In view of the energy crisis, the European Parliament wants to use money from the Corona Development Fund for investments in energy infrastructure. On Thursday, MPs in Brussels voted in favor of a corresponding proposal from the European Commission.
In addition to the Corona funds, they want to provide 20 billion euros in subsidies. However, the money must come from a different source than planned by the EU countries or the Commission.
In particular, sustainable energy projects must be financed, but also fossil fuels such as liquefied gas (LNG). According to a statement, about a third of the money will be used for cross-border projects. Parliament must now negotiate with EU countries before the law can enter into force.
Financing through the sale of certificates
In concrete terms, the parliamentarians agreed that a large part of the subsidies of 20 billion euros should be made available by selling emission certificates earlier than planned. The EU countries, on the other hand, had agreed to mainly draw money from the innovation fund and to provide only a small part by reallocating the pollution rights (certificates).
The Parliament sees this critically: “The Council wants to loot the innovation fund, which promotes the development of innovative, clean technologies”, said MEP Peter Liese (CDU). This is a fateful signal, especially given the US’s planned investment in climate-friendly technology.
The European Commission’s proposal to auction additional allowances from a reserve to raise money was rejected. It was feared that this would cause additional emissions. In emissions trading, for example, electricity producers have to buy certificates for the emission of climate-damaging gases such as carbon dioxide (CO2).
It has also been determined that money from the Corona Development Fund can be used for energy purposes. According to the EU Commission, there are still EUR 225 billion in loans available from the RRF Corona development instrument. Parliament also called for the use of unused funds from the 2014-2020 EU budget for investment. (aeg/sda/awp/dpa)
Soource :Watson
I’m Ella Sammie, author specializing in the Technology sector. I have been writing for 24 Instatnt News since 2020, and am passionate about staying up to date with the latest developments in this ever-changing industry.
