Climate Change and the EU Budget 2021-2027

The current commitments from countries around the world are not enough. We are heading towards a 3°C hotter world and into uncharted territory of catastrophic change. This existential threat requires action on all levels. The EU, its institutions and all Member States must prioritise urgent action in order to implement the Paris Agreement's goal to limit the increase in temperatures to 1.5°C and to make “financeflows consistent with a pathway towards low greenhouse gas emissions and climate-resilient development" (Article 2.1c).

The European 2030 energy and climate targets are a critical milestone on this pathway. To achieve these intermediary targets we have to make significant progress in all sectors in all Member States. The EU’s next budget cycle, the Multiannual Financial Framework (MFF 2021-2027),plays a critical role in this regard. It is a key policy tool to support the EU’s long-term strategic agenda, including its energy and climate objectives. It translates strategies and policy priorities into budgetary headings, programmes and ceilings, thereby creating a financial framework that guides investments at the regional, national and EU level.

The MFF 2021-2027 is the EU’s last full investment cycleto initiate and substantiate the necessary changes.It is essential that we make use of the last windows of opportunity to strengthen climate performance of the budgetand leverage private investments.