Translate and proofread the text.

faktaoklimatu · May 1, 2023 · e89b38c · e89b38c
1 parent 66f3ed5
commit e89b38c
Showing 1 changed file with 97 additions and 3 deletions.
diff --git a/collections/_infographics/policies/eu-funds.md b/collections/_infographics/policies/eu-funds.md
@@ -3,12 +3,106 @@ layout:        infographic
 title:         "EU funding for climate action in Czechia"
 slug:          "eu-funds"
 redirect_from: "/eu-funds"
-published:     2022-07-26
+published:     2023-04-30
 weight:        94.5
 tags-scopes:   [ eu, cz ]
 tags-topics:   [ policies, economy ]
-caption:       "Over the following years, the Czech Republic will receive an unprecedented amount of money for climate action from the EU funds: between 450 and 800 billion CZK (the amount depends on the price of emission allowances). This money is to be used in a number of areas: from renewable energy sources and community energy systems to improving energy efficiency, sustainable farming and many other areas."
+caption:       "Over the following years, the Czech Republic will receive an unprecedented amount of funding for climate action from the EU funds: between 450 and 800 billion Czech crowns (the amount depends on the price of emission allowances). This money is to be used in a number of areas: from renewable energy sources and community energy systems to improving energy efficiency, sustainable farming and many other areas."
 data-our:      "https://docs.google.com/spreadsheets/d/1Gwdx01ZypyEGfi13M1WvgiJCrqfU5ihKm685y3xz4j0/edit?usp=sharing"
 ---
 
-{% include includes-local/comment-placeholder.md slug="infografiky/fondy-eu" %}
+As part of the [**European Green Deal**](https://commission.europa.eu/strategy-and-policy/priorities-2019-2024/european-green-deal_en), the European Union (EU) has committed to achieving **<glossary id="carbon-neutrality">carbon (climate) neutrality</glossary>** by 2050.
+
+The Green Deal includes both measures and legislative frameworks aimed at reducing greenhouse gas emissions and specific **instruments** to **finance** them. Funding comes mainly from the EU budget, revenues from the European common bond (NextGenerationEU) and proceeds from the sale of emission allowances, and is divided between several funds,[^funds-replenished] part or all of which go towards climate action. So, if we ask where to find the necessary funding for decarbonisation and economic transformation, EU funds offer a partial answer.
+
+## How to read infographics
+
+The infographic provides an overview of the different EU funds, showing for each of them: the source and purpose of the funding, how much of the fund goes to climate action, who the beneficiaries are and which areas the fund focuses on.
+
+As mentioned above, the individual funds mainly receive funding from these three sources:
+*  **The EU budget** (the Multiannual Financial Framework) - made up of contributions from member countries (more than 50% of the budget), revenue from VAT and customs duties (less than a third of the budget) and other sources such as taxes on European workers, etc.
+* **NextGenerationEU** (NGEU) - an instrument consisting mainly of a €750 billion joint loan from EU countries.[^bonds]
+* **Emission allowances** (*EU Emissions Trading System, EU ETS*) – these are revenues from the so-called Emissions Trading Scheme, where selected companies have to pay for the greenhouse gas emissions they emit, based on the **polluter pays** principle.
+
+**Climate action** can be understood as measures that **mitigate the impacts of climate change** (<glossary id="mitigations">mitigation</glossary>) and therefore mainly support the reduction of greenhouse gas emissions or adapt to the impacts of climate change (<glossary id="adaptation">adaptation</glossary>). These measures range from the deployment of Renewable Energy Sources (RES) to reducing the emissions intensity of transport and buildings to sustainable agriculture or community energy. However, the measures also include major projects to develop carbon capture or energy storage technologies. The 'purpose' section provides an overview of the specific climate actions targeted by each fund.
+
+## Description of each fund
+
+### European Structural and Investment Funds (ESIF, ESI Funds)
+
+[The ESI Funds](https://www.dotaceeu.cz/en/evropske-fondy-v-cr/kohezni-politika-po-roce-2020) are made up of a total of five funds[^funds] plus the Just Transformation Fund (see below). Their purpose is to **balance income disparities between European regions**. In the current period 2021-2027, the Czech Republic will receive approximately 557 billion Czech crowns from the ESI funds, of which at least **25% should be directed to climate action**[^underreporting], based on the conditions set by the European Commission. This share corresponds to about **139 billion Czech crowns**,[^current] in annualised terms, it is 19.6 billion Czech crowns. ESI funds can finance a wide range of measures - from green infrastructure to agriculture, education and more.
+
+### Just Transition Fund (JSF)
+
+Although the [JSF](https://www.mzp.cz/en/operational_programme_just_transition) is formally part of the ESI Funds, it is distinguished by the fact that it is a new fund created to **minimise the negative impacts of decarbonisation**. In other words, it should support the social justice dimension of the transition to a carbon-free economy. The JSF investment of **45.1 billion Czech crowns** is to be directed mainly towards small and medium enterprises, new business creation, research and innovation, environmental rehabilitation, clean energy, retraining of employees from affected sectors, job search support and transformation of carbon intensive plants. In the Czech Republic, they will head to the **Karlovy Vary, Ústí and Moravskoslezsky regions**. As the JSF is mainly intended to minimise the negative impacts of decarbonisation, not all the funding will necessarily go directly to climate action (the funds can also be used, for example, for the construction of assembly plants, retraining, etc.).
+
+### National Recovery Plan (NRP)
+
+The <!--[-->NRP<!--](https://www.planobnovycr.cz/)--> is financed under the [Recovery and Resilience Facility](https://commission.europa.eu/business-economy-euro/economic-recovery/recovery-and-resilience-facility_en), where the EU has borrowed an additional €750 billion[^bonds] to its budget in response to the coronavirus pandemic. The NRP aims to **revive the economy after the pandemic**. Each member state drew up its own NRP (i.e. a plan for what specific activities the funds would be allocated to), which was subsequently approved by the European Commission. The condition was that at least 37% of these funds should be used for climate action. In the Czech Republic, this share currently stands at **41.6%** [^nrp-assessment] [^green-recovery-tracker] Thus, **76.1 billion Czech Crowns** should be spent on climate measures, in RES, energy efficiency, emission-free transport, circular economy and other areas.
+
+### Modernization Fund
+
+<!--
+{% include preview-box.html
+    title="How do European emission allowances work?"
+    text="This article describes the principle and purpose of emissions trading."
+    slug="emisni-povolenky-ets"
+%}
+-->
+
+[The Modernisation Fund](https://climate.ec.europa.eu/eu-action/funding-climate-action/modernisation-fund_en) is an instrument aimed at **modernising the economy** of countries that will be most affected by decarbonisation - i.e. countries whose economies are dependent on burning fossil fuels. The volume of funds in the Fund is not defined by a specific financial amount, but by the **number of emission allowances**. The number of allowances in the Fund for the Czech Republic is 193 million.[^allowances-clarification] The amount of funds in the Fund thus depends on the price of the emission allowance: at a price of €30 per allowance, it will be approximately 150 billion Czech crowns, at a price of €100 up to 500 billion Czech crowns. It follows that **the higher the price of the allowance, the higher the amount of funds** in the Modernisation Fund and also the investment in climate measures. In the case of the Modernisation Fund, these include investments in renewable energy sources, modernisation of district heating, energy efficiency of large and small businesses, modernisation of transport, energy efficiency of public buildings and infrastructure, community energy or modernisation of public lighting systems.
+
+
+### Innovation Fund
+
+The [Innovation Fund](https://ec.europa.eu/clima/eu-action/funding-climate-action/innovation-fund_en) serves to support **innovative projects**, with decisions about specific projects being made at the EU level rather than the national level as with the funds mentioned above. It is therefore not possible to say in advance how many Czech projects will be supported or in what amount. Like the Modernisation Fund, the Innovation Fund is **financed by revenues from the sale of emission allowances** (a total of 450 million allowances). The fund is aimed at projects focusing primarily on low-carbon technologies in energy-intensive industries, energy storage, Carbon Capture and Storage (CCS), or industrial Carbon Capture and Utilization (CCU).
+
+### Social Climate Fund
+
+{% include preview-box.html
+    title="What is included in the Fit for 55 package?"
+    text="The Social Climate Fund is one of the proposals in the package."
+    slug="fit-for-55"
+%}
+
+The [Social Climate Fund](https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A52021PC0568) is proposed in the Fit for 55 package to **support vulnerable groups affected by decarbonization**. Negotiations on this fund are still ongoing. The source of financing should be (similarly to the Modernization and Innovation Funds) revenues from the sale of emission allowances - with the difference that it should be allowances from the so-called EU ETS 2 system, which is to apply to buildings and road transport. The Czech Republic should receive approximately **45.1 billion Czech crowns** from the fund between 2025-2032, and these funds should be directed towards energy efficiency, renewable energy sources, and low-carbon transport. Similarly to the Just Transition Fund, it applies that the fund should mainly minimize the negative impacts of decarbonization, and therefore, not all of the funds need to be used directly for climate measures.
+
+## Other possible sources of EU and national climate finance
+
+### Environmental schemes under the Common Agricultural Policy
+
+The Common Agricultural Policy (CAP) represents approximately one-third of EU budget spending. The [reform](https://ec.europa.eu/info/food-farming-fisheries/key-policies/common-agricultural-policy/new-cap-2023-27_en) of the CAP for the period 2023-2027 includes so-called [ecoschemes](https://www.carbonbrief.org/qa-will-eu-common-agricultural-policy-reforms-help-tackle-climate-change), which would reward farmers for activities that benefit the environment and help fight climate change. In the first few years, it should be 20% of the CAP budget, then 25%. The specific amount of funding is not yet known, and as of March 2022, the Czech Republic is awaiting approval of its CAP Strategic Plan by the European Commission.[^strategic-plan-cap]
+
+### State Budget
+
+The Czech Republic, through its state budget, contributes to the **co-financing** of projects from EU funds to varying degrees. The level of this co-financing varies both among individual funds and within funds – depending on the type of recipient, who also often contribute to the co-financing, or the economic development of the region.[^co-financing]
+
+**Earnings from emission allowances**, which the Czech Republic obtains through their auction, go to the state budget. According to the current requirements of the European Commission, 50% of the earnings should be directed towards climate measures. Within the proposals of the Fit for 55 package, this share should increase to 100%. Currently, the Czech Republic does not disclose information about specific projects to which the earnings from allowances are directed.[^frank-bold]
+
+## Sources and notes
+
+### Who to contact next
+
+Further information on individual EU funds and climate finance allocations can be obtained from experts at the [Centre for Transport and Energy](https://www.cde-org.cz/cs/) or the [Association for International Affairs](https://www.amo.cz/). The infographic was produced with their cooperation.
+
+### Main sources of information
+
+* SubsidiesEU.cz. [Programme period 2021-2027](https://www.dotaceeu.cz/cs/evropske-fondy-v-cr/kohezni-politika-po-roce-2020)
+* European Commission. [Funding for climate action](https://ec.europa.eu/clima/eu-action/funding-climate-action_en)
+* European Commission. [NextGenerationEU](https://europa.eu/next-generation-eu/index_en)
+* Ministry of the Environment. [Just Transition Fund](https://www.mzp.cz/cz/opst_2021_2027)
+* Ministry of Industry and Trade. [National Recovery Plan](https://www.planobnovycr.cz/)
+
+### Notes
+
+[^funds-replenished]: In the infographic and text, we focus only on the funds that are at least partly allocated to climate action. There are also other EU funds, but they focus on different areas.
+[^funds]: These are the European Regional Development Fund, the Cohesion Fund, the European Social Fund+, the European Maritime, Fisheries and Aquaculture Fund and the European Agricultural Fund for Rural Development.
+[^underreporting]: The share is based on the European Commission's requirement to allocate at least 25% of the EU budget to climate action. Different shares may then be set for individual ESI funds. For the European Regional Development Fund it is 37% and for the Cohesion Fund 30%. For the remaining funds, no specific share is set.
+[^bonds]: The EU borrowed the money through joint bonds. This is the first time that all EU countries have participated together in a bond issue. The €750 billion figure corresponds to 2018 prices.
+[^current]: In all cases, the exchange rate of 26 Czech crown/euro was used to convert euros to Czech crowns.
+[^nrp-assessment]: Further information on the approved form of the NRP can be found in the <!--[-->Summary of the European Commission's assessment<!--](https://ec.europa.eu/info/files/summary-assessment-czech-recovery-and-resilience-plan_en)--> or in the <!--[-->Council Implementing Decision<!--](https://www.mpo.cz/assets/cz/podnikani/2021/10/PROVADECI-ROZHODNUTI-RADY-o-schvaleni-posouzeni-planu-pro-oziveni-a-odolnost-Ceska.pdf)-->.
+[^green-recovery-tracker]: In its [analysis of the Czech NRP](https://www.greenrecoverytracker.org/country-reports/czech-republic), the Green Recovery Tracker states that only 25% of the funding can be said to be directed towards climate action. 
+[^allowances-clarification]: These 193 million allowances [consist of](https://modernisationfund.eu/how-it-works/) of both allowances obtained from 2% auctions within the EU ETS (approximately 1/4 of the fund) and allowances voluntarily transferred by the Czech Republic to the fund (approximately 3/4 of the fund).
+[^strategic-plan-cap]: More information about the proposal of the strategic plan of the Common Agricultural Policy (CAP) for the period 2023-2027 for the Czech Republic is available [here](https://eagri.cz/public/web/mze/dotace/szp-pro-obdobi-2021-2027/zakladni-informace/strategicky-plan-spolecne-zemedelske.html).
+[^co-financing]: More detailed information about the rules for co-financing projects from ESI funds can be found [here](https://cbk.blob.core.windows.net/cms/ContentItems/31681_31681/pravidla-spolufinancovani-2021-2027.pdf).
+[^frank-bold]: The [analysis](https://en.frankbold.org/news/frank-bold-points-out-non-transparent-handling-ets-revenues-and-potential-violation-eu-law) by Frank Bold organization highlights the lack of transparency about the use of proceeds from the sale of emission allowances.