In May 2020, the European Commission proposed Next Generation EU recovery program with an overall volume of 750 billion Euros to cope with the economic contraction due to the Corona crisis. This policy brief by Ecologic Institute gives a broad overview of the Commission's proposal and its proposed climate investment shares.

The EU recovery plan entails grants, loans and guarantees aiming to support especially those countries hardest hit by the pandemic. 25% of the financial support should be invested into green projects. The investment support comes on top of funds already foreseen in the proposed Multiannual Financial Framework (MFF) – the next long-term EU budget from 2021 to 2027 – and add additional financial power to already proposed climate programs. This policy brief by Ecologic Institute's Jan-Erik Thie gives a broad overview of the Commission's proposal for the new MFF and the Next Generation EU program and their proposed climate investment shares.

For a better evaluation of the current plan this study first looks into the past illustrating fiscal stimulus programs after the financial crisis including their share of green investments and their effectiveness in terms of emissions decrease. In addition, this study evaluates the proposed climate investments in light of the actual investment needs in the EU.

Download

Thie, Jan-Erik (2020): European Recovery Packages and their Climate Investment Shares. Ecologic Institute, Berlin [pdf, 386 kB, English]

Scientific contact

Jan-Erik Thie
Junior Researcher Ecologic Institute
Pfalzburger Straße 43/4410717 Berlin
E-Mail: jan-erik.thie(at)ecologic.eu

Further Links

• Europe's Recovery Plans Must Pass Five Sustainability Tests - Publication
• Europe's Economic Recovery – Climate Neutral, Fair and Innovative – Publication
• EU Corona Billions Still Without Defined Climate Criteria – Publication
• EU Recovery and Resilience Facility – Good or Bad for Climate Policies? – Publication