EU Green Deal a first, but not enough

The European Commission has unveiled the European Climate Law, the world’s first ever climate law. This is a milestone in global efforts to tackle climate change as the planned law makes it mandatory for European Union member-states to implement measures to reduce carbon emissions as per the European Green Deal (EGD). The €1trillion EGD aims to make the EU carbon neutral by 2050. It includes a €100bn Just Transition Mechanism which provides for financial support and technical assistance to help people, businesses and regions that are most affected by the shift away from fossil fuels and carbon-intensive processes to a green economy. Importantly, the EGD provides for the European Climate Law under which all EU institutions and member-states are required to implement measures outlined. Thus, the climate law turns promises and political commitment into a legal obligation. The EGD also provides for a border carbon tax, a new tax on goods from countries that are not doing enough in the battle against climate change. The US, especially under President Donald Trump, is a laggard if not an outright obstacle in the way of the world addressing climate change. It could be hit hard by the border carbon tax. Will this push it to act more robustly on carbon emissions, if only to make its exports competitive in the EU market? India and China, too, which are major carbon emitters, could be impacted by the border carbon tax. The EU must consider the problems of developing countries and support them with technology transfers and funds to make the transition to a green economy rather than subjecting them to a border carbon tax.

Its good intentions notwithstanding, the EGD is disappointing. It pledges at least 40% cuts in greenhouse gas emissions by 2030 from 1990 levels. Climate and environment activists are up in arms. Greenpeace has pointed out that even a 55% reduction target for 2030 wouldn’t be enough to limit global warming to 2 degrees Celsius. The EGD gives the world “much less than a 50% chance” to limit global warming to 1.5 degrees Centigrade, teen climate activist Greta Thunberg has said, pointing out that setting distant targets will remain meaningless when high emissions continue in the present.

The EU’s plan is rich in rhetoric but tight-fisted on funding. Consider this: A decade ago, over €4.2trillion was provided to save Europe’s financial sector, in comparison to the €1trillion that has been set aside for the EGD. This is a classic case of misplaced priorities. The EU cannot hope to achieve its already limited climate and energy targets on the current budget. Climate change is yet to get the importance it deserves