On 7 July the Council of Ministers agreed on a list of 47 projects, which will use €3.98 billion allocated under the economic recovery plan for more gas and electricity interconnections. The European Council had endorsed the plans for an economic recovery package last December, in response to the current economic crisis, with the aim of increasing energy security and reducing greenhouse gas emissions.

Agreement on the package has been hard to reach, with the proposed list being approved by EU leaders at the March summit, and negotiations taking place in the meantime over exactly how the funding is to be split between the various projects.

The last major sticking point had been over the amount set aside for renewable energy and efficiency. The Parliament had said too little was being earmarked for this purpose, and Member States finally inserted a provision that will see such projects receiving any unspent money in addition to their allocated amount, after a Commission review in March 2010.

The largest part of the funding will go to 18 gas infrastructure projects, who will receive €1.44 billion, whilst just over €1 billion will be spent on 13 carbon capture and storage projects. A further 9 electricity projects will receive €910 million in funding, whilst €565 million will go towards five off-shore wind-energy projects. The remaining €15 million will be spent on two small island projects.

The majority of funding is therefore going towards improving and expanding energy interconnections, in a move to improve and consolidate energy security. The decision to set aside such a large portion of the funding for CCS has angered some environmentalists however, who would rather see the money go to investment  into more sustainable energy sources.