Directing EU Funds towards Climate Neutrality
The project is completed. Ensuring that Partnership Agreements on EU Funds (PAs) and National Recovery and Resilience Plans (NRRPs) support the European Green Deal in Bulgaria, Romania, Hungary, Slovakia, Slovenia, Czech Republic, Poland, and Latvia.
Climate Policy Climate Strategies and Plans Finance
Project info
Bulgaria, Czech Republic, Hungary, Latvia, Poland, Romania, Slovakia, Slovenia
09/21 - 12/23
National governments, EU institutions, Civil society, Media
781,473.41 €
Contact info
Csaba Mezei
- CEEweb for Biodiversity
- CDE - Centre for Transport and Energy
- Clean Air Action Group (CAAG)
- Economic Policy Institute (EPI)
- European Environmental Bureau (EEB)
- Focus Eco Center
- Green Liberty
- Institute for Sustainable Development Foundation (ISD)
- Slatinka Association
- Umanotera, The Slovenian Foundation for Sustainable Development
Background
The Multiannual Financial Framework (MFF) and the Recovery Resilience Facility (RRF) define the EU’s spending priorities for periods of seven years each. Their purpose is to transfer more abstract policy goals – such as climate targets – into economic realities, for example by additional investments in public infrastructure. The 2021-2027 MFF and RRF are crucial elements of ensuring the realisation of the European Green Deal. EU Member States have been preparing proposals for Partnership Agreements on EU Funds (PAs) and National Recovery and Resilience Plans (NRRPs) to inform the MFF and RRF. Yet, these documents are not sufficiently coherent with the European Green Deal and therefore prevent the targeted direction of EU funds toward climate neutrality.
Financing, Photo: ©Pixabay Project
The project’s target group consisted of representatives of national and local governments, business groups, academia, civil society organisations, and media representatives in the project countries. Project activities enabled and encouraged them to initiate and engage in informed debates on climate policies and EU funds. First, project members offered trainings and workshops that provided knowledge on EU funding mechanisms and their relation to climate-neutrality. Second, the project team published best practice reports on climate-neutral use of EU funds as well as proposals for the national Operational Programs (OPs) in the target countries. Based on these activities, the project partners disseminated their findings and knowledge across EU institutions and the European public through newsletters, online articles, and social media. Furthermore, they reached out to decision makers on European, national, and local level through personal meetings, letters, calls and presentations on events. Thus, the project team encouraged them to access available and valuable knowledge and insights on climate-neutral use of EU funds and thus to contribute to implementation of the European Green Deal.
Results
- Cancellation of a planned LNG terminal: In Skulte (Latvia), plans to build an LNG terminal were dropped after the project partner Green Liberty – based on well-founded analyses – sent a clear message, through their public campaigns, that existing capacities in the region were sufficient. This prevented a climate-damaging investment and strengthened the focus on sustainable energy cooperation in the Baltic region.
- Strong civil society voice: With the help of the project, the NGO Umanotera became the leading civil society actor for green public finance in Slovenia. The organisation is a member of the national monitoring committee, works in an inter-ministerial team on green budgeting and coordinates meetings with EU representatives on the implementation of the national recovery plan.
- New findings on national management of EU funds: The Centre for Transport and Energy continued its work on monitoring EU funds and their contribution to climate action in the Czech Republic. In a study, it analysed the management of EU funds to date from a climate perspective. The study shows that total spending and climate-related expenditure of EU funds in the Czech Republic are relatively fragmented across multiple policy areas. This could adversely affect the country's ability to fulfil its climate commitments.
- Recommendations for public investment: Project partner Green Liberty analysed 28 EU-funded transport projects in Latvia. The study showed where funding was being used inefficiently and made recommendations for better alignment of public investment with the achievement of European climate targets. As a result, the authorities in Latvia have begun to evaluate projects in more detail in terms of their contribution to emissions reductions and their social impact.
- Policy advice: In a study, the project partner Clean Air Action Group proved that many road construction projects in Europe are based on flawed cost-benefit calculations. The report was forwarded to the European Commission and strengthened the position that EU funds should be specifically diverted from climate-damaging road construction projects. In addition, an analysis of the draft Hungarian REPowerEU chapter concluded that the draft includes projects that contribute to a significant increase in CO2 emissions. As a result, these projects, such as the development of oil refineries, were removed from the final version of the chapter.
- Practical examples of the use of subsidies: The project created a database of 280 successful projects and funding practices from Central and Eastern Europe to date. The database also identifies avoidable mistakes in connection with EU funding.
Based on the information collected, the document "Key Recommendations on the Efficient Use of EU Funds in Central and Eastern Europe" was created. It is intended to assist the European Commission to reach more informed and transparent decisions based on best practice, so that EU funds are used in a more efficient and climate-friendly manner.
Last update: February 2026