Climate-related investment
The definition of climate-related investment in the European guidelines for Environmental Accounts is broad. It includes all investment aimed at reducing the effects of climate change. This investment can have either the primary or secondary goal of mitigating climate change. For example, the primary purpose of wind turbines is to generate energy, but their secondary purpose is to help reduce greenhouse gas emissions. This includes investment in generating renewable energy, improving the electricity grid, insulation for homes and buildings, energy-efficient installations and equipment, public transport and electric cars. In addition to investments by businesses and the government, it also includes spending by households, such as the purchase of solar panels, home insulation and electric cars.