The European Green Pact provides a planned action plan designed:
- to stimulate the efficient use of resources by moving to a cleaner circular economy
- to restore biodiversity and reduce pollution.
- The plan outlines the necessary investments and the available financing instruments. The EU wants to be climate neutral by 2050.
Actions are needed in all sectors of the economy, including:
- investments in ecological technologies
- support for innovation in the industrial sector
- the introduction of less polluting, cheaper and healthier forms of private and public transport
- decarbonization of the energy sector
- improving the energy efficiency of buildings
- collaboration with international partners to improve global environmental standards
The EU will provide financial support and technical assistance to help those most affected by the transition to the green economy. To do this, he created the so-called Fair Transition Mechanism. The mechanism will contribute to the mobilization of at least EUR 100 billion, in the period 2021-2027, in the most affected regions.
The 3 main pillars of the green plan are:
Just Transition Fund
Focused on 3 main priorities
- Economic diversification and reconversion
- Re-skilling and job seeing assistance for workers
- Support to climate transition and environmental susstainability
JTF finances the social impact of the transition and not the energy transition per se
InvestEU dedicated scheme
- energy and transport infrastructure, including gas infrastructre and district heating, as well as decarbonisation projects, economic, diversification of the regions and social infrastructure
EIB public sector loan facility
- facilitate the transition to climate neutrality
- projects will range from energy and transport infrastructure, to disctrict heating networks and energy efficiency measures, including renovation of buildings