Frans Timmermans, the European Commission’s Executive Vice-President in charge of the European Green Deal, told MEPs on Thursday 9 December that the EU needs much more money than is currently available to ensure the climate transition. He would not reveal the content of the own resources package, but provided reassurance that the roadmap agreed between the EU institutions will be respected (see EUROPE 12849/13).
“We need a lot more money than what is planned for the climate transition”, said Frans Timmermans, a guest on the European Parliament’s Committee on Budgets. He added that he could see however a mobilisation of the private sector in this area. The first step will be to mobilise the hundreds of billions planned for Next Generation EU and encourage private investment, said the Commission’s Executive Vice-President.
Mr Timmermans could not give, for the moment, “the figure of the amounts needed”, but promised to do so soon.
If the cost of climate transition is calculated, it should be compared to the cost of non-transition, which is always higher, Timmermans also said.
Members of the Committee on Budgets criticised the earmarking method of financing, which contravenes the principle of universality of the EU budget. José Manuel Fernandes (EPP, Portugal) also criticised off-budget funds, such as the innovation and modernisation fund.
Own resources. Mr Timmermans would not reveal the proposal on the own resources package, expected on 22 December. He nevertheless told Valérie Hayer (Renew Europe, France) that the Commission “will follow the lead” of the roadmap of the Interinstitutional Agreement on the budget, which mentions the three new own resources expected (Carbon Border Adjustment Mechanism, digital levy and own resource based on the EU Emissions Trading System).
The delay in presenting the proposal is linked to the EU’s desire to wait for an agreement within the OECD on the digital levy.
Mr Timmermans added that the financial transaction tax was still among the possible instruments for new own resources.
ETS and Climate Action Social Facility. Timmermans said that the calculations have been made on the EU Emissions Trading System (ETS) and that what remains to be decided, at political level in the inter-institutional trilogues, “is the percentage of the ETS revenues dedicated to transport and buildings to be put in the Social Climate Fund”. Opinions are divided in the European Parliament and in the Member States, Mr Timmermans highlighted. He noted that EU countries are very committed to the existing ETS and how this revenue can be used to target the risk of energy poverty.
Nuclear. Mr Timmermans stressed that “the advantage of nuclear is that it is emission-free, but it is not green”. “The advantage of gas is that it is needed in the transition, especially in countries that still rely on coal. To achieve renewables, natural gas will be needed under certain conditions”, explained Timmermans.
He noted that EU countries are divided on nuclear power. “It is a sovereign choice of the Member States to choose how to decarbonise their economy and energy sector”, concluded Timmermans. (Original version in French by Lionel Changeur)