European Union plans for an environment-friendly economic recovery from the coronavirus pandemic will target building renovation, renewable energy and clean hydrogen fuel, according to a draft document seen by Reuters.

Photo taken on April 9, 2020 shows a gas station in Brussels, Belgium. Photo: Xinhua

The draft, due to be published on Wednesday, lays out how the European Commission plans to use low-carbon investments to battle the bloc's virus-induced economic downturn.

The Commission declined to comment on the draft, which may change before publication. It must also be approved by EU governments and European Parliament. 

The draft climate measures in the Commission recovery plan - which will be funded by the bloc's long-term budget and a fresh EU recovery fund - aim to transform Europe's building stock to curb energy use, cut consumers' bills and quickly create jobs in construction.

The Commission will earmark 91 billion euros ($100 billion) each year in grants and loan guarantees for renovations like rooftop solar panels, insulation and renewable heating systems.

Under the Commission proposal, the EU will tender 15GW of renewable energy capacity before 2023, with expected investments of 25 billion euros. A 10 billion euro fund, administered by the European Investment Bank, will also offer loans to projects for renewable energy and clean hydrogen - a zero-carbon fuel produced.

Green hydrogen is seen as crucial to deliver the Commission's target to decarbonize the EU economy by 2050, by replacing fossil fuels in polluting industrial processes.
Newspaper headline: EU’s economic recovery plans go ‘green’: draft