The Paris Climate Agreement, which has been ratified by Austria, defines the goals of limiting the Earth's warming to 2°C and bringing financial resources in line with low-emission development.
The European Commission estimates that Europe will need 180 billion euros in additional annual funds to achieve the climate and energy goals by 2030 - for infrastructure or research, for example. To this end, public and private finances and the related investment environment must make cost-effective and sustainable contributions in order to ensure fulfilment of the climate and energy goals.
The financial market can make a vital contribution to achieving the goals. More private investments need to be mobilised to back energy, transport and climate protection projects.
Lighthouse Project Green Finance
Within the framework of the Lighthouse Project Green Finance, the Austrian climate and energy strategy - with the support of the private sector - has defined the following targets:
- to identify suitable green finance tools,
- to encourage investment and structural policy reforms that facilitate the transition towards a low-carbon and energy-efficient economy,
- to ensure a sustainable, forward-looking and safe investment environment for Austria as a business location, and
- to avoid negative lock-in effects.
In any case, private capital must be cost-effectively mobilised while avoiding market distortions and ensuring financial market stability.