If it is to work for a sustainable future and help the EU make the transition to a low-carbon economy, the Juncker investment plan needs root and branch reform, according to a report published by a collective of environmental and climate NGOs on Wednesday 28 September on the projects supported by the European fund for strategic investments (EFSI) in the course of its first year.
CEE Bankwatch Network, Climate Action Network Europe (CAN Europe), Counter Balance and WWF argue that investment should should be flowing into projects that boost environmental sustainability rather than fueling outdated carbon-intensive projects like motorways, airports, and fossil-fuel infrastructure.
Massive investment in unsustainable projects. The EFSI should play an important role in the fight against climate change, say the NGOs. However, in the first year of the Juncker plan, an additional €1.5 billion was earmarked for fossil fuel infrastructure, and 68% of transport investment is destined for carbon-intensive projects, they regret.
“Our analysis proves that in the energy sector, the EFSI did not catalyse more support for renewables than what was already provided by the European Investment Bank – although this was its initial mandate”, pointed out Anna Roggenbuck, EIB campaign coordinator for CEE Bankwatch Network, in a press release. “Europe is missing huge opportunities to modernise and decarbonise its economy through investments in renewables and energy efficiency”, said Markus Trilling, EU policy officer for CEE Bankwatch Network and Friends of the Earth Europe. Sebastien Godinot, economist in WWF European Policy Office said: “There is no reason why it should support more investments in gas infrastructure while the EU gas consumption is going down”.
Improving the sectoral and geographical balance of investment. The report raises concerns about the Commission’s proposal to extend the EFSI until at least 2020 (see EUROPE 11631). If the EFSI is to guide a sustainable energy transition – as the European Commission wishes – it will have to undergo deep reform, the NGOs state. The report recommends, therefore, improving both the sectoral and geographical balance of investment and putting a clear focus on genuinely sustainable projects.
In its communication of March 2016, The Road from Paris: assessing the implications of the Paris Agreement, the Commission underlines that, to foster the enabling environment for low carbon transition, rapidly scaling up private investment is essential and funding provided by the EFSI should promote emissions reduction and energy efficiency investments in the single market.
The report is available online at: http://stories.bankwatch.org/best-laid-plans (Original version in French by Aminata Niang)