ust a few short months ago, the European Union elections marked a fundamental shift in the bloc’s political direction, as millions across the continent voted to send an unprecedented number of far–right representatives to Brussels. While much has been made about these results and their impact on the EU’s economic and geopolitical interests, an important consequence has been all but ignored: the potential decline of Europe’s climate and sustainability ecosystem.
Over the past decade, the EU has established itself as an important force in the global energy transition, with a flourishing renewables and low–carbon industry that is helping supercharge the global decarbonization process and drive long-term economic growth. As a result, Europe is now the global leader in renewable energy generated per person, and electricity generation from wind and solar has, for the first time in EU history, surpassed fossil fuels.
Similar progress has also been made in the development of Europe’s circular economy, which is a central feature of the EU’s strategy to achieve a zero–carbon economy by 2050. With a focus on reducing waste, increasing efficiency, and encouraging the continual reuse of resources, the European Union has implemented new laws that are helping member states to tackle marine litter from plastics, to improve chemicals management and to expand recycling.
The rapid transformation of the European energy and sustainability landscape, which has defied the expectations of the most optimistic techno–futurists—has been driven in no small part by the Green Deal, an ambitious piece of legislation launched in 2019 to fast–track the continent’s energy transition, rapidly scale investment in renewables, ensure the phasing out of coal, and facilitate the decarbonization of gas.
As part of this effort, the EU has implemented new programs that encourage wide–scale emissions reduction, such as the Energy Trading System, while committing unprecedented funds to incentivize private sector investment in the energy transition and de–risk the clean energy sector. The Innovation Fund, for example, has provided up to €10 billion for the development of low–carbon technologies and processes in energy intensive industries, with the aim of delivering significant emission reductions while boosting EU companies’ growth and competitiveness.
Benefiting from these supportive policies and programs, the EU has mobilized over €1 trillion in financing for low carbon projects and climate technologies, and is now reaping the rewards of its labor. Initiatives designed to address climate change have resulted in Europe’s carbon dioxide emissions dropping 15.5% in 2023. Meanwhile, the EU has also seen the rapid growth of an entire start up community centered on sustainability and climate action.
In fact, partly due to the Circular Economy Action Plan, market opportunities have flourished, nurturing a vibrant ecosystem of clean startups and innovative initiatives that contribute to economic growth and decarbonization progress. Such successes are critical to the long term viability of the sustainability movement, and bring the EU in line with the other countries leading this field: policymakers in the U.S. have invested heavily in the development of climate start up hubs across the country, while in the UAE, the pioneering Zayed Sustainability Prize continues to award grants and provide vital financial support for innovative sustainability projects and climate technology organizations around the world.
There is no doubt that the new parliament–at least in part–understands this reality. The fear however is that due to its new configuration, and the shifts in the balances of power, that these green policies will find themselves on the back burner, while other initiatives and policies take center stage. Some individual member states remain committed to the energy transition, but the power of EU–wide action cannot be overstated.
The recent surge in political forces skeptical—or outright dismissive–of the scientific consensus on climate change is not an encouraging sign. Climate skeptic election campaigns have portrayed the Green Deal as a scapegoat, fuelling hostility and anger towards environmental policies.
It is therefore a sad irony that from an economic perspective, rather than merely an environmental standpoint, renewable energy represents the backbone of the EU’s future growth.
With the new elections, the future of the Green Deal and the EU's environmental progress hangs in the balance. This concerning backlash threatens to undermine the significant achievements made thus far and derail the EU's trajectory towards a sustainable, low–carbon future. The EU is, quite frankly, up against the clock, and policy action needs to reflect that reality.
But it is not all doom and gloom: the supporters of the Green Deal – namely the parliamentary groups of the EPP, Social Democrats, Greens, and Liberals do still have a majority, at least numerically. If they can find common ground on this most critical of issues, Europe will be the better for it. They can take advantage of the factionalism of the right in this regard, but it will require concerted negotiation and deal making, emphasizing the essential importance of the policies, placing them above the quotidian political fray. The means to save the considerable achievements so far are there, we just need the will and courage of conviction for parliamentary members: it is much, much, too early to give up on this legacy–defining legislation.
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The future of Europe’s green credentials is in jeopardy.
Windmills in Germany. Photo by Karsten Würth on Unsplash.
August 15, 2024
The EU has established itself as a leader in the global energy transition—and that leadership is fueling the European economy. Yet the surge of political voices skeptical of climate change puts the EU’s green leadership credentials at risk, writes Amb. Thomas Matussek.
J
ust a few short months ago, the European Union elections marked a fundamental shift in the bloc’s political direction, as millions across the continent voted to send an unprecedented number of far–right representatives to Brussels. While much has been made about these results and their impact on the EU’s economic and geopolitical interests, an important consequence has been all but ignored: the potential decline of Europe’s climate and sustainability ecosystem.
Over the past decade, the EU has established itself as an important force in the global energy transition, with a flourishing renewables and low–carbon industry that is helping supercharge the global decarbonization process and drive long-term economic growth. As a result, Europe is now the global leader in renewable energy generated per person, and electricity generation from wind and solar has, for the first time in EU history, surpassed fossil fuels.
Similar progress has also been made in the development of Europe’s circular economy, which is a central feature of the EU’s strategy to achieve a zero–carbon economy by 2050. With a focus on reducing waste, increasing efficiency, and encouraging the continual reuse of resources, the European Union has implemented new laws that are helping member states to tackle marine litter from plastics, to improve chemicals management and to expand recycling.
The rapid transformation of the European energy and sustainability landscape, which has defied the expectations of the most optimistic techno–futurists—has been driven in no small part by the Green Deal, an ambitious piece of legislation launched in 2019 to fast–track the continent’s energy transition, rapidly scale investment in renewables, ensure the phasing out of coal, and facilitate the decarbonization of gas.
As part of this effort, the EU has implemented new programs that encourage wide–scale emissions reduction, such as the Energy Trading System, while committing unprecedented funds to incentivize private sector investment in the energy transition and de–risk the clean energy sector. The Innovation Fund, for example, has provided up to €10 billion for the development of low–carbon technologies and processes in energy intensive industries, with the aim of delivering significant emission reductions while boosting EU companies’ growth and competitiveness.
Benefiting from these supportive policies and programs, the EU has mobilized over €1 trillion in financing for low carbon projects and climate technologies, and is now reaping the rewards of its labor. Initiatives designed to address climate change have resulted in Europe’s carbon dioxide emissions dropping 15.5% in 2023. Meanwhile, the EU has also seen the rapid growth of an entire start up community centered on sustainability and climate action.
In fact, partly due to the Circular Economy Action Plan, market opportunities have flourished, nurturing a vibrant ecosystem of clean startups and innovative initiatives that contribute to economic growth and decarbonization progress. Such successes are critical to the long term viability of the sustainability movement, and bring the EU in line with the other countries leading this field: policymakers in the U.S. have invested heavily in the development of climate start up hubs across the country, while in the UAE, the pioneering Zayed Sustainability Prize continues to award grants and provide vital financial support for innovative sustainability projects and climate technology organizations around the world.
There is no doubt that the new parliament–at least in part–understands this reality. The fear however is that due to its new configuration, and the shifts in the balances of power, that these green policies will find themselves on the back burner, while other initiatives and policies take center stage. Some individual member states remain committed to the energy transition, but the power of EU–wide action cannot be overstated.
The recent surge in political forces skeptical—or outright dismissive–of the scientific consensus on climate change is not an encouraging sign. Climate skeptic election campaigns have portrayed the Green Deal as a scapegoat, fuelling hostility and anger towards environmental policies.
It is therefore a sad irony that from an economic perspective, rather than merely an environmental standpoint, renewable energy represents the backbone of the EU’s future growth.
With the new elections, the future of the Green Deal and the EU's environmental progress hangs in the balance. This concerning backlash threatens to undermine the significant achievements made thus far and derail the EU's trajectory towards a sustainable, low–carbon future. The EU is, quite frankly, up against the clock, and policy action needs to reflect that reality.
But it is not all doom and gloom: the supporters of the Green Deal – namely the parliamentary groups of the EPP, Social Democrats, Greens, and Liberals do still have a majority, at least numerically. If they can find common ground on this most critical of issues, Europe will be the better for it. They can take advantage of the factionalism of the right in this regard, but it will require concerted negotiation and deal making, emphasizing the essential importance of the policies, placing them above the quotidian political fray. The means to save the considerable achievements so far are there, we just need the will and courage of conviction for parliamentary members: it is much, much, too early to give up on this legacy–defining legislation.
