Ireland among just four European countries that can finance green goals

EU’s debt rules mean those with higher debt and deficits will not be able to benefit from green industrial policies

Only Sweden, Ireland, Denmark and Latvia would have enough fiscal space to meet climate commitments required to keep global warming to below 1.5C. Picture: Mikael Sjoberg/Bloomberg

The European Union’s proposed overhaul of debt rules leaves a majority of member states without sufficient firepower to finance the climate transition, according to a new report.

Only Sweden, Ireland, Denmark and Latvia would have enough fiscal space to meet climate commitments required to keep global warming to below 1.5C under proposals put forward by the European Commission this week, according to a study by the New Economics Foundation.