3 Key Impact Points:

• 61% of EU firms have invested in climate mitigation and adaptation, leading global efforts.
• 74% of European businesses are adopting advanced digital technologies to enhance competitiveness.
• EU companies are investing in resilient supply chains amid geopolitical risks and trade disruptions.

European Firms Lead in Climate Investments

European companies are at the forefront of climate mitigation and adaptation efforts, with 61% having already invested in tackling climate change, according to the EIB Investment Survey 2024 released by the European Investment Bank (EIB). This marks an increase from previous years and outpaces investment levels in the United States.

EIB President Nadia Calviño stated:

“The commitment of EU firms to the green and digital transitions illustrates the potential of the European economy.”

Embracing Digital Technologies

The survey reveals that 74% of European firms are utilizing advanced digital technologies, a 4% increase from last year. This digital adoption is key to enhancing competitiveness and innovation within the EU market.

Despite the progress, the United States still leads with 81% of firms embracing digital technologies.

Investing in Resilient Supply Chains

In response to trade shocks and geopolitical risks, EU companies are investing in more resilient and secure supply chains. Many firms are focusing on replacement investments over capacity expansion, with only 26% planning to expand operations in the next three years compared to 47% of U.S. firms.

RELATED ARTICLE: EU Delays Mandate on Business Supply Chains to Eliminate Deforestation

EIB Chief Economist Debora Revoltella commented:

“European firms are making strides in addressing both climate change and the digital transformation, but boosting EU investment requires a less fragmented EU single market.”

Green Transition Opportunities and Challenges

More than a quarter (27%) of EU firms view the transition to a net-zero economy as an opportunity over the next five years. EU companies are more likely than U.S. counterparts to have enacted sustainable transport options, adopted renewable energy, and set emissions-reduction targets.

However, the business environment presents challenges:

• 46% of EU businesses cite high energy costs as significant obstacles.
• The lack of skilled labor and uncertainty about the future remain key concerns.
• 60% of EU exporters report market fragmentation due to varying standards across Member States.

EIB President Nadia Calviño emphasized:

“The focus of EU companies on innovation is welcome and must be supported. That is why the EIB Group is working on a new Action Plan to reinforce the integration of Europe’s capital markets and thereby channel private savings into productive investment in Europe.”

Access the Full Report

The EIB Investment Survey 2024 provides valuable insights for policymakers, economists, and business leaders on the investment landscape and actions needed to foster economic growth and resilience.

Full Report: EIB Investment Survey 2024