The Council of the EU adopted REPowerEU plan

The Council formally adopted an amending regulation to incorporate texts from REPowerEU into the Recovery and Resilience mechnism. The aim is to strengthen the EU’s strategic autonomy by diversifying its energy supply and ending its dependence on Russian fossil fuel imports. This is the last step in the renewal procedure, the EU Council said in a statement.

In practice, Member States will be able to add new parts of REPowerEU to their National Recovery and Resilience Plans (RRPs) under NextGenerationEU to fund key investments and reforms that will help achieve REPowerEU’s goals.

Among the key objectives of REPowerEU are increasing the resilience, security and sustainability of the EU energy system through the necessary reduction of dependence on fossil fuels and diversification of energy supplies at EU level, including by increasing the use of renewable energy sources, energy efficiency and capacity for energy storage.

Additional grants of 20 billion euros will be made available to finance investments and implement reforms. The sources of funding will be the Innovation Fund (60%) and the initial ETS quotas (40%).

The key allocation formula is related to taking into account cohesion policy, Member States’ dependence on fossil fuels and increased investment.

Member States will have additional opportunities to request loan support, including in the case of requests above 6.8% GNI (gross national income), where the relevant conditions apply. Member States will be able to make voluntary transfers from the Brexit Adjustment Reserve (BAR).

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