Towards a Climate neutral EU: Funding and Incentives for a Transformative European Green Deal

Background

On 21 July 2020, the European Council agreed on the Multiannual Financial Framework (MFF) for 2021-2027 and a Recovery Plan to deal with the consequences of the corona pandemic. Thus, 2020/21 is the window of opportunity for directing EU funds towards measures promoting a just transition to climate neutrality. The MFF and Recovery Plan funds will have a major impact on investment decisions in the years to come: deciding to raise the target for climate spending, to end the support for fossil fuels and to distribute subsidies for agriculture based on climate-friendly farming, would help ensuring that the climate targets are met. Of particular relevance here are the so-called partnership agreements on the European Structural and Investment Funds (PAs). They are negotiated between the EU Commission and the national governments of the EU member states (MS) and define the conditions under which the MS may receive and use EU funding.

Rooftop with solar panels. Photo: (c) Jeroen van de Water / unsplash

Project

To achieve the EU’s goal of climate neutrality, the project is involved in ongoing negotiations at Member States and EU levels to bring about better negotiation results. It is particularly focused on the PAs and the Recovery Plan as they specify how funds are to be used.

The project organises meetings, workshops and conferences with political decision-makers and makes recommendations on climate financing, for example through position papers. Virtual high-level workshops offer the opportunity to present the main conclusions and recommendations to policy makers.

Targeted communication measures are designed to raise awareness of a more ambitious fiscal policy among civil society, decision-makers and the general public.

Moreover, the project develops pilot drafts of the PA and drafted a Recovery Plan for Hungary to demonstrate how PAs could be designed in accordance with the EU-climate targets. Similar documents are to be prepared for Bulgaria, the Czech Republic, Latvia, Poland, Romania, Slovakia and Slovenia. The drafts will be made available to the respective national governments and parliaments as well as to the European Commission and the European Parliament and discussed with decision-makers. The project will provide the EU institutions and the respective national governments with points of criticism and suggestions for improvement for eight national recovery plans.