The European Parliament has reached a preliminary agreement with the European Council on the inclusion of REPowerEU measures in national recovery plans to support independence from Russian fossil fuels and the green transition.
Under the terms of the agreement, EU countries applying to receive additional funds through an amended recovery and resilience plan will be required to include REPowerEU plan's measures to save energy, produce clean energy and diversify energy supplies. At least 30% of EU countries' spending under REPowerEU must be allocated to multi-country measures, tackling existing bottlenecks in energy transmission, distribution and storage. To finance the additional €20bn in grants that will be distributed to member states based on their energy dependency rate and the share of fossil fuels in gross inland energy consumption, €12bn would come from the Innovation Fund and €8bn from an earlier auctioning of national emission allowances under the EU Emissions Trading System (ETS).
The provisional agreement will have to be approved by both of the Parliament’s committees, before being subject to a plenary vote, and by the Council to come into force. The new rules would cover measures retroactively from 1 February 2022.
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