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ENFANTS TERRIBLES

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POLAND<br />

ESTONIA<br />

LITHUANIA<br />

LATVIA<br />

The low-carbon and climateproof<br />

transformation of the<br />

Polish economy is far from<br />

being a key development<br />

priority underpinning all<br />

EU-funded investments.<br />

Rather, it is just one of the<br />

isolated elements of public<br />

intervention, mandated<br />

by EU requirements on<br />

thematic concentration<br />

and ring-fencing. Despite<br />

the sizeable allocations<br />

and a formal narrative on<br />

achieving climate targets,<br />

the goal of the European<br />

funds in Poland will be<br />

to sustain, and not to<br />

transform, the current<br />

coal-based economy. The<br />

prevailing investment and<br />

development model still<br />

favours high-emissions<br />

transport over lowcarbon<br />

solutions, hard<br />

infrastructure over natural<br />

methods of climate<br />

adaptation, tourism over<br />

biodiversity protection<br />

and, finally, a traditional<br />

fossil fuel-based energy<br />

system over innovative,<br />

decentralised solutions<br />

where energy efficiency is<br />

always put first and citizens<br />

can actively participate in<br />

shaping the energy market.<br />

Estonia is still among the<br />

top three per capita and<br />

per GDP GHG emitters<br />

in Europe, mainly due to<br />

the carbon and energyintensive<br />

oil shale-based<br />

energy production sector,<br />

rapid growth in road freight<br />

transport and car use, low<br />

energy efficiency of the new<br />

vehicle fleet and high-energy<br />

consumption of buildings.<br />

Estonia maintains its high<br />

carbon intensity by keeping<br />

oil shale as its major energy<br />

source. The country’s shale<br />

oil dependency is not at all<br />

addressed by the EU funds<br />

and an existing long-term<br />

decarbonisation strategy<br />

has not been implemented.<br />

Transport funding dedicated<br />

to road construction omits<br />

emissions considerations,<br />

and climate change<br />

mitigation in project<br />

selection and as a horizontal<br />

principle is flawed.<br />

Despite progress in the<br />

development of a national<br />

climate change policy,<br />

climate change mitigation<br />

efforts are driven by<br />

sectoral policies and are<br />

therefore fragmented, a<br />

pathway to the long-term<br />

decarbonisation objective<br />

is missing and funds from<br />

the EU are not aligned with<br />

long-term climate change<br />

mitigation strategies.<br />

Whereas EU 2020 targets<br />

are in reach, the EU funds<br />

do not address the GHG<br />

emissions increase from the<br />

transport and agriculture<br />

sectors. The EU funds’<br />

planning documents are<br />

weak on climate change<br />

considerations, not<br />

providing evidence how<br />

particular measures will<br />

contribute to climate change<br />

objectives or help to shift to<br />

the low-carbon economy;<br />

horizontal principles on<br />

sustainability as described in<br />

the Partnership Agreement<br />

are not considered enough<br />

at programming level. Many<br />

measures accounted for<br />

under the climate action<br />

earmarking have no or little<br />

relevance to climate change<br />

objectives. Investment<br />

in energy infrastructure<br />

basically targets energy<br />

efficiency in multiapartment<br />

building blocks;<br />

support for renewables is<br />

limited to solid biomassbased<br />

heating plant<br />

installations. The importance<br />

of climate change mitigation<br />

is not well perceived by the<br />

stakeholders representing<br />

different economic sectors.<br />

The EU Cohesion Policy<br />

investments will support<br />

Latvia’s progress towards<br />

its national climate goals<br />

in 2020 and 2030 which<br />

are rather incoherent<br />

regarding climate change,<br />

sustainability and the<br />

transformation of the<br />

energy system. The National<br />

Development Plan for Latvia<br />

2020 largely neglects climate<br />

change mitigation and most<br />

of the strategic priorities do<br />

not refer to impacts on the<br />

environment and climate<br />

change. Latvia‘s Sustainable<br />

Development Strategy 2030,<br />

though progressive in itself,<br />

remains an island, and has<br />

not been translated into<br />

long-term investment plans.<br />

Climate change mitigation<br />

as a horizontal principle is<br />

poorly implemented in both<br />

the Partnership Agreement<br />

and the Operational<br />

Programme and successive<br />

project selection criteria.<br />

Investment in the energy<br />

sector is mostly determined<br />

by political debate on gas<br />

import diversification,<br />

therefore not enabling energy<br />

sector transformation. With<br />

its focus on the further<br />

promotion of bio-mass<br />

(fuel-wood), development of<br />

sustainable renewables like<br />

wind power and solar power<br />

is left neglected. EU Cohesion<br />

Policy Funds‘ allocations<br />

for energy efficiency are not<br />

much more than a patch for<br />

the poor situation of energy<br />

inefficiency in residential<br />

buildings. EU Cohesion<br />

investment in the transport<br />

sector does not meet GHG<br />

reduction objectives even<br />

though it is declared as a<br />

strategic objective. In fact,<br />

significant investment in the<br />

transport sector has little<br />

impact on GHG reduction<br />

and Latvia’s high share of<br />

emissions remains unabated.<br />

6<br />

‘Climate’s enfants terribles: how new Member States’ misguided use of EU funds is holding back Europe’s clean energy transition’

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