Financing EU climate action – reinforcing climate spending and
mainstreaming in the next Multiannual Financial Framework (MFF)
1
EU climate finance, alongside Member State and private finance, plays a significant role
in
achieving
the 2030 climate and energy targets and the long-term goals defined in the
Paris Agreement. Besides a very robust and solid legal framework to implement these
targets, a relative increase of climate-friendly investments in the public and private sector is
urgently needed. It has been estimated that the yearly investments gap for achieving the
EU´s climate and energy targets is almost 180 bn. EUR between 2021-2030
2
It is clear that
an ambitious climate and energy policy requires a coherent funding structure.
Without prejudicing upcoming negotiations, the
next MFF
will have an
important role
to
make the EU funding structures coherent with the EU mid- and long-term climate and
energy targets.
Setting the right example: Public funding as role model
The allocation of public funding is important
to set the right example in this regard
and
transform public budgets into sources for green and future-oriented
investments.
Therefore, the EU budget needs to address future challenges including
catalysing the required greenhouse gas emission (GHG) reduction in our economies and
societies.
The agreement of the EU to spend at least 20% of its total funding resources between
2014-2020 on climate action and to mainstream climate funding across all spending areas
has been an important and necessary step in the right direction. It corresponds to a sum of
at least 180 bn. EUR
throughout the whole period of the current MFF.
While the target has driven integration of climate across the budget programmes, current
analysis by the Commission and the European Court of Auditors (ECA) show that the
climate spending target for the current MFF is very likely to be missed, with an average
between 2014-2016 of 17,6%
3
and a forecast for the whole MFF period of 18,9%
4
. The
potential improvements in the implementation of the climate spending target need to be
addressed to make sure that the next target will be achieved.
At the same time, it is clear that the transition to a low greenhouse gas emission economy
and society will require suitable and appropriate EU funding instruments in the next funding
period. Thereupon, necessary climate-related investments can be put in place for a timely
transition.
It is also important that the EU contributes to the objective of mobilizing $100bn per year of
public and private climate finance to developing countries from 2020.
Points to be taken into account for the next MFF
The statement of the Green Growth Group is without prejudice to the powers of the budget authority
.
https://publications.europa.eu/en/publication-detail/-/publication/1df19257-aef9-11e7-837e-01aa75ed71a1
3
https://www.eca.europa.eu/en/Pages/DocItem.aspx?did=39853
4
http://ec.europa.eu/budget/biblio/documents/2018/2018_en.cfm#draft_budget01
2
1