Analytics, Ecology, EU – Baltic States, Modern EU
International Internet Magazine. Baltic States news & analytics
Tuesday, 19.03.2024, 05:35
Green Deals’ final approval: great days for Europe
Climate change and environmental degradation present an
existential threat to the European states. To overcome this challenge, the EU
institutions have to develop a new growth strategy to transform the states’
economies onto modern, resource-efficient and competitive paths, e.g. with
zero-green-house emissions by 2050 and with economic growth being decoupled
from resource use.
The Union’s message to the member states through the EGD is
to reconcile the socio-economic development with the European and global
sustainability principles. It is not an easy task, as the EGD shall reconcile
the traditional production and consumption models with some which would be
completely different.
Our magazine has already informed the BC’s readers about the
EGD’s initial issues*) and about EGD’s effect on the energy sector**); now it
is time to send the decision-makers a strong message of “changing the course of
actions” inspired by the EGD’s next steps.
*) http://www.baltic-course.com/eng2/editors_note/?doc=20930;
**) http://www.baltic-course.com/eng2/modern_eu/?doc=152950
According to the “deal”, the member states will be obliged
to limit pollution and cut harmful emissions; although keeping in mind the need
for creating jobs and boosting innovation. Thus, the main EGD’s message to the
states is that the old growth-model based on fossil-fuels and pollution is out
of date; the states have to elaborate new growth strategies based on
sustainability, i.e. “giving more back than it taking away”, as the
Commission’s President has asserted. These new growth strategies shall be different in climate
friendly industries, in clean technologies, in green financing, etc.
An overwhelming majority of Europeans consider that
protecting the environment is important (95%). Almost 8 in 10 Europeans (77%)
say that protection of the environment can boost economic growth. The results
of the Eurobarometer survey concerning environmental attitudes of EU citizens
confirm the wide public support for environmental legislation at EU level and
EU funding for environmentally friendly activities.
More in: https://ec.europa.eu/commission/presscorner/detail/en/IP_19_6691
This “green transition” will be inclusive: it shall be
working for all and be just; hence the suggestion on the “Just Transition Mechanism” as an important part in the EGD with
about € 100 billion targeted to the most vulnerable regions and sectors. The
EGD has a broad roadmap, which also includes biodiversity and forests,
agriculture and food, green cities and circular economy, to name just a few.
Communication on the key actions in the “Road Map” in:
https://ec.europa.eu/info/sites/info/files/european-green-deal-communication-annex-roadmap_en.pdf
The Commission President underlined that already in the
present “Road Map” there are some answers: these actions are the start of a
“great journey, like a European “man on the moon” effort, she
acknowledged. The European Green Deal is
both very ambitious and very careful in assessing the impact of every single
step taken, she added.
The European Green Deal will be inclusive: European citizens
are supposed to change their lifestyles to help protect the climate and
sustainability. The EGD is both a responsibility and an action plan. On the 12th
of December the Commission President presented the European Green Deal to the
European Parliament (together with Frans Timmermans); then, on 13.xii the
President will present the European Green Deal to the EU leaders at the summit
in the European Council (Frans Timmermans will present the European Green Deal
to the COP25 in Madrid later on).
More in: https://audiovisual.ec.europa.eu/embed/index.html?ref=I-182024&lg=undefined
Financial aspects
As to the EGD’s budget aspects, the European Council
President, Charles Michel told EU leaders in his invitation letter to the first
EU summit (11-13.xii.) he stressed that the leaders “must recognize that it
will require efforts from all member states”. The EU institutions, on one side,
are putting in place a framework and the necessary resources to chart a fair
and balanced path towards; on another side, these measures have to take into
account different national realities and potentials. For example, some member
states (e.g. Poland, etc.) heavily depend on coal in their energy production:
that shall be included into “the EGD’s transition costs”. Then, the EU budget
shall “include a compromise formula” to prevent the deal from failure.
The financial priorities in the member states are different
indeed: thus, in preparation for the EU budget (Multi-annual Financial
Framework), the Commission proposed citizens a fictional €100 to spend on
behalf of the EU, and see what they do with it. Respondents of an unofficial
publication showed that in Germany they would allocate the largest share (17.5
percent) to education, research and innovation. In comparison, out of the 2019
EU budget, only 9 percent is spent for this purpose. Respondents would spend
16.5 percent of EU funds on climate and environmental policies; the EU in 2019
spends only 1 percent of its common budget on that. Peoples’ third priority is
security, and the reality gap is as wide here too: according to the poll
conducted in November in Germany, agricultural and cohesion policies should
each account for about 10 percent of the budget; however, the EU is currently
spending 36 and 35 percent respectively on these issues.
Therefore, the priorities in the Baltic States are different
too: both from each other and from other EU regions. I just wonder, what would
be the Latvian leaders’ priorities?
The EGD’s Roadmap
The “Roadmap for action” includes fifty practical steps on
Europe's path towards 2050. It will take more than a generation to reach that
goal as the roadmap will be evolving and adapting through years.
In the beginning of December 2019, about 45 European largest
investors, representing € 6 trillion of assets, called on the EU institutions
to adopt as quickly as possible a climate law for climate neutrality in 2050.
It would give them a confidence to make long-term decisions for modern
investment with a sign of accountability and reliability.
And therefore, a crucial EGD’s building block for 2020 is
the proposal of the first European Climate Law. It will set clear rules, so
that investors and innovators can plan their long-term investment. It will make
the transition towards climate neutrality accountable and reliable. And in
summer 2020, a plan will be presented to increase the EU ambition in cutting
emissions.
The roadmap is followed by a thorough impact assessment, to
better understand where the member states can be bold but also where they must
be prudent, i.e. the EU wants to be both ambitious and realistic. The preliminary
results will be ready in time for next year's COP-26 in Glasgow. Europe will
lead by example, but we also need more ambitious multilateral rules for the
whole world.
Every country has to find its own path, though the ultimate
goal must be the same for everyone and positive change must be rewarded. The
member states have to change the production schemes: thus, if companies invest
in clean technologies, they cannot face unfair competition from heavy
polluters. In this regard, the EU will apply a Carbon Border Adjustment
Mechanism, in full compliance with WTO rules.
More in Communication on the key actions in the “Road Map”
in:
https://ec.europa.eu/info/sites/info/files/european-green-deal-communication-annex-roadmap_en.pdf
But the EGD is not only about reducing emissions: it is
about numerous things, like boosting innovation, food quality, modern mobility
and “green new businesses”. It is about turning the green transition into green
opportunities and business opportunities. Some are converting plastic waste
into modern furniture, for example; farmers are using satellites data to adapt
to climate change, and “made in Europe” batteries for electric cars are finally
becoming reality.
More in Commission’s presentations:
https://ec.europa.eu/commission/presscorner/detail/en/SPEECH_19_6751
https://audiovisual.ec.europa.eu/embed/index.html?ref=I-181467&lg=undefined
In the Executive Vice-President Frans Timmermans speech (he
is in charge of the European Green Deal in the Commission) at the European
Parliament Plenary Session in Brussels on 12th of December, he expressed
his satisfaction of the MEPs’ support for the EGD. “This is a great start of
what is going to be quite a bumpy road, where we will need both institutions to
concentrate on all the elements that we need to make the Green Deal work”, he
underlined.
https://ec.europa.eu/commission/presscorner/detail/en/SPEECH_19_6753
Conclusion
The EGD sets out a new growth strategy by tackling some of
the most important environmental and climate-related problems. By adopting a
long-term vision for the environment, industries and business will get more
regulatory certainty so that they can make significant investments in
modernising and reducing their environmental impacts. The innovations and
solutions that businesses develop first in the EU will provide a basis for
commercial success internationally. Such a transformation will make the EU's economy
more resilient to climate and environment-related risks in the future.
More on EGD in the Commission communication:
https://ec.europa.eu/commission/presscorner/detail/en/QANDA_19_6690
As the European Council acknowledged, achieving climate
neutrality by 2050 would “require overcoming serious challenges”. The Council
recognizes the need to put in place an “enabling framework” encompassing
adequate instruments, incentives, support and investments to ensure a
cost-effective, just, socially balanced, fair and technologically neutral
transition. It has to limit disproportionate impact of policy measures
especially on households and not hamper mobility taking into account different
national circumstances in terms of starting points and the costs of this
transition, which will be higher for less wealthy EU states than for others,
concluded the Council’s draft.
Our magazine will follow the EGD’s progress for our readers
in the next articles.