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European Climate Infrastructure and Environment Executive Agency

Objectives of the EU renewable energy financing mechanism

The main objective of the RENEWFM is to enable EU countries to work together in the take-up and promotion of renewables. The mechanism will facilitate a cost-effective roll-out of renewables across the EU, particularly in the best locations to host such installations.

EU countries should contribute collectively to the EU target of the renewable energy share in the gross final energy consumption by 2030, primarily through national measures. As a second option, Member states can work together, using cooperation mechanisms, such as statistical transfers or joint projects. The RENEWFM opens a third possibility which also entails cross-border cooperation.

Gap filling and enabling framework

The RENEWFM has two main functions reflecting its ability to support the EU Member States in the context of the collective renewable energy target and the overall EU’s transition into a modern, resource-efficient and competitive economy. The two functions are: