The European Green Plan is one of the European Commission's priorities in 2020 and the European Union is determined to become the first climate-neutral bloc in the world by 2050. This is possible only with significant investments from the EU, national public sector and private sector. A few days ago, a Sustainable Europe Investment Plan was presented containing an investment plan for a European green plan that would mobilize public investment and help attract private funding through EU financial instruments, in particular InvestEU. The total investment will be at least one billion euros.
All Member States, regions and sectors will contribute to the transition, while it will be more difficult for individual regions and undergo a profound economic and social transformation. Adapted financial and practical support to help workers and generate the necessary investment in these areas will be governed by the Fair Transition Mechanism.
This plan will mobilize EU funds and create a framework to facilitate and stimulate public and private investment which are required for the transition to a climate-neutral, green, competitive and inclusive economy. The plan has three dimensions:
- Financing: mobilizing a sustainable investment worth at least one billion euros. So far, the largest amount from the EU budget will be earmarked for environmental and climate action, which should also attract private investment. The European Investment Bank will play a major role in this dimension
- Suitable conditions: will include incentives to attract and divert investment from the public and private sectors. The EU will help investors by favoring sustainable financing and by facilitating sustainable investment by public authorities through encouraging green budgeting and green public procurement. In addition, it will simplify the procedures for granting state aid to regions where a fair transition is needed.
- Practical support: The Commission will assist public authorities and project promoters in planning, designing and implementing sustainable projects.