Explosive investigation

EU states cheated with green corona billions

Where it said "green", there was always nothing green inside ...

(Bild: AFP/Nikolay DOYCHINOV)

According to a report presented by the European Court of Auditors (ECA) on Wednesday, the EU coronavirus recovery fund is not as green as planned. Auditors see problems with target values, differences between reported and spent funds and projects falsely labeled "green".

The fund is intended to support the EU economy after the coronavirus crisis and also make it greener and more climate-friendly with at least 37% of all funds. However, the ECA's auditors see numerous problems here: from lax checks to fraudulent labeling.

Disbursement without solid verification
In contrast to the usual practice for EU spending, the money from the recovery fund is not paid out to cover expenditure incurred, but on the basis of milestones and targets achieved. The auditors identified several weaknesses.

"However, estimates are often used in the recovery plans, there are differences between planning and practice and few indications of how much money flows directly into the ecological transition," criticized Joëlle Elvinger from the ECA.

According to the EU Commission, around 275 billion euros (42.5 percent) from the fund will have flowed into the promotion of EU climate targets by February 2024. According to the ECA report, this sum is overestimated by at least 34.5 billion euros.

"Green" pollution with EU billions
According to the report, this is due to the fact that the actual contribution to climate protection made by the measures supported by the fund cannot always be or is not always clearly determined. The auditors criticize that some climate contributions are therefore set too high. Some measures are also not as ecological as initially assumed and declared. One example cited is a pumped storage plant that was subsidized and actually ended up polluting the water.

Austria's target value of around 56 percent (around 2.2 billion euros) is above the 37 percent minimum value. Seven EU countries have higher target values; Denmark, Luxembourg and Malta are the frontrunners with just under 70 percent each. Lithuania is currently in last place, just under the target value. Investments and reforms as part of the Austrian reconstruction plan were not specifically examined.

Projects in this country include the renovation offensive or reforms to speed up approval procedures for renewable energies and the expansion of hydrogen technologies.

Considerable doubts about effectiveness
In its report, the Court of Auditors emphasizes that it "did not find sufficient evidence of how the implementation of the measures contributes to ecological change". Due to the identified weaknesses of the facility, it is questionable whether the climate and environmental goals it pursues can be achieved.

The report therefore recommends that the EU Commission make better estimates of climate-related expenditure and improve the design of future financing instruments and reporting. This is because, although a methodology for tracking environmental targets existed, it was not used by the responsible authorities.