Governments worldwide have committed over $12tn to recover from the Covid-19 pandemic, spent over the next 5 years. Current estimates say the energy transition needs $1.4tn/year globally between 2020 and 2024 to get us on the path to meet the 1.5oC Paris goal. Clearly, there is an opportunity here. Although support for healthcare systems and the overall economy are the stated priority of governments, much of that $12tn is still not committed. … [Read more...]
France’s recovery plan: will support for emissions-high sectors compromise a new Green economy?
The French recovery plan, formally presented today, combines emergency rescue measures, economic stimulus and longer-term investments. A substantial €32bn out of the €100bn budgeted is earmarked for the green economy. But Sébastien Treyer at IDDRI asks whether rescue measures for traditionally emissions-high sectors - tourism, aviation, automotive, buildings, agri-food – will collide with climate targets. He references studies that should be used … [Read more...]
BP’s world energy review: 2019 saw clean electricity match coal
Simon Evans at Carbon Brief summarises BP’s 69th edition of its influential annual statistical review of world energy, looking at 2019. Overall, total energy demand rose, though slower than usual. Renewables were the largest source of new energy, but were closely followed by oil and gas. Coal use dropped again, the fourth drop in six years, thanks to historic declines in the EU and the US. But continued growth in SE Asia, China and India leaves … [Read more...]
Will Member States support the EC’s green recovery plan?
The EC’s “Next Generation EU” plan for a joint loan of €750bn is a major breakthrough as it accepts the need for the member states to share a large debt burden to revive the EU economy. It will be in addition to the European budget under discussion before the pandemic crisis. The other breakthrough is that green policies – climate neutrality, biodiversity, “food-to-fork” - are central, explains Nicolas Berghmans at IDDRI. He summarises the plan, … [Read more...]
EU Recovery Package mustn’t sideline Green R&D
Today (Wednesday 27 May) the EC releases its COVID-19 Recovery package and Multiannual Financial Framework. The Green Deal and net-zero ambitions are expected to be a substantial part of it. Eleonora Moro and Léa Pilsner at E3G draw attention to Research & Innovation (R&I, or R&D), often in danger of being seen as a luxury in times of crisis because the big wins are not immediate. Already, the EU could do much better. Looking at … [Read more...]
How Eurobonds can raise trillions for recovery and the Green Deal
EU nations have lined up for and against any form of Eurobonds, including Coronabonds, that would mutualise vast amounts of debt across all the member states. Yet vast amounts are needed to recover from this unexpected and unprecedented global slump caused by the Coronavirus pandemic. Where will it come from? Luca Bonaccorsi at Transport & Environment explains EC president Ursula von der Leyen’s proposal for how the EU budget (on its own, … [Read more...]
EU needs clear European Green and Solidarity Pact by September
Stark predictions around the unprecedented economic challenges facing Europe (and the world) are starting to take shape. The possible solutions must keep pace with them. Here, Marc-Antoine Eyl-Mazzega at the IFRI Centre for Energy & Climate lays out those challenges and robust policy answers that can keep us on a net-zero emissions track while stimulating economies, creating jobs, and maintaining social justice. It’s no surprise that there is … [Read more...]
How do we accelerate EU decarbonisation now?
The economic stimulus needed to overcome the current pandemic requires significant resources. But it comes at a time when we need to accelerate the energy transition, which is currently part of the European Green Deal and will also require an increase in resources. Andrei Marcu at ERCST examines how the transition will be funded, what are the sources of funding and how they relate to and will be impacted by the current health situation. A range … [Read more...]
New EU Industrial Strategy focuses on emissions, but is it enough?
This month the European Commission released its new EU Industrial Strategy to set the direction of travel for the EU economy in the context of the European Green Deal. Energy-intensive industries - like steel, cement, aluminium, paper and chemicals - account for roughly 17% of EU emissions and have struggled to reduce them in recent years. But Johanna Lehne at E3G doubts the strategy is enough to meet the ambition of becoming the first … [Read more...]
EU Green Deal: meeting targets by lowering non-EU neighbour emissions too
The EU‘s Green Deal and its increasingly ambitious transition policies cannot be limited to its member states, writes Marc-Antoine Eyl-Mazzega at the IFRI Centre for Energy & Climate. For its emissions targets to be met in a meaningful way the EU needs to ensure its neighbours to the east and in North Africa follow. The danger is that carbon intensive industries simply shift to those neighbours, and their products get imported back in. … [Read more...]
The EU can support Central and East Europe’s transition
Six Central and East European nations, heavily dependent on coal, have been very cautious about the pace of the EU’s transition. For them - Bulgaria, Czechia, Hungary, Poland, Romania and Slovakia - the political and economic disruption looks far harder to bear. E3G has just released a report that suggests this picture can change. The report’s authors – Felix Heilmann, Rebekka Popp and Ada Ámon – explain that coal is becoming less profitable, … [Read more...]
No Energiewende without Wärmewende: making Germany’s Heating emissions climate neutral (…nearly)
In Germany, space and water heating in buildings accounts for almost a third of total final energy consumption. Because over 90% of its 22m buildings are fuelled by oil and gas, that makes the sector emissions very intensive. The government’s ambition is to have a "nearly climate neutral building stock" by 2050. But although those emissions have fallen by 44% since 1990, progress has largely stagnated since 2011. Freja Eriksen at Clean Energy … [Read more...]
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