The purpose is to strengthen the strategic autonomy of the EU by diversifying its energy supplies and ending its dependency on Russian fossil fuel imports. This is the final step of the adoption procedure.
The Council today formally adopted an amending regulation to include REPowerEU chapters in the Recovery and Resilience Facility. The purpose is to strengthen the strategic autonomy of the EU by diversifying its energy supplies and ending its dependency on Russian fossil fuel imports. This is the final step of the adoption procedure.
In practical terms, member states will be able to add a new REPowerEU chapter to their national recovery and resilience plans (RRPs) under NextGenerationEU, in order to finance key investments and reforms that will help achieve the REPowerEU objectives.
Among the key objectives of REPowerEU are increasing the resilience, security and sustainability of the EU’s energy system through the needed decrease of dependence on fossil fuels and diversification of energy supplies at EU level, including by increasing the uptake of renewables, energy efficiency and energy storage capacity.
Additional grants of €20 billion will be made available to finance the investments and reforms. The financing sources will be the Innovation Fund (60%) and frontloading ETS allowances (40%).
The allocation key is a formula which takes into account cohesion policy, member states’ dependence on fossil fuels and the increase of investment prices.
Member states will have further opportunities to request loan support including in the case of requests above 6.8% GNI where the relevant conditions apply. Member states will have the possibility of voluntary transfers from the Brexit Adjustment Reserve (BAR).
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