m atching longterm ambitions with shortterm actions Dr Hans Bruyninckx EEA Executive Director Informal Council of Environment Ministers Milan 16 th July 2014 The 7th EAP a long term vision of sustainability ID: 133428
Download Presentation The PPT/PDF document "The green economy:" is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.
Slide1
The green economy:
m
atching long-term ambitions
with short-term actions
Dr
Hans
Bruyninckx
EEA Executive Director
Informal Council of Environment Ministers
Milan, 16
th
July 2014Slide2
The 7th EAP: a long term vision of sustainability
“In 2050,
we live well, within the planet's ecological limits
. Our prosperity and healthy environment stem from an
innovative, circular economy
where nothing is wasted and where
natural resources are managed sustainably
, and
biodiversity
is protected, valued and restored in ways that enhance our society's resilience. Our
low-carbon growth has long been decoupled from resource use, setting the pace for a global, safe and sustainable society.”Source: 7th Environmental Action Programme
Other EU policies offer similar perspectives: Europe 2020 Strategy, EU Energy Roadmap 2050, Roadmap to a Resource Efficient Europe, Roadmap for a
competitive low-carbon
economy in 2050, etc.Slide3
The 2050 vision requires Europe to
adopt a
systemic
approach
& foster transitions
‘Systemic risks’
(persistent problems) require fundamental solutions
“Regular policies” offer
no
fundamental solutions:
Incremental institutionalism is too slow and often doesn’t touch the core issuesMarket creation and commodification in itself is not a solution
Resource
efficiency gains
are necessary, but are not sufficient for ecosystem, economic and societal resilience
→
Transitions
= fundamental shifts in the systems that fulfil societal needs,
through profound changes in dominant structures, practices,
technologies, policies, lifestyles, thinking …Slide4
Green Economy: Living well within ecological limits
Ecosystem
services
ECOSYSTEMS
Policy
Values
Technology
ScienceMarketIndustry
SOCIO-TECHNICAL SYSTEMS
providing social needs and value
Environmental externalitiesWithdrawals from the ecosystemsDeposits Emissions Pollutionsystemsystem
system
Food
system
Energy
system
Mobility
systemSlide5
We need better sectoral
accountability
Source: EurostatSlide6
T
he growing influence of global megatrends on Europe’s long-term future
Past and projected global economic output (2005 USD PPP), 1996–2050
Note: gross domestic product expressed in billion 2005 US dollars at purchasing power parity.
Source
:
OECD 2013: 'All Statistics - OECD iLibrary'.Slide7
Back in Europe: energy efficiency has increased, but we
are far from a low-carbon economy
Source: EEA (CSI 028)
Economic
growth
Resource useEfficiency gainsSlide8
Homes are now more energy efficient, but also
much larger,
increasing pressures on land, water and materials
Source: SCP023 indicator (draft)
ConsumptionSlide9
Cars are more efficient but contribute to a range of negative impacts on people’s quality of life in cities
Efficiency
gains
ConsumptionSlide10
Copyright: Tesla
nor new technologies only ...
To reach ambitious environmental visions
Not just incremental efficiency gains ...Slide11
Environment and climate policies can be engines driving future economic performance
“Our
actions must leave us better
placed
for the future through smart
investment in greening and new technologies.” Jose-Manuel Barroso, March 2009 “In the EU, we have developed the world's most ambitious climate policies for 2020 whilst in the midst of an economic crisis! It shows that we believe in a new growth model: green growth, sustainable
growth.” Hermann van Rompuy, May 2011Slide12
P
olicy tools that can help achieve 2020 targets in line with 2050 visions
Regulation
Fiscal reform
Financing toolsSlide13
1. Well-designed legislation stimulates innovation
Policy analysis and research demonstrate that
well-designed regulations can
stimulate
innovation. Slide14
Legislation supports the global ‘race to the top’
Legislation ‘export’ gives European businesses a head start in global markets.
Environmental policy is regarded in some quarters as Europe’s most successful foreign policy
.
The EURO emission standards and REACH legislation are examples of European regulation ‘export’. This spreads higher environmental standards around the world.
Slide15
EU emissions standards are adopted across Asia, giving European exporters access to huge markets
Source: CAI, 2011Slide16
2. Environmental fiscal reform
Shifting taxes from societal goods – employment, investment – to societal
bads
– pollution
and
over-consumption
Taxation shift puts a price on environmental externalities, thereby reducing pressures on human and ecosystem health while also supporting economic efficiency and jobs.Removing harmful subsidiesSlide17
Environmental taxes are an under-used
tool
“Labour
taxation is still too high, while growth-friendly bases, such as environmental taxes, are under-used in many
countries. The
tax shift away from labour, which we have consistently called for to allow our businesses to regain competitiveness, still has to materialise
.”Statement by Commissioner Šemeta on Taxation Trends in EuropeJune 2014 Slide18
But environmental
taxes are an under-used
tool in the EU
Environmental taxation as a percentage of GDP (distinguished between energy, transport and pollution/resource)
in the EU-27
Source: Eurostat
http://
appsso.eurostat.ec.europa.eu/nui/show.do?dataset=env_ac_tax&lang=enSlide19
Eco-innovation and competitiveness are compatible
Global Competitiveness Index 2013-2014
Eco-Innovation Index 2012
Finland, Germany and Sweden are highly competitive, and leaders in eco-innovationSlide20
3. Several
sources of financing the green economy shift
Estimates for the financing needs of the green economy range from between US$70bn and several trillion dollars per year
.
Public funding: European Commission, European Investment Bank, the Green Climate Fund.
Private funding: pension funds and insurance companies.
Mixed public/private sources: ‘green bonds’, the Project Bond Initiative.Slide21
The global green bond market in 2011
Source:
Della Croce
et al.
, 2011Slide22
Some final reflections
Is Europe making enough use of the tools at its disposal to create a green economy?
The 7
th
EAP is a critical element of the transition to a circular economy.
The EEA will provide the tools and knowledge base to inform the transition to a green, circular economy.
Our five-year Multiannual Work Programme has identified the theme of transitions to a green, circular economy as a priority area.