“The green transition is an opportunity, not a risk. If we achieve our climate objectives, we will make Europe stronger and more secure.”
Invested by Europe explores the forces shaping the European economy. In each episode, we hear from experts tackling the most pressing challenges—from housing and energy to innovation and infrastructure, security and defence. We look at what’s changing, what the solutions are, and how Europe is investing in its future. Watch the full series on our website.
What this episode is about
Climate investment is often framed as a cost — something economies need to absorb to cut emissions. But climate action is a powerful driver of competitiveness, resilience and long-term growth.
In this episode of Invested by Europe, Fotios Kalantzis, senior climate economist at the European Investment Bank, explains why investing in climate is not only essential for meeting Europe’s climate goals, but also for strengthening the economy, reducing dependence on fossil fuel imports and positioning Europe as a global leader in clean technologies.
The conversation in brief
For Europe, investing in climate is a question of economic security, competitiveness and leadership. Climate investment reduces dependence on imported fossil fuels, lowers exposure to volatile energy prices and helps control costs through energy efficiency.
Europe has already made significant progress. Since 2007, emissions in the EU power sector have been reduced by around 50%. At the same time, fossil fuel imports have fallen, lowering price risks and improving energy security. Climate investment supports job creation, particularly in green industries, and makes the economy more resilient.
The green transition creates new markets and new opportunities for growth. Sustained investment in research and innovation is essential to maintaining and improving competitiveness in green technologies.
Reduced fossil fuel dependence remains a central objective. While deploying existing clean technologies is important, Europe needs to invest in developing new ones, to avoid replacing one dependency with another. Competitiveness depends not only on rollout, but on technological leadership.
Growth in the green economy is driven by EU climate policies, public investment and strong demand for clean energy solutions. Supporting smaller firms is particularly important. Energy efficiency investments for small and medium-sized enterprises can deliver significant value, creating jobs, improving resilience and reducing costs. Tools such as the European Investment Bank’s Green Checker help companies identify eligible projects and assess whether they can be financed.
Key takeaways
- Climate investment strengthens competitiveness, as well as cutting emissions.
- Reducing fossil-fuel dependence improves energy security and controls costs.
- Energy efficiency, especially for smaller firms, delivers strong economic benefits.
About the guest
Fotios Kalantzis is a senior climate economist at the European Investment Bank, where his work focuses on how climate action shapes investment and competitiveness. He has a lot of experience in EU institutions, energy regulation, economic research and consulting.
He holds a PhD in energy economics and has published widely on energy markets, climate policy, modelling and econometrics. This background underpins his work on the interaction between climate objectives, economic performance and regulatory design.
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Explore more
EIB Investment Report 2025/2026
Investment in the European Union has remained surprisingly resilient despite repeated global shocks in recent year – largely the result of consistently strong public investment.
Climate and environment
Leading the way to a net-zero world
Pourquoi l’efficacité énergétique des bâtiments est-elle si importante ?
Nous devons accélérer la rénovation des bâtiments afin de réduire la consommation d’énergie, de soutenir les énergies renouvelables et de faire profiter les Européens de coûts plus bas et prévisibles. Voici comment y parvenir.
