Guidehouse insights enable an optimized and more targeted financing of climate action
For the post-2020 Multiannual Financial Framework, the European Commission proposed a budget of over 1.2 trillion Euros, which will be invested in climate and energy relevant sectors including, energy supply, industry, buildings, transport, and agriculture. Currently, the plan is to mainstream climate action across all EU programs with 20% of the budget, with a vision to increase climate-related spending to a quarter of the total budget. Increased investments in climate action are necessary to support the 2030 EU climate and energy targets and fight climate change. At the same time, it is crucial that all EU budget spending is in line with the Paris Agreement objectives.
Guidehouse’s finance and climate experts have joined forces with Austria’s Kommunalkredit Public Consulting to investigate for the German Federal Ministry for the Environment on how to “climate proof” the EU budget and make more sustainable investments. Research and discussions with key stakeholders included:
Insights from Guidehouse’s investigations enabled the project team to derive recommendations for optimized and more targeted climate action financing. The results were fed into the negotiations for the next EU budget, the reform of the Common Agricultural Policy, and the proposals for legislation on Sustainable Finance. The key results are published in the following discussion papers: