This event, organised by the Political Economy Working Group, will discuss financing alternatives for the expanded EU-level industrial policies in the context of the bloc's green transition.
As the EU’s annual green investment gap amounts to approximately 2.3–3.2% of GDP, this event will discuss financing alternatives for expanded EU-level industrial policies. Proposed options to increase the EU budget from 2028 onwards include enhanced EU-level taxation, particularly on financial transactions, wealth, and capital gains; permanent issuance of EU bonds; the creation of a permanent EU investment fund, and the continued leveraging of development banks to scale up credit allocation and public equity funding. Many of these financing options are mutually supportive, rather than exclusive, on a technical level.
Amid fiscal restraint, (financial) de-risking, intended to escort private finance to green but unprofitable investments, has become central to European policymakers’ strategy for accelerating the green transition. However, such de-risking measures have largely failed to generate the level of investment required to meet the EU’s decarbonisation goals.
The event will, therefore, elaborate on the concept of progressive de-risking, i.e. designing de-risking mechanisms to align with progressive approaches to European industrial policy. Progressive de-risking aims at attracting private investors by adjusting risk/reward profiles of critical mitigation and adaptation projects via public resources, but conditions this support on the achievement of performance and profit-sharing criteria. Mainstream de-risking refrains from such conditionalities.
Viktor Skyrman is a political economist and postdoctoral researcher at the Department of Business Studies, Uppsala University. He researches issues related to industrial policy, finance and economic development in various contexts.
The Political Economy Working Group seminars take place in person and online. When registering, please select either in-person or online participation via MS Teams.
At the EUI and the Robert Schuman Centre, we are dedicated to removing barriers and providing equal opportunities for everyone. Please indicate in the registration form your accessibility needs, if any. Alternatively, you can contact the logistics organiser of the event.
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