European Commission President Jean-Claude Juncker in his State of the European Union speech this morning urged Member States to ratify the Paris Agreement, calling delays “ridiculous”. He also announced significant new measures to boost sustainable investment to meet Europe’s climate and sustainable development goals.
- The European Fund for Strategic Investment (EFSI), the centerpiece of the EU’s plans to boost investment, jobs and growth, will be expanded to €500bn and extended to 2020. It will work towards €630bn by 2022.
- A minimum of 40% of EFSI funds will be dedicated to climate action, representing a €200bn sustainable finance boost to help Europe re-gain leadership in the low carbon energy transition.
- Development of fresh Capital Markets Union priorities, including establishing a new expert group to develop a comprehensive European strategy on sustainable finance. This will focus on supporting investment in green technologies and ensuring that the financial system can finance growth in a sustainable way.
- A new European External Investment Plan that will use €3.5bn of EU budget funds to mobilise up to €88bn in total investment with a focus on achieving the UN Sustainable Development Goals.
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Ingrid Holmes, E3G Director, said:
“Europe has placed its bets on a sustainable finance future. This won’t drop out of the sky – the establishment of an expert group is a welcome next step and must now develop a comprehensive action plan to turn aspiration into reality.”
“An expanded EFSI with a clear focus on supporting climate-resilient investment is a strong signal the EU is intent on delivering a sustainable future. This will be a core tool to help the EU to become a global leader in renewable energy and put energy efficiency first.”
Available for comment
Ingrid Holmes, +44 (0) 7825 829592, ingrid.holmes@e3g.org
ENDS
Notes to Editors
- E3G is an independent global think tank, working to accelerate the transition to a low-carbon economy. E3G specializes in climate diplomacy, climate risk, energy policy and climate finance.
- In 2016, E3G was ranked the number one environmental think tank in the UK by the Go To Think Tank Index, second in Europe and sixth in the World.
- A report by E3G, ‘A mission-oriented budget: Priorities for the MFF mid-term review’, released this week highlights that 18% of EFSI funding has been invested in high-carbon projects so far. So this change in focus is significant.
- A report by E3G ‘Clean Energy Lift Off : Capitalising Europe’s Energy Union’, highlights the current €100bn annual sustainable energy infrastructure investment gap and argues the Capital Markets Union, EFSI and Energy Union initiatives must be aligned to deliver Europe’s 20230 climate and energy goals.
