Why is the EU Green Deal characterized as a combination of public and private investments?

The EU Green Deal is characterized as a combination of public and private investments primarily because it aims to involve multiple stakeholders in financing. This approach reflects the understanding that addressing climate change and achieving sustainability goals requires a collaborative effort. The Green Deal recognizes that both public and private sectors have crucial roles to play in driving the necessary investments for green projects, innovation, and infrastructure development.

By engaging a broad range of stakeholders, including governments, businesses, and civil society, the EU Green Deal seeks to leverage financial resources from diverse sources. Public investments often provide initial funding and set regulatory frameworks that can attract private investments, creating a synergistic effect that enhances overall funding and support for sustainable initiatives. This collaborative approach is essential for fostering innovation and scaling up the transition to a low-carbon economy.

In contrast, focusing solely on public sector financing, exclusively requiring private funding sources, or not having investment targets would not adequately address the multifaceted nature of the challenges posed by climate change and would limit the effectiveness of the Green Deal's objectives.