The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Infrastructure: Energy finance runs out of steam

Europe’s commitment to environment-friendly energy projects is being undermined by financing constraints springing from the economic downturn, the sovereign debt crisis and a capital-strapped banking system.

Where will the money come from? As climate change targets move ever closer and Europe’s crumbling infrastructure begins to show its age, the continent’s energy sector requires investment on an unprecedented scale. Yet at the very moment those needs have become just too pressing to defer, the financial crisis threatens to choke off the supply of capital.

In the UK alone, Ofgem, the energy industry regulator, believes it will be necessary to spend £200 billion ($313 billion) on infrastructure before 2020 if the country is to satisfy the legally binding environmental commitments it has made while also ensuring that the lights don’t go out. Across the European Union as a whole, estimates of the spending required range from €1 trillion to €2 trillion.

Europe is not alone in requiring such levels of investment. The challenge is the same in developed and developing economies around the world: to fund a new generation of energy projects that will be capable of meeting rising demand in a low-carbon age. But no other country or region of the world has to meet that challenge while labouring under the financial constraints of Europe’s economic downturn, its sovereign debt crisis and its cash-strapped banking system.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree