BRUSSELS - European Union leaders clinched a deal on Tuesday for a huge stimulus package which the European Commission has said will make fighting climate change central to Europe’s economic recovery from the coronavirus pandemic.
Climate advocates said the final deal - a 1.074 trillion euro EU budget for 2021-27, plus a 750 billion euro recovery fund - was a mixed bag, with large sums earmarked for green investments, but cuts to key climate programmes and insufficient rules to ensure cash does not support polluting investments.The deal earmarks 30% of the entire package for climate protection and says all spending must contribute to EU emissions-cutting goals.
Countries that have not signed up to an EU-wide target to become “climate neutral” by 2050 will only get half of their share of the Just Transition Fund. Money was also shaved off InvestEU and Horizon Europe, two programmes earmarked for sustainable investments, as EU leaders conceded cuts to appease frugal northern countries.New green taxes will help fill EU coffers, with an EU-wide tax on non-recycled plastic waste scheduled for next year.