Verbund, Austria's largest electricity supplier and most valuable publicly traded company, is preparing to invest €100 billion by 2040 to advance its sustainability agenda. The massive investment will focus on clean energy generation, electricity processing, and storage, supporting Austria's target of achieving climate neutrality a decade ahead of the European Union's 2050 goal.
Michael Strugl, Verbund's CEO, has called on Austrian politicians to uphold the country's ambitious climate commitments amid ongoing government formation challenges. He emphasized that such investments could revitalize Austria's economy, which has been in a two-year recession. Strugl believes sourcing local materials and technology for these projects would generate significant domestic economic activity, describing the plan as a "growth initiative" rather than a burden.
“Pragmatism is preferable to ideology in achieving national goals,” Strugl said, stressing the economic and environmental benefits of the plan. “This is a growth plan that can generate a lot of domestic economic activity.”
Austria is currently mired in political uncertainty following its recent elections. The far-right Freedom Party (FPÖ) emerged victorious but was initially excluded from coalition talks. After failed negotiations with other parties, the FPÖ is now leading efforts to form a government. Verbund sees this development as a potential obstacle, as the FPÖ has shown little enthusiasm for sustainability-focused policies.
Adding to the challenge is criticism from parts of Austria's business community, which questions the feasibility of the country's 2040 climate neutrality target. Many fear the accelerated timeline could undermine competitiveness and economic growth. Strugl acknowledged these concerns, stating, “I understand the position of the industry that sees 2040 coming much too soon. We must focus on national competitiveness.”
However, he also stressed the importance of long-term environmental responsibility, adding, “There is a generational responsibility that must not be ignored.”
Despite skepticism, Strugl remains optimistic about Verbund's ability to balance sustainability goals with economic growth. He argued that investments in green energy could position Austria as a leader in the renewable energy sector, fostering innovation and creating jobs while reducing reliance on imported energy.
The CEO's vision aligns with broader EU objectives but requires political support and policy stability. As Austria grapples with its political crisis, the future of Verbund's ambitious plans—and the nation's climate goals—hinges on whether the incoming government can prioritize environmental sustainability alongside economic recovery.
