Blogs

EU Financing: The EU’s External Investment takes one step closer to fruition

Just a few weeks before Brussels winds down for the Summer, an agreement has been reached on a multi billion euro EU fund which aims at driving more private investment in development – the so-called EU External Investment Plan (EIP).

The EIP burst on to the scene in September 2016, and since then it has been swiftly negotiated and debated among the EU’s institutions. The ambition behind adopting the Plan within such a short time frame lies in the hope to unveil the new initiative at the EU-Africa summit in November 2017. That meant speedy proposals, discussions and compromises throughout the first half of this year.

The agreement was met with tepid reaction from NGOs that have been following the negotiations in Brussels. While the EU claims that the Plan could generate decent jobs and promote green growth, there are strong reservations that investments and projects will result in meeting the needs of poorer people and communities in developing countries.

The first pillar of the EIP is the European Fund for Sustainable Development (EFSD). It will “blend” public and private financing to offset the risk to firms investing in developing countries. According to the European Commission, it will mobilise up to €44bn - and possibly double that if Member States agree to contribute.
Some of the biggest concerns of NGOs following the process include; using aid to leverage private finance, the lack of a grievance mechanism to flag problems with projects and activities, and the overwhelming focus on migration which may divert support for poverty eradication and longer term climate action.

By Maeve McLynn

Latest Publications

  • NGO letter on the long term climate strategy ahead of the Competitiveness Council

    In this letter, NGOs Climate Action Network Europe, Carbon Market Watch, E3G - Third Generation Environmentalism, European Environmental Bureau, Sandbag and WWF European Policy Office call upon EU Economy and Industry Ministers to: Endorse the European Commission’s strategic long-term vision for a climate neutral economy and support an EU long-term climate target of net-zero carbon emissions by 2040; Call upon the European Commission to present a new and integrated EU industrial climate strategy for energy-intensive industries in support of a competitive, circular and net-zero emission heavy industry transition;  Recognise the immediate need to provide a policy framework which supports and incentivises the full decarbonisation and transformation of resource and energy-intensive industry sectors before 2050. NGO letter on the long term climate strategy ahead of the Competitiveness Council
  • Letter to REGI Committee on sustainable cohesion policy funding

    On 22 January 2019 and in February the REGI Committee will vote on the Common Provisions Regulation (CPR) and on the European Regional Development Fund / Cohesion Fund Regulation (ERDF/CF) respectively. These two pieces of legislation will determine the shape and direction of Cohesion Policy post-2020.
  • NGO statement urging Turkish decision makers to step up at COP24

    More than 25 NGOs working in Turkey released a joint statement urging Turkish decision makers to focus on raising ambition, and reaping the benefits of a low-carbon just transition at COP24.
  • Letter to Ministers of Finance for the achievement of the Financial Transactions Tax

    Through this letter sent to Ministers of Finance we demand that the 10 countries negotiating the world's first regional Financial Transactions Tax do not abandon the talks at a European finance ministers' meeting on December 4th. By walking away from the talks, we could lose out on billions that could go towards climate change and the fight against domestic and international poverty.
See All: Climate & Energy Targets