EU to triple spending on climate and clean energy projects to $243.6 billion
- 19 November 2013
LONDON: 20% of the European Union’s budget for 2014-2020 will be spent on climate related projects and policies, tripling its current share to US$243.6 billion and marking a major step for Europe's low carbon leadership.
The EU’s new commitment could add up to US$243.6 billion in key EU policy areas such as development, energy efficiency and agriculture over the seven years to 2020. One program in particular, called Horizon 2020, could spend over US$29.8 billion on research and innovation on energy, climate and clean technologies.
The earmarked finances would be spent from the following policies:
- 20% of the EU’s regional cohesion policy will be spent on energy efficiency in the most developed regions and 6% in less developed areas.
- The EU’s development policy could contribute up to US$2.3 billion on climate spending in developing countries from 2014-15 alone, on top of climate finance from individual EU Member States.
- 30% of rural development funds under the EU’s common agricultural policy will go towards climate-smart projects.
- Horizon 2020 will spend 35% of its US$85.2 billion on 'climate mainstreaming', to accelerate research and innovation on energy, climate and clean technologies.
- Connecting Europe Facility, a new infrastructure instrument, will increase funds in area such as transmission grids for renewable energy.
- The EU’s Programme for the Environment and Climate Action, the LIFE program, will see its budget increase to over US$4 billion, including a sub-program for climate action.
Connie Hedegaard, EU Commissioner for Climate Action, said: ''Today is an incredibly important day for Europe and for the fight against climate change. At least 20% of the entire EU budget for 2014-2020 will be climate-related spending. This is a major step forward for our efforts to handle the climate crisis. Rather than being parked in a corner of the EU budget, climate action will now be integrated into all the main spending areas. This underscores yet again Europe's leadership in the fight against this crucial challenge. I believe the EU is the first region in the world to mainstream climate action into its whole budget.''
More info on EU’s climate financing in developing countries