energy transition - Billions more from the EU funding pot for Germany
Germany is set to receive additional billions from Brussels for investments in energy infrastructure. The EU Finance Ministers approved at a meeting in the Belgian capital a request from the Federal Republic for 2.3 billion Euros submitted to the EU Commission. These funds contribute to Germany's transition to cleaner energy by increasing the share of renewable energies in the German energy mix, according to the Council.
The money comes from the EU's Recovery and Resilience Facility (RRF), also known as the Build Back Better Facility. This pot was created in 2021 to offset the economic damages caused by the Corona pandemic.
Germany is expected to withdraw a total of 30.3 billion Euros in non-repayable grants, according to calculations. 17 reforms and 28 investment projects in the Federal Republic are planned to be funded, with almost half the funds allocated for measures supporting climate goals and digital measures. 6.25 billion Euros have been disbursed so far.
Money is performance-based
The RRF enables 357 billion Euros in non-repayable grants and 291 billion Euros in loans EU-wide, according to the latest figures. The funds are financed through jointly repayable debts that are scheduled to be repaid by 2058.
To receive these funds, member states must submit a plan with specific investment and reform proposals. The funds are performance-based and will only be paid out once the promised milestones and targets for the implementation of planned reforms and investments have been achieved.
The now approved additional 2.3 billion Euros for Germany are expected to support investments in energy-efficient residential buildings, the purchase of emission-free vehicles, the expansion of public charging infrastructure, and the digital market introduction of hydrogen infrastructure. Reforms aim to expedite the approval of onshore and offshore wind energy installations.
- The European Union has approved a request from Germany for 2.3 billion Euros, which will be utilized for investments in German energy infrastructure to aid in its transition towards cleaner energy.
- This funding, originating from the EU's Recovery and Resilience Facility, is part of the collective effort to offset economic losses caused by the Coronavirus pandemic.
- The money allocated for Germany is performance-based, meaning it will only be disbursed once the country achieves the promised milestones and targets for the implementation of planned reforms and investments pursuing clean energy and digital transformation.
- The investment in German energy infrastructure includes support for energy-efficient residential buildings, the acquisition of emission-free vehicles, the expansion of public charging infrastructure, and the digital market introduction of hydrogen infrastructure.
- Furthermore, the funds will allow for the expediting of the approval process for onshore and offshore wind energy installations, as part of Germany's overall strategy for the energy transition.
- The EU's economic policy, represented by the European Commission, offers subsidies for such energy infrastructure investments, contributing to the goal of a unified, sustainable, and efficient energy system across the European Union.
