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EU Budget: Multiannual Financial Framework

Aligning EU finances with sustainable development

The Multiannual Financial Framework (MFF) – also sometimes referred to as the EU’s long-term budget- lays down the political priorities for Europe and the resources allocated to them over a period of 5-7 years. Climate and energy policy benefits from investments made under the EU budget through instruments such as the Connecting Europe Facility (CEF) for energy projects; Horizon 2020 for low-carbon innovation; and European Structural and Investment Funds (ESIF) for climate change adaptation and resilience.

Despite its limited size -it only accounts for 1% of the EU’s GNI-, the EU budget is therefore an important source of public investment to finance the transition towards a zero-carbon economy. It is estimated that every €1 spent with EU funds mobilises up to €15 from other sources of capital. Moreover, in some EU Member States the EU budget can account for as much as 60% of all public investment.

For these reasons, it is highly important to make sure that spending under the EU budget is in line with the EU’s climate and energy commitments. But how can we ensure that financial flows are shifted towards a zero-carbon economy? The materials below showcase the latest E3G work on how EU finances can play a greater role in Europe’s sustainable development.

This project has received funding from the European Commission through a LIFE grant. The content of this section reflects only the authors' views. The Commission is not responsible for any use that may be made of the information it contains.

Infrastructure for a changing energy system: the next generation of policies for the European Union

European energy markets, technologies, business models, geopolitics and political objectives are changing rapidly. The EU’s approach to energy network infrastructure needs to keep pace. This requires reform to current delivery instruments and processes, including: aligning infrastructure policies with climate targets, updating definitions of energy security, broadening understanding of...