The Green New Deal, a proposal to try and meet ambitious Green House Gas Reduction targets through a large scale Green Investment Program has been part of the political rhetoric in the European Union since the on-going financial crisis hit the European Union. However, as things stand now, it means different things to different people and is in danger of becoming just another buzzword with little tangible action having been taken in the EU.
This latest Re-Define report, co-authored by Managing Director Sony Kapoor and two Re-Define Research Associates, reinvigorates the concept of the Green New Deal and will be downloadable from our website later this week. It defines what a Green New Deal will need to look like, estimates how much it would cost, highlights the positive impacts on growth and employment in the European Union, and demonstrates how sufficient private and public sources of funding could be effectively mobilized in support of such a deal.
The Green New Deal will need to aim for a 30% reduction in EU GHG emissions by 2020 and a 50% reduction by 2030 and will need to reinforce the EU’s commitment to the 20% energy efficiency target for 2020. This would help save a significant amount of the nearly 3% of EU GDP that the EU spends on fossil fuel imports every year as well as ease energy security concerns and reduce the uncertainty associated with volatile energy prices.
Our new paper for the European Parliament highlights how old approaches to international governance are increasingly out of date in the day and age of increasing globalization. We now live in a world that is highly interconnected, is full of externalities and is increasingly fast paced. (Available for download in our publications section)
The ever faster and larger cross-border flows of commerce, people, and information technologies has reduced the idiosyncratic risks by allowing us access to an increasing array of options for example for investments or suppliers. At the same time, the higher degree of interconnectedness that this has brought about means that the risk of system wide failure – the dominoes all falling together - has increased significantly as demonstrated by the recent world wide collapse in cross border finance and trade.
Existing international governance structures to pursue shared global goals and manage externalities were designed at a time when systemic risk, externalities and the pace of change was much slower. These institutions and their approach to global governance now look increasingly out of touch. There is an urgent need to plug this governance gap that grows by the day.