EU Parliament allows gas projects to use green transition fund

17 September 2020 (Last Updated September 17th, 2020 17:53)

The European Parliament has voted in favour of allowing certain gas projects to use its green transition fund.

EU Parliament allows gas projects to use green transition fund
Only countries aiming to achieve net-zero by 2050 will be eligible for the funds. Credit: Valeriy Kryukov via Unsplash.

The European Parliament has voted in favour of allowing certain gas projects to use its green transition fund.

The EU intends to use part of its Covid-19 recovery fund to help fossil fuel-dependent region with their energy transition.

This would in turn push the organisation toward its goal of producing net-zero emissions by 2050. This week, the EU Commission also proposed tougher emissions targets for 2030.

Voting took place on Tuesday. However, the rule will be finalised after discussions between the European Parliament, Commission and national governments that previously agreed not to use the fund support any kind of fossil fuels.

German Green party lawmaker Niklas Nienass was quoted by Reuters as saying: “It’s just not explainable to the public.”

Projects that seek funding must be located in coal-heavy regions, and must comply with the EU’s 2030 climate target.

Additionally, the EU parliament explained that gas projects will be eligible for Just Transition Fund money only if they pledge to become climate neutral by 2050.

The announcement is said to have been indirectly aimed at Poland, which is reported to be the only European country that has not signed up to an EU-wide goal to become climate neutral by that date.

The vote likely signals talks with the EU’s executive, as well as national governments that have agreed to exclude the fuel.