Reaction to the European Court of Auditors’ report on the green transition in the EU’s recovery fund

The European Court of Auditors’ report on implementation of EU’s recovery fund, published yesterday, casts a new shadow over the contribution of the fund to the green transition. The court identified a series of weaknesses in the design and implementation of the investments for climate and environment. This means that less money is actually spent on the green transition than what is communicated by the Commission and Member States.  

These shortcomings include issues with the methodology to track climate investments as well as discrepancies between planning and implementation of the measures. Due to the recovery fund’s legal framework, as well as the Commission’s interpretation of the rules and the practices of Member States in spending the money, it is likely that the fund’s actual investments for the green transition are largely overestimated.  

The report shows it is necessary to develop a different approach which more accurately calculates the contribution of the Recovery and Resilience Facility to the green transition, as well as to establish higher standards for implementing climate and environment investments. In particular, this means a stricter approach to applying the ‘do no significant harm’ principle, as well as improved reporting on climate spending.  

The Commission will propose the EU’s long term budget post 2027 by mid-2025, and is regularly portraying the recovery fund as a blueprint for future funding streams. The inconsistencies and shortcomings related to climate and environment measures must be properly considered, with the necessary revisions being properly integrated when planning future EU funds.  

Christophe Jost, Senior EU Policy Officer says, ‘Climate and environment investments needs are only increasing. So, it is crucial that public funds for the green transition are spent with the highest standards, both in the design and implementation. The European Court of Auditors’ report shows this is not happening with the EU’s recovery fund so the Commission and Member States must revise their practices to ensure that what is communicated corresponds to what is happening on the ground’.  

For more information contact:     

Christophe Jost, Senior EU Policy Officer
christophe.jost@bankwatch.org