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The Commission launches a €210 billion energy package until 2027 for the EU to be independent from Russian energy and proposes to redirect €300 billion in EU funds to finance it.

The European Commission has presented an energy package of 210 billion euros until 2027 for the European Union (EU) to be independent from Russian energy, proposing to redirect 300 billion in EU funds to finance it.

At stake is REPowerEU, the plan to increase the resilience of the European energy system and make Europe independent of Russian fossil fuels before 2030, following the Ukraine war and supply problems, which, as Lusa had already reported, implies an investment additional €210 billion by 2027.

In a short statement to the press this Wednesday, in Brussels, the President of the European Commission, Ursula von der Leyen, stressed that “all this will, of course, require massive investments and reforms”. “We are going to mobilize close to 300 billion euros, approximately 72 billion euros in grants and 225 billion euros in loans”, added the leader of the community executive.

According to Ursula von der Leyen, “this will include some funding – up to €10 billion – on missing links for gas and LNG [liquefied natural gas], so that no Member State is left out in the cold and up to two billion euros for oil infrastructure, with a view to stopping the shipment of Russian oil”. “All the rest of the funding will accelerate and increase the transition to clean energy,” said Ursula von der Leyen.

In the European Commission’s communication on REPowerEU, the institution proposes “a targeted and rapid amendment of the regulation on the Recovery and Resilience Mechanism”, specifically providing for the “allocation of additional funding from the auction of Emissions Trading System allowances, in a limited amount”.

At the same time, it wants the Member States to “benefit from greater flexibility in the transfer of resources allocated to them” within the scope of community funds such as those for regional, social development, cohesion, for just transition, among others, as well as the concerning the strategic plans of the Common Agricultural Policy (CAP). Brussels highlights that “the process of voluntary transfer by the Member States of cohesion policy funds and CAP funds to the REPowerEU program under-recovery and resilience plans was designed to ensure a rapid adoption process”.

This redirection of community funds represents a total of 72 billion euros in grants, which will be complemented with “225 billion euros of loans under the Recovery and Resilience Mechanism, resulting in a total amount close to 300 billion euros”, explains the community executive in the communication. The loan amount of the recovery funds corresponds to what was not requested by the Member States.

According to the Brussels accounts, REPowerEU will be “rewarding”, since together with the Goal 55 package, which provides for an ecological transition with a 55% reduction in polluting emissions by 2030, it will allow the EU to “save 80 billion euros in expenses of gas imports, 12 billion euros in oil import expenses and 1.7 billion euros in coal import expenses per year”.

Also as Lusa had reported, within the scope of REPowerEU, the European Commission wants to raise the target for EU energy consumption from renewable sources to 45% by 2030, in order to “accelerate the phasing out of Russian fossil fuels” and reduce prices, namely by focusing on solar and ‘green’ hydrogen.

In the published document, it is also projected that the EU will have to invest between 1.5 and 2 billion euros to guarantee the security of the oil supply after an embargo on Russia. The European Commission also defends, in REPowerEU, that the current high electricity prices in the Iberian Peninsula “underline the need” to build interconnections, as part of an estimated additional investment of 29 billion euros in the European electricity grid by 2030.

Source: With Agencies

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