After four days and nights of intense negotiations, EU leaders have agreed a deal today on a post-corona recovery package and European budget for 2021-2027. They have also decided to link the budget to their climate objectives and increase the EU’s climate action spending target to 30%, with a view to achieving the new EU 2030 climate target that is to be updated by the end of the year.
In a statement, CAN said that investing in the transition towards climate neutrality presents a win-win situation for the “frugal four” (referred to Austria, the Netherlands, Denmark and Sweden, who were critical about the proposed size of the fund before it was green lighted and its mixture of grants and loans )and net-recipients in Southern and Eastern Europe. “It offers guarantees for the budget net-payers that EU funds will be spent wisely in line with higher climate ambition, in renewable energy and energy savings which provide three times more jobs than fossil fuels,” the group added. “What’s more, a green recovery will benefit the fossil fuel regions in their swift transition away from fossil fuels, and allow them to avoid escalating costs of climate change.”
Markus Trilling, finance and subsidies policy coordinator at Climate Action Network (CAN) Europe said: “This ambitious decision to link the recovery funds with EU’s climate commitments must now trickle down to the Member States’ spending plans. What leaders will put in their plans will define the EU’s response to both the climate and economic crises in the next ten years. Now, EU leaders must use the full potential of EU funds to boost climate action and exclude support to fossil fuels.”
Source: Bio Market Insights
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