EU Renewable Energy Financing Mechanism - RENEWFM

Helping EU countries to work more closely together, hosting or contributing financially to new renewable projects. To better support renewable energy projects, and thereby encourage a greater uptake of renewable energy sources across the EU, the European Commission has established a new EU financing mechanism. The mechanism stems from article 33 of the Governance Regulation (EU) 2018/1999 of the Clean energy for all Europeans package. It has been in force since September 2020 and the Commission is in the implementation process. Closer cooperation on renewable projects The main objective is to enable EU countries to work more closely together in the take-up and promotion of renewables. In so doing, the countries can more easily achieve both individual and collective renewable energy targets. The mechanism will also boost renewable projects in line with the European Green Deal. The mechanism will facilitate a more cost-effective roll-out of renewables across the EU, particularly in areas that have a greater access to natural resources or are better suited for it in terms of geography. Furthermore, in the context of the European recovery and the coronavirus pandemic, the financing mechanism will make it easier for regions to get projects off the ground at a time when their local economy is under pressure. To this end, EU countries can use the mechanism as an instrument to implement their recovery and resilience plans. EU countries should contribute to the EU target of 32% share of renewable energy in gross final consumption by 2030, primarily through national measures. There is however, a second option, using cooperation mechanisms with others, such as statistical transfers or joint projects. The new financing mechanism opens a third possibility....