01 Apr Green industry viewed as vital part of the EU Recovery Plan
The European Union has confirmed that the green industry will represent an important part of the EU’s Virus Recovery Plan. Senior government officials have stated that new emergency measures will support the strategies laid out in the Green Deal.
While specific details are yet to be announced, climate project investors are encouraged to see the support and inclusion of green projects in global stimulus packages. EU leaders have emphasised that the focus predominantly lies on tackling the Coronavirus pandemic and the implications of the pandemic. EU members have, however, reiterated the need to consider preparing measures to enable society and economies worldwide to return to normality and enable continued sustainable growth, combined with accelerated support for the green industry.
EU leaders recently met to first and foremost discuss the challenge of the current pandemic but also to reassure members that the region remains committed to environmental and energy policies. Jose Delbeke, a former official of the European Commission stated that he hopes for the stimulus package. Delbeke hopes that new measures will include synergy between the green deal and the coronavirus crisis package.
The EU approach is considered essential as it represents a clear sign to other governments currently planning similar recovery packages. Nick Robins, sustainable finance professor at the London School of Economics says the EU will provide signals of how long term recovery can be delivered. Robins explains that the EU Green Deal offers a platform capable of altering the growth of the European economy.
In response to the anticipated economic recession this year, the European Commission is preparing a significant ‘Corona Investment Fund’ using additional funds from the budget to support businesses, health care systems and other industries in need. Regional leaders have admitted that a comprehensive recovery plan combined with considerable investment will be needed to ensure Europe can work its way back towards sustainable growth.
The EC met with the European Central Bank recently to discuss the required measures and within the statement, the green transition is highlighted as part of the overall exit strategy from the Coronavirus crisis. The statement highlights a general concern in Europe that allocating support to businesses may reduce the efforts towards clean energy measures and could potentially result in public funding allocated for businesses that may contribute to further pollution.
Ernest Urtasun, EU parliament member and the VP of the Greens Group highlights that history suggests that most stimulus programs launched after the 2008 financial crisis had little or no environmental focus. Urtasun, along with other representatives in the EU has urged the EU Parliament not to make the same mistakes and to ensure that climate remains on the agenda for the future.