The European Council formally adopted REPowerEU – 20 billion euros will be allocated for financing
As part of the European Union (EU) strategy for autonomy by diversifying energy supplies and ending its dependency on Russian fossil fuel imports, on February 21st 2023 the Council of the EU has formally adopted a regulation to include REPowerEU chapters in the Recovery and Resilience Facility (RRF). This finalizes the procedure for the adoption of the amending regulation in the RRF and, in practical terms, enables member states to add a new REPowerEU chapter to their national recovery and resilience plans under the framework of NextGenerationEU. In this way, it will be possible to finance key investments and reforms that will help achieve the objectives of REPowerEU.
The additional grants that will be allocated to finance the investments and reforms will be in the amount of 20 billion euros and will come from two sources – 60% from the Innovation Fund and 40% from the frontloading emissions trading system allowances.
Member States will also have opportunities for additional loan support, including in the case of requests above 6.8% of the gross national income, where the relevant conditions apply. Another possibility that member states will have is for voluntary transfers from the Brexit Adjustment Reserve.
The adopted regulation will enter into force the day after its publication in the EU’s Official Journal.
Read the entire press release by the European Council here