Agreement reached on the Connecting Europe Facility

CEF 2.0From 2021 to 2027, the second edition of the EU’s flagship programme the Connecting Europe Facility, CEF 2.0, will have a budget has a value of EUR 33.71 billion (in current prices), of which the transport sector will be supported by a budget of EUR 25.81 billion, including EUR 11.29 billion for cohesion countries. This was agreed on March 11, by the negotiators from the Council and the European Parliament.

The first Connecting Europe Facility – Transport call for proposals will be launched during the 2nd quarter of 2021. The call will include an important part for the modernisation of the TEN-T networks, in particular through the support to the large-scale deployment of alternative fuel infrastructure contributing to the Union’s emission reduction targets for all transport modes.

The agreed budget will ensure that essential Trans-European projects, such as Rail Baltica, alternative fuels charging infrastructure and the roll out of 5G coverage to important transport axes are completed on time by 2030.

“Having reached a deal with the Parliament allows the first calls under the Connecting Europe Facility to be launched before the summer break. Thanks to this programme, we have better transport connections and energy networks, as well as better digital services and connectivity in Europe. And this substantial funding must and will continue. It is especially important for overcoming COVID-19-related challenges and tackling climate change,” Pedro Nuno Santos, the Portuguese Minister for Infrastructure and Housing and President of the Council, said.

In the field of transport sector, the CEF 2.0 will promote interconnected and multimodal networks to develop and modernise railway, road, inland waterway and maritime infrastructure, as well as safe and secure mobility. Priority will be given to further development of the TEN-T, focusing on missing links and cross-border projects with an EU added value. EUR 1.56 billion of the transport budget will finance major rail projects between cohesion countries. Around EUR 10 billion allocated to cross-border transport projects will come from Cohesion Funds and will help EU countries complete missing transport links. A share of EUR 1.4 billion will be designated to fast track the completion of major missing cross border railway projects, to be selected by the Commission on a competitiveness basis.

The CEF 2.0 will also ensure that when infrastructure is adapted to improve military mobility within the EU, it is dual-use compatible, meeting both civilian and military needs. Military mobility will have a separate budget within the transport envelope, of EUR 1.69 billion.

The agreement sets the framework for how the funds for the CEF 2.0 will be used under the 2027 multiannual financial framework to support key projects in the areas of transport, digital – with a EUR 5.84 billion budget and energy – with EUR 2.06 billion.

In the digital sector, the Connecting Europe Facility will support the development of projects of common interest on safe and secure very high-capacity digital networks and 5G systems, as well as the digitalisation of transport and energy networks. Digital connectivity is a decisive factor in closing economic, social and territorial divides. To qualify for support from CEF 2.0, a project will have to contribute to the digital single market and EU connectivity targets. Priority will be given to projects which generate additional area coverage, including for households.

The programme will finally aim to make energy networks more interoperable and ensure that projects funded are in line with EU and national climate and energy plans. The funding will be used to improve the interoperability of energy networks across borders and sectors, facilitating decarbonisation, and ensuring security of supply. Funding will also be available for cross-border projects in the field of renewable energy generation.

The provisional agreement is subject to approval by the Council. And it will be submitted to the Council’s Permanent Representatives Committee (Coreper) for endorsement.

Once adopted by both the Council and the European Parliament, the CEF regulation will enter into force the day after its publication in the EU Official Journal. It will apply retroactively from 1 January 2021.


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