If clean and resilient investment don't scale up rapidly, climate change will exert unmanageable social impacts, damaging the capital stock and disrupting most economic activities.
At the same time, these investments pose a "once-in-a generation" economic opportunity to accelerate technology deployment, innovation, and a … widespread transformation of global value chains - and in doing so, build economies of scale that lower prices and widen social access to zero-carbon goods and services.
Climate action requires tight international coordination and a new economic governance system designed to deliver fairer outcomes.
However, these are threatened by a worsening geopolitical context shaped by new and old conflicts, the strategic confrontation between the US and China and increasing mistrust between the West and the Global South.
To succeed, the benefits of climate investment will need to be distributed more evenly across the world.
Emerging economies are seeking productive investment while many debt-stressed countries have limited fiscal space.
Climate action requires unprecedented investments for a time span well beyond the horizon of NGEU (2026).
EU-wide investment efforts of at least 3-4% of GDP per year are needed to reach net-zero by 2050.
Private finance must deliver a substantial flow of sustainable investments, but a significant share of 1-1,5% of GDP per year must come from public sources.
Globally, US$2.4 trillion is needed in emerging economies (without China) by 2030 for climate-related investments, a four-fold increase from current levels.
This includes a 15 fold increase in international private finance on current levels.
In Europe, new fiscal rules will force most EU Members to pursue restrictive fiscal adjustments while inflation's persistence is severely narrowing the European Central Bank's ability to manage the liquidity of the system.
The fiscal constraints will be particularly binding for countries like Italy, which suffers with high debt and deficit levels.
With a global green economic revolution underway, if Europe does not significantly scale up its climate investments it risks being unprepared for increasingly tough global competition.
In parallel, if Europe does not support the mobilization of climate investment into emerging economies, it won't be able to rebuild trust between countries and in multilateralism.
The High-Level Symposium will aim to address two key questions: 1.
How will Europe finance the scale of climate investment it needs at home? 2.
How can Europe support climate investment globally?.
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