Europe has ambitions to become the first climate–neutral continent. But transforming energy systems, especially in central and eastern Europe, requires substantial investment due to outdated infrastructure and reliance on fossil fuels.
While the EU budget currently funds this transition, the key challenge is to ensure impactful, high-quality investments that are both environmentally and socially just.
Involving citizens in investment decisions leads to better outcomes, including greater acceptance, a stronger sense of ownership, and fewer harmful projects.
Bankwatch works to align EU financial flows with the European Green Deal objectives, ensuring they meet the needs of people and the planet.
IN FOCUS
Just transition
Countries across central and eastern Europe are committing to quit coal and shale oil. Now the task is to ensure that the just transition is driven from the bottom up and leaves no one behind as we move towards a sustainable energy future.
Building back biodiversity
Threats facing biodiversity are increasing alongside the drivers of the climate crisis. But investments in climate protection should not come at the expense of those that can help biodiversity. The two crises of climate and biodiversity are interconnected and both must be tackled together, because only by investing in nature can we tackle climate change.
RegENERate: Mobilising Regions for Energetic Re-development and Transformative NECPs
The overall objective of the project is to support the CEE countries’ contribution to the EU efforts towards a net-zero emissions future. The project will contribute to more ambitious and effective climate and energy policies in CEE, backed by a long-term commitment to phase out fossil fuels, improve energy efficiency and promote renewable energy.
RePower the Regions: Ambitious and inclusive clean energy plans for repowering the just transition regions
The participation and leadership of carbon-intensive regions in transitioning to clean energy solutions are prerequisites for achieving EU climate neutrality by 2050. Building on this premise, RePower the Regions aims to ensure that the regions’ clean energy plans are aligned with EU 2030 climate goals and have strong support locally, and to provide practical guidelines and roadmaps on how to repower the regions.
Latest news
Can the EU’s Social Climate Fund reach vulnerable households in Estonia?
Blog entry | 5 March, 2026As Estonia prepares for the EU’s next long-term budget and financial instruments, it is equally important to assess how these new support measures are designed and reviewed. In collaboration with national authorities, we at the Estonian Green Movement are actively seeking solutions to ensure that support effectively reaches vulnerable households. To assist in this process, the Centre of Applied Social Sciences at the University of Tartu has developed a data-driven model that gives these households a fairer chance of accessing support.
Read moreHungary’s energy transition at risk due to missed EU milestones
Blog entry | 29 December, 2025Hungary is moving to scale back its national recovery and resilience plan, reflecting the government’s struggles to complete the reforms and investments required by the European Commission under the Recovery and Resilience Facility by the end of August 2026.
Read moreThe ‘do no significant harm’ principle revisited – lessons from Poland for the next EU budget
Blog entry | 16 December, 2025The ‘do no significant harm’ (DNSH) principle is supposed to prevent EU funds from being invested in projects that harm the environment and undermine climate action. Though the principle is meant to increase awareness of the importance of environmental aspects in EU-funded projects, weak and incoherent implementation has hampered its effectiveness across the EU. Lessons learnt in Poland, the largest beneficiary of EU funds, can help improve the application of the ‘do no significant harm’ principle in the next EU long-term budget.
Read moreRelated publications
The EU Recovery Funds: time to start properly investing in biodiversity and nature conservation
Briefing | 18 March, 2021 | Download PDFThe state of nature is in crisis. A recent European Environmental Agency (EEA) report reveals that 81 per cent of habitats in Europe are in ‘poor condition’, and without swift action this dire situation will only become worse. We need systemic and wide
Status of the Territorial Just Transition Plans in central and eastern Europe (3 March Update)
Briefing | 3 March, 2021 | Download PDFTerritorial Just Transition Plans (TJTPs) are a precondition for European Union Member States to access the Just Transition Fund (JTF), worth EUR 17.5 billion. The documents must outline the expected transition process; the most affected territories an
District heating – the role of EU investments in Latvia
Study | 10 February, 2021 | Download PDFHeating is a basic need in Latvia, where the average heating season lasts 200 days. More than half (58%) of Latvia’s primary energy consumption is used for heating. This report from Bankwatch and Green Liberty analyses the district heating projects implemented in Latvia with the support of EU funds during the last 20 years.
