IIGCC position paper on the next EU Budget

The European Commission is set to announce its multi-annual financial framework (MFF) in the coming weeks, which will determine the maximum amount the EU institutions can spend through the EU’s annual budget between 2028-2034. Our position paper outlines key considerations the Commission should take into account when shaping this budget.

The political landscape has changed significantly since the previous Multiannual Financial Framework (MFF) was agreed. Energy security and resilience remain top priorities. Greater pressure on the EU budget’s spending, coupled with a substantial financing gap for the EU’s decarbonisation targets presents the next MFF with ample challenges and opportunities.  

IIGCC calls for the 2028-2034 MFF to strategically channel private finance towards industrial decarbonisation measures, ensuring the EU meets its climate goals while also remaining internationally competitive.  Recommendations include:

• To ensure the EU reaches the objectives of the EU Green Deal, whilst also increasing competitiveness and energy security, climate spending should continue to be mainstreamed.  

• Additional investments needed to meet climate and industrial decarbonisation goals will need to be filled primarily by private finance. This will only be possible through catalytic public funding, following the recommendations of the Clean Industrial Deal. 

• Simplifications to the MFF’s governance structure can allow for clarity and ease of access; however, any changes must respect the role of national and regional authorities and allow for clear avenues for dialogue to avoid delays in investment.