Ursula von der Leyen has unveiled proposals for a €1 trillion European Green Deal Investment Plan
The 10-year European Green Deal Investment Plan is to help Europe become the first carbon-neutral continent by 2050.
“The Green Deal comes with important investment needs, which we will turn into investment opportunities,” von der Leyen said. “The plan that we present, to mobilize at least €1 trillion, will show the direction and unleash a green investment wave.”
However, questions have been raised about where the money would be generated from as the next long-term EU budget is currently under negotiations among member countries.
“Creative accounting and financial adventures will not get the Commission very far towards finding the €1 trillion needed to fund their new climate and energy plans,” said Van Overtveldt, a member of the European Conservatives and Reformists group.
“In [the] Green Deal funding proposals, the Commission makes promises against the EU’s yet to be agreed long-term budget and place a sizeable extra burden on the EIB’s shoulders. After that it is not clear exactly where the rest of the money is going to come from,” he added.
Just Transition Fund
The Commission has also proposed a €100 billion Just Transition Fund, however, it has been revealed that there is in fact only €7.5 billion of ‘fresh money’ available. A further €30 billion to €50 billion is to come from other sources over the next seven years.
The money will support projects that are low-carbon and climate-resilient, including re-skilling programmes for miners, jobs in new economic sectors and energy-efficient housing.