Skip to content

European Commission announces €1tn Green Deal ambition


From pv magazine global

The European Commission has announced an ambition to generate €1 trillion to finance its European Green Deal.

The commission threw down the gauntlet to EU member states and the European Parliament yesterday by emphasizing the urgency of pushing through the climate change funding arrangement as talks over the bloc’s next long-term budget near completion.

In an announcement of the financing ambition released by the commission, new president Ursula von der Leyen said: “The transformation ahead of us is unprecedented. And it will only work if it is just and if it works for all. We will support our people and our regions that need to make bigger efforts in this transformation, to make sure that we leave no one behind. The Green Deal comes with important investment needs which we will turn into investment opportunities. The plan that we present today, to mobilise at least €1 trillion, will show the direction and unleash a green investment wave.”

EU budget

To progress, the deal will now have to be approved for inclusion in the bloc’s 2021-27 long-term budget – in ‘EUese’, the multi-annual financial framework.

The EU loves an initialism or two and the newly announced Sustainable European Investment Plan (SEIP) or European Green Deal Investment Plan (EGDIP) envisages €503 billion being contributed from the next seven-year budget, with an additional €25 billion from the funding allocated for the bloc’s emissions trading scheme during that period.

The InvestEU program 75% guaranteed by the European Investment Bank (EIB) will generate €279 billion from its parent, member state national banks and international lenders.

Member state bill

Member state structural funds will be expected to contribute €114 billion and the €79 billion balance appears to be expected from member state contributions to a proposed ‘Just Transition Mechanism’ – intended to help areas most effected from the shift away from fossil fuel generation.

The Just Transition funding is planned to amount to at least €100 billion – rising to a total €143 billion up to 2030. Some €30-50 billion of that will include a newly announced €7.5 billion on top of existing long-term EU budget allocations for the energy transition, which will be expected to trigger the other €22.5-42.5 billion due to a requirement for member states to match-fund the initial €7.5 billion from their European Regional Development Fund and European Social Fund Plus windfalls as well as making substantial further contributions.

A just transition

InvestEU will be expected to attract €45 billion of the Just Transition cash from private investment and the EIB will open a €25-30 billion facility offering affordable loans to the public sector in member states. A legislative proposal for that loan facility – which would include €10 billion from EIB funds and €1.5 billion from the EU budget – is expected in March.

The Just Transition Fund, the commission said, will be intended “to help workers and communities which rely on the fossil fuel value chain” and efforts will be made to circumvent any state-aid related restrictions which would otherwise apply.

With coal-dependent nations such as Poland apparently offered such a generous package, it is now over to member states to ensure the ambitious program becomes enshrined in the seven-year budget.

This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact:



Related content

Elsewhere on pv magazine...

Leave a Reply

Please be mindful of our community standards.

Your email address will not be published. Required fields are marked *

By submitting this form you agree to pv magazine using your data for the purposes of publishing your comment.

Your personal data will only be disclosed or otherwise transmitted to third parties for the purposes of spam filtering or if this is necessary for technical maintenance of the website. Any other transfer to third parties will not take place unless this is justified on the basis of applicable data protection regulations or if pv magazine is legally obliged to do so.

You may revoke this consent at any time with effect for the future, in which case your personal data will be deleted immediately. Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled.

Further information on data privacy can be found in our Data Protection Policy.

This website uses cookies to anonymously count visitor numbers. To find out more, please see our Data Protection Policy.

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.