Is the Green Deal a lost cause for investors?
Green economy - green bond
Posted by MoneyController on 29.10.2024
- 122
- 0 Follow me
What is the future of the ‘Geen Deal’? What are the opportunities and the many difficulties it faces? Many are evidently asking this question, including those investors who are wondering how strategic it might be to focus on this set of climate and environmental protection measures.
The ‘Green Deal’ is a set of measures designed by the European Union to combat climate change by reducing the polluting impact of human activities. As Sylvie Goulard and Aure Keraron write in ‘Affari&Finanza’ (‘La Repubblica’), this project is remarkable both for its ambition and for its articulation: it ranges from the preservation of biodiversity to reductions in so-called greenhouse gases; from the promotion of clean energies to ‘green’ building.
One of the problems today of the ‘Green Deal’ in Europe, however, lies in the fact that some of these measures have already found obstacles in the European Parliament and the European Council: in this regard, Sylvie Goulard and Aure Keraron mention the case of the renovation of buildings with particularly polluting energy situations, as well as the case of the pesticide regulation. As reported in ‘La Repubblica’, we are therefore witnessing a ‘greenlash’, i.e. a green backlash.
At present, the situation seems to be playing against energy transition and ‘green’ policies, since some industries are already in crisis: this is the case of the car industry; the automotive sector, in fact, risks being even more affected by European measures aimed at combating CO2 emissions and promoting energy transition. And it is competition, primarily from China, but also from the US, that may benefit.
Sylvie Goulard and Aure Keraron write, however, that one has to pay attention not only to short- and medium-term goals, but also to long-term ones. The case of the automobile sector in this sense serves as a useful example: in the short and medium term, the sector is in crisis and risks seeing its crisis deepen, not least because of stricter rules on pollutant emissions and energy transition: nevertheless, if the sector lags behind on energy transition, the risk is that in the long term this sector will become uncompetitive or uncompetitive as a whole.
In the final analysis, Sylvie Goulard and Aure Keraron argue that it is one thing to question how to achieve the goal, and quite another to question the goal itself: in other words, it should not be the fight against climate change or the energy transition that should be questioned, but the ways to achieve this and other important environmental and energy goals.
Read also: