EU Accused of Overstating Climate-Related Spending by Auditors

European Union auditors claim that the bloc is inflating its green spending, potentially by billions of euros. Some projects, like IT systems and staff salaries, were labeled as climate-friendly, despite their minimal environmental connection.

The EU committed to allocate 37% of its €700 billion COVID-19 recovery fund towards climate initiatives. By February, the EU reported that 42.5% (€275 billion) was directed to green projects. However, the auditors estimate that this figure might be overstated by at least €34.5 billion.

The European Court of Auditors discovered that several projects were marked as environmentally beneficial without substantial justification. For instance, Croatia classified a digital water system as 40% climate-contributing, while auditors argued it should have been 0%. In Slovakia, staff managing COVID-19 funds were also included in climate-friendly spending.

Other cases revealed unclear environmental impacts. A Portuguese public transport project, deemed 100% green, overlooked the emissions generated during construction, complicating the assessment of net environmental savings. Similarly, a Greek hydropower plant's impact on biodiversity was not evaluated.

Despite some successful green investments—like Greece's €1.25 billion initiative to improve energy efficiency in 100,000 homes—the auditors criticized the EU's method for ranking projects' climate contributions as imprecise, leading to inflated numbers.

The European Commission defended its approach, asserting that it thoroughly reviewed national spending and that stricter rules could complicate future funds