Supporting climate action through the EU budget

EU budget 2021-2027: Commission proposes to further strengthen climate action

In its communication of 2 May 2018, the Commission proposes to build on the positive experience with climate mainstreaming and further strengthen climate action in the next EU long-term budget.

“More broadly, in line with the Paris Agreement and the commitment to the United Nations Sustainable Development Goals, the Commission proposes to set a more ambitious goal for climate mainstreaming across all EU programmes, with a target of 25% of EU expenditure contributing to climate objectives.”
Climate Mainstreaming contributing to climate change 20% of the Multiannual Financial Framework 2014-2020, EU 28 = € 206 billions	/clima/file/maintreamingpng_romaintreaming.png	x1.6       25% of the Multiannual Financial Framework 2021-2027, EU 27 = € 320 billion Combined increase = + € 114 billion

This increase in ambition is supported by Commission proposals to strengthen climate action in key areas, such as agriculture and rural development and external action, and increase dedicated funding for climate action under the LIFE programme.

The Commission published its proposals for individual funding programmes in May and June.

Factsheet: EU budget for the future – Sustainability, environment protection and fight against climate change

EU budget 2014-2020: Climate integrated into all spending areas

The EU has agreed to make at least 20% of EU expenditure climate-related in 2014-2020.

Climate change mitigation and adaptation has been integrated into all major EU spending programmes. Programmes under cohesion policy, agriculture, research and innovation and the Connecting Europe Facility currently account for more than 90% of EU climate-related spending.

Mid-term reviews and other evaluations of individual programmes take stock of the progress made and opportunities to further strengthen climate action.

Tracking progress towards the spending target

The EU is broadly on track towards the 20% target, but further efforts are needed. Based on the current trend, the climate-related spending under the 2014-2020 budget is projected to amount to 200 billion or 18.8% of the EU operational spending commitments.

Financing commitments are tracked and reported under the annual budget procedure.

The tracking is done using EU climate markers, which adapted from the ‘Rio markers’ developed by the OECD to provide quantified financial data for tracking development assistance.

The markers reflect the specific features of each policy area and assign a weighting to activities based on their contribution towards climate objectives: significant (100%), moderate (40%) or insignificant (0%). The assessment is based on the programme statements in the context of the annual budget procedure.

Around 80% of EU budget is managed by Member States. They report on climate spending under the five European structural and investment funds using an established methodology.

Options for strengthening the climate relevance of EU budget

The Commission considers a wide range of inputs when preparing its proposals for the next EU budget.

On climate mainstreaming, that includes:

• Mid-term review of the Multiannual Financial Framework, which took stock of cumulative progress and provided consolidated information on programmes (September 2016)
• European Court of Auditors' special report 31/2016 on progress towards integrating climate in the EU budget (November 2016) and the related Council conclusions (March 2017)
• Calls by the European Parliament, e.g. 14/03/2018 Resolution on the next MFF)
• Reports by the high-level expert group on sustainable finance (2017, 2018)
• Study on climate mainstreaming in the EU budget commissioned by DG Climate Action (October 2017)   

Studies

• 09/2017 - Report: Climate mainstreaming in the EU budget: Preparing for the next MFF
  • The Report
  • Presentation from the 18/10/2017 Stakeholder meeting
• 04/2017 - Study on the mainstreaming of adaptation into the European Structural and Investment Funds (ESIF) 2014-2020
  • Annex A
  • Annex B
• 13/06/2016 - Study on the mainstreaming of climate action into the European Structural and Investment Funds (ESIF) 2014-2020
• 10/09/2015 - Study on climate mainstreaming in the programming of centrally managed EU funds

Useful documents

• 05/2017 - Statement of estimates of the European Commission for the financial year 2018 (Preparation of the 2018 Draft Budget)
• 21/03/2017 - Council conclusions 7495/17 on theca  special report 31/2016, adopted by ECOFIN
• 11/2016 – European Court of Auditors' Special report No 31/2016: Spending at least one euro in every five from the EU budget on climate action: ambitious work underway, but at serious risk of falling short
• 09/2016 - Mid-term review/revision of the multiannual financial framework 2014-2020
• 08/03/2014 - Commission Implementing Regulation (EU) No 215/2014 of 7 March 2014 laying down rules for implementing Regulation (EU) No 1303/2013 of the European Parliament and of the Council laying down common provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund, the European Agricultural Fund for Rural Development and the European Maritime and Fisheries Fund and laying down general provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund and the European Maritime and Fisheries Fund with regard to methodologies for climate change support, the determination of milestones and targets in the performance framework and the nomenclature of categories of intervention for the European Structural and Investment Funds
• 19/11/2013 - An EU budget for low-carbon growth
• 08/02/2013 - European Council Conclusions of 7-8 February 2013 on MFF 2014-2020 including provision on at least 20% climate related expenditure
• 23/10/2012 - European Parliament Resolution of 23 October 2012 on MFF 2014-2020 strongly supporting the Commission’s proposal to mainstream measures to combat climate change with the aim of at least 20 % of expenditure being climate-related
• 29/06/2011 - "A budget for Europe 2020 – Part II: Policy fiches" - Communication from the Commission to the European Parliament, the Council and the Committee of the Regions