A new Transport & Environment (T&E) study shows Europe needs to shift its public investments from fossil fuel subsidies and road building to green fuels with €39bn (£32bn) a year to support sustainable transport developments.
T&E has also called for a switch away from spending on traditional infrastructure like roads and airports to new energy infrastructure like grids and charging, which are key to decarbonising road transport.
It estimates that public support for electric vehicle (EV) social leasing, green fuels, battery manufacturing and charging infrastructure would provide €271bn (£208bn) every year in private spending on green tech in Europe up to 2030.
Total private and public investment could rise to €507bn (£389bn) a year by 2040, if uptake of green alternatives continues its upward trend.
READ MORE: EVs could reach 24% market share as carmakers meet EU targets, T&E reports
T&E calls, among other things, for a €25bn (£19bn) EU battery fund to support European battery manufacturing which would provide public funding for scaling local battery production, accessing key materials and de-risking investments in key components such as cathodes.
Sustainable finance director at T&E Xavier Sol said: “Greening Europe’s most polluting sector will need significant investment.
“Failing to do so will not only cost Europe its net zero goal, but also the competitiveness of its leading industries like carmaking, battery production, ship and plane building.
“Public funds are needed to kickstart nascent industries and bring the continent’s grid and charging infrastructure up-to-speed.
“Luckily, fresh taxpayer money isn’t always necessary. Governments can free up funds by re-prioritising support towards clean technologies and ending support for costly road expansion.”
Achievements and innovations in EV charging infrastructure will be celebrated at the third annual CiTTi Awards, which will be held on 26 November 2024 at De Vere Grand Connaught Rooms in London. Visit www.cittiawards.co.uk to learn more about this unmissable event for the UK’s transportation sector – and to book your table!
