Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/300846 
Authors: 
Year of Publication: 
2024
Series/Report no.: 
ÖFSE Working Paper No. 78
Publisher: 
Austrian Foundation for Development Research (ÖFSE), Vienna
Abstract: 
To address Europe's environmental, economic, and geopolitical challenges, the European Commission has decided to proactively accelerate digital transformation and decarbonization through industrial policies. As the annual green investment gap exceeds 2 percent of the EU's GDP, of particular relevance is not least how the EU's industrial programs will be financed. Amid scarce fiscal resources and public sector austerity, paradigmatic cases of (financial) derisking aiming to "escort" private finance to green but unprofitable investments have been key to European policymakers' aim to accelerate the green transition. This paper offers two contributions in this context. Firstly, it examines to what extent and how finance for industrial policy has been provided in Europe since the early 2020s. Secondly, it conceptually advances the political economy of derisking literature by elaborating on progressive derisking and Big Green State policies as alternative industrial policy financing programs, and discusses those programs in relation to Europe's macrofinancial regime.
Subjects: 
Industrial policy
derisking
macrofinancial regimes
climate change
the green transition
digital transformation
European policy studies
political economy
development finance
financialization
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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