The report argues that Europe’s leadership is "primarily evident" in its climate change commitments. But in order to continue attracting investment and businesses, greater efforts must be made to promote innovation and energy efficiency, it added.
Sweden, which took over the EU's rotating Presidency yesterday (1 July), has pledged to put energy efficiency high on its agenda (EurActiv 25/06/09). One of its priorities for the 6-month term is to lead a shift to an eco-efficient economy where economic growth and climate-friendly policies go hand-in-hand.
"Sweden can set a good example by showing how the climate challenge can be combined with initiatives to strengthen the economy. During the Presidency we want to highlight EU job and growth opportunities by investing in energy efficiency, renewable resources and recycling," said Swedish Environment Minister Andreas Carlgren.
"A global transition to a low carbon economy in order to tackle climate change represents a major opportunity for all countries to embark on cleaner development," said Måns Nilsson, the leading researcher behind the report. The downturn highlights the investment opportunity in green cars, better insulation, energy-saving appliances and clean energy among others, he added.
The report maps out three areas where EU policy can promote a shift to a competitive green economy.
Pursuing greater resource system efficiency, particularly through energy efficiency and sustainable city planning (see EurActiv LinksDossier on 'cities and climate change'), would be a politically appealing strategy as energy savings will pay off in times of economic hardship, the authors argue. Moreover, new technology markets such as renewable energies and sustainable transportation could offer solutions in sectors that are major contributors to climate change, they say.
Finally, global carbon pricing will be "unavoidable" if the world is to move to an eco-efficient trajectory for the long term, the report states.
The authors warn, however, that achieving climate objectives will not be easy because they require a profound change of thinking on the part of both consumers and industries in the whole world. They consequently present EU policy-makers an action plan on how to pursue both national and international cooperation for a more sustainable future.
The report urges EU policy-makers to adopt "package solutions" that combine taxes, standards-setting and other forms of governance in a novel way in the manner of the green package for renewables. Moreover, interventions to promote clean technologies and better platforms to assess the impact of climate policies will have to be developed it argues.
At international level, the EU should push for a gradual expansion of global carbon pricing as well as international standards, the report argues. In order to ensure a level playing field in the shorter term, the EU should also leverage commitments from emerging economies, it said.
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