EU economic recovery plan: Barroso proposes golden handshake for outdated energy sources
Today, the European Commission announced a €5 billion investment package in support of the EU recovery plan. Commenting on the €3.5 billion proposed financing for energy projects, Luxembourg Green MEP and Greens/EFA energy spokesman Claude Turmes said:
"The European Commission's proposed financing of energy projects is inadequate and unbalanced. It is less a shot in the arm for the EU recovery plan than a handout to outdated energy sources and the companies that profit from them.
The €3.5 billion package is split between a bloated €3 billion for coal and gas and a meagre €500 million for wind energy. This represents a golden handshake from Barroso for technologies that should be on their way out, instead of a much-needed commitment to clean energy and energy saving.
Barroso also misses an opportunity to at least make the money go further. Financing for energy infrastructure would be better applied through equity participations at the European Investment Bank. This would turn the financing into a real investment that can be recovered once projects are up and running, instead of granting a state handout with no returns.
A ludicrously high €1.25 billion will go to coal capture and storage (CCS) projects. CCS is a red herring for climate protection that will not deliver serious results in the urgent timeframe we face. Financing should be channelled towards clean energy for the future, not rebranding the dirty energy sources of the past.
The mooted €500 million for "smart cities" is conspicuous by its absence in the Commission proposal. Over 40% of energy is consumed in buildings, yet the Commission saw fit to procrastinate on urgently-needed investment in this sector.
Fortunately Barroso's proposal is the beginning and not the end of the political process. Greens will build a coalition in the co-decision process to transform Barroso's distorted vision into a meaningful investment in a Green New Deal. We know that not all EU governments are happy with Barroso's coal-friendly proposals."
