  This paper investigates the effectiveness of the ``low-carbon economy''
expenditures from European Structural and Investment Funds in fostering
reductions in greenhouse gas emissions within European regions, focusing on the
2007-2013 and 2014-2020 programme periods. By decomposing emissions time series
into trend and cycle components and considering them within a panel data
framework, our research highlights that the impacts of low-carbon economy
expenditures vary, qualitatively and quantitatively, with the targeted regions'
development level. We find significant emissions reductions in developed and
transition regions yet less favourable outcomes in less developed areas.
Further analysis into specific greenhouse gas emissions types (CO$_2$, CH$_4$,
and N$_2$O) reveals inconsistent impacts, underscoring the complexity of
achieving emissions reductions. Our findings emphasise the need for tailored
environmental strategies that accommodate the economic disparities of regions
in the European Union.
