Making the absorption of EU funding from the RRF conditional on reaching binding environmental milestones (reforms)

Organisation:

Website:

Added:

Project start date:

Project end date:

Narrative

The introduction of mandatory milestones in the national Slovenian recovery and resilience plan (RRP) enabled reforms that otherwise would not have been implemented or only at a later time. By making the disbursement of funds conditional on achieving such milestones, the EC created strong incentives for national governments to quickly push forward reforms. Two examples from Slovenia include, first, the Act on the Promotion of the Use of Energy from Renewable Energy Sources ("Zakon o umeščanju naprav za proizvodnjo električne energije iz obnovljivih virov energije"), which will speed up permitting procedures for RES-E on uncontroversial surfaces, and second, the methodology for Green budgeting for the national budget, which will help to plan and monitor whether the national budget is alligned with environmental policy objectives. The Act on the Promotion of the Use of Energy from Renewable Energy Sources most likely would have been addressed by the government much later, if there had not been the milestone in the RRP, whereas the green budgeting methodology, which will be adopted until the end of 2023, would not have been developed at all.

Financial data

EUR 146 million for renwable energy and energy efficiency depend on the milestone "Act on the Promotion of the Use of Energy from Renewable Energy Sources", and EUR 48 million for circular economy measures depend on the milestone "Green budgeting methodology"

Recommendations

The EC should continue to negotiate green reforms with member states that are in the interest of the respective member state and help to achieve environmental policy objectives. The disbursement of funds under the European cohesion policy and similar funds should then be tied to achieving the jointly agreed reforms.