Will It Be FINE-for-EU? A Proposal for a Mechanism Funding Pan-European Green Investment to Promote the EU (Still) Meeting Its Climate Goals

Abstract

Addressing climate change is a global priority. There is broad, science-based consensus that efficient environmental policy requires significant and rapid investments aimed at accelerating energy transition and safeguarding biodiversity. Yet, despite valuable improvements such as NextGenerationEU and the ETS, the EU and its Member States are still in search of extra financial resources. Here, we establish the FINE-for-EU mechanism to provide finance for pan-European green investment projects. We propose setting up a Pan-European Climate Fund to create a financial link between the benefits businesses derive from the cross-border legal framework and the specific responsibilities they have towards supporting climate objectives.