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The European Commission’s promised green recovery plan will focus on building renovation, renewables and hydrogen, as well as clean mobility and the circular economy, according to a leaked working document.

A draft document of an official plan set to be published on 27 May sheds light on what types of low-carbon investments the EU intends to prioritise through its heavily-trailed green recovery plan, as it looks to reboot the economy while moving the continent closer to its climate goals.

The EU has been inundated with calls from businesses, investors, green groups, politicians, and citizens for it to engineer a green recovery from the economic crisis. Just recently, MEPs voted in favour of a resolution that called on the Commission to deliver a “massive €2tr” coronavirus recovery that would help Europe deliver on its aim to become the world’s first net zero continent by mid-century. The overwhelming majority of MEPs demanded that all forthcoming investments must comply with the Paris Agreement, the UN Sustainable Development Goals, and Europe’s net zero and biodiversity goals.

Under the leaked proposals – a working document which could change before they are published later this week – the Commission revealed that improving the energy efficiency of Europe’s building stock was a priority, alongside dramatically ramping up hydrogen production, improving train services, and boosting sales of green vehicles.

The Commission revealed it intends to establish a €91bn European Renovation Financing Facility in order to boost the current rate of building renovations up from the current meagre rate of one per cent a year. Once blended with other sources of funding, the total pot for building renovations could reach around €350bn, the document notes.

Public sector buildings like hospitals and schools, as well as social housing projects, will be prioritised first in the scheme. However, the facility will subsequently channel €50bn into green mortgages to help incentivise upgrades to a wider array of buildings, including privately-owned homes, offices, and farms.

The working document notes the Commission will also revise State Aid rules by 2021 in order to help public authorities deliver high-quality renovations while making the most of limited public funds.

In addition, the Commission said in the documents that it will inaugurate a new EU renewable electricity project tendering scheme that procures 15GW of capacity over two years through a capital investment of €25bn. A further €10bn will be channelled towards member state renewable electricity procurement schemes through a fund administered by the European Investment Bank.

The bloc will also allocate funding for clean hydrogen research and innovation worth up to €1.3bn, according to the document, while a further €10bn is expected to be channeled over the next decade into co-financing clean hydrogen technologies with high decarbonisation potential.

The bloc also intends to set up a new ‘carbon contracts for difference’ scheme, modelled on renewable power tendering systems, but aimed specifically at driving down costs of green hydrogen. Meanwhile, between €5bn and €30bn would be invested through the EU’s Innovation Fund on scaling up clean hydrogen production.

The bloc also said it would funnel €10bn annually into a EIB-administered Green Infrastructure Fund for Renewables and Hydrogen targeted at clean energy and renewable energy infrastructure.

When it comes to mobility, document suggsts the bloc intends to spend €20bn over the next two years on grants and guarantees that boost sales of clean vehicles, alongside between €40 to €60bn on the development of zero-emissions drive trains. It also pledged to double the number of charging and alternative refuelling stations by 2025.

A ‘Renaissance of Rail Investment’ package of €40bn is set to be targeted at key rail corridors where passengers and freight can shift to rail, the document noted. And an undisclosed amount of financial support will also go towards the changeover of rolling stock and night train services.

The document also outlines plans to prioritise investments in digital infrastructure for rural areas and support farmers and landowners with a wide range of energy crop, afforestation, peatland restoration, soil management, and biogas production projects.

Finally, the plan also notes that the waste sector must undergo “a massive digitalisation” drive to help enhance efficiency, boost recycling rates, and enable a circular economy.