European Parliament backs EU Regulation on European Fund for Sustainable Development
On July 6, 2017, the European Parliament adopted its position on the Commission’s proposal for a new Regulation launching a European Fund for Sustainable Development (EFSD).
The EFSD is the main instrument foreseen in the European External Investment Plan (EIP) to support investment in sustainable projects outside Europe. The EFSD aims to catalyse investment from public and, in particular, private sources to tackle the ‘root causes of migration’ in the European neighbourhood and African countries.
The fund should eventually mobilise EUR 44 billion in private investment in the targeted countries. The Regulation still needs to be formally adopted by the Council of the EU before entering into force.