The EU has made a step towards independence from Russian fossil fuel import, energy supply diversification and the green transition after MEPs and the European Council on Wednesday reached a provisional agreement on REPowerEU as a supplement to national recovery and resilience plans.

Negotiators from the European Parliament’s Budgets and Economic and Monetary Affairs committees reached a €20 billion agreement with the Council on measures to save energy, produce clean energy and diversify energy supplies.

Siegfried Mureşan (EPP), one of the Parliament’s chief negotiators, said REPowerEU would take effect at the start of 2023 and would help member states reduce dependence on Russian fossil fuels and step up the transition to renewable energy.

European Commission President Ursula von der Leyen welcomed the plan on a just green transition and complementary European financing which should help vulnerable households and SMEs in particular.

This plan is a tool supporting SMEs in the transition to cheaper and clean energy sources, she added.