In a speech delivered in Oslo during an environment conference organized by the Central Bank of Norway, European Central Bank President Christine Lagarde stated that renewable energies provide the most viable solution for ensuring secure, sustainable, and affordable energy supply in Europe.
Around 90% of European citizens support the European Union in expanding renewable energy initiatives.
According to Lagarde, the financing requirements to decarbonize the industry, transport, and energy sectors amount to 1.2 trillion euros annually.
The private sector should contribute more than two-thirds of these investments, Lagarde added.
However, nearly 40% of European companies perceive the reluctance of investors to finance green investments as a significant impediment, Lagarde noted.
Similarly, the integration of capital markets within the EU is considered crucial to support the necessary large-scale investments.
Lagarde stressed that political momentum for achieving a capital markets union has never been stronger, echoing recent remarks by German Chancellor Friedrich Merz.
Europe needs to reduce energy costs to ensure its industry’s competitiveness and maintain long-term growth.
