Background
On the 9th February 2021 the European Parliament approved the Recovery and Resilience Facility, designed to help EU countries tackle the effects of the COVID-19 pandemic.
The Recovery Fund has a value of circa €675bn and is a mix of grants and loans. The fund has the aim to support the green transition and the digital transformation of EU countries[1].
Figure 1: European Parliament[2]
The Green Transition
The money from the recovery fund will be used by states to increase the renewable energy generation capacity and to reduce greenhouse gas (GHG).
Reforms are also designed towards large scale projects include enabling the acceleration of new renewables installations, including simplified procedures for re-powering of existing ones[3].
To receive their share of the recovery aid EU countries have been requested to prepare reform plans. The plans must dedicate at least 37% of the budgets to climate and at least 20% to digital transformation[4].
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References
[1] Parliament gives go-ahead to €672.5 billion Recovery and Resilience Facility, European Parliament, date: 10/02/2021, accessed on: 12/02/2021.
[2] Secretary-General Addresses European Parliament on Anniversary of Rights Convention, United Nation Photos, date, 19/10/2010, accessed on: 12/02/2021.
[3] Recovery and Resilience Plans, Example of component of reforms and investments – Power up, European Commission, n.d., accessed on: 13/02/2021.
[4] EU aims to release virus recovery fund billions by summer, AP News, date: 12/02/2021, accessed on: 13/02/2021.
