'Green jobs' focus for €105bn in funds to EU regions

BRUSSELS - The European Commission has announced some €105 billion are to be spent to create ‘green jobs and growth' via the European Union's cohesion funds - the policy that aims to remove disparities in wealth across the bloc.

The funds amount to around 30 percent of the EU's regional policy budget for the 2007-2013 period, and is about three times the sum allocated for similar works in the previous 2000-2006 budgetary period.

The announcement does not represent any new funds, but rather an acceleration of the dispersal of previously committed monies. The speeded up process forms part of the EU's plan to stimulate the foundering economy.

Much of the announced funds - a tranche of €54 billion - will go to aid EU member states to comply with European environmental legislation, while €28 billion will go to water and waste management improvement schemes.

"In a difficult financial climate, this investment will be instrumental in creating long-term employment and reviving local economies, as well as underpinning the EU's commitment to the fight against climate change," said regional policy commissioner Danuta Hubner on Monday (9 March) when announcing the funds.

Another €48 billion will be committed to measures aimed at achieving EU climate objectives and creating a low carbon economy, including €23 billion for railways, €6 billion for public transport, €4.8 billion for renewable energy and €4.2 billion for energy efficiency.

Some €3 billion will also be set aside for the promotion of environmentally-friendly products and production processes in small businesses.

Romania and Bulgaria, for their part, are investing the highest proportion of cohesion funds on environment-related projects, at 45 percent and 42 percent of their allocation respectively.

Green groups welcomed the acceleration of the release of the monies but underscored that cohesion funding needs to come come into alignment with other climate change strategies of the EU.

"It is welcome that 30 percent of cohesion funded investments in the 2007-13 period will go to so-called "green" projects - although this is a figure we have known about for some time," said Tony Long, director of the WWF's European Policy Office.

"But the real question is: How will the EU bring its principal funding lines like cohesion funds into alignment with its political ambition to cut CO2 levels in Europe by 30 percent by 2020? When we know the answer to that question, we will probably conclude that 30 percent is nowhere near enough," he continued.

"In fact it may be closer to 70 percent or more or more of cohesion funds that is necessary for green projects."