Powering Net Zero Commitments

Green Recovery Priority in New EU Mammoth Budget Dubbed NextGenerationEU

The European Commission, the European Parliament and EU leaders have agreed on a coronavirus recovery plan which includes an increase of the climate action spending target to 30%. That is 30% of a mammoth overall package of 1.074 trillion euro EU budget.

The allocation to climate objective was part of an agreement reached on July 21 by the heads of state or government of the 27 EU member states, together with the European Council President and the President of the European Commission.

The agreement allows for a euro 1.074 billion long-term budget and a euro 750 billion COVID-19 recovery fund. This fund is dubbed NextGenerationEU.

Just two months earlier, more than 100 environment NGOs and more than 1.2 million European citizens called on the EU to stimulate the economy through massive green investment efforts.

At the time, Climate Action Network (CAN) Europe’s director Wendel Trio said: “The COVID-19 crisis teaches us that prevention is better than cure. Acting to prevent dangerous climate change is the best way to get Europe and the world out of this economic crisis in a way that protects citizens and economies from future disruptions.

The deal involves the European Commission raising up to euro 750bn on the financial markets to help the EU recover from the pandemic. This recovery fund consists of euro R 360 billion in loans and euro 390 billion in non-repayable grants.

The deal came after 90 hours of intense negotiations.

It was originally proposed that the grant portion should be euro 500, but the figure dwindled during the negotiations.

Although 30% of the total expenditure (long-term budget and recovery fund) has been allocated for climate objectives, emphasizing the EU’s commitment to the Paris Agreement and the United Nations Sustainable Development Goals, the agreement also brought disappointment as it involves spending cuts to major climate and environment initiatives.

Another concern is the lack of clear guidelines on how the money should be spent. There is no wording in the agreement that declares that no money will be spent on fossils.

When confronted with this concern, Ursula von der Leyen, President of the European Commission told Reuters that, ‘’There will be milestones you have to achieve as a member state before there is disbursement of the money.’’

The recovery plan is aimed at helping member states deal with the economic and social fallout of the coronavirus pandemic while at the same time helping economies to become greener and more sustainable.

Recent research by The University of Cambridge Institute for Sustainability found that at the EU level and at the member state level, green recovery measures lead to more jobs and better GDP growth both in the long term and in the short term.

Share this article on your social networks

Related Posts

Greenhouse Gas Emissions by Country: Understanding the Global Impact
Greenhouse gas emissions by country: Understanding the global impact. In this article, we will take a closer look at the top greenhouse gas emitting countries, ...
Read More
GHG Reporting: Understanding and Mitigating Greenhouse Gas Emissions
Greenhouse gas (GHG) reporting is the process of measuring, reporting, and ultimately reducing an organization's emissions. In this article, we will explore the basics of ...
Read More
5 key takeouts from the new IPCC Climate Report
The most recent 3.675 pages IPCC report has been hailed as the most searing indictment of the planet’s climate predicament. Here are 5 key takeouts.
Read More
Overwhelming majority of Australians look to Brands to make a climate difference
The research, released today at Nine’s State of the Nation Sustainability virtual event, showed that despite everyday Australians making changes to live more sustainably, the ...
Read More
67% of retail investors now prefer ESG investments
According to new research from behavioural finance experts, Oxford Risk, two out of three retail investors are considering transferring their investments into ESG propositions.
Read More
Massive and rapid swing. 75% of Australian businesses leaders believe world is at climate change tipping point: Deloitte Report
Australian business leaders are becoming a lot more concerned about climate change. This shift is according to a new report and it shows a significant ...
Read More
Climate Impact Measurement and Disclosure Growing Quickly Among Businesses
Many of the world’s biggest organisations have begun to share information concerning their carbon footprint in a new move that embraces transparency as organisations are ...
Read More
Explosive research for Australian businesses: people are turning down high paying jobs for 1 surprising reason
employed by a company that did not do its part to address climate change.
Read More
Australia Ranks Last Out Of 60 Nations For Climate Crisis Response Policy
Australia’s government policy response to the climate crisis was ranked last in an assessment of 60 nations released at the current global climate summit in ...
Read More

UNLOCK your 25% Early Bird enrolment discount

Action takers are winners! Get 25% off the enrolment fee for a limited time.

Let us redirect you to our 2024 Program Outline and email your time-sensitive discount code.