Left Menu
Development News Edition

UPDATE 2-EU sets out trillion euro plan to avert "climate crash"

UPDATE 2-EU sets out trillion euro plan to avert "climate crash"

The EU budget chief said the bloc needs to invest dedicated funds to avert a "climate crash" as Brussels detailed how it planned to pay for a trillion euro push to cut net C02 emissions to zero by 2050 and protect member countries dependent on coal. The financial challenge for Europe is huge: the European Commission executive arm estimates that halving emissions by 2030 would require 260 billion euros of investment a year in the energy, transport and construction sectors.

"We need climate cash in order to avoid a climate crash," European Budget Commissioner Johannes Hahn told Reuters on Tuesday. Of the 1 trillion euros of the EU's 10-year investment plan, roughly half is to come from the EU long-term budget, the Commission said. This will trigger more than 100 billion in co-financing from governments.

It was unveiling details of its Sustainable Europe Investment Plan using public and private money for its flagship project: the European Green Deal. Some 300 billion would come from private sources and another 100 from the EU's Just Transition Fund that is to help the EU's coal-dependent regions, such as Poland's Silesia mining region, make the transition to "green".

The EU is in the last stretch of talks on the size and spending goals of its next long-term budget from 2021 to 2027. All EU countries except Poland agreed last month they should transform their economies over the next 30 years to not emit more carbon dioxide than they absorb, so as to limit global warming and resulting climate changes.

The deal came amid overwhelming support from Europeans who see irreversible climate change as the biggest challenge they are facing, more so than terrorism, access to healthcare or unemployment. "I'm doing this in my grandson's future interest," Hahn, 62, said about his work on financing the EU's shift to a green economy.

STATE AID RULES Poland did not subscribe to the 2050 emissions-neutrality goal, arguing its energy systems and economy were too dependent on coal and lignite to make the transition over that time. The Just Transition Fund is to address this problem.

"Yes, I think it will be enough (to convince Poland to join the 2050 climate neutrality goal)," Hahn said. "It is very attractive because it gives them the opportunity of additional money, access to interesting financing," he said.

The Fund is to "benefit territories with high employment in coal, lignite, oil shale and peat production, as well as territories with carbon-intensive industries which will be either discontinued or severely impacted by the transition", the Commission proposal said. The money will go to areas producing the most CO2 industrial emissions, where job losses and the need for teaching new skills and will take into account the overall wealth of the country so that a region in need of transition in the EU's poorest Romania would get more money than a comparable region in Germany.

The total of 100 billion euros will come from a mix of sources and will mostly be a result of leveraging of 7.5 billion euros of input from the EU budget, EU guarantees and European Investment Bank loans, to attract private cash by covering the riskiest parts of an investment. To increase financing options, the EU will also review its state aid rules by the end of this year, which normally prohibit governments from helping companies in trouble so as not to distort competition.

Governments will be allowed to spend on renewable energy, public charging infrastructure or waste recycling, support workers sacked from closed mines, invest in energy efficiency of buildings, help district heating or climate neutral production processes or the closure of coal-fired power plants. As well as being a huge challenge, the commission sees a switch to an economic model not based on burning fossil fuels for energy as a great opportunity for European industry to shift to making environmentally clean, re-usable and repairable products based on renewable energy sources.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

Download The Devdiscourse News App for Latest News.



WEF2020: Trump seems politically correct in pulling out from Paris Agreement

If the survey of the World Economic Forum WEF is believed, Trump seems to enjoy the confidence of his people in flaying climate intuitions and climate activists. His preference for economic development over environmental protection not only...

From home to healthcare, here are Robotic innovations transforming lives

Lovot is equipped with more than 50 sensors such as thermography, microphone array, obstacle detection, and touch sensor to generate motion and emotions in real-time....

Translating words to deeds: Achieving gender parity in access to financial resources

... ...

SDG13: How you can reduce global warming by changing your food habits

The mega narratives of various international organizations give the impression that fighting global warming is only a job of government agencies. However, the European Investment Bank EIB has designed a questionnaire which besides making th...


Latest News

Iraq president warns against making Baghdad pick sides in US-Iran tensions

Iraqs president warned Wednesday against pushing the country to choose sides in escalating tensions between neighbouring Iran and the US, both allies of Baghdad. Addressing world leaders at the World Economic forum in Davos, Switzerland, Ba...

UPDATE 6-U.N. experts demand probe into alleged Saudi hack of Amazon boss Bezos

U.N. experts have demanded an immediate investigation by U.S. and other authorities into allegations that Saudi Arabias crown prince was involved in a plot to hack the phone of Amazon boss Jeff Bezos.The U.N. special rapporteurs, Agnes Call...

One dead, five missing as snowmobiles fall through ice in Canada

A Canadian guide died and five French tourists were missing after their snowmobiles plunged through ice into freezing water in northern Quebec, police said on Wednesday. The group was riding near where a river exits the Saint-Jean lake and ...

Earthquake of magnitude 5.6 strikes 15 kms east of Kirkagac, Turkey- USGS

An earthquake of magnitude 5.6 has struck 15 kilometers east of Kirkagac, Turkey, the U.S. Geological Survey said on Wednesday.The quake was at a depth of about 8.6 kilometers, according to USGS. ...

Give Feedback