The implementation of the European Green Deal is limited by the EU’s governance framework. This is the gist of a policy paper published on 6 September by the European think tank Bruegel.
While the authors – economist Jean Pisani-Ferry, and energy and environmental policy specialists Simone Tagliapietra and Georg Zachmann – recognise that the 'Green Deal' has set “ambitious” milestones in the fight against climate change, with clear targets for 2030 and 2050 and the mobilisation of billions of euros in green financing, they stress that its implementation will be politically difficult, not least because of a lack of coordination. And with good reason: while climate targets are set at EU level, many policies, particularly those relating to energy, remain under the control of the Member States. “The result is that collective action is likely to be insufficient”, the analysis deplores.
The second major constraint is political resistance at national level, stemming from concerns about lifestyle changes and the potential economic impact of decarbonisation. “Some recent national elections in EU countries (...) have seen a strengthening of voices critical of ambitious domestic climate polices, to the extent that the survival of the current consensus on climate neutrality within the European Council cannot be taken for granted”, explains the note.
In view of this, the co-authors recommend a series of key recommendations built around five priorities to improve governance in favour of the European Green Deal.
Expand emissions trading. The guidance note recommends that all emissions should be subject to emissions trading systems (‘ETS’) (see EUROPE 13164/13). By 2030, separate ETS will cover industrial emissions and buildings/transport emissions, representing three-quarters of all territorial emissions. A third system should also be created for sectors not covered.
EU Green Investment Plan. To ensure continued funding for the green transition, Jean Pisani-Ferry, Simone Tagliapietra and Georg Zachmann recommend maintaining EU green subsidies at a minimum level of €50 billion per year after 2026. This would require new European resources, but is essential to solve the political and distribution problems.
Creation of a European Energy Agency. The analysis proposes the creation of an independent agency responsible for providing objective data and assessments to guide decision-making on energy policy.
Raising energy and climate governance to the level of heads of state and government. It is also suggested that special European summits be organised at least once a year to strengthen political coordination and commitment.
Optimising transport networks. Finally, according to the three specialists, centralised management of cross-border transmission networks would minimise costs and stimulate investment.
To read the guidance note: https://aeur.eu/f/8ga (Original version in French by Nithya Paquiry)