A climate adjustment fund to ensure a swift response to crises

In an own-initiative opinion, the EESC proposes creating a climate adjustment fund (CAF) to ensure a rapid response to new climate and energy crises. The CAF would complement existing EU policies and ensure a more effective use of existing funding.

For example, while it has provided impressive support to Member States since 2002, the EU Solidarity Fund, with its EUR 500 million annual budget, could not cover the costs of the damage caused by natural disasters in 2021. Flooding in western Europe alone cost an estimated EUR 38 billion.

Rapporteur Ioannis Vardakastanis said: "our vision for a CAF is to ensure a strong funding mechanism using existing EU funds to respond quickly to emergencies and help rebuild damaged communities. It is a very ambitious way to rebuild and protect areas affected by pressing climate, energy and environmental crises".

In addition, the current energy crisis was not on the radar when the EU's Multiannual Financial Framework budget for 2021 to 2027 and the NextGenerationEU recovery plan were drawn up. The CAF would address the need for urgent investment in alternative energy sources more effectively than the existing mechanisms. This is especially relevant now, with many people unable to pay their gas or electricity bills.

"We are not adequately prepared to respond to emergencies and disasters due to climate change and the energy crisis, either in terms of volume of funds or of timeliness", says Judith Vorbach, co-rapporteur for the opinion. "The establishment of a climate adjustment fund would be an important tool to fix that". (tk)