Long-term public policy and increased capital markets financing needed to bridge carbon capital chasm through 2020 across Europe
The banking sector will be pivotal to Europe’s low carbon transition, and will finance and intermediate the vast majority of the €2.9 trillion capital required to implement low carbon infrastructure, according to a report published by Accenture (NYSE: ACN) and Barclays (LON: BARC). Banks will play an increasing role in the financing of the transition, primarily through intermediating institutional capital, but stable and long-term government incentives and policies will remain critical.
The study, Carbon Capital, finds that development, procurement and implementation of 15 commercially viable low carbon technologies will require €2.9 trillion in funding from 2011 – 2020, helping to enable Europe to bring its emissions to 83 percent of 1990 levels by 2020, representing a carbon abatement of 2.2 Gt CO2e. Where existing studies forecast capital requirements against assumed adoption rates needed for Europe’s 2020 targets, this report’s forecasts are based on calculations of realistic actual adoption rates of low carbon technologies.
See full Press Release.
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