This presentation was made by Cornelius Rhein, EC, at the Introductory Workshop on Green Budgeting Tools held at the OECD, Paris, on 29 April 2019

1. Climate
Action
Climate mainstreaming in the EU:
Multiannual Financial Framework
2021-2027
Paris Collaborative on Green Budgeting
0ECD, Paris
29 April 2019

2. Climate
Action
Investment needs for climate action
Mitigation:
• Delivery of EU’s 2030 climate and energy targets will require
additional investment of 1800 bn € (178 bn € annually
between 2021-2030)
Adaptation:
• Estimates range from anywhere between 35 bn € annually up
to more than 500 bn €
EU Budget could support approximately 5-7% of the total
required investment levels for mitigation, most of the finance
needed would have to stem from other public and private
sources.

3. Climate
Action
Policy levers to mobilise investment
• Budget as enabler and accelerator of the needed shift
in investments; the EU climate and energy
• EU financial sector legislation can also support:
Sustainable Finance Action Plan:
• Reorient capital flows towards sustainable investment
• manage financial risks stemming from climate change,
environmental degradation and social issues
• foster transparency and long-termism in financial and
economic activity.
3

4. Climate
Action
NEW STRUCTURE OF THE EU BUDGET
Source: European Commission
30%
34%
15%
9%
3%
2%
7%
EU Budget – Multiannual
Financial Framework
2021-2027

5. Climate
Action
Increased climate action
Communication 2 May 2018:
More broadly, in line with the Paris Agreement and the
commitment to the United Nations Sustainable Development
Goals, the Commission proposes to set a more ambitious goal
for climate mainstreaming across all EU programmes, with
a target of 25% of EU expenditure contributing to
climate objectives.
Climate Action in
the MFF 2021-2027

6. Climate
Action
All programmes to contribute, expected contributions for
most relevant programmes
6
How to achieve the 25%

7. Climate
Action
7
 Maintain EU climate marker approach used in the
2014-2020 MFF
 “Expenditure” is defined as the commitment
appropriation
- Continued use of 100%, 40% and 0% EU climate
markers
- Attention to administrative effort and simplicity
- Improved consistency of the marking
- Improved consistency at the operational level of
assigning markers
- Improved transparency of marking
General approach to climate
tracking for 2021-2027

8. Climate
Action
8
Wide range of implementing procedures (e.g. centrally
managed, shared management, financial instruments,
programmable/bottom-up)
 Markers are assigned at the most appropriate level
depending on the specific design of each programme:
Project, type of intervention, component of
programme or whole programme.
 Differentiated approach within some programmes,
depending on the type of intervention or
implementation mode (e.g. InvestEU, Horizon
Europe)
DG BUDG and CLIMA work with other service on
guidance ensuring a consistent approach
General approach to climate
tracking for 2021-2027

9. Climate
Action
9
 The weightings in the Common Provisions Regulation
(CPR) serve as the backbone and the basis for
weighting the climate contributions in programmes
under shared management (European Regional
Fund, Cohesion Funds, Asylum and Migration Fund,
and the European Social Fund)
 For some programmes weigthings are defined in the
programme Regulations (e.g. Article 87 CAP
Regulation, Recital 4 CEF Regulation)
General approach to climate
tracking for 2021-2027

10. Climate
Action
10
 Commission consolidates climate commitment data
for all programmes annually
 Each programme presents in its Programme
Statements the expected climate spending for each
year and updates the data for previous years
 Identification of expected commitments for the
current year, and projection of commitments for the
remaining years of the MFF.
 Commission presents the consolidated climate
spending data in the annual Draft Budget and in the
Annual Management and Performance Report
General approach to climate
tracking for 2021-2027

11. Climate
Action
11
Climate Proofing
the MFF 2021-2027
Negotiating box
Point 20: Paris agreement
Reflecting the importance of tackling climate change in line with the
Union’s commitments to implement the Paris Agreement and the
United Nations Sustainable Development Goals, programmes and
instruments should contribute to mainstream climate actions and to
the achievement of an overall target of [at least] [25%] of the Union
expenditures supporting climate objectives. As a general principle,
all EU expenditure should be consistent with Paris Agreement
objectives.

12. Climate
Action
12
Addressing climate
change in the
development of
infrastructure projects
Adaptation to
climate change
Vulnerability and
Risk Assessment
and adaptation
responses
Mitigation of
climate change
Carbon-footprint
methodology, CO2
Social cost in the
Cost-Benefit
Analysis
Climate Proofing
the MFF 2021-2027

13. Thank you!
Visit DG Climate Action online:
facebook.com/
EUClimateAction
youtube.com/
EUClimateAction
pinterest.com/
EUClimateAction
twitter.com/
EUClimateAction
ec.europa.eu/
clima/