EU stops financing new cross-border oil and gas projects
The countries of the European Union agreed on the need to stop funding from the budget of the union of new cross-border projects in the field of oil and gas. This decision was made by the Council of the EU countries on Friday.
The energy ministers of the EU countries have reached a common approach to revising the regulation on trans-European energy networks (TEN-E). The reviewed TEN-E rules aim to modernize, decarbonize and integrate the EU's cross-border energy infrastructure to achieve climate neutrality targets by 2050.
The TEN-E rules determine which projects can be funded by EU funds. We are currently reviewing the infrastructure categories that are eligible for this support.
The European Commission proposed, in principle, to refuse funding from the EU budget for cross-border projects in the field of oil and gas through the TEN-E mechanism. The Council in its position decided to stop supporting new gas and oil projects. However, for example, it will be possible to finance those projects in the field of gas that provide for a full transition to pumping hydrogen by the end of 2029.
During the transition period until December 31, 2029, certain hydrogen assets, converted from natural gas assets can be used to transport or store a predetermined mixture of hydrogen with natural gas or biomethane.
Projects that can be allocated budget funding will have to demonstrate how, by the end of this transition period, assets will cease to be natural gas assets and become specialized hydrogen assets, the release notes. Projects related to Malta and Cyprus may also be an exception.
Earlier today it was reported that the leaders of the G7 countries, including the leading countries of the European Union, have decided to stop government funding of coal energy by the end of 2021.