The report underscores the pivotal role of investment in the economy while meticulously detailing the constraints that impede investment at the national and EU level. This year’s report takes a particular look at the role of commercial power purchase agreements in renewable energy projects, climate resilience investments in transport systems, antimicrobial resistance, the forestry sector, and cross-border infrastructure projects.

In a nutshell, referring to the forestry sector, the report underlines the following points:

• lack of coordination between the various policies and strategies affecting the forestry sector can lead to inertia, or even an inability to act. In addition, many wood-processing companies consume a lot of energy and are therefore sensitive to regulations that affect energy prices.
• Lack of adequate insurance mechanisms is a growing barrier to investment in the forestry sector given the risks associated between increasing forest stocks
• Small and medium businesses and microenterprises => it results in relatively high unit costs. Combined with the high volatility of timber prices, these factors make investment risky and uncertain.
• While environmental, climatic and commercial contexts have become more complex, the budgetary capacities of the public forestry sector have not increased to the same extent.
• Lack of information on forest resources (species, qualities, dimensions) makes difficult for investors in value chain activities to make informed decisions.

Download the Investment barriers in the European Union 2023

Source: European Investment Bank