Innovative Financial Instruments In The Context Of The European Green Agreement (2020-2050)

The European Investment Plan for European Green Transactions - The new EU growth strategy to promote the transition to a climate-neutral economy by 2050, is taking shape by launching the European Investment Plan for Green Transactions (Sustainable Europe Investment Plan). The plan addresses three issues: mobilizing funding of at least € 1 trillion from the EU budget and other public and private sources over the next decade; putting sustainability at the heart of investment decisions in all sectors and supporting public administrations and project promoters to create a strong focus on sustainable projects. The main objective of this work starts from the fact that in the period 2021-2030, at least 1 trillion euros will be mobilized, sustainable investments by increasing the resources dedicated to climate actions within the EU budget and by using additional public and private funding. It is estimated that about half of the amount would come directly from the EU budget and incorporated into EU programs, while other public and private sources would provide the rest, mainly through leverage. Together with the amount expected by the European Investment Bank (EIB), the potential for financing climate targets would amount to about 1.75 trillion euros. Thus, in the most affected regions, the EU will provide financial support and technical assistance through the so-called Fair Transition Mechanism, i.e. contribute to the mobilization of at least EUR 100 billion over the period 2021-2027. Furthermore, during this programming period, the Commission will develop and/or extend the Sustainable Procurement Screening tool and a new and strengthened methodology for climate integration, with strong performance indicators and provisions to prevent any financial support for climate-damaging measures, and provide tailored support to public investors in implementing their projects.