An EU budget to achieve Europe’s climate objectives
About
The European Commission is currently discussing the next multiannual budget of the EU (Multiannual Financial Framework – MFF), for the period 2021-2027. Energy cities joined a broad group of business associations, civil society, think tanks and other organisations in a letter to President Junker. We wanted to make sure that the EU’s future finances are aligned with Europe’s climate objectives and consistent with the engagements taken at international level. To keep it short, the EU executive should put the money where its mouth is!
Below our 3 asks to President Junker:
• Increase the share of climate spending to a significantly higher level than 20% across the whole EU budget.
• Climate proof the entire EU budget, and do not invest in projects that are not in line with the Paris Climate Agreement, such as spending on unabated fossil fuels infrastructure and environmentally harmful subsidies.
• Align finance flows and fiscal incentives to a low carbon pathway. EU funding should serve the achievements of EU 2030 climate and energy targets and the 2050 vision of a decarbonised EU economy.
What next?
The multiannual financial framework proposal, tabled by the EU Commission for the beginning of May is only the first step. By mid-June, the EU executive will communicate how the funds will be spent under each of the priorities and funding programmes. After that, the 27 EU Member States through the Council and the EU Parliament will discuss the text and propose their amendments.
At Energy Cities, we intend to follow the entire process and participate in the debate. We will analyse the MFF and funding programmes proposed, to understand how resources can be channelled towards the local energy transition.
