Europe’s energy transition has stalled as a heat wave exposes the cost of inaction. A new Allianz report projects that Europe’s largest economies, including France, Italy, Germany, and Spain, could lose over $600 billion by 2030 due to heat-related damages.
During London Climate Action Week, which took place during an intense heat wave, participating bankers warned that fragmented EU capital markets and overly prescriptive storage rules are choking energy transition financing.
Bankers noted that European and UK regulations are too prescriptive about favored technologies in the energy storage sector, which undermines investment opportunities.
European energy markets have been under extreme duress in recent years as the continent has been rocked by multiple successive global energy crises.
