On Wednesday, the EU’s 27 member countries agreed that natural gas projects would not be eligible to receive financial support from the bloc’s green transition fund. The EU governments and the European Parliament also agreed to endorse the deal last week. The Just Transition Fund will not support any investments linked to other fossil fuel projects and nuclear energy.
Natural gas has been viewed as a clean fuel as it emits 50% less CO2 than coal when used in power plants. However, natural gas production is associated with leaks of methane, a more potent greenhouse gas. Some EU countries and lawmakers opposed the gas exclusion, but the deal was reached after other parties agreed to allocate a smaller amount of funding from a separate European Regional Development Fund.
The €17.5 billion ($21.33 billion) Just Transition Fund is aimed to target fossil fuel-reliant regions, with Poland, Germany, and Romania expected to receive the biggest benefits. The fund is also expected to attract private investment in the low-carbon energy sector and retrain workers from fossil fuel industries.
