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Energy & Regions

REGIONAL & URBAN DEVELOPMENT POLICY

ERDF and Cohesion funds will finance a greener, low-carbon transitioning towards a net zero carbon economy and resilient Europe by promoting clean and fair energy transition, green and blue investment, the circular economy, climate change mitigation and adaptation, risk prevention and management, and sustainable urban mobility. The first interlocutor and beneficiary are Regions.

General objectives

In 2021-2027 EU Regional Development Fund ERDF and Cohesion Policy have set 5 policy objectives, supporting growth for the period 2021-2027:
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1. a more competitive and smarter Europe, through innovation and support to small and medium-sized businesses, as well as digitisation and digital connectivity
2. a greener, low‑carbon transitioning towards a net zero carbon economy
3. a more connected Europe by enhancing mobility
4. a more social and inclusive Europe, as well as education, skills, social inclusion and equal access to healthcare, as well as enhancing the role of culture and sustainable tourism
5. Europe closer to citizens by fostering the sustainable and integrated development of all types of territories

Funds priorities:
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• The European Regional Development Fund will support investments all 5 policy objectives, but 1 and 2 are the main priorities
• The European Social Fund+ main priority is 4
• The Cohesion Fund supports policy objectives 2 and 3
• The Just Transition Fund provides support under dedicated specific objectives (art. 8 of JTF regulation) 
• The Interreg programmes have 2 additional policy objectives at their disposal (art. 14, Interreg regulation) :  “A better cooperation governance” and  “A safer and more secure Europe”

Energy infrastructure and interconnections

​Investments in infrastructure for smart energy distribution, storage and transmission systems are among the purposes of the 5 policy objectives of the European Regional Development Fund (ERDF) and Cohesion Policy (2021-2027). 


In accordance with the policy objectives set out in Article 5(1) of Regulation (EU) 2021/1060, the ERDF shall support the following specific objectives:
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(b) a greener, low-carbon transitioning towards a net zero carbon economy and resilient Europe by promoting clean and fair energy transition, green and blue investment, the circular economy, climate change mitigation and adaptation, risk prevention and management, and sustainable urban mobility (PO 2) by:

• ...
• (ii) promoting energy efficiency and reducing greenhouse gas emissions;
• (ii) promoting renewable energy in accordance with Directive (EU) 2018/2001, including the sustainability criteria set out therein;
• (iii) developing smart energy systems, grids and storage outside the Trans-European Energy Network (TEN-E);
• ...
• (vii)  enhancing protection and preservation of nature, biodiversity and green infrastructure, including in urban areas, and reducing all forms of pollution;
• ...

As a precondition for the support Member States need to have in place comprehensive plans describing the national energy infrastructure priorities, in line with the third Internal Energy Market legislation, consistent with the Union-wide ten-year network development plan and containing realistic and mature pipeline for projects for which support from the ERDF is envisaged.
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It is also possible to receive support for investments in smart electricity distribution systems and for renewable energy distribution (and production) under thematic objective 4 (low-carbon economy).

For both above-mentioned transport and energy investments, Cohesion policy support should be planned in close cooperation with support from the Connecting Europe Facility (CEF) and the European Fund for Strategic Investments (EFSI) to ensure complementarity and optimal linkages of different types of infrastructure at local, regional, national, macro-regional level and European level. 
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Private funding sources are expected to cover the bulk of investment in this area, complemented by public sources in cases of funding gap. Public funding should not replace but complement and leverage privateinvestment, in accordance with state aid rules.
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