European Union finance ministers have agreed to a 20 billion euro scheme to aid attempts to lessen reliance on imports of fossil fuels from Russia.
A maximum of 113 million euros of the cash would go to Finland, the Finnish government announced on Tuesday. According to STT, member states with a greater reliance on fossil fuels would get a higher portion of the financing.
At a Tuesday meeting of the council on economic and financial matters in Luxembourg, the finance ministers reached a consensus on the matter. However, different blocs inside the union had distinctly different views on how the financing should be distributed among the constituent countries, according to a report from a Finnish news agency.
Finland emphasized the importance of addressing energy poverty when allocating the cash, according to Leena Mörttinen, the permanent undersecretary for international and financial market relations at the Ministry of Finance.
"We subsequently obtained clarifications regarding the commission's interpretation of it. And some assurance that it won't actually turn into a vehicle for money transfer," she told STT.
She continued, "The mechanism for allocating the financing is complicated because it depends inversely on gross domestic product, changes in capital goods prices, and the proportion of total production accounted for by fossil fuels." It has several levels and ceilings as well.
The 15 billion euro profits from emission rights auctions and the 5 billion euro increase in national emission rights quota sales will be used to pay for the majority of the 20 billion euro package.
The package is a component of Repower EU, a significant initiative to lower energy usage, diversify the energy supply, and hasten the EU's transition to renewable energy.
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