The Guardian reported that the European Commission's green recovery plan was officially announced, becoming a benchmark for the world to rebuild the economy while responding to the climate crisis, at least in terms of planning.
As the world rapidly faces climate chaos, the EU's actions can mean the difference between trillions of dollars and euros in stimulus funds being well-spent or wasted. Climate change is a global crisis that demands action from all countries, and some must take the lead.
The revitalization plan is expected to create 1 million green jobs and help workers in polluting industries switch to other jobs.
US President Donald Trump's stimulus package rolls back environmental protections, while China, the world's biggest polluter, backs coal-fired power plants. Britain, host of the next UN climate summit, has remained largely silent.
The EU plan aims to invest in emission reductions: €91 billion annually over two years for household energy efficiency and green heating, €25 billion for renewable energy, €20 billion for clean vehicles, and an additional 2 million charging stations over five years. Up to €60 billion will be invested in zero-emission trains, and plans are in place to produce 1 million tons of clean hydrogen.
More importantly, the EU plan is expected to create at least one million green jobs while also assisting workers in polluting industries in transitioning to new jobs. The Just Transition Fund (JTF) has been increased more than fivefold to €40 billion, minimizing the risk of protests against green measures, particularly in countries with the highest coal consumption, such as Poland, Germany, and Romania, a major recipient of the fund. While investing in a green economy is no longer a cause for hesitation, it is politically necessary.
The EU plan will even directly affect other parts of the world, with border taxes on imports of carbon-intensive industrial products from other countries potentially increasing by 14 billion euros.
Critics worry there is no mechanism to ensure that program funds do not flow into highly polluting industries.
The European Commission said public investment in the recovery plan should be based on the principle of doing no harm, but critics worry there is no mechanism to ensure that funds will not flow to highly polluting industries. Polluters have also lobbied hard for bailouts during the Wuhan pneumonia crisis.
The Just Transition Fund will be run through the European Investment Bank, but advocates say its climate criteria allow for funding natural gas projects that will generate carbon emissions for many years. Another major fund, the €150 billion React EU, lets member states decide how to spend the money, but so far, EU countries have spent nearly €2 billion in bailouts, most without green guarantees.
To make matters worse, critics say, most climate provisions in the EU's main budget have been relaxed for three years due to the COVID-19 pandemic. Despite calls from the European Parliament and many other countries for a budget increase, the proportion reserved for climate programs remains at 25%.
The Executive Commission refuted these criticisms, saying that "green economy goals are deeply embedded in the entire fund management practice" and whether the management is effective remains to be seen.
Still, environmentally friendly businesses and investor groups welcomed the green economy stimulus plan as positive and concrete, which will see EU member states debate for weeks to reach a final agreement.
The Guardian said it hopes the rest of the world and the European Union will remember what Commission President Ursula von der Leyen said: "There will eventually be a vaccine for Covid-19, but there is no vaccine for climate change. Therefore, we need a visionary recovery plan."
Source: Environmental Information Centre
