How to Achieve the EU's Climate Goals? : A Model Proposal for an EU Climate Fund Contributing to Fill the Green Investment Gap

The EU faces significant pressure to make substantial additional green investments to achieve its Fit for 55 goals. Against this background, we propose an EU Climate Fund. It aims to establish a financial link between the benefits derived from the European legal framework for cross-border business activities and the specific responsibilities that businesses enjoying these freedoms have in supporting climate objectives. The final architecture of the EU Climate Fund will closely resemble the already existing Single Resolution Fund (SRF) existing in the banking sector and could be a pivotal step towards a more progressive climate policy. Furthermore, this model aligns private and societal interests, providing Multinational Entities (MNEs) with incentives to lobby in favour of a stricter climate policy. In addition, it empowers international businesses, inter alia, through involving them in climate spending decisions.