On 10^th April, the Commission adopted a Communication reviewing a series of Clean Transition Dialogues aimed at transforming Europe into a clean, resource-efficient, fair, and competitive economy. Commission President von der Leyen announced the launch of these dialogues in her 2023 State of the Union speech, with the objective of engaging with European industry and social partners to strengthen and support the implementation of the European Green Deal, contributing to a reinforced industrial approach. Chaired by Executive Vice-President Maroš Šefčovič, these dialogues have served as platforms for discussion on various aspects of the clean transition agenda.

In the context of this review, which will inform the discussion of EU leaders at the upcoming European Council, the Commission's Communication highlights key insights garnered from these dialogues, some of them dedicated to solutions to unlock more finance to accelerate the decarbonisation of energy in Europe.

Specifically, the European Union has unveiled its 2040 climate strategy, signalling a significant commitment to the clean economy. With an estimated yearly investment of €1.5 trillion from 2031 to 2050, the strategy aims to drive substantial decarbonisation across economic sectors. However, an additional €660 billion annually is required to facilitate the transition effectively.

Private sector leadership is deemed crucial in this endeavour, with support from a strengthened capital markets union. The goal is to enhance European firms' access to diverse funding streams, potentially yielding €470 billion yearly for the clean transition.

The European Investment Bank (EIB) is poised to play a pivotal role by providing risk-sharing tools essential for industry decarbonisation. Alongside guarantees, credits, and insurance provided by Member States, these tools aim to address market failures and boost private funding.

Despite increased private market engagement, innovative public financial support remains necessary to catalyse crucial investments in decarbonisation technologies. The EU Commission is committed to a sustainable future, targeting a 35% reduction in greenhouse gas emissions by 2050.

To support this goal, an unparalleled €1 trillion has been pledged for the decade leading to 2030, focusing on climate mainstreaming, industry decarbonisation, and the creation of green jobs. Additionally, the Just Transition Fund allocates €19 billion to assist regions most impacted by the shift to a green economy.

The European Emissions Trading System (ETS) continues to be a significant source of funding, with anticipated revenues expected to reach approximately €220 billion from 2024 to 2030. The EU Commission's proposal to allocate 30% of these revenues to the EU budget aims to bolster sustainable investments.

In addressing challenges related to accessing EU funds, the upcoming STEP Sovereignty Portal, launching in Q2 2024, promises to centralise funding information and assist businesses in finding suitable EU financial support, aiming to catalyse investments in key technology sectors.

Furthermore, the European Commission is exploring innovative financing models like auctions-as-a-service to streamline funding processes across the EU, ensuring the competitive and efficient allocation of resources.

The Commission also recognises the need for EU-level funding coordination to leverage the single market effectively, ensuring a balanced and inclusive economic transition.

Commission reviews Clean Transition Dialogues: investing in a sustainable future