How is Europe progressing towards a net-zero economy? An overview of the green investment

This report assesses the landscape of private green investment in Europe. Beginning with the green investment needs estimated by the European Commission, we examine recent investment trends in the energy sector and evaluate the flow of private financing using carbon emission and sustainable finance indicators from the European Central Bank. Recent data suggests mixed progress in Europe's green transition. The average green investment up to 2020 showed a significant gap compared to the total green investment needed. However, average clean energy investment over the past two years has increased by 60% compared to the average observed up to 2020 , narrowing the green investment gap . Regarding private financing, bank lending shows reduced exposure to carbon emissions and sustainable debt securities have grown at an average rate of 5% over the last two years.