One Trillion Euros in European Sustainability and Digital Funding
Europe offers unique opportunities to American companies with digital and sustainable products and services. Funding for the European Green Deal will be an equally ambitious Digital Transformation. Both of these initiatives will be accelerated as the European economy is rebuilt to lead the world in sustainability and digital technology following the Covid-19 crisis.
U.S. companies can access this funding by collaborating with European partners. Grant Management Associates’ senior advisor Tom Carter was an attorney, lobbyist, and university professor in Washington, D.C. before relocating to Europe. He is an expert on environment and energy policy, sustainable industry, and the European Green Deal.
European Green Deal
The European Green Deal (EGD) will ensure that Europe continues to lead the world in sustainability. The European Green Deal will target climate neutrality among European Union members while simultaneously considering adaptation needs. It will attempt to protect and preserve the natural world, specifically biodiversity and the oceans. Finally, the EGD includes specific measures aimed at making energy, food, transportation, finance, and production more sustainable. For more information, please see European Commission’s 2020 Work Communication on the EGD.
EGD Investment Plan
The European Green Deal (EGD) is designed to convert Europe to a carbon free, circular, and sustainable economy. To finance these ambitions, the European Commission has created an investment plan that commits over €1 trillion for 2021-2031, which represents rightly 25% of the EU budget for that period. In addition to direct EU funding, the investment plan will include contributions from national budgets and will stimulate private and public investment in sustainable technologies, public education, and other means of achieving the targets of the EGD. Extrapolating the proposed 2021-2027 budget to ten years produces the following estimates:
€503 billion from the EU budget directly
€114 billion from the EU member states’ national budgets
€279 billion from private and public investments through InvestEU
€250 billion in private investments through the European Investment Bank
€143 billion for the Just Transition Mechanism to shift workers to sustainable jobs
€25 billion from the EU carbon trading system for innovation and modernization of lower income member states
Much of these funds will go towards the development, demonstration, deployment, and market penetration of innovative technologies in energy, transportation, manufacturing, food production, and reduction of carbon, toxins, and other pollutants.
In most cases, grants and loans will only be directly available to companies based in Europe. But collaborations with European companies can provide indirect access to funding and opportunities to build markets for sustainable products, services, and processes in a continent with rich potential.
Grant Management Associate’s senior advisor in Europe can identify and help you navigate the opportunities to partner with the appropriate European partner to access the loans and grants that are available.
The European Digital Transformation is a parallel initiative to the European Green Deal. The key goals are to:
Create new opportunities for businesses
Enhance the development of beneficial and trustworthy technology
Foster an open and democratic society
Facilitate a vibrant and sustainable economy
Mitigate climate change and achieve the green transition
This Transformation will be implemented in concert with the EGD and the Green Recovery plan.
Green COVID Recovery
The Green Recovery is a confluence of implementation of the European Green Deal and the Digital Transformation with recovery from the healthcare and economic crises imposed by the COVID-19 pandemic. Rather than delay these ambitious initiatives, this recovery plan will accelerate them, by rebuilding Europe’s economies to be more sustainable and digitally advanced.