EU’s Green Deal sets out trillion euro plan to avert ‘climate crash’

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EU budget chief Johannes Hahn said the bloc needs to invest dedicated funds to avert a “climate crash” as Brussels detailed how it planned to pay for a trillion euro push to cut net C02 emissions to zero by 2050 and protect member countries dependent on coal. The financial challenge for Europe is huge: Halving emissions by 2030 would require 260 billion euros of investment a year.

Hahn unveiled details using public and private money for this flagship project, the European Green Deal: Of the 1 trillion euros of the EU’s 10-year investment plan, roughly half is to come from the EU long-term budget. This will trigger more than 100 billion in co-financing from governments. Some 300 billion would come from private sources and another 100 from the EU’s Just Transition Fund.

All EU countries except Poland agreed last month they should transform their economies over the next 30 years to not emit more carbon dioxide than they absorb, so as to limit global warming and resulting climate changes. The deal came amid overwhelming support from Europeans who see irreversible climate change as the biggest challenge they are facing, more so than terrorism, access to healthcare or unemployment.

“I’m doing this in my grandson’s future interest,” Hahn, 62, said about his work on financing the EU’s shift to a green economy.

The Fund is to “benefit territories with high employment in coal, lignite, oil shale and peat production, as well as territories with carbon-intensive industries which will be either discontinued or severely impacted by the transition”, the Commission proposal said. The money will go to areas producing the most CO2 industrial emissions, where job losses and the need for teaching new skills and will take into account the overall wealth of the country so that a region in need of transition in the EU’s poorest Romania would get more money than a comparable region in Germany.

[Reuters]

This entry was posted in , , by Grant Montgomery.

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