Europe urgently needs to revamp its public finance architecture – this is the finding of a new position paper published by WWF, ahead of the European Commission’s presentation of the roadmap to the new Multiannual Financial Framework.
The WWF’s position paper outlines the organisation’s recommendations for the next multiannual EU budget, with the aim to confront the complex challenges of our times, from climate change and biodiversity loss to industrial transformation and energy security.
Achieving the EU’s climate and environmental objectives requires several hundred billion euros in investments annually. However, with the Recovery and Resilience Facility set to expire by the end of 2026, the EU is at a cliff’s edge in terms of funding.
“The next EU budget will be a make-or-break moment for the EU to achieve its climate and environmental objectives. The EU’s spending on climate and biodiversity is at risk of being halved under the next long-term budget. This stands in stark contrast with the pressing investment needs Europe is facing in times of climate crisis and ecosystem collapse”, said Carl Richter, EU Budget & Public Finance Policy Officer at WWF European Policy Office.
By declaring the next European Commission an “Investment Commission”, President Ursula von der Leyen has now raised the ambition.
To put the Commission President’s announcement into action, WWF proposes three key measures for the EU’s next long-term budget:
- Mobilise public funds at EU level by increasing climate and biodiversity spending targets and setting up a new Green and Social Investment Fund.
- Create a simpler, more targeted, and more policy-driven budget in line with transition objectives, notably through an effective and efficient implementation of the ‘Do no significant harm’ principle.
- Provide dedicated funding for nature protection and restoration under the next long-term budget, including in view of the significant benefits for climate adaptation and resilience that can be generated through investments in nature.
Carl Richter added that “2024 has seen a record number of devastating climate impacts in Europe. The next EU budget will have to significantly step up funding for nature protection and restoration to address the escalating impacts of nature degradation and the climate crisis. Investing in critically underfunded conservation and restoration measures will be key to strengthening the EU’s resilience.”
