CrisisWatch

OECD: Strict green laws do not harm export economies

Rapid economic growth at all costs being the dominant political mantra since the beginning of the crisis, EU environmental legislation has been the target of unrelenting pressures for easing, on allegations that it prevents businesses from growing and thus hampers economic recovery. A recent study by the OECD however adds evidence to the opposite conclusion: strict environmental regulations and policies do not harm export competitiveness. This conclusion is consistent with the findings of previous OECD studies, which prove that a stringent regulatory framework for the protection of the environment has no negative impact on productivity – instead, they can work together.

According to the working paper, “Environmental policies are not found to be a major driver of international trade patterns, but have some significant effects on specialisation. More stringent domestic policies have no significant effect on overall trade in manufactured goods, but are linked to a comparative disadvantage in "dirty" industries, and a corresponding advantage in "cleaner" industries. The effects are stronger for the domestic component of exports than for gross exports, yet notably smaller than the effects of e.g. trade liberalisation.”

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Political tide turning in support of EU nature directives

Nine EU member states have officially expressed their opposition to the European Commission’s move to subject the directives on habitats (92/32/EEC) and wild birds (2009/147/EC) to a “fitness check” under its REFIT initiative: Croatia, Germany, France, Italy, Luxembourg, Poland, Romania, Slovenia and Spain.

In their joint letter, the nine environment ministers state that: “There is now legal certainty as a result of well advanced implementation. Those affected have learned how to deal with the directives’ provisions. Any amendment would require the allocation of personnel and financial resources for a period of many years, meaning that these resources would no longer be available for the much more important process of implementing the nature conservation directives. The result would be new legal uncertainty. We therefore all agree that the directives should retain their current form.”

On a parallel track, members of the European Parliament representing the seven largest political groups co-signed a letter urging First Vice-President Frans Timmermans and Environment Commissioner Karmenu Vella to keep the Habitats and Birds Directives in their current form and focus on better implementation. The MEPs who signed the letter are the rapporteur Mark Demesmaeker (BE/ECR)  and shadow rapporteurs Norbert Lins (DE/EPP), Karin Kadenbach (AT/S&D), Catherine Bearder (UK/ALDE), Margrete Auken (DK/ Greens/EFA), Marco Affronte (IT/EFDD) and Lynn Boylan (IE/GUE-NGL) on the European Parliament’s Own-Initiative Report on the Mid-Term Review of the Biodiversity Strategy towards 2020.

Commenting on this historic development for nature conservation in the EU, Geneviève Pons-Deladrière, Director of WWF European Policy Office said: “We expect more EU governments to join this call and put a stop to any attempt to change a legal instrument that has proven to work when properly implemented and financed.
We urge the European Commission to use this momentum and deliver on their commitment to halt the loss of nature. They should maintain the current laws and ensure their effective implementation, as well as tackle the main problems, such as unsustainable agriculture and changes to natural waterbodies, which are causing the damage.

In May 2015, WWF, BirdLife Europe, the European Environmental Bureau and Friends of the Earth Europe launched the “Nature Alert” campaign in response to the European Commission’s evaluation which assesses whether the existing EU nature laws should be changed. The campaign makes the case for improved implementation and enforcement of existing rules set out by the laws - known as the Birds and Habitats Directives. During the summer, over 520,000 people participated in the European Commission’s public consultation and called on politicians to save Europe’s nature laws: by far the highest number of responses ever reached in the history of the EU.

Read more: WWF EU, Birdlife

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New Polish government backtracks on climate agreement

Following the national elections of October 25th, which brought to power the Law and Justice conservative and party, Poland’s President vetoed the 2012 Doha amendment to the Kyoto Protocol on climate change. Earlier in 2015, President Andrej Duda had criticized the EU’s policy on emissions, stating: “I do not agree with such a policy and will say that this is a policy that is completely at odds with the strategic interests of our country”.

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Policy highlights - June 2015

1.     European Commission (ECFIN), Statement by the European Commission and the ECB following the second post-programme surveillance mission to Portugal (March 2015)

Economic and financial conditions in Portugal have further improved since the conclusion of the first post-programme surveillance mission in autumn 2014. However, the economic recovery continues to be held back by the remaining macroeconomic imbalances. While the authorities reiterated their commitment to budgetary consolidation, efforts to reduce the underlying structural budget deficit need to continue. The structural reforms undertaken during the financial assistance programme are increasingly having an effect. Nevertheless, the reform agenda to further enhance medium-term growth prospects, job creation and competitiveness remains challenging.”

  

2.     European Commission (ECFIN), New Excessive Deficit Procedure steps published (18 May 2015)

 

Overview of ongoing excessive deficit procedures

Country

Date of the Commission report (Art.104.3/126.3)

Council Decision on existence of excessive deficit Art.104.6/126.6)

Current deadline for correction

Croatia

15 November 2013

21 January 2014

2016

Malta

21 May 2013

21 June 2013

2014

Cyprus

12 May 2010

13 July 2010

2016

Portugal

7 October 2009

2 December 2009

2015

Slovenia

7 October 2009

2 December 2009

2015

Poland

13 May 2009

7 July 2009

2015

France

18 February 2009

27 April 2009

2017

Ireland

18 February 2009

27 April 2009

2015

Greece

18 February 2009

27 April 2009

2016

Spain

18 February 2009

27 April 2009

2016

UK

11 June 2008

8 July 2008

financial year 2014/15

 

3.     European Commission, Five Presidents' Report sets out plan for strengthening Europe's Economic and Monetary Union as of 1 July 2015 (22 June 2015)

What’s in the Five Presidents’ Report concretely?

1. Towards an Economic Union of convergence, growth and jobs

2. Towards Financial Union

3. Towards Fiscal Union

4. Strengthening Democratic Accountability, Legitimacy and Institutions: From Rules to Institutions

5. The Social dimension of EMU

 

Next Steps: This report has put forward the principal steps necessary to complete EMU at the latest by 2025. The first initiatives should be launched by the EU institutions as of 1 July 2015. To prepare the transition between Stages 1 and 2, the Commission – in consultation with the Presidents of the other EU institutions – will present a "White Paper" in Spring 2017, assessing progress made in Stage 1 and outlining next steps needed. It will discuss the legal, economic and political preconditions of the more far-reaching measures necessary to complete EMU in Stage 2, and will draw on analytical input from an expert consultation group. Translating the Five Presidents’ report into laws and institutions should begin without delay.”

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As crisis offers excuse for fossil fuel revival, reactions mount against coal

The recent decision of an Italian chief prosecutor to order the closure of two power stations at Vado Ligure is probably the first legal case for manslaughter and environmental damage opening against the coal-fired energy industry. On another case, the Court of Rovigo sentenced two former CEOs of ENEL to a two-year prison term for the severe pollution derived by the operations of the Porto Tolle Power Plant. Environmental groups WWF Italy, Greenpeace and Legambiente have expressed hope that this judgment will signal the end of coal conversion projects in Porto Tolle. However, the impact of these important legal developments on the energy policies of EU member states is yet to be seen.

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Policy highlights - February 2014

EU ECFIN: Energy consumption down by 8% between 2006 and 2012 in the EU28 (17 February 2014)

Over the last two decades, gross inland energy consumption in the EU28, which stood at 1 670 million tonnes of oil equivalent (Mtoe) in 1990, rose to a peak of 1 830 Mtoe in 2006 and then decreased to 1 680 Mtoe in 2012. Between 2006 and 2012, gross inland energy consumption in the EU28 has fallen by 8%.The energy dependence rate, which shows the extent to which a country is dependent on energy imports, was 53% in the EU28 in 2012.

Between 2006 and 2012, energy consumption fell in twenty four Member States and increased only in Estonia (+11.6%), the Netherlands (+2.9%),  Poland  (+0.8%)  and  Sweden (+0.4%). The  largest  relative  falls  were recorded in Lithuania (-17.0%), Portugal (-15.2), Greece (-14.4%) and Hungary (-14.2%). 

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