To weather the deep recession triggered by the pandemic, Commission President Ursula von der Leyen has proposed a €1.85 trillion ($2 trillion) package consisting of a revised long-term budget and a recovery fund, with 25% of the funding set aside for climate action.
Under the commission's new plan, which requires the approval of member states, the mechanism will be expanded to 40 billion euros ($44 billion) and is expected to generate another 150 billion euros in public and private investment. The money is designed to help coal-dependent countries weather the costs of moving away from fossil fuels.
Environmental group WWF acknowledged the commission's efforts but expressed fears the money could go to “harmful activities such as fossil fuels or building new airports and motorways.”
“It can't be used to move from coal to coal," Frans Timmermans, the commission executive vice president in charge the European Green Deal, responded on Thursday. “It is unthinkable that support will be given to go from coal to coal. That is how we are going to approach the issue. That's the only way you can ensure you actually do not harm."
Timmermans conceded, however, that projects involving fossil fuels could sometimes be necessary, especially the use of natural gas to help move away from coal.
The commission also wants to dedicate an extra 15 billion euros ($16.5 billion) to an agricultural fund supporting rural areas in their transition toward a greener model.
Von der Leyen, who took office last year, has made the fight against climate change the priority of her term. Timmermans insisted that her goal to make Europe the world’s first carbon-neutral continent by 2050 remained unchanged, confirming that upgraded targets for the 2030 horizon would be presented by September.
Reacting to the executive arm's recovery plans, Greenpeace lashed out at a project it described as “contradictory at best and damaging at worst," accusing the commission of sticking to a growth-driven mentality detrimental to the environment.
“The plan includes several eye-catching green `options,' including home renovation schemes, taxes on single-use plastic waste and the revenues of digital giants like Google and Facebook. But it does not solve the problem of existing support for gas, oil, coal, and industrial farming — some of the main drivers of a mounting climate and environmental emergency," Greenpeace said.
“The plan also fails to set strict social or green conditions on access to funding for polluters like airlines or carmakers."
Timmermans said the EU will keep investing in the development of emission-free public transportation systems, and promoting clean private transport through the EU budget.
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