Le laboratoire d’idées de la reconstruction écologique et républicaine

Road to Net Zero

Bridging the green investment gap

  • Benefits from the climate transition will be only unlocked if public expenditure across Europe doubles to €510 billion a year, Institut Rousseau research finds.
  • Economists say ongoing reform of EU fiscal rules should exclude investments in decarbonisation, such as clean transportation and building renovation.

A new Institut Rousseau study, involving more than 150 experts, researchers and volunteers from 20+ organisations across Europe, including economists, engineers and public policy experts from across Europe, reveals that €40 trillion investment is needed to put Europe on the path to climate neutrality, while keeping Europe in the global race for competitiveness, in line with the EU’s strategic autonomy agenda.

The study assesses both public and private investments (and extra-investments, compared to a baseline scenario extending current trends and policies) needed for the EU to meet its climate targets.

Seven major countries are studied in detail: France, Germany, Italy, Spain, the Netherlands, Poland and Sweden. These countries represent approximately three-quarters of EU-27 GDP and domestic emissions.

The research team analysed 37 decarbonisation levers and 70+ public policies. All modelling outputs (emissions reductions, public and private investments and extra-investments) are computed both at the country scale (for each of the 7 countries) and at the EU-27 scale.

For more information, please contact Guillaume Kerlero de Rosbo

The Rousseau Institute publishes an in-depth study on the transition to carbon neutrality in Europe by 2050. These Road to Net Zero reports analyze the necessary public and private investments, decarbonization strategies, and key climate policies required to achieve this goal.

🔍 Why read these reports?
✅ A detailed assessment of the costs and benefits of the energy transition
Country-by-country analysis of necessary green investments
Data-driven insights and strategic recommendations for political and economic decision-makers

Download the report with the executive summary:

Download the methodological appendix :

 

📥 Découvrez les synthèses par pays :

🇫🇷 French summary | 🇩🇪 Germany summary | 🇮🇹 Italy summary |
🇪🇸 Spain summary | 🇳🇱 Netherlands summary| 🇵🇱 Poland summary |
🇸🇪 Sweden summary

rapport road to net zero

Road to Net Zero Webinar: Understanding the Challenges and Solutions for a Carbon-Neutral Europe

Join our exclusive Road to Net Zero webinar — an essential discussion with experts and researchers on the investments needed to achieve carbon neutrality in Europe by 2050.

In this video, you will learn:
✅ Which key sectors need to be transformed to ensure a successful energy transition
✅ The level of public and private investment required to finance this transition
✅ How to adapt European policies to accelerate climate action
The main findings of the Road to Net Zero study, conducted by the Rousseau Institute and over 150 European experts

📺 Watch the webinar (in English) now and explore solutions for a sustainable future!

Don’t forget to share the video and join the conversation to help drive the ecological transition. 🌍♻️

‘This study provides an unprecedented level of detail on the overall extra investments required, particularly in the public sector. The numbers may seem significant, but investing in the green transition is a savvy financial move—coming in at a fraction of what EU governments shelled out for Covid-19 recovery and fossil fuel subsidies’. ‘We face a straightforward choice. We can miss transition targets, and pave the way for a very uncertain future. We'll keep spending twice the required transition money on fossil fuel imports. Or, we can be responsible planners, which would create hundreds of thousands of local jobs, improve our sovereignty and trade balance, and improve the purchasing power of most Europeans in the short term’

‘It’s time for European governments to put their money where their mouth is and prioritise public investment to meet the green transition. This study for the first time puts a clear number, not only an estimate on the extra investment needed for the green transition. It clearly shows that we need to increase and redirect current investment across Europe or we will fall far short of our climate targets’.

The green transition is the winning ticket for Europe. Institut Rousseau's study sheds light on the public spending cost of this ticket, while also emphasizing that a large portion of the money is out there already and can be diverted from inefficient uses such as fossil fuel subsidies. Given what Europe's people and businesses stand to gain, it is clear what the right answer is to the difficult strategic choice of allocating public finance.

Unlocking investments in the net-zero transition is a strategic decision for Europe, not a financial burden. Not only will it prevent long-term costs resulting from inaction, but it will also enhance our economic security by reducing our reliance on gas and oil imports and creating hundreds of thousands of new jobs through the re-industrialisation of the economy. Europe has recently completed a mandate focused on adopting the world's largest series of net-zero laws. It is now time to turn these laws into reality through a solid investment agenda

In the face of a mounting climate crisis, rising geopolitical tensions, and deindustrialisation, Europe stands on the precipice of self-inflicted economic wounds. Unnecessary budget cuts weaken the very foundation of our economies and mean governments have less means to invest towards a stronger and more resilient economy. Worse still, budget cuts don't guarantee debt reduction, as they slow growth and contribute to underinvestments towards costly preventable future crises. Instead making the necessary public investments will allow us to build towards a prosperous future within planetary limits

All our articles on ecology: analyses, solutions, and perspectives for a sustainable future (french version).

They talk about us: press review and quotes from the Rousseau Institute.

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The EU needs trillions in investments to reach its 2050 climate target.

Euronews logo

A budgetary straitjacket will block the energy transition, warns a green party leader.

the conversation logo

EU: Are budget rules compatible with the goals of the Green Deal?

What is the Road to Net Zero ?

The Road to Net Zero refers to the path to achieving carbon neutrality by 2050. It involves deep transformations in the energy, transport, industry, and agriculture sectors through massive investments in low-carbon solutions.

Why aim for carbon neutrality by 2050 ?

The goal of achieving carbon neutrality by 2050 is set by the European Union and other major economies to limit global warming to 1.5°C, in line with the Paris Agreement. This helps reduce the environmental and economic impacts of climate change.

What investments are necessary to achieve this goal ?

According to the Road to Net Zero study by the Rousseau Institute, Europe must invest the equivalent of 2.3% of its GDP each year, or an additional 510 billion euros in public investments, to accelerate the transition to a decarbonized economy.

Which countries are covered by the "Road to Net Zero" study ?

The study covers seven major European countries representing three-quarters of the EU-27’s GDP:

  • France

  • Germany

  • Italy

  • Spain

  • Netherlands

  • Poland

  • Sweden

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