Investing in a green future
To achieve the goals set by the European Green Deal, the Commission has pledged to mobilise at least €1 trillion in sustainable investments over the next decade.
30% of the EU’s multiannual budget (2021-2028) and the EU’s unique NextGenerationEU (NGEU) instrument to recover from the COVID-19 pandemic, has been allocated for green investments.
EU countries must devote at least 37% of the financing they receive under the €672.5 billion Recovery and Resilience Facility to investments and reforms that support climate objectives. All investments and reforms to be financed in this way must do no significant harm to the EU's environmental objectives. The Commission, on behalf of the EU, intends to raise 30% of the funds under NGEU through the issuance of green bonds.
EU Cohesion policy
The EU Cohesion Policy helps EU countries, regions, local governments and cities to implement large investments that contribute to the European Green Deal. They must devote at least 30% of what they receive from the European Regional Development Fund to these priorities. In addition, 37% of the Cohesion Fund will contribute specifically to achieving climate neutrality by 2050.
The Commission has put in place the European Green Deal Investment Plan (EGDIP), also referred to as Sustainable Europe Investment Plan (SEIP), as part of the Green Deal. This includes the Just Transition Mechanism, which focuses on ensuring a fair and just transition to a green economy. It will mobilise significant investments over the period 2021-2027 to support citizens of the regions most impacted by the transition.
Mobilising public and private investments
The InvestEU programme will contribute to this effort and provide the EU with crucial long-term funding by leveraging substantial private and public funds. The InvestEU Regulation provides that the InvestEU fund as a whole will target at least 30% of investment contributing to climate objectives. A dedicated Just Transition Scheme will generate additional investment to the benefit of Just Transition territories in complementarity with the Just Transition Fund and the public sector loan facility.
In addition, sustainable finance measures, including the Taxonomy Regulation for classifying green investments, will contribute to the European Green Deal by boosting private sector investment in green and sustainable projects.
The European Commission adopted a set of proposals to make the EU's climate, energy, transport and taxation policies fit for reducing net greenhouse gas emissions by at least 55% by 2030, compared to 1990 levels. More information on Delivering the European Green Deal.