Study on possible policy actions to enhance private capital mobilisation in the EU to finance the climate transition

The EU is committed to achieving climate neutrality by 2050 and reducing its emissions by 55% by 2030 and by 90% by 2040. Financing this transition to climate neutrality will require significant private investment.

In this context, adelphi collaborated on a study for the EU's Directorate-General for Climate Action (DG CLIMA) to identify effective policy instruments and regulations for mobilizing private climate capital. The study first analyzed the need for private finance and characterized investment barriers. A list of over 75 potential EU policies, instruments, and regulations with potential for capital shifting was then identified. Using a participatory process, nine policy actions were then selected and further defined for the European Commission. The study provides an initial impact assessment of the selected policies and instruments for mobilizing private climate capital and is intended to assist the Commission in prioritizing and guiding future decisions.