Tuesday 27 October 2020

The European Council approves a 1.5 billion euro public sector loan facility for energy transition | ELE Times

The Council of Ministers of the European Union stated that the credit will be for public institutions in the 27 EU member states and will be supported by 10 billion euros from the European Investment Bank and cannot be used for nuclear power or fossil fuel projects.

European Council of Ministers affirmed its position on the establishment of a 1.5 billion euro public sector loan mechanism to help the regions most affected by the fossil fuel transition. This means that the “European Green Agreement” proposed by the European Union has another aspect towards implementation.

This funding will come from the EU’s 2021-27 budget and will be supplemented by 10 billion euros provided by the European Investment Bank. The European Investment Bank will provide a loan line of 25-30 billion euros to the public sector of the 27 EU member states. As early as January, when the European Commission President Ursula von der Leyen announced the 1 trillion euro green policy investment plan, he proposed a fair transition fund of at least 100 billion euros, and this loan amount will now be used as a component of the fund.

The Council stipulated that before the European Union presidency, Germany, is required to negotiate a 1.5 billion euro loan mechanism in negotiations with the European Parliament, it prohibits nuclear power or fossil fuel projects from obtaining any funding through the loan line, so as to make a fair transition to a wider range. The positions of the funds remain consistent.

 

The post The European Council approves a 1.5 billion euro public sector loan facility for energy transition appeared first on ELE Times.

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