- The European Green Deal is the EU Commission’s new growth strategy. It aims to turn the climate and environmental challenges into an opportunity to modernise the EU economy, endorsing a large investment program. The plan targets emissions reduction of at least 55% by 2030 and climate neutrality by 2050.
- To foster the change the EU will deploy its budget aiming to mobilise about 0.7% of GDP annually. Overall, investment needs are estimated at about 2% of EU GDP annually until 2050. The deal implies substantial structural changes. The most involved sector is Energy but the plan basically cuts across the whole economy.
- The Green and sustainable bond market is now at a turning point. Forthcoming sizeable green issuance in the EU will help growing and greening European finance in a more balanced and standardised way. Meanwhile the ECB will likely add green layers to both its monetary policy and regulatory objectives.
- Among sectors, building and materials are the main beneficiaries while Utilities and Autos will have to adapt.