EURELECTRIC reaction to the Commission's Investment Plan for Europe

News Article

The European Commission today published its Investment Plan for Europe, including a European Fund for Strategic Investment that it estimates will unlock public and private investment to the value of more than €300 billion.

EURELECTRIC welcomes the prominent place given to energy and innovation in today’s package. This is in line with the new European Commission’s stronger focus on energy, as already seen in the political priorities of the new Commission President and through the appointment of a Vice-President on the Energy Union. A competitive energy sector is the precondition for European economic recovery and growth, and the European electricity industry has therefore repeatedly highlighted the importance of investment and innovation in this sector.

EURELECTRIC also welcomes the Commission’s plans to put more emphasis on creating a favourable investment climate and tackling regulatory barriers on the energy transition path. Stimulating investment in key infrastructure and innovation, demonstration and early deployment of future-proof technologies like e-mobility, carbon capture and storage, flexible and low carbon technologies – to name but a few – will be critical to put the European economy back on track while achieving the EU’s ambition of a decarbonised economy by 2050, as well as its medium-term 2030 energy and climate policy objectives. Intelligent financing, for instance through public-private cooperation that can leverage private capital, is indispensable to make this happen.

At the same time, the Commission rightly recognises that expensive cash hand-outs are not the way to achieve sustainable economic growth. EURELECTRIC agrees: innovation support and intelligent financing are helpful, but subsidies lead to market distortions that can have problematic consequences. Policymakers should avoid ‘picking winners’, but observe technology neutrality, set the framework and leave choice up to the market. Completing the European internal energy market and reforming the EU Emissions Trading System (ETS) must therefore remain key priorities for this European Commission.