Unspent funds of the EU economic recovery plan could be used for energy efficiency and renewable energy projects, according to a political agreement reached between MEPs and the Czech Presidency.

The informal compromise negotiated by Industry Committee MEPs with the Czech Presidency still needs to be backed by the whole Parliament and the Council of Ministers.

The European Energy Programme for Recovery will allocate €3.98 billion to energy projects in the following fields:

- gas and electricity infrastructure projects;
- offshore wind energy projects;
- carbon capture and storage projects.

Unspent funds could be used for energy efficiency and renewable energy projects

MEPs and the Council Presidency agreed that the Commission will monitor the implementation of the programme and publish a report each year together with its proposal for the budget of the following year. If this report in March 2010 identifies "serious risks in implementing the priority projects", the Commission should propose additional energy projects, says the agreement.

On MEPs' initiative, the Commission will declare its intention to propose using for energy efficiency and renewable energy measures those funds which have not been committed by the end of 2010 for gas and electricity infrastructure, offshore wind energy or carbon capture and storage projects.

Moreover, the Commission will give a declaration before Parliament's vote announcing further measures to support energy efficiency and renewable energy, such as the revision of the Energy Efficiency Action Plan by end of October 2009 and a public-private partnership on energy-efficient buildings.