The European Commission has unveiled its €1 trillion (£0.86tn) investment plan to support the region’s transition towards meeting its 2050 net zero carbon goal.
The Green Deal Investment Plan aims to mobilise the investment of public and private money over the next 10 years, with a greater share of spending on climate and environmental action from the EU budget.
It also intends to provide tools for investors by putting sustainable finance “at the heart of the financial system” and facilitate sustainable investment by public authorities by encouraging green budgeting and procurement as well as provide them with support in planning, designing and executing sustainable projects.
The Commission believes the Just Transition Mechanism (JTM) is a key tool to ensure the transition towards a climate neutral economy happens in a “fair way, leaving no one behind”, supporting fossil fuel-dependent regions.
It will provide tailored financial and practical support to help workers and generate the necessary investments in those areas.
The projects financed under the European Green Deal will support new, clean energy and circular economy industries and enable the creation of high quality jobs across the region.
Valdis Dombrovskis, Executive Vice-President for an Economy that Works for People, said: “For Europe to transition to a climate neutral economy, we need both political commitment and massive investments. The Green Deal shows our determination to tackle climate change, which we are now backing up with a funding plan.
“First, we will use the EU budget to leverage private funds for green projects across Europe and support the regions and people most affected by transition. Second, we will create the right regulatory incentives for green investments to thrive. Last but not least, we will help public authorities and market players to identify and develop such projects.
“The European Union was not built in a day. A Green Europe will not happen overnight. Putting sustainability at the heart of how we invest requires a change of mindset. We have taken an important step towards achieving this today.”
The Commission will hold a Sustainable Investment Summit every year to evaluate the progress towards the climate goal.