The EU's Green Deal: Bismarck`s `what is possible` versus Thunberg`s `what is imperative`

Servaas Storm ()
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Servaas Storm: Delft University of Technology

No 117, Working Papers Series from Institute for New Economic Thinking

Abstract: The European Union's Green Deal, a Û1 trillion, 10-year investment plan to reduce greenhouse gas emissions by 55% in 2030 (relative to 1990 levels), has been hailed as the first comprehensive plan to achieve climate neutrality at a continental scale. The Deal also constitutes the UnionÕs new signature mission, providing it with a new raison dÕetre and a shared vision of green growth and prosperity for all. Because the stakes are high, a dispassionate, realistic look at the Green Deal is necessary to assess to what extent it reflects Ôwhat is politically attainableÕ and to what degree it does Ôwhat is requiredÕ in the face of continuous global warming. This paper considers the ambition, scale, substance and strategy of the Deal. It finds that the Green Deal falls short of Ôwhat is imperativeÕ but also of Ôwhat is politically possibleÕ. By choosing to make the Green Deal dependent on global finance, the European Commission itself closes down all policy space for systemic change as well as for ambitious green macroeconomics and green industrial policies, which would enable achieving climate neutrality in a socially and economically inclusive manner. Hence, Otto von Bismarck would have been as unpersuaded by the Green Deal proposal as Greta Thunberg, who dismisses it as mere Òempty wordsÓ.

Keywords: European Green Deal; green finance; climate transition; green macroeconomics (search for similar items in EconPapers)
JEL-codes: E60 H50 O52 Q54 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2020-03
New Economics Papers: this item is included in nep-ene, nep-env, nep-mac and nep-pke
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Persistent link: https://EconPapers.repec.org/RePEc:thk:wpaper:117

DOI: 10.36687/inetwp117

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