Europe aims to reduce net greenhouse gas emissions by at least 55 % by 2030 compared to 1990 levels and become climate neutral by 2050. Achieving these targets requires dedicated funding across the EU budget. A total of €392 billion has been allocated to cohesion policy for 2021-2027, which is around one third of the total EU budget. Of this amount, almost one third, i.e. EUR 118 billion, is intended to address climate change.

Why cohesion policy?

Becoming climate neutral will involve large-scale economic and social changes. Cohesion policy, the EU's main investment policy, can play an important role in achieving this goal. It has broad objectives, supporting job creation, economic growth, sustainable development and a better quality of life in EU regions and cities. Funding will come from all cohesion policy funds. The European Regional Development Fund (ERDF) will contribute the bulk, EUR 69.9 billion (59 %), to climate finance, followed by the Cohesion Fund (EUR 22 billion), the Just Transition Fund (EUR 18.2 billion), the European Social fund. Plus fund (5.8 billion euros) and Interreg funds (2.5 billion euros).