Two Perspectives on the EIB Investment Report 2019/2020

Short list of findings:

  • Economic climate in the EU is worsening and investment by EU firms is likely to slow down in 2020
  • EU climate mitigation investment stagnating and behind US and China
  • Europe needs to accelerate adoption of digital technologies to stay competitive

European firms are becoming increasingly pessimistic about the economic outlook according to the new EIB Investment Report 2019/2020. The report also finds that investment in climate change mitigation is lower than that of major economies like the US and China. Infrastructure investment is stuck at 1.6% of EU GDP, the lowest in 15 years and Europe is failing to reap the benefits of digital transformation.

Original article entitled EIB Investment Report 2019: Uncertainty Weighing on EU Firm Investment; Published by EIB here on 26 November 2019

The report, which reflects the results of the annual EIB Investment Survey (EIBIS) of 12,500 European businesses, recommends that the EU take advantage of historically low interest rates, increase public investment, catalyse private investment and promote efficient financial intermediation to tackle the slowdown.

“Europe cannot afford to wait out another cyclical downturn. After a lost decade of weak investment, we need to tackle the slowdown now if we are to respond to the historic challenges we are facing. The EIB, as the EU’s financial arm and climate bank, has played a crucial role in kick-starting investment in Europe after the financial crisis and we now stand ready to further support investment for a more sustainable and competitive European economy.”

Commenting on the report’s findings, EIB Vice-President Andrew McDowell 

Read the executive summary

Read the country-level analyses

The report was presented at the EIB’s Annual Economic Conference, which is jointly organised with the OECD, Columbia University and SUERF, in Luxembourg. The conference brought together high-level speakers such Sir Nicholas Stern and Mariana Mazzucato and chief economists of the European Central Bank, European Stability Mechanism, OECD, European Bank for Reconstruction and Development and the World Trade Organisation.

“We have to accelerate investment to fully exploit the benefits of the digital revolution, realise our climate goals and rebuild Europe’s social cohesion. There is a long list of investments that require public intervention or a private sector that finds the right conditions to overcome uncertainty: firms’ digitalisation, innovation and business dynamism as well as smart delivery of infrastructure and public services, green innovation and energy efficiency, and e-government, e-learning and e-training.”  

According to Deborah Revoltella, Director of the EIB’s Economic Department, while presenting the report. [ . . . ]

EU climate investment not on track

The EIB Investment Report shows that, although substantial progress has been made, climate action investment in the EU is not yet on track. To achieve a net zero-carbon economy by 2050, the EU must raise total investment in its energy system and related infrastructure from 2% to 3% of GDP on average.

The European Union invested EUR 158 billion in climate change mitigation in 2018. At 1.2% of GDP, this is now marginally less than the United States (1.3%) and little over a third of China’s performance (3.3% of GDP).

While the United States leads in climate-related R&D spending, China has recently quadrupled its spending, overtaking the EU.

Europe’s weak performance in climate-related R&D is a threat to its competitiveness, given the importance that still-immature technologies will have in the transition.

To continue reading the original article, link here.

Another Perspective from ClientEarth foundation to the EIB 2019/2020 Report

Response to this report per the official News release from ClientEarth.org of 13 November 2019, entitled Major Step Forward: European Investment Bank to Stop Funding Fossil Fuel Projects, original publication here

ClientEarth welcomes the European Investment Bank’s landmark lending policy and the Board’s decision to exclude gas finance from it.

“The EIB has set the standard for banks worldwide with this move – and clearly signalled that oil, gas and  coal lending is inconsistent with the Paris Agreement goals. This is a major step in the flight of capital from fossil fuels. While we are disappointed to have seen such strong initial pushback from countries like Germany, which claims high standards on climate, the passing of this policy shows a change of gear for clean investment.”

ClientEarth lawyer Peter Barnett

Although the policy will kick in at the end of 2021, a year later than previously proposed, ClientEarth lawyers have warned that any decision to fund new gas or other fossil fuel projects before then would not be in line with the Paris Agreement and will risk legal challenge.

For further reading the original article by ClientEarth.org: link here.

Unearthed.Greenpeace.Org: Oil Majors Withhold Support for Ambitious EU Climate Target 2050

Picture credit: Photo by Zukiman Mohamad from Pexels

BP and Shell declined to back a plan to reduce European greenhouse gas emissions to net zero by 2050, Unearthed can reveal

Originally published on 20 June 2019, link here, author: Lawrence Carter Twitter: @lawrencecarter1

The European Commission says the proposal, which would set an EU-wide target of net zero emissions by 2050, is needed if global warming is to be limited to 1.5 °C in line with the Paris climate change accord.  

Prime Minister Theresa May will attend a meeting of the European Council starting later today at which leaders are expected to vote on the new target.

The move follows last year’s major report by the Intergovernmental Panel on Climate Change, which warned that failure to limit warming to 1.5 °C would significantly worsen the risk of drought, floods, extreme heat, and poverty for hundreds of millions of people. 

Some of the world’s largest oil companies, including BP and Shell, the Italian major Eni and Spanish company Repsol, have withheld support for the proposal to increase the EU’s target, despite previously stating their backing for the Paris climate agreement.

The EU’s present emissions target for 2050 is a reduction of 80-95%.

In their responses to the European Commission’s consultation on its proposal, BP, Shell and Repsol did not answer the key question on whether the EU’s 2050 target should be kept the same, or be increased to achieve net zero.

When contacted by Unearthed, Shell said that the company supported a net zero goal but would not give a date by which this should happen. 

To continue reading, please link here.

META: 5 GREEN IDEAS FOR THE EU IN NEXT 5 YEARS

MARIE-AMÉLIE BRUN, Published JUNE 6, 2019, original article here

Picture credit: Frank Hui, flickr.com

CLIMATE ENVIRONMENTAL JUSTICE EUROPE PROTECTS FEATURED PODCASTS RULE OF LAW SUSTAINABLE DEVELOPMENT

After the European elections, META has great ideas to help new MEPs and potential Commissioners with five green ideas that could blossom in the next five years.

A short synopsis of the options offered:

1. A European Green New Deal

The European Union needs to get the ball rolling on a new environmental action programme – or European ‘Green New Deal’.

2. New European Commission Vice-Presidents for…

The European Commission plays a crucial role in the lawmaking process of the European Union. Various Vice-President positions already exist in the Commission, but the Environment and Climate roles are not yet represented at this level.

3. A Sustainable Development Goals strategy

17 Goals have been developed by the United Nations to achieve a sustainable future for all. These goals, called the ‘Sustainable Development Goals’ – or ‘SDGs’ – target all aspects of sustainability, from poverty to clean oceans.

4. Net zero emissions

At the end of last year the European Commission presented a strategic long-term vision of achieving a climate-neutral economy by 2050. Last month eight EU countries called for net-zero carbon emissions by 2050.

5. A ‘Paris moment’ for Biodiversity

A study carried out by the world’s top nature scientists and representatives from 132 governments warned us recently that humanity faces a global environmental emergency.

The three-year assessment into the health of our planet’s ecosystems reveals the alarming extent of global biodiversity breakdown with up to one million species set to disappear within a few decades.

Marie-Amélie Brun sums it up in her article: 5 Green Ideas for the EU in the Next Five Years

For further reading: www.meta.eeb.org