The European Union is more fragmented and yet politically active than ever before, signalling changes in the way citizens respond to hard-hitting issues like climate change.
There has been a dramatic uprising against greenhouse gas emissions, particularly with young protesters across the EU. Climate change has evoked a green movement in the nation, mobilizing citizens, particularly in Sweden, Belgium and Switzerland, where students have skipped school to demand greater action against climate change.
Europe is looking to increase the flow of money into businesses that commit to climate change, by evoking European Commission guidelines on what qualifies as an investment into environmentally friendly technologies or otherwise.
The EU’s Green Investment Guide:
The European Union has agreed to substantial reductions of carbon emissions by 2030 and its executive wants the bloc to reduce them to zero by 2050. This goal is aimed at helping stop global warming. But in order to cut emissions by 2030, many sectors of the economy, including energy and manufacturing, need additional annual investments of 180 billion euros ($201 billion). Additional money is needed to achieve zero emissions by 2050.
There are difficulties in the interpretation of guidelines with respect to what qualifies as green. While many investors want to invest in sustainable businesses, or market financial products they sell as “green”, the parameters may be tedious.
Taxonomy:
The report is referred to as taxonomy, which consists of graphs, tables and methodologies to determine if an investment is green. When issuing bonds and loans, those giving out loans will have access to better borrowing conditions if investors think that a bond or loan can help contribute to the decarbonization of their investment portfolios.
Bonds of loans that are aimed at helping a company or entity’s environmental footprint, which includes expanding their taxonomy related activities, can benefit from preferential treatment of investors.
The Commission also published separate guidelines on what standards a bond which is marketed as green should meet, as well as on climate related benchmarks for company reporting.
Should Europe be Protesting, Really?
In some ways, Europe almost seems like an unlikely place for climate revolt because it is considered one of the world’ greenest leaders and the EU is on track to meeting their 2030 emissions reduction targets.
French President Emmanuel Macron has vowed to “make the planet great again” through various initiatives, including the “One Planet summit” and asks American scientists to move to France after the U.S. announced that it was pulling out of the Paris climate pact.
But despite the rhetoric and climate sentiment, citizens don’t feel moved by Macron’s efforts and believe no climate action has really been strong in France. Citizens echo the same beliefs across the EU. But if we’re being honest, there is a lot to learn from Europe’s movements and if anything, at least they are moved by it.
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