Bundestag Elections 2009: Linking the economic and environmental crisis

<em>Rebecca Harms MEP</em>

In the run-up to this year's Bundestag elections, EU Reporter will be publishing a set of articles by leading German politicians on the subject of Germany and Europe. Our first article has been contributed by Rebecca Harms MEP, the leader of the German Greens in the European Parliament:

The elections to the German Bundestag are, as were the European elections in June, a decision on the general direction in Europe in the year of crisis. How do we try to get out? Do we just cure the symptoms and continue otherwise on the path of radical market liberalisation that led us into this crisis along with greed? Or do we get down to the root of the trouble and treat the malady by moving towards a truly sustainable economic recovery?

Europe seems to be seeking the easy way out, a way that might get us to the status quo ante sooner rather than later. A look at the recovery packages worldwide shows for example that Europe is missing out on an opportunity to invest the vast public sums of money now being spent in future markets, and is as a result at real risk of surrendering technological leadership in the global green sector to Asia and the US.

Europe, therefore, urgently needs what we call a Green New Deal: a combined recovery- and restructuring programme that links the creation of jobs with tackling the climate and resource crises. That promotes eco-industries with a clear vision of a green modernisation of the economy. And that tries to merge the new investment and R&D programmes with existing structural and cohesion funds under the umbrella of coherent and ambitious environmental legislation.

Priority areas for EU policy goals, strategies and programmes that kick-start such a transformation of the economy are in our view an ambitious international climate regime, energy and material efficiency as well as sustainable mobility.

Therefore, the Greens call for:

A strong European commitment to combat climate change

In December 2009, the parties of the UNFCCC will decide on a new climate protocol in Copenhagen. Here, the EU has to show a strong commitment that will result in new targets for the reduction of greenhouse gas emissions, both in the EU and around the world. The new targets must be in line with the recommendations of the UN IPCC (i.e. reductions of 25-40% by 2020 based on 1990 levels for industrialised countries). For the EU this means deeper cuts in emissions than the 20% CO2 reductions already agreed upon. Against current practice, these cuts must be done within the EU, rather than being “exported”.

Truly delivering on this will require the reform of some of the legislative instruments already in place. The cap set in the EU's post-2012 Emissions Trading Scheme (ETS) will have to be revised. If the ETS is to be effective at setting a true price for carbon, full auctioning of emissions permits must be introduced.

Sustainable energy and resource management

The cheapest and most effective way to reduce greenhouse gas emissions and to minimise pollution and resource use is by improving energy and resource productivity and stopping energy and resource wastage. Further strong arguments for energy and resource efficiency are improved competitiveness and job creation.

To deliver in better energy management throughout the coming years, the EU’s current non-binding target of at least 20% savings in energy by 2020 must be made binding. The energy performance of buildings has to be improved (in existing as well as new buildings, in heating and cooling, including the use of renewable energies and smart metering).

Inefficient electrical and electronic appliances must be phased out (as has happened with incandescent light bulbs). EU standards for energy-using products must be constantly revised to take account of new, improved technologies. Energy labelling on these appliances must also be further expanded and the standards more regularly updated to ensure their reliability.

Furthermore, the structure of the European grid needs to be adapted to general developments in the energy supply market, to integrate decentralised renewable large supply systems as offshore wind parks and concentrated solar power plants. Central to this is the swift unbundling of the ownership of energy production and distribution/supply. EU legislation has failed so far to achieve this.

To ensure that the different EU policies effecting efficiency and eco-innovation act jointly, they have to converge. The next Spring Summit should therefore take care that the EU's Lisbon and sustainable development strategies are revised and combined in order to put efficiency and eco-innovation at the heart of the new European economy. Furthermore, eco-innovation could be catalysed and made more visible through a new EU agency for resource efficiency.

Move Green

Improving the sustainability of transportation is not only a key challenge in fighting climate change and other environmental problems. As an important sector in modern economies, more efficient and sustainable transport systems contribute to economic growth. Thus, integration of sustainable transport investments in European recovery plans along with policy instruments such as emission limits and fiscal measures can provide important stimuli for economic growth and employment.

In order to promote better modes of transport, particularly public transport, the Greens want to continue to favour rail links over road links in the EU's TEN-T programme, advocating greater and better sustainable investment into rail infrastructure over road infrastructure.

Aviation is the most rapidly growing source for greenhouse gas emissions. The advantages enjoyed by aviation as a transport mode over other forms of transport has to be overturned. This includes introducing VAT for cross-border EU flights, as well as introducing a tax on bunker fuels (used by shipping and aviation) - as is normal with other fuels.

CO2 emissions from cars account for around 13% of all EU emissions. Recently adopted EU legislation to set average emissions limits for new cars is far too weak and will not lead to improvements in the efficiency of vehicle technology fast enough. The Greens want the legislation to be reviewed, so that a more ambitious binding emissions limit of at least 95g/km must be met by 2020.

The EU push for agrofuels (biofuels from food or feed crops) in transport is foolhardy. Given all the evidence about the negative environmental and social consequences of fuel from crops, the EU should not promote these fuels. The EU target for 10% of renewables in transport by 2020 must be revised during the planned review in 2014 to ensure that agrofuels are excluded.