Belgium must invest up to €25bn a year to be carbon neutral by 2050
Belgium needs to make additional investments of up to 25 billion euros, 4.3 per cent of its GDP, to become climate neutral by 2050, according to a report by the Federal Climate Change Department released on Thursday.
The study, carried out with the Federal Planning Bureau's Study Committee on Public Investments, looks at the available net-zero transition scenarios for Belgium. The researchers focus on the building, transport, energy and industry sectors, which together account for 90 per cent of Belgium's greenhouse gas emissions.
The required investment amounts vary depending on the use of sufficiency levers, which are policies and measures aimed at reducing overall energy consumption, such as limiting new construction and promoting carpooling and public transport. The more these sufficiency levers are used, the less investment is required.
For example, scenarios with minimal expansion of public transport could increase transport investment by 71 per cent, while scenarios that promote alternatives to car travel could actually reduce total costs by 6 per cent.
In the worst-case scenario, the transition to carbon neutrality could require additional investment of 25 billion euros per year. Scenarios that make the most use of sufficiency levers would require an increase in investment of 11 billion euros per year.
The researchers caution against interpreting the investment amounts as the "cost" of the climate transition. Although the investments are significant, they will also lead to savings through increased energy efficiency and renewable energy sources. In the best case scenario, these savings could almost offset the required investments.
In addition, the researchers conclude that choosing one scenario or another is ultimately "a societal/political decision that must consider numerous factors not examined in this report".
© PHOTO INA FASSBENDER / AFP
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