The Role of Finance in EU Climate Resilience

Abstract

This paper examines the essential financial instruments as the pillars of the climate resilience of the European Union. The research is based on qualitative methodology, i.e. the analysis of relevant policy documents, budgetary documents and legal sources, as well as the review of relevant literature. In order to emphasise the importance of the issue discussed, first of all the relevant terms and definitions such as climate risk and climate resilience are set out, and the whole issue of climate change is briefly outlined. After that, the two main sections of the article are structured as follows. First the role of the budgetary tools of the EU is discussed – including the latest facilities such as the 2021–2027 MFF, NextGenerationEU and RRF. The second main point is established around the role of the central bank system – including the European Central Bank and the central banks of the member states – in climate resilience. The last chapter before the final discussion briefly sketches the experimental co-financing tools – mostly pilot projects – which are aimed at the energy efficiency of the infrastructure.