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EU leaders agree on budget, green recovery funds, 55% emission cut goal

By District Energy posted 12-15-2020 17:44


Balkan Green Energy News


The European Council approved the European Union’s EUR 1.82 trillion seven-year funding package and sent it to the European Parliament. The regular budget is worth EUR 1.07 trillion and the remaining EUR 750 billion is a recovery instrument called NextGenerationEU. The bloc’s leaders called for a cut in emissions by 55% in the next decade.

“This has underlined indeed Europe’s capacity to act in the face of the worst crisis the EU has ever faced… The launch of NextGenerationEU is also a key component of our climate ambition. Now, that we have secured the funding, we have the means for our actions,” said European Commission President Ursula von der Leyen, pictured left with European Council President Charles Michel and German Chancellor Angela Merkel.

The European Green Deal initiative is aimed at establishing a Just Transition Mechanism. The EUR 17.5 billion Just Transition Fund is its core element for mitigating the social impact of greening the economy in regions dependent on coal or otherwise affected by the energy transition.

The main EU institutions agreed to extend the scope of the proposed fund to micro-enterprises, universities and public research institutions, digital innovation and activities in the areas of education and social inclusion. Other projects eligible for the grants are renewable energy and energy storage technologies, investments in energy efficiency and heat production for renewables-based district heating, smart and sustainable local mobility.