What is the Global Green Deal?
What is the Global Green Deal?
The European Union has positioned itself as a global climate leader by strengthening its emission reduction targets and investing heavily in clean energy, green technology, research and development. It is known that if our industry, energy, transportation and food systems do not change, we may face a temperature increase of more than 3 ° C in this century.
As we approach the end of 2020, Europe's hottest year at a record level, the European Union has made a collective decision to reduce its greenhouse gas (GHG) emissions by at least 55% by 2030 from 1990 levels. EIB (European Investment Bank) also supports this effort with its financial power.
Climate action requires extensive structural change and massive investment around the world. In Europe alone, meeting the new 2030 emission reduction target will require an additional investment of an estimated € 350 billion ($ 417 billion) annually. However, this figure is marginal compared to the cost of doing nothing. The EIB (European Investment Bank) is committed to supporting 1 trillion Euros of investment in climate action and environmental sustainability in the next decade.
However, financing alone will not get us where we need to go. We also need a roadmap, so the European Commission launched the European Green Deal in December 2019. As Europe's new growth strategy aims to transform the EU into a fairer, more prosperous society by guiding a more resource-efficient transition. Ultimately, the goal is to achieve net-zero GHG emissions by 2050.
However, the EU represents less than 10% of global emissions, so Europe's action alone will not be enough to slow global warming. We must support decarbonization efforts beyond our borders to keep the global temperature rise as close to 1.5 ° C as possible. Therefore, there is a need for a Global Green Deal.
For this purpose, three investment priorities have been determined:
1. First of all, it should be ensured that the most advanced clean technologies are adopted everywhere. Despite good progress in renewable energy distribution, 40% of the world's electricity is still generated from coal, the dirtiest energy source. With the economic development, there must be more demand for electricity and therefore a responsibility to adopt green technology solutions. Europe is ready to invest in everything from green electrification programs in Africa to industrial decarbonisation projects in Asia to battery distribution in Latin America. The EIB will use its resources, both financially and with know-how, to capitalize on more private sector investment in this critical area to support climate adaptation efforts.
2. The second priority is to invest in groundbreaking green technologies like never before. Such research and development are both essential and an enormous market opportunity. Already, a group of countries representing half of the world's greenhouse gas emissions have adopted the "net zero" targets and others will surely follow. All of them will need European technology and investment to reach the Net Zero goal. Clean hydrogen, renewable energy and energy storage solutions can all become vibrant EU export sectors.
3. Finally, the idea of a "circular economy" needs to be adopted. As the situation continues, more is being extracted from our planet than it can give us, and the effects of this overconsumption will become increasingly dramatic and devastating with each passing year. The environmental and carbon footprint of the goods we consume must be reduced urgently. To do this, one must invest in cyclic technologies that reuse resources rather than constantly producing or importing new products and extracting more raw materials. The circular economy has great potential to reduce our dependence on scarce resources and create jobs. As Europe emphasizes, the Green Deal is not just an environmental policy; it is an economic and geopolitical necessity.