Futures of the European Capital Market
Felix Tegeler, James Hoefnagels, Jan Berger
This study examines the future role of the European capital market in promoting the net-zero transition of the economy and, in particular, the success of the energy transition. Based on BloombergNEF’s “New Energy Outlook 2024”, which forecasts annual investments of up to USD 7.6 trillion by 2050, Themis Foresight and NORD/LB analyze the performance of the European capital market. Although sufficient capital is available, inefficient allocation is identified as the main problem. The study highlights the challenges of a bank-centric approach and the fragmentation of the markets. It presents four scenarios for the future of the capital market and argues for a comprehensive reform as the most promising way to achieve climate finance targets.
