The European Union is preparing its next multi-annual financial framework (MFF) for 2028-2035. In this context CE Delft, together with its partners Ramboll, Ecologic and I4CE, performed a study on Mainstreaming climate and environmental objectives in EU funding programmes in the post-2027 period for DG CLIMA . The study provides evidence-based recommendations on specific climate and environment-related spending priorities under the next MFF and evaluates the effectiveness of existing green mainstreaming tools. It proposes ways to enhance the coherence, impact, and efficiency of green funding under the post-2027 MFF.
CE Delft was responsible for the chapters on improving EU funding for industrial decarbonisation and clean technologies and on green mainstreaming tools (instruments that are currently used for green mainstreaming).
On industrial decarbonisation, it was concluded that while many EU funds are available for industry, impact varies across funds and there are several challenges with the current funding landscape. Recommendations include increasing the size of funding, but also a range of options to ensure the right focus of funding, to make more use of auctions, contracts for difference and guarantees, to improve access to funding (also for SMEs and clean tech manufacturers) and to align funding that has other key objectives (e.g. coherence, just transition, competitiveness) with climate and environmental goals.
On mainstreaming tools, a case study approach was deployed to assess specific sets of green mainstreaming tools, including the way they interact as well as overlaps and synergies. It was argued that simplification is essential to reduce administrative burdens and enhance effectiveness, particularly for smaller projects. The chapter highlights the need for streamlined tools and methodologies, potentially by merging Do-No-Significant-Harm (DNSH), climate-proofing and sustainability-proofing into a single operational tool. It also suggests monitoring and evaluation should shift focus from financial inputs to capturing investment impacts. Additionally, it proposes a typology for green policy reforms accompanying investments.
In this context a smaller study was performed as well, which assessed the same type of questions for the EU’s international funds: Mainstreaming climate and environmental objectives in EU international funding programmes in the post-2027 period . CE Delft contributed by examining the EU’s green mainstreaming toolbox – based on the new INTPA-NEAR Greening Toolbox for external funding, including the application of the Do No Harm (DNH) principle. Challenges were identified both for general green mainstreaming in international funding and for biodiversity mainstreaming in particular, and recommendations were proposed to address the key challenges.