Brussels – Belgium will need to invest between €11 billion and €25 billion annually—equivalent to 4.3% of its GDP—to reach climate neutrality by 2050, according to a report published on Thursday by the Federal Climate Change Department.
The study, conducted in collaboration with the Federal Planning Bureau’s Study Committee on Public Investments, assesses possible transition pathways to net-zero emissions.
The report focuses on four key sectors responsible for 90% of Belgium’s greenhouse gas emissions: buildings, transport, energy, and industry.
The level of investment required varies significantly depending on the extent to which sufficiency measures—policies aimed at reducing energy consumption—are implemented.
These measures include limiting new construction, increasing carpooling, and encouraging public transport use.
Impact of Policy Choices on Costs
The study outlines contrasting scenarios that illustrate how policy decisions can influence the financial burden of the transition.
For instance, if Belgium minimally expands its public transport infrastructure, investment in transport could rise by 71%. Conversely, if policies strongly favor alternatives to car travel, overall costs could be reduced by 6%.
In the most expensive scenario, where sufficiency measures are barely utilized, the country would need to invest €25 billion per year. However, by adopting policies that curb energy demand and maximize efficiency, this figure could be lowered to €11 billion annually.
Despite the high investment figures, researchers caution against viewing these amounts purely as costs. The transition to renewable energy and improved efficiency will generate long-term savings, potentially offsetting much of the required investment.
Economic and Political Considerations
The report underscores that the pathway to climate neutrality is not solely a technical issue but also a political and societal choice. Policymakers will need to balance environmental goals with economic and social considerations when deciding which strategies to implement.
Belgium has already made some progress in improving its climate performance. The country recently climbed four places to rank 35th in the 2025 Climate Change Performance Index (CCPI), an annual ranking that assesses nearly 70 countries. However, it remains in the middle tier, highlighting the need for further action.
The findings come at a crucial time as Belgium prepares for its role in upcoming global climate discussions, including the COP29 summit.
With increasing pressure from the European Union to accelerate emissions reductions, policymakers face critical decisions on the nation’s climate strategy.
The study’s authors stress that achieving net-zero emissions is possible but requires immediate and sustained investment.
The extent of Belgium’s financial commitment to this transition will ultimately shape its ability to meet climate goals while ensuring economic stability.
This article was created using automation technology and was thoroughly edited and fact-checked by one of our editorial staff members
