EU approves Germany’s €2.3b transition plan

The Council of the EU approved on Tuesday the Commission’s positive assessment of Germany’s amended recovery and resilience plan (RRP), which now includes a new REPowerEU chapter worth €2.3 billion aims to accelerate Germany’s transition to clean energy by increasing the share of renewables in the energy mix.

The revised plan prioritises the green transition, allocating 49.5 per cent of available funds to climate-related measures, an increase from 47 per cent in the original plan. It also emphasises digital initiatives, with 47.5 per cent of the funds dedicated to digital projects.

Overall, the plan is valued at €30.3 billion in grants and encompasses 17 reforms and 28 investments.

Germany’s recovery and resilience plan, originally submitted on April 28, 2021, was approved on July 13, 2021, and amended in 2023. A modified plan with a REPowerEU chapter was submitted on April 30, 2024, receiving a positive assessment on June 27, 2024.

The Recovery and Resilience Facility (RRF) supports EU countries in addressing COVID-19 economic impacts, part of the NextGenerationEU initiative. The REPowerEU regulation, effective March 1, 2023, aims to reduce reliance on Russian fossil fuels by adding €20 billion in grants and allowing fund transfers for key projects.

So far, €648 billion has been committed, all recovery plans approved, 63 payment requests made, and €240 billion disbursed.