EU to mobilise up to €25bn for renewables, clean tech by 2035 through Pact for Mediterranean

Nehal Khalil
4 Min Read

The European Union (EU) has unveiled an ambitious new initiative aimed at accelerating the green energy transition across the Mediterranean region, with plans to mobilise up to €25bn in investments by 2035.

The initiative, known as the Trans-Mediterranean Renewable Energy and Clean Technology Cooperation (T-MED), was launched during the European Sustainable Energy Week. It is a flagship component of the EU’s broader Pact for the Mediterranean and seeks to expand renewable energy production, clean technology manufacturing, hydrogen development, and modern electricity networks across the region.

The programme was announced by European Commissioner for the Mediterranean, Dubravka Šuica, and Commissioner for Energy and Housing, Dan Jørgensen. To support the initiative, the European Commission has allocated more than €5bn in guarantee capacity through the European Fund for Sustainable Development Plus, a mechanism designed to attract additional public and private investment.

According to the Commission, T-MED is expected to contribute to the development of 15GW of new renewable energy capacity by 2035, while supporting regulatory reforms and creating more than 100,000 jobs in clean energy sectors across partner countries. The initiative is also intended to promote deeper energy integration and cooperation between the European Union and countries of the southern Mediterranean.

The programme will be implemented through five main pillars: mobilising investment, enhancing regulatory cooperation, developing workforce skills, upgrading energy infrastructure and electricity trading systems, and strengthening industrial cooperation in clean technologies. The EU hopes these measures will reduce investment risks, improve business environments, modernise power grids, and support local manufacturing and innovation.

A key component of the initiative is its focus on human capital development. Through a dedicated T-MED Skills Agenda, the EU plans to support vocational training, strengthen university partnerships, and promote excellence in engineering, digital technologies, and green finance. The goal is to ensure that local workforces are equipped to benefit from emerging opportunities in the clean energy sector.

Speaking at the launch, Commissioner Šuica highlighted the region’s vast renewable energy potential, estimated at 2,300GW—more than double the EU’s current renewable energy capacity. She noted that solar and wind energy production costs in many Mediterranean countries are between 30% and 40% lower than in Europe, positioning the region as a potential global hub for renewable energy and clean technologies.

Commissioner Jørgensen emphasised the importance of moving away from dependence on fossil fuels, arguing that long-term energy security can only be achieved through clean energy systems, stronger interconnections, and more resilient networks. He described T-MED as a strategic initiative that will help unlock the Southern Mediterranean’s untapped clean energy potential while reducing exposure to volatile fossil fuel markets.

The European Commission has already opened calls for expressions of interest from private investors and project developers, with the first operational meeting of the T-MED Investment Platform scheduled for October 2026. Initial EU-Mediterranean clean technology industrial partnerships are expected to begin taking shape in 2027.

 

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