The European Commission got a rude awakening from its green dreams as critics assailed its financial plans to tackle climate change. The Commission foresees some of the Just Transition Mechanism cash coming from money given to national governments for cohesion funding, meant to reduce inequalities within the EU.
Ursula von der Leyen's Commission on Tuesday unveiled proposals for a €1 trillion, 10-year European Green Deal Investment Plan, intended to help Europe become the first carbon-neutral continent by 2050.
But the EU executive immediately faced questions about how such a large amount of money would be generated. Its plans rely on fresh money from the next long-term EU budget, which is currently the subject of fierce negotiations among member countries. They also rely on national governments using other EU cash for green purposes and on the European Investment Bank (EIB), private investors and public bodies coming up with much of the money.
"Creative accounting and financial adventures will not get the Commission very far towards finding the €1 trillion needed to fund their new climate and energy plans," said Van Overtveldt, a member of the European Conservatives and Reformists group.
"The Green Deal comes with important investment needs, which we will turn into investment opportunities," von der Leyen said. "The plan that we present today, to mobilize at least €1 trillion, will show the direction and unleash a green investment wave."
Many EU countries are slated to face steep cuts in cohesion funding under the Commission's proposals for the 2021-2027 budget cycle.
The EU executive also envisages leveraging public financing and generating private investment through the InvestEU program, as well as member countries pitching in funds from their national budgets.
Full article on POLITICO
© POLITICO
Key
Hover over the blue highlighted
text to view the acronym meaning
Hover
over these icons for more information
Comments:
No Comments for this Article