Reaction: The European Green Deal
The European Commission today presented The European Green Deal β a roadmap for making the EU’s economy sustainable by turning climate and environmental challenges into opportunities across all policy areas and making the transition just and inclusive for all.
πππππππππππ— European Commission πͺπΊ (@EU_Commission) December 11, 2019
π #EUGreenDeal π
President Ursula von der Leyen said: βThe European Green Deal is our new growth strategy β for a growth that gives back more than it takes away. It shows how to transform our way of living and working, of producing and consuming so that we live healthier and make our businesses innovative. We can all be involved in the transition and we can all benefit from the opportunities. We will help our economy to be a global leader by moving first and moving fast. We are determined to succeed for the sake of this planet and life on it β for Europe’s natural heritage, for biodiversity, for our forests and our seas. By showing the rest of the world how to be sustainable and competitive, we can convince other countries to move with us.’
Executive Vice-President Frans Timmermans added βWe are in a climate and environmental emergency. The European Green Deal is an opportunity to improve the health and well-being of our people by transforming our economic model. Our plan sets out how to cut emissions, restore the health of our natural environment, protect our wildlife, create new economic opportunities, and improve the quality of life of our citizens. We all have an important part to play and every industry and country will be part of this transformation. Moreover, our responsibility is to make sure that this transition is a just transition, and that nobody is left behind as we deliver the European Green Deal.’
The climate and nature crisis that we face will not wait for anyone.— European Commission πͺπΊ (@EU_Commission) December 11, 2019
There is no time to waste, and Europe is wasting no time.
Watch President @vonderleyen unveil the #EUGreenDeal. https://t.co/FIEigMyiWo
The European Green Deal provides a roadmap with actions to boost the efficient use of resources by moving to a clean, circular economy and stop climate change, revert biodiversity loss and cut pollution. It outlines investments needed and financing tools available, and explains how to ensure a just and inclusive transition.
The European Green Deal covers all sectors of the economy, notably transport, energy, agriculture, buildings, and industries such as steel, cement, ICT, textiles and chemicals.
To set into legislation the political ambition of being the world’s first climate neutral continent by 2050, the Commission will present within 100 days the first βEuropean Climate Law’. To reach our climate and environmental ambition, the Commission will also present the Biodiversity Strategy for 2030, the new Industrial Strategy and Circular Economy Action Plan, the Farm to Fork Strategy for sustainable food and proposals for pollution-free Europe. Work will immediately start for upping Europe’s 2030 emissions targets, setting a realistic path to the 2050 goal.
Meeting the objectives of the European Green Deal will require significant investment. Achieving the current 2030 climate and energy targets is estimated to require β¬260 billion of additional annual investment, representing about 1.5% of 2018 GDP. This investment will need the mobilisation ofthe public and private sectors. The Commission will present in early 2020 a Sustainable Europe Investment Plan to help meet investment needs. At least 25% of the EU’s long-term budget should be dedicated to climate action, and the European Investment Bank, Europe’s climate bank, will provide further support. For the private sector to contribute to financing the green transition, the Commission will present a Green Financing Strategy in 2020.
Fighting climate change and environmental degradation is a common endeavour but not all regions and Member States start from the same point. A Just Transition Mechanism will support those regions that rely heavily on very carbon intensive activities. It will support the citizens most vulnerable to the transition, providing access to reskilling programmes and employment opportunities in new economic sectors.
In March 2020, the Commission will launch a βClimate Pact’ to give citizens a voice and role in designing new actions, sharing information, launching grassroots activities and show-casing solutions that others can follow.
The global challenges of climate change and environmental degradation require a global response. The EU will continue to promote its environmental goals and standards in the UN’s Biodiversity and Climate Conventions and reinforce its green diplomacy. The G7, G20, international conventions, and bilateral relationships will be used to persuade others to step up their efforts. The EU will also use trade policy to ensure sustainability and it will build partnerships with its neighbours in the Balkans and Africa to help them with their own transitions.
The Commission invites the European Parliament and the European Council to endorse the Commission’s ambition for Europe’s future economy and the environment and to help realise it. The Commission will bring forward the measures announced in the European Green Deal roadmap.
Climate change and environmental degradation present an existential threat to Europe and the world. To overcome this challenge, Europe needs a new growth strategy that transforms the Union into a modern, resource-efficient and competitive economy where there are no net emissions of greenhouse gases by 2050, where economic growth is decoupled from resource use and where no one and no place is left behind.
The European Union already has a strong track record in reducing its emissions of greenhouse gases while maintaining economic growth. Emissions in 2018 were 23% lower than in 1990 while the Union’s GDP grew by 61% in the same period. But more needs to be done. The EU, given its extensive experience, is leading the way in creating a green and inclusive economy.
The Green Deal Communication sets the path for action in the months and years ahead. The Commission’s future work will be guided by the public’s demand for action and by undeniable scientific evidence as demonstrated most comprehensively by IPCC, IPBES, Global Resources Outlook and EEA SOER 2019 reports. Our proposals will be evidence-based and underpinned by broad consultation.
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.
Source: European Commission
PRI CEO Fiona Reynolds said in an email: βThe PRI strongly welcomes the European Green Deal, which reflects the bold policy ambition weβve been looking for. The broad scope of the Deal – encompassing goals such as carbon neutrality, sustainable transport, a zero pollution Europe and a just transition – provides a clear framework for action from all areas of society. We look forward to working with the Commission, Parliament and PRIβs signatories under the framework of the Deal.β
Tanguy van de Werve, Director General of EFAMA said in a statement:
“We applaud Ursula von der Leyen, President of the European Commission, and her team, for developing such an ambitious action plan. The European Green Deal, with the active support from the Member States and the European Parliament, has the potential to be a real game changer and enable to achieve the ambitious aspiration of making Europe the first climate-neutral continent by 2050. As the voice of the European Asset Management Industry, we fully support the Commission and are committed to play our role as an industry in channelling the necessary funds towards projects which are essential for this transition to happen. We would like to stress that robust, comparable, reliable and publicly available ESG data on investee companies are a prerequisite for this to happen.”β
We @cityoflondon welcome the @EU_Commissionβs #EUGreenDeal. Tackling climate change and financing the transition to a low carbon economy requires continued collaboration between the πͺπΊ and the π¬π§. Our EU neighbours will be crucial partners on this journey #greenfinanceπ³ https://t.co/ZxJ4RfUTqs— Nick Collier (@citynickcollier) December 11, 2019
AFME supports the @EU_Commission's #EUGreenDeal which will encourage #sustainable finance to become a more mainstream part of the EU economy.— AFME (@AFME_EU) December 11, 2019
Read our release: https://t.co/skPNHu8uoI#sustainablefinance pic.twitter.com/VGXmxk8kAx
The exchange has launched new fixed income, thematic and ESG-focused indices.
TCFD has updated guidance on climate-related metrics, targets and transition plans.
The European data business has launched the ESG Data Hub and the Nasdaq Sustainable Bond Network.
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