Briefings, Reports

Recovery Investments and the European Energy Transition

A Green Recovery Tracker deep dive

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Assembling a windmill using a crane
Assembling a windmill using a crane. Photo by segligaa on Adobe Stock.

The Green Recovery Tracker project analysed recovery plans and measures in 17 EU countries, covering 88% of the total grants available through the EU Recovery and Resilience Facility. This briefing provides an in-depth analysis on the relation between the assessed recovery spending and the energy transition.

Our analysis shows that 8% of all recovery spending is directly relevant to the energy sector’s transition while overall, €204bn out of the €685bn analysed will accelerate the green transition. Many of these measures, such as investments in electric mobility, heat pumps and hydrogen production, will further increase demand for renewable electricity. However, only a relatively small part of recovery measures will specifically support clean energy production, which currently is mostly held back by national regulatory hurdles.

Overall, the Recovery and Resilience Facility’s impact on the supply of clean electricity will likely be smaller than its impact on demand for it. Legislative steps unlocking the potential of renewable energy generation are therefore necessary, also considering the higher renewable energy targets that will be negotiated as part of the European “Fit for 55” package. Such steps are also a prerequisite for most other green recovery measures to be able to make an ultimately positive impact.

Read the briefing in full.

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