Gas pipelines included in projects list for EU funding despite protests

EP sets out new criteria for EU funding for energy projects but some MEPs complain about continued funding of gas

The European Parliament has approved updated rules on which energy projects can receive EU funding.

The new law sets the criteria and the methodology for selecting energy projects of common interest (PCIs), aligning it with the EU’s Green Deal.

It will apply to high-voltage transmission lines, pipelines, energy storage facilities or smart grids, which would benefit from fast-track administrative procedures and be eligible to receive EU funds.

PCIs are considered essential for delivering on EU objectives like improved interconnection between national markets, greater competitiveness, security of supply and promotion of renewables.

Rapporteur Zdzisław Krasnodębski (ECR) said that although the state of the gas market has improved substantially since 2013, there still are not enough interconnections and competitive conditions in a lot of the smaller gas markets. “Regarding gas, the Commission’s estimations of the level of connectivity and supply resilience might be overly optimistic.”

Notwithstanding these issues Krasnodębski said that in some member states, like Malta, natural gas projects represent “substantial potential for reduction of CO2 emissions, including by facilitating transition from solid fossil fuels, in particular coal, lignite, peat and oil shale, to natural gas, therefore being the essential part of their decarbonisation strategies.”

During the plenary debate Krasnodębski said: “we know that in the tragic reality of war in Europe, the dramatic low level of the union's energy security proves that for years the EU has made serious mistakes, including in terms of trans-European energy infrastructure.”

The Polish MEP said he now thinks that the Commission has recognised this, and although “it's probably too late” to revise the TEN-E regulations, the Commission is already preparing an instrument to foster gas network connections and LNG terminals “in a desperate attempt” to reduce the unions dependence on Russian imports.

Some MEPs were more optimistic than others over the new rules for common projects but the general mood across the political spectrum and even with the Commission that what had been agreed was not ambitious enough to face up to the challenges of the current age.

Marie Toussaint, speaking on behalf of the EP environment committee, said “unfortunately the text today and the outcomes of the trilogues do not rise to the challenges… this authorizes the continued public investment in fossil fuels. Such as the LNG terminals we just heard about, without regard to the exceptions granted to Cyprus and Malta, which were closely linked to the assassination of journalist Daphne Caruana Galizia.”

Toussaint called on MEPs to stop “wasting” Europeans’ money on infrastructure that’s already obsolete.

Claudia Gamon, of Renew, warned that the inclusion of exceptions, such as the financing of gas pipelines, was “scandalous” because it may actually make it very difficult to move away from dependence on natural gas. Expressing her frustration, Gamon said: “I get so annoyed because we just do the minimum instead of really looking ahead, the rule is we just do what is necessary instead of working towards a future.”

Gamon described the old state of affairs as “really something that led us to a disaster”, adding that while the new agreement was still better than the old she stood firm in calling for a renewed “more forward-looking” approach to “get rid of the shackles of dependency on natural gas”.

In contrast Transport and Tourism Committee representative Paola Borchia (ID) said he believed that the transport sector needed practical solutions, solutions that should not hike up the prices, something which is key for the transport companies “especially with the prices of fuels which have exploded.”

Borchia said further work was needed on the reform file and called to look to the future and ensure cross border projects are kept. Emphasizing the need to supply the transport sector with liquid gas, LNG, and Biogas. “I know the Commission is going in this direction but perhaps you do not understand what happens everyday in the transport companies,” Borchia said in a passing barb.

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This article is part of a content series called Ewropej. This is a multi-newsroom initiative part-funded by the European Parliament to bring the work of the EP closer to the citizens of Malta and keep them informed about matters that affect their daily lives. This article reflects only the author’s view. The action was co-financed by the European Union in the frame of the European Parliament's grant programme in the field of communication. The European Parliament was not involved in its preparation and is, in no case, responsible for or bound by the information or opinions expressed in the context of this action. In accordance with applicable law, the authors, interviewed people, publishers or programme broadcasters are solely responsible. The European Parliament can also not be held liable for direct or indirect damage that may result from the implementation of the action.

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