In line with the EU Green Deal the European Commission has promised that more money than ever before will be allocated to climate action, including a special fund to support a just and fair transition for carbon-intense regions and sectors.
The Commission wants to increase climate funding from 20% to 25% of the overall budget. This means from €206bn for the previous years to €320bn. The European Parliament has proposed an increase to 30%.
Once governments reach a common position, they will launch three-way negotiations with the Commission and Parliament before a compromise is agreed by the end of the year.
In a letter sent this week, the European Environmental Bureau (EEB) is urging EU governments to:
- Allocate at least 40% of the overall budget to climate and nature;
- Stop funding environmentally harmful activities, including new gas infrastructure and intensive farming. Funds should be used to boost clean energy as well as responsible business and farming practices.
- Provide details on how funding requests will contribute to the objectives of the EU Green Deal (e.g. through the ‘Partnership Agreements’);Improve governance and monitoring of how EU funds are spent and their impact.
Patrick ten Brink, EEB EU Policy Director, commented on the occasion:
This is one of Europe’s very last chances to reverse the climate crisis. EU governments have a moral and political obligation to ensure a credible and ambitious climate budget
This week’s meeting comes a month after the European Commission announced an investment plan that would help raise €100bn for European regions and industries to move beyond fossil fuels. According to the plan, the Commission proposed the development of a Just Transition Fund, which would bring in €7.5bn of extra money from national contributions.