‘Governance’, ‘Effort Sharing’ and ‘Juncker Investment Plan’: European Parliament starts introducing “the shift of financial flows” as required by the Paris Climate Agreement

In 3 legislative files currently negotiated in Brussels the European Parliament progressed on financing matters: reporting on Fossil Fuel Subsidies phase-out; the linking the EU budget comes to national climate ambitions; a climate impact assessment tool for EU investments; and a 40% climate earmarking target for the Juncker Investment Plan.

What happened recently?

The rapporteurs in the Environment and Energy Committees, Claude Turmes (LU) and Michele Rivasi (FR) published their joint draft report on the Governance regulation on 17 May (SEE Caroline’s FLASH on the topic). Among all other elements the report introduces a provision that would require Member States to plan for and to report on their phasing out of fossil fuel subsidies via their National Energy and Climate Plans. The same report as well calls for the EU budget to play a crucial role in achieving high ambitions of national climate and energy objectives.
The requirement to undertake climate impact assessment of EU funds investments has been put into the European Parliament’s Environment Committee position on the Effort Sharing Regulation 30 May (SEE Caroline’s FLASH on the topic).
Finally, ECON and BUDG committees supported a 40% climate action target for Juncker Investment Plan (European Fund for Strategic Investments - EFSI) for the period 2018-2020, accompanied with guidelines on how to ensure compliance with the Paris Climate Agreement of individual projects as well as the entire EFSI portfolio.

What happens next months?

All 3 files are still to be finalized and adopted in the Parliament and then negotiated with Member States.


By Markus Trilling

Latest Publications

  • Letter to MEPs on the election of the President of the Commission

    Dear Member of the European Parliament,    Congratulations on your successful election.   You will have your first opportunity to vote to defend climate tomorrow Tuesday, when the Parliament is expected to vote on the election of the President of the Commission.  
  • Letter to EU environment ministers on EU climate ambition ahead of their informal meeting in July

    Dear Minister, On 11 July, you will be meeting in Helsinki to discuss EU climate ambition ahead of the United Nations Secretary General Climate Action Summit in September. This is a unique opportunity for the EU to announce its determination to step up its commitments under the Paris Agreement and resume its position as a global climate leader, by announcing the EU is ready to enhance its Nationally Determined Contribution (NDC). Climate Action Network Europe is calling on the EU to increase its 2030 domestic greenhouse emission reduction target to at least 65% compared to 1990 emissions.
  • Letter from UN Secretary General urging EU leaders to ramp up climate action

    In a letter to European Council President Donald Tusk leaked by the media last week, U.N. Secretary-General António Guterres urged EU leaders to adopt a long-term vision for a carbon-neutral economy by 2050 and commit to increasing the EU's 2030 climate target to 55 percent reductions in emissions.
See All: Climate & Energy Targets