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Commissioner Gentiloni's speech at the EU Sustainable Investment Summit

Commissioner Gentiloni's recently (28 October 2022) gave a speech at the EU Sustainable Investment Summit.

"Check against delivery"

Good afternoon and welcome to this second and extremely topical session.

Einstein is quoted as saying that “everything is energy”. Without straying into the world of physics, we can certainly say that all sectors of our economies are more or less dependent on energy.

That's why any discussion about “building tomorrow” must also focus on the kind of energy system we want for the future, especially at a time of crisis like today. 

Clean, secure and affordable: these are the goals of our energy policy in the EU.

In recent years, with cheap and abundant energy flowing, the emphasis was by and large on how to green our economies in order to achieve the Sustainable Development Goals at the end of this decade.

We launched the European Green Deal, with ambitious targets to curb emissions. And we put the green transition at the heart of NextGenerationEU – our plan for a sustainable recovery after the pandemic.

Then came Russia's horrific invasion of Ukraine.

The shockwaves from Russia's war have driven energy prices to unprecedented and unsustainable levels, fuelling high inflation and pushing our economies to the brink of recession.

The IMF's latest World Economic Outlook expects global growth to slow down to one of its lowest levels in two decades and the European economy is also entering another very difficult phase.

These developments are challenging our social cohesion. Many households and businesses are facing choices they never should have to face.

Reducing demand, securing sufficient supplies for the winters ahead and keeping prices under control have therefore taken centre stage in the EU.

And we are making good progress.

In just a few months, we diversified supplies and made up for the reduced imports from Russia. Our gas storage for this winter is more than 90% full. We also took significant steps to lower energy consumption, strengthen joint gas purchasing, capture the extraordinary profits in the energy sector, and reduce energy bills. And further steps are necessary.

The urgency of addressing questions of energy security and affordability is undeniable.

But it also carries the risk that, in a bid to secure plentiful energy and lower prices, we look for solutions that delay the green transition.

This is a risk not just in Europe, but also around the world, and in particular in countries, where budgetary capacity to invest in renewables is more limited.

We must absolutely avoid this mistake.

The green transition needs to be accelerated, not delayed. Our REPowerEU plan puts forward important measures to speed up investments in renewables and energy efficiency. These are crucial for lowering fossil fuel consumption, increasing energy savings and thereby enhancing our energy security.

However, these measures also come with a significant price tag.

To deliver on the green transition will require additional investments of more than half a trillion euros every year for the next few years.

Plugging this gap will only be possible if we mobilise both public and private finance.

The Commission will soon come forward with proposals to increase the firepower of REPowerEU and to review the EU's fiscal rules to ensure that national budgets better support these investments.

We have also delivered on our pledge to launch the InvestEU Programme to mobilise private investments. Sustainable investment projects are now being realised throughout the EU.

By next year, we plan to have InvestEU agreements with all the national institutions that have applied for EU support, thus increasing sustainable investments with a strong local focus.

We have also made progress on last year's pledge to develop a comprehensive set of statistics on the European Green Deal. Eurostat started disseminating quarterly estimates of greenhouse gas emissions, and released a dashboard of statistical indicators relevant for the green transition.

We are now working on a review of the monitoring framework for the circular economy to be published at the beginning of next year.

Lastly, we are reviewing the progress regarding the Sustainable Development Goals in the EU context and will continue to integrate them into the European Semester, by better linking them to the logic of competitive sustainability.

With our policies, we are working to face the challenges of this global energy crisis. We are working to protect our most vulnerable citizens and firms, while moving forward with our green ambitions.

At the same time, we are committed to step up international cooperation to catalyse green investments.

As we get ready for COP27, Europe must continue to lead the way to show that a clean, secure and affordable energy future for all is possible.

Thank you.

 

Original article link: https://ec.europa.eu/commission/presscorner/detail/en/SPEECH_22_6476

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