[ad_1]
The European Union’s proposed overhaul of debt rules leaves a majority of member states without sufficient firepower to finance the climate transition, according to a new report.
SUSTAINABILITY & CLIMATE
Check out our Sustainability and Climate Change Hub where you will find the latest news, features, opinions and analysis on this topic from across the various Irish Examiner topic desks and their team of specialist writers and columnists.
Only Sweden, Ireland, Denmark and Latvia would have enough fiscal space to meet climate commitments required to keep global warming to below 1.5C under proposals put forward by the European Commission this week, according to a study by the New Economics Foundation.
While others could meet less ambitious climate goals, 13 nations, including France, Italy Spain, Poland and the Netherlands, would not be able to invest enough to achieve the EU’s own green goals, the report said. It comes as the bloc tries to compete with the US and China on clean technologies.
Those with higher debt and deficits will not be able to benefit from green industrial policies as much as those that are less indebted, the report notes.
“The EU has been hamstrung,” said Sebastian Mang, senior policy and advocacy officer at the New Economics Foundation, which called for the creation of an EU climate transformation fund.
“The European Commission should be taking a leaf out of America’s book, and allow more borrowing for climate action.”
• Bloomberg
[ad_2]
Source link