REPowerEU budget increases by 20 billion euros
This increase is intended to be spent on energy measures and aims to reduce Russia's dependence on fossil fuels
The European Parliament has approved an additional €20 billion under REPowerEU to be included in energy measures to reduce Russia’s dependence on fossil fuels while accelerating the green transition. This is in line with the main objective of REPowerEU at its launch: to achieve a resilient energy system independent of external suppliers.
The new rules, which will apply retroactively from 1 February 2022, include a requirement that at least 30% of its investments under the green transition plan be spent on multi-country measures. This measure aims to fulfil the dual objective of reducing current bottlenecks in energy transmission, distribution and storage and also to increase cross-border flows.
The application of this new chapter gives different percentages and amounts to Member States as shown below:
Objectives to be met by REPowerEU reforms and investments
- The improvement of energy infrastructure and facilities to meet immediate security of gas supply needs, including for liquefied natural gas, in particular to enable diversification of supply in the interest of the Union as a whole; measures relating to oil infrastructure and facilities necessary to meet immediate security of supply needs may be included in this chapter of a Member State's EUENP only where the Member State has been granted the extraordinary temporary derogation.
- Promoting energy efficiency in buildings and critical energy infrastructure, decarbonisation of industry, increasing the production and use of sustainable biomethane and sustainable or non-fossil hydrogen, and increasing the share and accelerating the deployment of renewable energies.
- Combating energy poverty.
- Incentives for the reduction of energy demand.
- Removing internal and cross-border bottlenecks in energy transport and distribution, supporting electricity storage and accelerating the integration of renewable energy sources, and supporting zero-emission transport and its infrastructure, in particular railways.
- Supporting infrastructure upgrading and bottleneck removal through accelerated retraining of workers in green skills and related digital skills, as well as supporting value chains in key raw materials and technol
More details about REPowerEU
Since its launch, REPowerEU has established a series of financial and legal measures to build a new energy infrastructure to accelerate the energy transition and reduce dependence on fossil fuels from Russia, especially gas, by 2030. This plan was also designed to respond to rising energy prices in the EU, which are currently severely affecting consumers' wallets.
The plan adds to the path already set out by the 'Fit for 55' package, a set of legislative proposals that will enable the EU to achieve a 55% reduction in greenhouse gas emissions by 2030.
REPowerEU is based on four pillars: diversifying energy supplies to seek new partners and alternative fuels; promoting energy savings at all levels; accelerating the transition to renewables in each European country to reduce the need for energy imports; and finally, making the necessary investments and reforms by limiting investments in gas infrastructure.
The role of innovation in accelerating the transition to clean energy is already crucial for the European Green Deal," said Alessandro Provaggi, head of our Brussels office. REPowerEU makes it even more urgent and important".