Climate change and euro area firms’ green investment and financing ‒ results from the SAFE

Annalisa Ferrando, Johannes Groß and Judit Rariga

Economic Bulletin Boxes, 2023, vol. 6

Abstract: In a pilot round of the Survey on the Access to Finance of Enterprises (SAFE), conducted between 25 May and 26 June 2023, euro area firms were asked about climate change. Firms attach substantial importance to the potential negative impact from the physical risks of climate change. However, they are even more concerned about transition risks. Compared with physical risks, stricter climate standards provide a stronger incentive for firms to invest in climate change mitigation. Nonetheless, high financing costs and insufficient public subsidies are important obstacles to green investment. The results of the survey highlight the important role played by public loan guarantees and private sector funds in directing resources towards the greening of the economy. JEL Classification: D22, Q54, E52

Keywords: climate change; investment; survey data (search for similar items in EconPapers)
Date: 2023-09
Note: 235236
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.ecb.europa.eu//press/economic-bulletin ... 5~f5ec994b9e.en.html (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ecb:ecbbox:2023:0006:5

Access Statistics for this article

More articles in Economic Bulletin Boxes from European Central Bank 60640 Frankfurt am Main, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Official Publications ().