Private investment in climate change mitigation ‘stable’ in EU

Private investment in climate change mitigation measures totalled €95.3 billion in the European Union in 2023, equivalent to 0.55% of the bloc’s GDP, new data from Eurostat has found.

This figure is on a par with 2022, when the figure stood at 0.56% of GDP, however it is down on the peak of 0.64% of GDP, which was recorded in 2021.

According to the data, between 2005 and 2016, private investment levels were relatively stable at approximately 0.5% of GDP, followed by a marked upward trend commencing in 2017.

In terms of the individual countries in which private investment in climate change mitigation is highest, Lithuania led the way, with investment totalling 1.47% of GDP, followed by Denmark, with 1.46% of GDP. Latvia (1.17%) and Sweden (1.16%) followed.

Below 1% of GDP

In all other EU member states, the share of private investment in climate change mitigation remained below 1% of GDP. The lowest levels were recorded in Cyprus and Ireland, where investment accounted for less than 0.1% of GDP.

According to Eurostat, these figures reflect private investments made by businesses in tangible goods that substantially reduce greenhouse gas emissions. The estimates exclude the agriculture, forestry, and fishing sectors. Read more here.

Private investment in climate change mitigation by EU member state, % of GDP (2023)