EU's Climate Spending Claims Scrutinized by Auditors

The EU is reportedly exaggerating its climate-friendly spending by billions, according to auditors. Certain countries misclassified investments like IT systems and salaries as green. The EU has pledged significant funds for climate measures but auditing reveals that the actual green spending may be overestimated, raising questions about the current ranking system.

The European Union is potentially overstating its expenditure on climate-friendly projects by billions of euros, according to reports from the bloc's auditors on Wednesday. The analysis cited countries misclassifying spending on IT systems and salaries as green investments.

The EU, consisting of 27 member countries, had committed to allocate 37% of its €700 billion COVID-19 recovery fund towards combating climate change. By February, countries had earmarked €275 billion, accounting for 42.5% of the allocated funds, for green projects. However, auditors suggested this figure could be overstated by at least €34.5 billion. Numerous projects were found to have only tenuous links to genuine climate benefits, such as an IT system for water supply in Croatia and staff salaries in Slovakia being classified as green expenditures.

Despite some legitimate green projects like renewable energy and electric car infrastructure being funded, the auditors criticized the EU's ranking system. They argued it was too vague, leading to exaggerations. A European Commission spokesperson defended the fund's significant green contributions, while the auditors called for a more precise methodology to ensure accurate tracking of climate spending.

(With inputs from agencies.)