Debate: Sustainable investment plan, just transition fund and Roadmap on Social Europe
Date: TUESDAY, 14 JANUARY 2020
Speaker: Valdis Dombrovskis
Language: EN

The Sustainable Europe Investment Plan or European Green Deal Investment Plan, adopted by the Commission today, fills this commitment with life and with much—needed financing. The strength and novelty of this plan is that it brings together new policy initiatives and existing instruments. We are sending a clear signal to public authorities, companies and investors that we need to think green when we invest.  Let me outline the three pillars of our plan. First comes funding. The plan will mobilise at least EUR 1 trillion of sustainable investments over the next decade. The EU budget, with its 25% climate mainstreaming target, will add up to around half of this amount. We will also use leverage. Through InvestEU, we will mobilise some EUR 279 billion of public and private funds for climate- and environmentally—friendly investments, so the greener budget EU will lead by example. National co—financing for green projects accounts for another EUR 114 billion. As Frans has just explained, the Just Transition Mechanism will aim to reach EUR 100 billion over the next MFF. Beyond the EU budget, we will also tap the innovation and modernisation funds under the Emission Trading Scheme. I would also outline the EIB financing, which aims to raise its share of sustainable financing from 25% to 50% by 2025.  Second, we are putting forward conditions to enable public authorities and private operators to invest sustainably. Clear rules are a powerful incentive. With your support, we recently agreed on taxonomy as a tool to identify our green financial and economic activities. We will now explore how taxonomy can be used not only in the private but also in the public sector. Later this year, we will follow it up with a renewed sustainable finance action plan. We will also propose legislation on green public procurement and revise state aid rules in the light of the Green Deal.  Third, it’s not all about funds; it’s also about concrete projects. We will provide national administrations and project promoters with expertise to design quality projects and implement them. We will work with the EIB and other institutions to align their activities with the Green Deal objectives. Moving to the second part of our debate, which is a roadmap on social Europe, I would like to emphasise, as the Executive Vice—President responsible for economies that work for people, that our green and digital transitions must be just and inclusive. Social considerations remain centre stage. Both you and the European Council have underlined the need to implement the European Pillar of Social Rights. We are committed to it. Today’s communication on a strong social Europe for just transition is our roadmap to turn the pillar into reality. However, we know that many actions will be taken at national or stakeholder level. That’s why we’re launching the broader debate: to seek views on what more can be done. We want to hear what efforts all partners can commit to in order to make the pillar a reality.  Today, we are starting to consult our social partners on the needs and possible directions on the EU action for a fair minimum wage. The Commission has pledged to present a legal instrument to ensure that workers earn enough to support themselves. To be clear, it’s neither about setting a uniform European minimum wage nor about obliging countries to introduce a statutory minimum wage. National traditions of collective bargaining will be respected. Putting economic, environmental and social sustainability at the heart of policy requires a change of mindset. We have taken an important step towards achieving this today.