45% of European firms plan to cut investment because of COVID-19 while 58% say that climate change has an impact on their business according to this year’s EIB Investment Survey (EIBIS) released on 2 December 2020 by the EIB Economics Department.
Changes in the weather due to climate change are already having a major impact on business for 23% of European firms. When asked about investments to tackle the impacts of such weather events, or to reduce carbon emissions, many EU firms say they have already made investments or plan to do so. Nevertheless, there is wide variation among the EU 27. While more than 70% of firms say they have carried out such investment in many northern European countries, the figure is nearer 40% in some countries in the south and east. The obstacle to green investment most widely cited by firms is the uncertainty about environmental regulations and taxation, underlining the importance of a bold European plan for decarbonisation, to provide the clarity that firms need.
When compared to US firms, EU firms are more positive on these issues. Two out of three EU firms (67%) have either made investments, or plan to do so, to tackle the impacts of severe weather events and reductions in carbon emissions. This figure is higher than in the US (46%).
EIBIS, conducted for the first time in 2016 by the EIB Economics Department, is a unique, annual survey of 13 500 firms. It covers firms in all EU Member as well as a sample of firms in the United Kingdom and the United States. The survey collects data on firm characteristics and performance, past investment activities and future plans, sources of finance, financing issues and other challenges that businesses face. The main findings for the EU and for each of the 27 Member States can be found here. In addition, you can explore or download the data form the EIBIS data portal.
The EIB is the EU’s climate bank. Last week, the Institute announced its support to the new European Chair for Sustainable Development and the Climate Transition at Sciences Po and launched this summer the EIB Climate Chair at the European University Institute in Florence.
