The Danish government has changed the rules on the country’s oil industry taxation in a way that will mean the state’s income from fossil fuels will increase, and the additional revenue must be spent on reducing fossil-fuel dependence. Specifically, taxes on smaller oil producers will rise, and the money has to be spent on electrifying the country’s rail network.
MEPs are voting for more sustainability with one hand and unsustainable projects with the other. That is the message from a group of NGOs after MEPs voted to strengthen sustainability safeguards for infrastructure projects that could receive EU funding, but at the same time voted to support certain transport projects that will take Europe further away from its sustainability goals.
EU transport ministers have discussed revisions to the guidelines that govern spending on trans-European transport networks infrastructure projects (TEN-T, soon to be renamed the Connecting Europe Facility), but T&E says concerns remain about how the money will be spent and how the environmental impact of projects co-funded by EU money is accounted for. The Commission says the TEN-T revisions will promote lower-carbon options such as rail projects, but T&E has warned that projects should be judged on their emissions reduction potential.
A leading MEP has asked the Commission to stop Poland spending €1.2 billion of cohesion fund money on roads which has been given for improving rail transport.
A win/win situation in which spending by the European Union achieves better value for money at the same time as promoting more environmentally sensitive solutions has been put forward by seven NGOs, including T&E.
The Commission is consulting on ways of deciding how to plan the next phase of the trans-European transport network.
The NGO network CEE Bankwatch says the European Bank for Reconstruction and Development urgently needs to reduce its carbon-heavy investments in new motorways and air travel, and instead promote transport that assists the transition to a low-carbon economy. Its comments come in a consultation by the Bank on how it decides its transport lending in central and eastern Europe. Bankwatch also says the Bank’s ‘private sector at just about all costs’ approach is leading to bad lending decisions, and it should ensure that railway restructuring does not become a misleading term that takes trade off the rails because of higher costs.