The €1.85tr recovery plan unveiled by the EC , using ‘recovery bonds’ to finance a ‘next generation EU’ could see €500bn of these bonds spent as grants on national projects that could help accelerate the green transition.

The plan, that would also give €250bn in loans for projects like green infrastructure and technologies, has been praised, but the ‘green conditions’ for which projects can receive funds must be clarified and strengthened according to Transport and Environment (T&E). The proposals lack common definitions for what constitutes ‘climate spending’ or ‘sustainable vehicles’, and currently, a fossil fuel refuelling point would be ‘climate spending’ under one spending programme (CEF) but it would not be defined as such under another (InvestEU).

William Todts, T&E’s executive director, said: “The next generation EU plan boldly goes where the EU has never gone before. But there is a worrying lack of detail on what green investment actually means. Spending big on shared and electric mobility is the right thing to do, but this plan leaves the door wide open for polluting engines and even airplanes to get stimulus money. That’s completely unacceptable.”

To date 1.3 million citizens have signed on to a 'green and just recovery' appeal. The GreenRecovery.eu petition warns against EU and national governments bailing out polluting industries involved in sectors such as gas, oil and coal, chemicals, cars and airlines. Any stimulus investments must be conditional on companies’ alignment with social, environmental and climate objectives. The unprecedented public and political pressure to launch an EU green recovery plan is expected to be ratcheted up as EU heads of governments debate the Commission’s proposal at a virtual summit on 18 June.

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