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Funding reform: no EU money for new pipelines

Status: December 15, 2021 10:37 a.m.



The EU Parliament and representatives of the member states have agreed on new regulations for cross-border energy projects. In the future, no more subsidies should flow into oil and gas pipelines.

In future, EU funds are no longer to be used to promote oil and natural gas pipelines. The EU Parliament and negotiators of the member states have agreed on these new regulations, which are part of the TEN-E regulation. The member countries still have to approve this agreement.

With the so-called TEN-E regulation, the EU wants to promote cross-border energy projects. The “Projects of Common Interest” (PCI) are being promoted in order to link the energy networks of the member states with one another, to better integrate isolated regions into the energy supply and to be able to better integrate renewable energies. The PCIs are approved more quickly than conventional projects and are financially supported by EU funds.

EU relies on renewable energies

The revised version of the regulation, which came into force in 2013, now sets new priorities in the fight against climate change and in supporting the achievement of the EU’s climate goals, which are set out in the Green Deal. The EU has set itself the goal of emitting at least 55 percent fewer greenhouse gases such as carbon dioxide (CO2) by 2030 than in 1990, and of becoming climate-neutral by 2050, i.e. avoiding or storing all greenhouse gases. Therefore, electricity grids, lines to offshore wind farms and climate-friendly gases such as hydrogen are to be promoted in particular. Natural gas infrastructures and oil pipelines, on the other hand, are no longer promoted.

The Slovenian Minister for Infrastructure, Jernej Vrtovec, was delighted with the agreement: “The agreement reached today ensures that no new projects to promote fossil fuels will be financed with funds from ‘Connecting Europe’ in the future Invest in a green and climate-neutral future that guarantees efficiency, competitiveness and security of supply and leaves no one behind. “

The consent of the members of the council is considered certain

In addition to a stronger focus on renewable energies, projects are still to be promoted until the end of the funding period at the end of 2027, which integrate regions that have hitherto been cut off into the EU gas network. Malta and Cyprus are to be connected to the European gas network with pipelines. The project, in which a gas pipeline is to be laid in each case, is already being planned. Environmental organizations had criticized this, as these pipelines are still financed by EU funds, although gas as a fossil fuel leads to the emission of greenhouse gases.

The provisional agreement that has now been presented has to be approved by the Permanent Representatives in the European Council before it is adopted. Consent is considered a formality.

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