Investments of around €161.7 billion are needed in the corporate sector to achieve climate neutrality by 2040. The challenge for policymakers is to design decarbonization measures in such a way that they relieve the burden on the national budget and, above all, provide support where structural disadvantages exist. Financing this transition (“transition finance”) encompasses the financing of all economic activities that are not yet sustainable but can contribute to achieving climate targets.

Target group focus in transitional financing

The study examines the effectiveness of transitional financing measures aimed at climate neutrality. It also investigates whether support can be made more targeted by focusing on specific target groups. The results serve as a basis for the development of the climate social plan for micro-enterprises and for the further development of climate and industrial policy financing instruments. The study is based on a survey of 2,263 Austrian companies.

Business segments with different needs

The results suggest a differentiated, target group-specific policy approach. Three target groups with different prerequisites were identified: First, there are solid and adaptable companies; second, there are companies that are ready for transformation but undercapitalized; and third, there are companies at risk. Companies at risk show less willingness to decarbonize and are less likely to be reached by existing offers.

The complete study can be found here.