The green economy:

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m. atching long-term ambitions . with short-term actions . Dr. Hans . Bruyninckx. EEA Executive Director. Bratislava, 23 October 2014. The 7th EAP: a long term vision of sustainability . “In 2050, . ID: 207586 Download Presentation

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The green economy:




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Presentations text content in The green economy:

Slide1

The green economy:

m

atching long-term ambitions

with short-term actions

Dr Hans BruyninckxEEA Executive Director

Bratislava, 23 October 2014

Slide2

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 issues

Market

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

Science

Market

Industry

SOCIO-TECHNICAL SYSTEMS

p

roviding social needs and value

Environmental externalities

W

ithdrawals from the ecosystems

D

eposits

E

missions Pollution

system

system

system

Foodsystem

Energysystem

Mobility

system

Slide5

We need better sectoral

accountability

Source: Eurostat

Slide6

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 use

Efficiency

gains

Slide8

Homes are now more energy efficient, but also

much larger, increasing pressures on land, water and materials

Source: SCP023 indicator (draft)

Consumption

Slide9

Cars are more efficient but contribute to a range of negative impacts on people’s quality of life in cities

Efficiency

gains

Consumption

Slide10

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 2011

Slide12

P

olicy tools that can help achieve 2020 targets in line with 2050 visions

Regulation

Fiscal reform

Financing tools

Slide13

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, 2011

Slide16

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 subsidies

Slide17

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

Europe

June 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=en

Slide19

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-innovation

Slide20

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.

, 2011

Slide22

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.


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