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Over half of EU firms affected by physical climate change risks

Oil&Gas Materials 3 December 2021 12:59 (UTC +04:00)
Over half of EU firms affected by physical climate change risks

BAKU, Azerbaijan, Dec.3

By Leman Zeynalova – Trend:

Around 58 percent of EU firms see themselves as affected by physical climate change risks, Trend reports with reference to the European Investment Bank (EIB).

EU firms are starting to internalize the risks associated with the transition to net zero, with risks seen on the downside and the perception of opportunities fairly balanced (around 30 percent). Around 41 percent of EU firms still do not expect the transition to a net zero economy to affect them.

“On average, 43 percent of EU firms have already invested to deal with climate change and around 37% percent invested in energy efficiency in 2020. The share of firms planning climate-related investment has now risen from 41 percent to 47 percent. In the United States, on the other hand, only 28% of firms have already invested and only 40 percent are planning climate-related investment, which may be a signal that the EU leadership on climate is paying off. In addition, 46 percent of EU firms monitored targets for carbon emissions and energy consumption in 2020, a factor associated with investment, and reflecting the regulatory push for accountability,” reads the EIB report.

The Bank notes that access to finance conditions remained very benign.

“Only 5 percent of firms across the European Union could be considered financially constrained, largely in line with EIBIS 2020. As a result of the crisis, 16 percent of EU firms increased debt and 5 percent received new equity from their current owners and 2 percent of EU firms received new equity from new sources. Around half (56 percent) of EU firms had received some form of policy support since the start of the pandemic in response to COVID-19. Subsidies or support that did not need to be paid back was the main form of financial support (36 percent). 17 percent of firms received guaranteed credit and 16 percent received deferral of payments,” the report reads.

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Follow the author on Twitter: @Lyaman_Zeyn

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