This represents a 47% increase compared with 2014-2020, some of which will go on the "environmental dimension" of the Connecting Europe Facility, with a target of 60% of its budget contributing to climate objectives. It said this "will help reinforce the Energy-Union, fulfil the EU's commitments under the Paris Agreement and consolidate Europe's global leadership in the fight against climate change."

The EC said the Paris Agreement made it necessary to create crossover links between transport, energy and digital sectors to maximise the impact of the energy transition. The bigger budget would help Europe stay ahead of the curve globally on innovative projects such as smart grids and energy storage, it said. The money would also help complete strategic projects, such as the synchronisation of the Baltics with the European electricity grid, which are essential for a real Energy Union."

Some money will also go on enabling co-operation on cross-border renewable generation projects, in order to promote the strategic uptake of market-ready renewable energy technologies. The programme will also continue to back the key trans-European network infrastructures, allowing for further integration of the internal energy market, boosting interoperability of networks across borders and sectors, and facilitating decarbonisation and guaranteeing security of energy supply.

The EC statement is not explicit on whether, and if yes then to what extent, the United Kingdom would be included in the new CEF budget. The UK is scheduled to exit the EU on 19 March 2019; however transition arrangements, as well as the final outcome, are still being negotiated.

The CEF is funding major energy infrastructure projects under its ongoing 2014-20 programme, including €873mn agreed in January 2018 that included grants to a planned floating LNG import terminal in Cyprus, Croatian and Polish gas network enhancements, and several detailed feasibility studies. Also in late 2017, a €101.4mn CEF grant was assigned to the LNG Croatian import terminal project - but to date the stalled project has been unable to justify its release.