- €150 billion cleantech investment and 2.65 million new jobs by 2030.
- Spain and Portugal set to achieve over 80% renewable energy generation.
- Strategic action needed to overcome funding barriers and scale cleantech projects.
The Iberian Peninsula is spearheading Europe’s cleantech transformation, with a forecasted investment of over €150 billion and the creation of approximately 2.65 million jobs by 2030. These insights come from a report by BBVA and Cleantech for Iberia, which highlights the region’s pivotal role as a clean energy hub in the European Union.
“With a strong industrial base and a fast-growing cleantech ecosystem, the Iberian Peninsula is set to become Europe’s next cleantech leader,” states Javier Rodriguez Soler, Global Head of Sustainability and CIB at BBVA. He emphasizes, “Sustainability is a tale of innovation, and supporting the cleantech ecosystem is essential for decarbonizing the economy.“
The report outlines Spain’s goal of reaching 81% renewable energy generation by 2030 and Portugal’s target of exceeding 80% by 2026. However, achieving these ambitious goals requires overcoming significant financing barriers. “Our goal is to illuminate the path toward a robust cleantech ecosystem capable of driving Iberia’s low-carbon transition,” says Bianca Dragomir, Executive Director of Cleantech for Iberia. “Funding and strategic policies are crucial to unlocking Iberia’s potential and ensuring a sustainable future.“
Opportunities and Challenges:
- Key Technologies: The report identifies energy storage, hydrogen production, recycling, and carbon capture as vital for decarbonization.
- Financing Barriers: New technologies face high capital requirements, long payback periods, and market risks.
- Strategic Action Needed: Coordinated efforts between government and industry are essential to develop stable regulatory frameworks and incentivize investments.
Despite the challenges, the report highlights significant growth, with cleantech investment in the Iberian Peninsula reaching €680 million in 2022, six times more than the previous five years. “Governments should invest 25% of Emissions Trading System revenues to promote clean technologies,” the report advises, suggesting that such measures will maximize cleantech’s impact over the decade.
Related Article: BBVA Launches New Global Finance Unit for Cleantech Innovation
Collaborative Efforts:
- Governments and industry must create predictable regulatory frameworks and national laws to stimulate investment.
- Financial institutions are urged to set net-zero goals, develop risk frameworks for clean technologies, and partner with public institutions.
The Iberian Peninsula is well-positioned to lead Europe’s transition to a low-carbon economy. Strategic investments and policies will be crucial in fully realizing this potential and driving sustainable growth.
For more details, refer to the full white paper: Cleantech Bankability in the Iberian Peninsula.
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