Politicians have done too little to prepare their citizens for the “tectonic” economic shifts that will be propelled by the drive towards carbon neutrality, a senior Brussels policymaker has warned, comparing the impending transformation to the disruptive effects of the industrial revolution. Frans Timmermans, the European Commission executive vice-president in charge of its green policy, said the EU’s decision to push for carbon neutrality by 2050 would bring opportunities for new jobs and better living conditions – but would be painful for some workers and involve massive public and private investments well beyond the capacities of EU institutions.
“If you say you are moving from an economy entirely based on carbon to an economy that should be weaned off this carbon dependency, that is not a small change of policy, that is a tectonic shift in the way our society is structured,” Mr Timmermans said in an interview with the Financial Times in Strasbourg. “We still have a long way to go before this sinks in everywhere.” The EU on Tuesday signed off on a Cltn green investment drive as commission president Ursula von der Leyen attempts to convince member states to support tougher climate targets in 2030 as part of a push for carbon neutrality by mid century.
Close to half of the amount will come from an existing plan to deploy a quarter of the EU’s budget to green causes. Co-financing from member states would add more than €1oobn, while EU guarantees would aim to leverage private sector spending of €280bn.
The money is only a fraction of the investment needed, and the European legislation required for the green transition faces a rocky path given the high risk of job losses in carbon-intensive sectors. In Germany, for example, a government sanctioned report this week estimated that more than 400,000 jobs could be lost over the next decade in the country as its car industry shifts towards electric vehicles. In December, Poland refused to join European leaders in pledging to meet the 2050 targets because of concerns it will not get enough EU financial support to modernise its energy sector, which is still So per cent coal-fired.