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

Contributing to the alignment of EU fiscal policy to the European Green Deal.


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


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.

Project information

Updated: June 2021

Countries: Belgium, Bulgaria, Czech Republic, Hungary, Lithuania, Romania, Slovakia, Slovenia

Project duration: 10/20 - 08/21

Target groups: Civil Society, EU Institutions, Governments

Implementing organisation: European Environmental Bureau (EEB)

Contact Person:

Ms Barbara Mariani

EEB (European Environmental Bureau)

Rue des Deux Eglises 14-16
B-1000 Brussels



The European Climate Initiative (EUKI):

Potsdamer Platz 10,
10117 Berlin – Deutschland
Tel.: +49 (0)30 338424 570

The European Climate Initiative (EUKI):

This project is part of the European Climate Initiative (EUKI). EUKI is a project financing instrument by the German Federal Ministry for Economic Affairs and Climate Action (BMWK). The EUKI competition for project ideas is implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH. It is the overarching goal of the EUKI to foster climate cooperation within the European Union (EU) in order to mitigate greenhouse gas emissions.

For more information on the EUKI: www.euki.de