigation measures taken up by 88% of EU firms. Overall, Western and Northern Europe has invested more in mitigation than Southern Europe and Central and Eastern Europe.

The report reveals that almost 60% of European firms face physical climate risks, while only 33% have taken at least one action to protect their business from those risks. Southern Europe feels more exposed to physical risks.

The energy crisis has spurred investment in energy efficiency solutions, with around 40% of European firms investing in energy efficiency. Western and Northern Europe, energy-intensive manufacturing, and large firms lead the trend among regions, sectors, and company sizes, respectively.

“Europe’s future depends on our ability to transform and embrace the digital and green transitions. This calls for bold investment in climate action and climate mitigation. EU firms have realised that climate change is not a distant reality anymore,” said EIB Chief Economist Debora Revoltella upon the release of the EIBIS Climate Report. “Many companies have and will continue investing in climate action to cope with soaring energy costs and play their part in the green transition. However, despite an increase in climate investment, ongoing uncertainty is weighing heavily on EU firms and dampening their readiness to invest in climate solutions.”

Background information

About the EIB

The EIB’s key priorities are climate and the environment, development, innovation and skills, small businesses, infrastructure and cohesion. It works closely with other EU institutions to foster European integration, promote the development of the European Union and support EU policies in more than 140 countries worldwide.

About the EIB Investment Report, the EIB Investment Survey and the EIB Climate Investment Report

The EIB Investment Report is the annual flagship report of the European Investment Bank. Designed to serve as a monitoring tool, it provides a comprehensive overview of the developments and drivers of investment and its finance in the European Union. The report combines internal EIB analysis with the results of collaboration with leading experts to explain key market trends and give a more in-depth look at a particular thematic focus. It incorporates the latest results from the annual EIB Investment Survey, covering the answers of some 12 500 firms across Europe to a broad spectrum of questions on corporate investment and investment finance, as well as a survey of EU municipalities.

The EIB Climate Investment Report 2022-23 is a deep dive into the results of the EIB Investment Survey, focusing on climate action of firms in Europe.

Further information on the results of the EIB Investment Survey can be found at: EIB Investment Survey (EIBIS)

The EIB’s annual flagship report on investment in Europe can be found at: EIB Investment Report 2022/2023: Resilience and renewal in Europe

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SOURCE: European Investment Bank