EU parliament reverses course, votes for strong action on climate with future funds for Europe’s needy regions

Climate Action Network (CAN) Europe and CEE Bankwatch Network have welcomed the outcome of the plenary sitting in Strasbourg, calling the result great news for the EU and its regions and an acknowledgement of the need for a rapid and comprehensive shift in Europe’s investment landscape.

The vote reverts back to the initial proposal from the European Commission on the ERDF from May 2018 that prohibited funding for projects with heavy environmental impacts like fossil fuels.

The outcome solidifies the final negotiating position of the Parliament that it will use in discussions with the European Council and Commission when the parties begin the so-called trialogues in October, and indicates a readiness for Europe to continue a progressive approach to climate finance.

Raphael Hanoteaux, EU policy officer with CEE Bankwatch Network, said: “The Parliament understands that business as usual is no longer an option, and fossil fuels have no place in the future of Europe’s financing. This vote sets a clear direction for a clean and sustainable Cohesion policy that will bring certainty to managing authorities, investors, and local stakeholders as they plan projects for Europe’s energy transformation.”

Markus Trilling, Finance and Subsidies Policy Coordinator at Climate Action Network (CAN) Europe, said: “Today’s vote is a good result for citizens and the economy. Investing in renewable energy and energy savings instead of financing fossil fuels will trigger the transition needed to modernise Europe’s regions and will help meet the EU’s climate objectives.”