Shifting Financial Flows

The Polish government is on the hunt for securing yet another stream of subsidies to its coal industry, two weeks after EU leaders agreed on an enhanced climate target by 2030. But the European Commission can stop this, write Elif Gündüzyeli and Joanna Flisowska.

This document sets out our feedback to the European Commission’s draft Delegated Act on the EU Sustainable Taxonomy, for economic activities having a substantial contribution to climate mitigation and climate adaptation while doing no significant harm (DNSH) to climate and environmental objectives.

The current status of the TEN E revision is not in line with the Commission’s proposal for a 55% climate target for 2030, and much less with the science-based target of 65%. It is necessary to end subsidising unneeded fossil gas projects today, to reach those targets and avoid converting billions of consumers’ and taxpayers’ money into stranded assets in ten years’ time.

MEDIA ADVISORY

On 8-9 December, the Commission, Parliament and Council will take a final decision on the 240 billion euro Regional Development and Cohesion Funds, and the 17.5 billion euro Just Transition Fund. Legislators are expected to horse trade a deal that will allow the financing of fossil gas. EU funding for fossil gas would breach the European Green Deal’s ‘do no significant harm’ principle.

The Recovery & Resilience Facility (RRF), the Just Transition Fund (JTF) and the European Regional Development Fund and Cohesion Fund (ERDF/CF) represent an unprecedented investment in EU economic recovery, structural reforms and regional development. 

At a European summit dedicated to enhancing the EU’s response to the COVID outbreak, prime ministers of Poland and Hungary reiterated their opposition to the EU budget and recovery funds on the issue of the rule of law, while a quick endorsement of the financial stimuli is needed to allow all EU countries to both relaunch their economies and finance a just and clean energy transition in line with a higher 2030 emission reduction target, a decision that is due to be made at the

Key elements of the EU’s foreign policy funding will be finalised during ‘trilogue’ talks this week. Raising the climate spending target there could make a vital difference to supporting partner countries to deliver green recovery plans, writes Rachel Simon.

The two lead-committees of the European Parliament failed to fully exclude fossil gas from the scope of the 672,5 billion euro Recovery and Resilience Facility (RRF), contradicting the Parliament’s multiple earlier commitments to end fossil fuel subsidies or the recent call for 60% greenhouse gas emission cuts in the EU by 2030.

Ahead of the vote of the two lead-committees of the European Parliament on the EU recovery fund, MEPs call for an exclusion of fossil fuels – including gas – from EU public funds, especially the Recovery and Resilience Facility (RRF), in a cross-party letter.

MEDIA ADVISORY

On Monday 9 November, the two lead-committees of the European Parliament on the EU recovery fund are set to decide on the scope of the 672,5 billion euro Recovery and Resilience Facility (RRF), and whether or not fossil fuels will be eligible. If the Parliament is serious about achieving ambitious emissions reductions in the next decade, all fossil fuels must be excluded from the fund.

Green 10 members are calling on the European Parliament to exclude fossil fuels from the EU recovery fund, the Recovery and Resilience Facility, ahead of a key vote in the Economic and Budget committees.

CAN Europe on behalf of member groups in France, Germany and Spain urged the European Commission to take all the necessary measures to ensure all national and EU recovery funding is truly delivering on climate action and the ecological transition.

The European Parliament has adopted its position on the Just Transition Fund (JTF), and has allowed for fossil gas subsidies to be included while the goal of the fund is to support fossil-fuel reliant regions in their swift transition to climate neutrality, away from fossil fuels. This vote clearly contradicts last week Parliament’s call for much-needed 60% greenhouse gas emission cuts in the EU by 2030, and multiple earlier commitments to end fossil fuel subsidies.