The EU will invest another 20 billion euros in energy transition

The European Parliament and the Council decided to allocate an additional 20 billion euros to investment in the energy transition that will reduce dependence on Russian fossil fuels

The European Parliament and the Council have reached an agreement to dedicate an additional amount of 20 billion euros to the Member States of the European Union (EU) to accelerate the green transition and reduce dependence on Russian fossil fuels.

The agreement, reached this Wednesday morning by the negotiators of both institutions, establishes that the EU countries that request to receive additional funds through a modified recovery and resilience plan must, after the entry into force of this proposal, include measures to save energy, produce clean energy and diversify supplies.

The new rules will cover, retroactively, measures implemented since February 1st, 2022, although with some limited exceptions.

These additional €20 billion in subsidies will be distributed to member states, taking into account their energy dependency ratio and the share of fossil fuels in gross inland energy consumption.

Of the total amount proposed by the Commission, €8 billion will come from a previous auction of national emission allowances under the EU’s Emissions Trading Scheme (ETS), while the other €12 billion will come from the Innovation Fund.

The provisional political agreement must now be approved by both committees of Parliament, before being put to a vote in plenary, while the Council must also approve the agreement for it to enter into force.

Source: dpa

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