A new budget for a new Europe
Right now Europe’s leaders are planning how to spend hundreds billions of euros that will be the new EU budget after 2020. The EU budget can and should play an important role in protecting the environment and climate, driving sustainable development and leading a low-carbon transformation across central and eastern Europe and beyond – here’s how:
The Budget is a proven tool in the fight against climate change, and the European Commission is proposing that one in every four euros be spent on climate action. But what about the other three quarters of the trillion euro Budget? The scale of investments needed to transform Europe’s society such that it meets the ambitious goals of the 2050 climate and energy targets is so massive that we cannot afford one cent more on projects like fossil fuels that block from this pathway.
A visionary Budget that is placed-based and participatory can transform the regions of Europe regions that need it most, especially those in central and eastern Europe that are overly reliant on coal. The right combination of incentives and conditions is needed, with a focus on investments in clean energy, thermal retrofits and targets for homes generating their own renewable energy. Incentives are also needed to compensate for the political costs of pursuing such investments, especially in places that depend heavily on mining but are moving away from coal.
The added value of the Budget in promoting EU values, policies and legislation is key to enhancing citizens’ belief in the European project. Yet unaccountable and untransparent spending results in harmful investments that erodes this trust. The next Budget should enable citizen participation in the design, spending and monitoring of all investments and programmes, and offer the possibility for redress when Budget spending fails to live up to this potential. The Budget should take inspiration from local communities who are finding their own solutions to the climate crisis and leading the just transition.
For nearly three decades, the EU budget, and especially sectoral instruments like the Cohesion Policy, have been a proven catalyst in the fight against climate change and the transition to a low-carbon energy system. By providing public investments in cleaner transport, energy and construction, which are major sources of greenhouse gas emissions in Europe, the next multiannual financial framework (MFF) can shape our response to the challenges posed by climate change.
We are currently debating the EU budget for the years 2021-2027, at a time when it has never been more urgent to invest heavily in clean energy and low-carbon technologies.
To ensure that the next budget works for the climate and for the people, it should follow the basic principles highlighted in our vision for the next Budget: climate should be at the forefront of any spending, aimed at achieving the 2030 energy objectives; funds should be disbursed in a transparent manner, and should enable the involvement of local actors and communities.
From Europe’s municipalities to Brussels corridors
With the help of our member groups, our work stretches from local to international level.
Our decades of experience in monitoring EU spending shows:
– Highly problematic investments deemed as ‘climate-friendly’ because of the inconsistent and incomplete definitions of ‘climate mainstreaming’ in Slovakia and the Baltics;
– Lack of strong accountability and transparency provisions enabling the misuse of EU funds in Bulgaria and Latvia;
– Smart use of EU funds unlocking the potential of the countries to achieve their 2030 climate and energy targets in the Czech Republic;
… and more.
Case studies
Across central and eastern Europe a number of examples demonstrate how well spent EU funds can support the transformation to a clean energy system. Most of these projects are happening at the local level and show what a citizen-led transformation should look like.
Community biomass production, Slovakia
Primary school renovation, the Czech Republic
Largest residential renovations, Latvia
The energy efficient city in the Czech coal region
From pastures to industrial areas, Romania
Just transition – no one should be left behind
Training for partnership, Latvia
… But poor planning and projects without community support often create problems for the environment and local people and give EU funds a bad name. We are working to change that.
A motorway destroys a pristine gorge in Bulgaria
European Fund for Strategic Investments (EFSI)
Climate’s enfants terribles
A dubious tram divides Riga
Sofia waste incineration, Bulgaria
EU funds hall of shame
Slicing the S7 motorway, Poland
Revitalising after mining, Slovakia
Rail Baltica, Estonia
LATEST UPDATES
EU parliament reverses course, votes for strong action on climate with future funds for Europe’s needy regions
Press release | 27 March, 2019For immediate release. Brussels, Prague – A vote today by the Parliament has excluded fossil fuels from the EUR 320 billion European Regional Development Fund (ERDF) and Cohesion Funds for 2021-2027, signalling a clear commitment to the EU’s obligations to reduce greenhouse gases under the Paris Agreement and its net-zero emissions Long Term Strategy.
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Energy Community: Western Balkan coal subsidies worth over 1.2 billion euros in 2017
Press release | 25 March, 2019For immediate release. Energy Community countries propped up coal mining and electricity generation with direct and indirect public subsidies totalling at least 2.4 billion annually, out of which around half were provided by Western Balkan countries, shows a study (1) released today by the Vienna-based Secretariat of the Energy Community Treaty, the international treaty working to integrate the energy markets of the EU with those of its neighbours.
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Lack of ambition on full display as eastern Member States graded on first climate and energy plans submitted to Commission
Press release | 22 March, 2019Member States across central and eastern Europe continue to do less than their fair share in setting the course for the EU to meet its long-term energy and climate commitments, finds a new Bankwatch analysis [1] of the national energy and climate plans (NECP) in eight Member States.
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LATEST PUBLICATIONS
Review of eight national energy and climate plans (NECPs) in central and eastern Europe
Publication | 22 March, 2019Web-version of the briefing Our analysis shows that most countries in central and eastern Europe are not committed to an ambitious energy transformation and instead stay as close as possible to business as usual scenarios. Moreover, the development of
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EU funds maladministration complaint to the European Ombudsman
Publication | 31 January, 2019The matter of concern is the use of EU Cohesion funds for deterioration of the conservation and integrity of habitats and species in Kresna gorge (Bulgaria) protected by EU law and International Conventions. The EC did not prevent and ensure that the S
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Position on the Multiannual Financial Framework
Publication | 9 July, 2018For nearly three decades, the EU Budget, and especially sectoral instruments such as the Cohesion Policy, has been a proven catalyst in the fight against climate change and the transition to a low-carbon energy system. By providing public investments i
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