A new report released this week by Can Europe revealed that a pathway compatible with pledges of the Paris Agreement could save a minimum of €1 trillion by 2030 for the entire European Union.

The direct benefits of boulder climate action are multiple and wide-ranging, from economic to social and health aspects such as reduction of energy poverty, green job creation and improved health.

Aside from considerable benefits, European states could face fewer economic losses by pursuing a 1.5°C compatible pathway compared to a less ambitious pathway. “The EU could avoid losses of €46,000 or €8,500 per capita compared to the inaction and current policies scenarios, respectively”, states the report.

The study also analyses data for each member state. In absolute terms, the largest economies would experience higher co-benefits, as it was expected. However, in relative terms, Romania is among the EU states that would benefit the most, around 8,76% of 2022 GDP with the EU average at approximately 6%.

Furthermore, the report concluded the benefits significantly outweigh the costs associated with ramping up climate actions, with the cost-benefit ratio ranging between 1,4 in Malta to 4,7 in Luxembourg. Therefore, according to the study, each euro invested in Romania in energy-saving measures and energy efficiency would generate €2,2 in co-benefits.