EU succeeding in green commerce

By Annabelle Malins

With all the demonstrations, personalities and controversy swirling around the United Nations’ climate change summit wrapping up today in Copenhagen, it’s easy to miss the big picture: The world is moving to a low carbon future. Each country must decide whether to lead, follow, or somehow opt out of what the rest of the world is doing.

The nations of the European Union — including the eight nations whose interests are represented here in Atlanta — together make up the world’s largest economy, and we have made our decision already. The EU is committed to reaching an effective global climate agreement, and to lead by taking ambitious action on its own.

For example, the EU is already committed to cutting its greenhouse gas emissions by 20 percent, improving energy efficiency by 20 percent, and generating 20 percent of its energy needs from renewable sources, all by 2020. And country after EU country is stepping up:

● Denmark gets about 20 percent of its power from wind energy.

● Germany produces one-third of the world’s solar panels and half of its wind rotors.

● Some regions of Spain get more than 70 percent of their electricity from renewable sources.

● Nine EU members are working to develop an offshore wind grid in the North and Irish seas.

● France gets 75 percent of its electricity from nuclear power, which generates no carbon dioxide.

The European Union has also set up the EU Emission Trading Scheme, the world’s largest multinational carbon trading market. The ETS is designed so that heavy greenhouse gas-emitting companies have an incentive to adopt lower-emission practices. The pilot phase finished last year and the second phase is helping to reduce emissions while encouraging growth of the green sector.

Putting a price on carbon has helped businesses make investment decisions that have spurred technological developments, improved energy efficiency, and encouraged behavioral changes, such as purchasing more fuel-efficient cars. It all adds up to market leadership in sector after sector.

Nor has Europe experienced a significant negative effect on industrial competitiveness. For example, across the EU it’s estimated that there are now about 8.67 million environment-related jobs. This is not to say that the European Union has got everything right, but the phased approach we have adopted on the EU Emission Trading Scheme has helped us to make necessary corrections. The oft-heard conclusion that carbon trading in Europe is not working simply isn’t true.

Europe’s experience shows that tackling climate change doesn’t pit the environment against the economy. In Britain, for example, low-carbon /high growth policies helped Britain’s economy grow 48 percent since 1990. During the same period, our greenhouse gas emissions declined by 21 percent.

The U.K.’s low-carbon goods and services sector now employs 900,000 people, with another 100,000 green-collar jobs projected by 2015. And the U.K.’s ambitious efforts to tackle climate change at home and globally have broad-based support — including the leaders of both the Conservative and Labor parties; the Confederation of British Industry, which is roughly analogous to the U.S. Chamber of Commerce; and the Trades Union Congress, which represents labor unions.

The U.K. office in Atlanta, like those of my European Union colleagues, is closely involved in promoting trans-Atlantic trade and investment. And we know from our many business contacts that Georgia companies large and small already get the big picture: the future of global commerce is green.

From the energy- and money-saving makeover at Coca-Cola’s headquarters, to the cutting-edge photovoltaics made by Suniva, to UPS’ computerized program that helps its delivery trucks avoid gas-wasting left-hand turns, to Interface Carpet’s game-changing greening, Georgia’s most successful businesses know what European companies do: to succeed in a global economy, you have to take climate change seriously. Taking action can not only save money, but also grow new business.

America has always led the world in technological developments and has built its economic greatness on being a market maker. If America, Europe and the world’s emerging economies act at the same time, none of us will lose out by tackling climate change. Instead, we will gain a cleaner and greener world, and at the same time, create jobs, boost efficiency, and foster a resilient economy.

Annabelle Malins is British consul general and member of the European Consular Corps in Atlanta.