Climate protection: The green trillion-dollar deal

With the help of the Green Deal, Europe is to become the first climate-neutral continent by 2050. The EU Commission has now unveiled its plans to finance the ecological transition.

The the European Commission has her Investment plan for Green Deal In the next ten years, she intends to at least one trillion euros of public and private investment. The plan is intended to complement other initiatives within the Green Deal and is based on three pillars:

• Financing: Over the next ten years, sustainable investments worth at least one trillion euros are to be initiated. At least a quarter of the long-term EU budget is to be spent on climate action. This should help mobilize private investment. The European Investment Bank is to play a central role in this.
  
  
• Mobilization: The Commission aims to create incentives to mobilize and redirect both public and private investment. Sustainable finance will be a key focus, providing investors with the necessary tools. The Commission aims to facilitate public investment by promoting green budgeting and procurement. Particularly affected regions will be given opportunities for simplified state aid approval to accelerate structural change. This should ensure a just transition.
  
  
• Practical support: The Commission aims to support public authorities and project promoters in the planning, design and implementation of sustainable projects.

Just Transition Mechanism

More information on the Green Deal  Another proposal from the Commission is the Just Transition Mechanism. This is the central instrument to ensure that the Structural change particularly affected regions, which, for example, are heavily dependent on coal-fired power generation, can be implemented as quickly as possible.

This mechanism is intended to provide targeted support to mobilise at least 100 billion euros in the period 2021 to 2027 in the most affected regions. 

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"The Just Transition Mechanism will help support those most affected by investing more attractive and propose a package of financial and practical support amounting to at least 100 billion euros. We are therefore advocating Solidarity and fairness ", said the Executive Vice President Frans Timmermans when presenting the plans.

The Just Transition Mechanism will consist of three main funding sources:

• Fund with EU funding (7,5 billion euros),
• Transitional arrangements for the InvestEU investment plan, which has been running since 2014 (mobilising up to EUR 45 billion from the private sector for sustainable energy and transport)
• Credit line, guaranteed by the EU budget, at the European Investment Bank for the public sector (mobilisation of up to EUR 30 billion).

Source: European Commission