European Union announces $1.1 trillion investment in sustainable energy by 2030

In a key development, the European Union will invest 1 trillion euros ($1.1 trillion) in sustainable energy by 2030, European Commission President Ursula von der Leyen announced on October 7.

Ursula von der Leyen gave the opening remark at the EU Sustainable Investment Summit, the European Commission's first annual event on sustainable finance. The President mentioned the current surge in energy prices in her speech. She also emphasised the importance of the European Union speeding up climate legislation.

"To become energy independent, we must accelerate our efforts on the European Green Deal. In comparison to a year ago, wholesale gas costs have nearly doubled, whereas renewable energy prices have remained consistent, if not declining in recent years. The solution to rising electricity prices is a long-term European Green Deal and renewables," at the EU Sustainable Investment Summit, von der Leyen remarked.

President von der Leyen noted two major issues that must be addressed in order to increase global sustainable investment: First, how can more cash be directed toward long-term investment. Second, how to increase global ambition by bringing additional countries on board. She also highlighted Europe's commitment and leadership when it comes to energy conservation during the speech.

She said, "Europe can lead by the power of its example. Europe has become the home of sustainable investment. The European green bond market today is worth around €1 trillion. We have built the largest carbon market in the world, with our Emissions Trading System. And later this month, we will strengthen our leadership, when we will start issuing green bonds worth €250 billion, as part of NextGenerationEU. This is a leadership we are proud of, and we will keep consolidating."

Looking ahead to the next UN Climate Change Conference in Glasgow, the president noted that the COP26 will be a watershed moment for the world community. 

EU Sustainable Investment Summit 2021

The EU Sustainable Investment Summit aims to raise awareness, introduce fresh views, and inspire bold and forward-thinking initiatives in Europe and around the world.

The Summit will bring together a diverse group of high-level speakers from around the world, as well as entrepreneurs, investors, financial institutions, policymakers, civil society representatives, and citizens, to discuss how to unlock investment and finance to accelerate the transition to climate neutrality.

Image: AP