A sustainable economy can bring 'massive co-benefits'

Business as usual is 'not an option' which is why a systemic change is needed in Europe, explains Sebastien Godinot.

By Sebastien Godinot

28 May 2014

The crisis that Europe has been suffering over the last years is systemic: it is financial, budgetary, environmental, social and political. Going back to business as usual is not an option. Europe is over-consuming resources and destroying its natural capital. With over 27 million people unemployed in the EU and a growth of inequalities, the social capital is damaged. The European economy is weak and at growing risk of external shocks. EU citizens are exhausted after the political focus of the last four years on the crisis; which isolates the EU from its citizens and threatens the European project as a whole.

A new vision is needed in Europe, refocusing on what people care about the most: well-being, jobs, quality of life. And this, of course, includes sustainability. The development model prevailing in Europe over the last 60 years has come to an end. Notably, natural capital is becoming increasingly scarce.

The environmental benefits of a sustainable economy are the most self-evident. Recycling more and wasting and polluting less, will reduce our ecological footprint. But have we ever thought about the massive co-benefits a sustainable economy could bring?

"The environmental benefits of a sustainable economy are the most self-evident"

First, less pollution will improve public health. At a time when the World Health Organization releases new estimates that air pollution kills seven million people annually (one in eight of total global deaths), it is urgent to shut down many inefficient coal power plants which are a major contributor to air pollution in Europe.

Second, a greener economy will provide more jobs because sectors like renewable energy and energy efficiency are more labour-intensive than mature sectors like fossil fuels. Every million euro invested in renewables creates from two to three times more jobs than conventional fossil fuel investments.

Third, a sustainable economy will improve our resilience to external shocks - if the EU reduces its enormous addiction to (increasingly imported) fossil fuels, we will suffer less from the volatility of price shocks outside European borders.
And last but not least, well-being and quality of life will increase amongst Europeans.

To radically reduce our excessive environmental footprint and protect our natural capital, WWF puts the focus on five priority policy areas.

Getting climate and energy policies on course for 2030 is a must to spur energy efficiency and low carbon innovation. Three binding targets of 55 per cent greenhouse gas reduction, 45 per cent renewable energy and 40 per cent energy efficiency improvement compared to 1990 are needed.

A proper EU enabling framework for resource efficiency and setting mandatory EU targets for reducing total material consumption, water and land footprints needs to be established.

We also need to measure what counts: going beyond GDP indicators is required for optimal decision-making. This includes natural capital accounting: by 2020 the value of ecosystems should be incorporated in EU and member states decision making processes.

Functioning fiscal and financial tools are also essential to support a sustainable economy. All environmentally harmful subsidies should be phased out and green taxation should reach an average ten per cent of total taxation in EU member states by 2020. Private financial policies and regulations should internalise climate change and natural capital requirements.

Finally, international leadership; Europe should lead on sustainable economic initiatives globally - both fulfilling its own commitments for climate and biodiversity finance and supporting developing countries to move forward.