EU companies report more than €1.2tn in taxonomy-aligned investment since 2023

What happened

European companies have disclosed more than €1.2tn in capital expenditure aligned with the EU Taxonomy since 2023, according to research by the EU Platform on Sustainable Finance, which advises the European Commission.

In 2025, companies recorded €512bn of green and transition investment. This comprised €330bn of Taxonomy-aligned capital expenditure and €182bn supporting corporate transition plans. Together, the two categories represented 21% of all corporate investment in the EU.

Electricity supply accounted for 46% of aligned capital expenditure, followed by manufacturing on 25% and transport services on 18%. Spending in electricity supply rose 11% from the previous year, while transport services increased 23% and manufacturing grew 4%.

Why it matters

The figures indicate that funding is flowing most strongly towards power generation, grids and transport infrastructure. However, the investment mix is uneven across the electrification chain. Infrastructure and deployment made up 60.9% of aligned expenditure, compared with 13% for electrified end uses. Materials and feedstocks received 1.7%, while components and cells accounted for 0.7%.

The Platform said the next phase will require capital that can take on risks that individual investors may not be prepared to bear. It identified public guarantees and blended finance as possible ways to draw private funding into such projects. Completing the EU Savings and Investments Union could also make it easier to channel finance across borders and towards strategic sectors.

Background

Reported aligned expenditure was heavily concentrated geographically. Germany, France, Italy, Spain, the Netherlands and Denmark accounted for 81% of the 2025 total. Of €313bn reported at activity level, Germany represented 31%, France 18%, Italy 12% and Spain 9%.

Aligned capital expenditure averaged 1.7% of EU gross domestic product. Denmark and Czechia exceeded that level, while several member states reported 0.5% or less. The Platform cautioned that reporting-company location does not necessarily identify where physical investment occurred, and that national comparisons are also shaped by industrial structures and the presence of large companies.

What's next

The findings point to a need for financing mechanisms that can support investment across more member states and in parts of the clean-technology chain receiving relatively limited capital.