The EU Commission has presented the key points for financing its climate protection strategy. The goal: Europe should become the first climate-neutral continent by 2050. Brussels assumes that this will require investments of at least one trillion euros. This must be provided by the member states as well as by the private sector and citizens.
Three funding pillars
The financial plan stands on three legs. The first is the procurement of investment funds over the next ten years with support from Brussels. The Commission also wants to create a framework that will facilitate and stimulate public and private investment. The European Investment Bank (EIB) will play a key role here. Among other things, it will grant loans to the public authorities in the member states, which will thus be able to steer investments into the energy transition of the heating sector. Between 25 and 30 billion euros will be available for this purpose.
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In addition, there is a budget endowed with 7.5 billion euros. The Commission wants to use this funding to promote regional projects. This will supplement the funds already set aside in the budget for supporting projects aimed at energy system transformation. According to information from Brussels, this will increase the budget to 30 to 50 billion euros.
Incentivising private funding
This will stimulate additional investment from the private sector. This is the second pillar of the funding strategy. The Commission supports this by creating incentives for the public and private sectors to invest in the development of the necessary technologies. Brussels is contributing rules on environmentally sound budgeting and simpler approval of state aid. In addition, the financial sector in Europe should also play its part and invest more in sustainable projects rather than in technologies that damage the climate. In addition, a special transitional regulation within the framework of the InvestEU support programme is to mobilise investment funds of up to 45 billion euros.
Supporting projects
Brussels sees practical support as a third pillar. In this way, the Commission intends to support authorities and project promoters in the planning, design and implementation of sustainable projects. The Commission will present a draft regulation to this end in March 2020. (su/mfo)
