The European Commission’s new Sustainable Europe Investment Plan and the Just Transition Mechanism published today aim to support its plan of EU to reach climate-neutrality by 2050 (when greenhouse gas emissions and removals are balanced). The idea of these investment projects is to focus on those regions and sectors that are most affected by the transition given their dependence on fossil fuels.
Finnish Industries see that the investment needs in Europe are significant as we are making the transition to the low carbon economy, and find the shift of the focus of EU funding to climate action important and welcome. The criteria to receive funding however needs to be effective, fair and transparent and the follow-up as to where the investments were spent efficient. The allocated funding should genuinely advance climate-neutrality and no means to reduce emissions should be categorically excluded, such as nuclear energy or the combined use of carbon capture and storage.
The Sustainable Europe Investment Plan aims at mobilising at least EUR 1 trillion of investments over the upcoming decade. The Just Transition Mechanism makes part of the Investment Plan and is made up of different sources. The Commission asks €7,5 billion new financing from the Member States from their cohesion funding allocations in addition to national budgets. €45 billion would be mobilised through InvestEU climate programme and €25 to €30 billion in investment using public loan facility with the European Investment Bank.