The gradual exit from fossil fuels and the path to climate neutrality require additional investments in Austria worth billions. From this year to 2030 alone, 145.9 billion euros more will be needed, according to an analysis by the Federal Environment Agency on behalf of the Bank and Insurance division of the Chamber of Commerce.
“It’s a huge challenge, but it also offers potential and opportunities,” said Franz Rudorfer, spokesman for banks in the Chamber of Commerce, yesterday, Tuesday, at an online press conference.
The largest chunk of additional investment, at 67.3 billion euros, was in transport (expansion of the rail network, zero-emission vehicles). Additional costs of 44.4 billion euros are planned for energy (switching to renewables), 25.7 billion euros for buildings (renovation and conversion of the heating systems).
The additional costs for industry are significantly lower at 8.5 billion euros. This is because industrial companies think in long-term cycles and the transformation effects would only begin to take effect after 2030, said Georg Rebernig, Managing Director of the Federal Environment Agency.
All of the additional investments together would mean 70,000 additional jobs and trigger an annual value added effect of around 2.4 percent of GDP.
Tax breaks demanded
In order to achieve the turnaround more quickly, the money could also be “directed from existing sources into sustainable channels,” said Rudorfer. Among other things, he referred to the 800 billion euros in private financial assets in Austria and the investment potential for insurance companies (110 billion euros), pension funds (27) and provident funds (16.5).
In order to create incentives to invest more money sustainably, however, tax relief would have to be created, such as a retention period for shares or the end of insurance tax for life insurance, said Rudorfer.
Source: Nachrichten
