EU missed climate spending target despite claiming it was met: Auditors

30/5/2022 11:54:00 PM

EU missed climate spending target despite claiming it was met: Auditors

EU missed climate spending target despite claiming it was met: Auditors

BRUSSELS: The European Union missed its target to spend 20 per cent of its pre-2020 budget on fighting climate change and overstated its green spending to claim that the goal had been met, the European Court of Auditors said on Monday (May 30). The EU had pledged to spend at least 20 per cent of its 2014-2

LinkedIn BRUSSELS: The European Union missed its target to spend 20 per cent of its pre-2020 budget on fighting climate change and overstated its green spending to claim that the goal had been met, the European Court of Auditors said on Monday (May 30).Copy to clipboard https://str.LinkedIn MELBOURNE : Oil prices rose to two-month highs on Monday as traders waited to see if the European Union would reach an agreement on banning Russian oil ahead of a meeting on a sixth package of sanctions against Moscow for its invasion of Ukraine.Russia's invasion and how to deal with the conflict's impacts: high energy prices, an impending food shortage and the EU's defence needs.

The EU had pledged to spend at least 20 per cent of its 2014-2020 budget on measures to limit climate change, and by its own account hit that goal exactly, spending €216 billion (US$232.8 billion) in the period.The EU had pledged to spend at least 20 per cent of its 2014-2020 budget on measures to limit climate change, and by its own account hit that goal exactly, spending 216 billion euros (S$318.The auditors said, however, that the EU had overstated its climate spending by at least 72 billion euros and the actual figure was likely to have been €144 billion, equating to 13 per cent of the total budget.89 a barrel at 0111 GMT, while U."Not all the reported climate-related spending under the EU budget was actually relevant to climate action," said ECA member Joelle Elvinger.The auditors said, however, that the EU had overstated its climate spending by at least 72 billion euros and the actual figure was likely nearer 144 billion euros - or 13 per cent of the total budget.Agriculture subsidies made up 80 per cent of the"climate" spending the auditors said was mislabelled.The most tangible will be the leaders' political backing for a 9 billion euro package of EU loans, with a small grants component to cover part of the interest, so that Ukraine can keep its government going and pay wages for around two months.

While some schemes had made a solid contribution to fighting climate change, such as enriching soil carbon storage, others had little climate impact, the auditors said.Agriculture subsidies made up 80 per cent of the"climate" spending the auditors said was mislabelled.5 per cent, to $115.Among those having little impact were crop diversification, The European Commission stood by its assessment that the 20 per cent target was met and said its method of tracking EU climate spending was reliable and used transparent underlying assumptions.It accepted most of the auditors' recommendations, including one to use scientific evidence to assess agriculture spending's climate contribution.In its official reply, the Commission stood by its assessment that the 20 per cent target was met but accepted some of the auditors' recommendations, including one to use scientific evidence to assess agriculture spending's climate contribution."The Commission has already significantly strengthened the EU climate tracking methodology," a Commission spokesperson said."I don't think it would be a stretch to assume that speculators are positioning for a post-EU summit oil market bounce," said SPI Asset Management managing partner Stephen Innes.The EU assigns a score to spending based on its expected contribution to addressing climate change.The EU assigns a score to spending based on its expected contribution to addressing climate change.But the careful phrasing is deliberate because the issue is legally difficult, officials said.

The auditors said this system is"beset with weaknesses", involves significant approximations and is unreliable since it does not assess the real impact made by the projects once the money is spent.The auditors warned that the EU had not fixed loopholes in its system of tracking climate spending, potentially undermining its new target to spend 30 per cent of the EU's 2021-2027 budget and 37 per cent of the bloc's COVID-19 recovery fund on climate action.The auditors warned that the EU had not fixed loopholes in its system of tracking climate spending, potentially undermining its new target to spend 30 per cent of the EU's 2021-2027 budget and 37 per cent of the bloc's Covid-19 recovery fund on climate action.If agreed, a deal would allow Hungary, Slovakia and Czechia to continue to receive their Russian oil via the Druzhba pipeline for some time until alternative supplies can be arranged.Source: Reuters/ec.

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EU missed climate spending target, despite claiming it was met: Auditors

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