Today, 18 December 2021, the European Parliament and the Council have reached a final agreement on the €700 billion European Recovery Plan, which not only embodies European solidarity but also paves the way for the implementation of a green recovery. This was the main objective of the European Alliance for Green Recovery – which has now more than 300 signatories including Ministers, nearly 200 CEOs, MEPs, trade unions including the European Heat Pump Association, NGOs and think tanks.
Together, they have succeeded in getting the message across: ensuring that Europe does not make the same mistakes as it did after the 2009 crisis with 27 uncoordinated recovery plans and no climate ambition but a clear commitment to invest in the technologies and solutions of the future. In the recovery plan that each Member State will submit to the European Commission, at least 37% of the financing must be dedicated to the fight against climate change.
In addition, all recovery plans financed by the European Union will have to respect the “Do No Harm” principle. This ensures that 100% of the funds will have no negative impact on the climate and the environment. Finally, to avoid greenwashing, a new methodology based on taxonomy to track climate-related spending was created. This agreement therefore guarantees that only investments that are truly favourable to the fight against climate change will be taken into account. This unprecedented deal will make it possible, at the European level, to mobilize around €250 billion for the fight against climate change between now and 2024.
It is the biggest green investment shock ever made at the European level. At the global level, it is the greenest recovery plan, after South Korea’s, according to the latest report by the United Nations Environment Programme.