40% of EU budget should be earmarked for climate change

With its opinion on a "Finance-climate pact" the EESC wants to ensure the financing of the necessary transitions to green our economy. It argues that 40% of the EU budget should be devoted to the fight against climate change and its consequences.

"Climate change is one of the biggest threats to human beings and our planet. But we also see the opportunities emerging from the need to change Europe's economy to a sustainable one. And we can achieve this, if we act collectively in Europe", says Rudy de Leeuw.

Each year EUR 1 115 billion needs to be allocated in Europe to fight climate change and its effects. The finance-climate pact requires a clear and predictable European policy framework. The multiannual financial framework (2021-2027) must promote sustainable economic development and high-quality jobs. The EU budget devoted to the fight against climate change and its consequences should be increased to 40%.

Consideration should also be given to the EIB becoming the bank for sustainable development, mainly financing the energy transition, green mobility and innovation. The EESC supports the development of a unified EU classification system (taxonomy) to promote sustainable projects and investments that have the most positive environmental and economic impact.

Green labels should be granted to investments that comply with the EU taxonomy and the highest sustainability standards. The circular economy and investments in energy-efficient buildings need to be encouraged. Furthermore, in each trade agreement, social and environmental clauses should be underpinned by a binding commitment to the Paris Agreement.

"We are convinced that in the longer run, only those who green their economy will stay at the top of the world market. We Europeans can become the leaders of this development." (sma)