GREEN GROWTH: FROM RELIGION TO REALITY - Sustainia

Chapter 3growth via investment in new high-technology sectors.Politically, they create new constituencies of firms andworkers supportive of emissions reduction, offsetting theacute costs of emissions mitigation with the acute benefitsof industrial competitiveness.5 Green growth and the European UnionThis study has so far demonstrated that European Unionclimate policy cannot be understood in reference toemissions reductions alone. Were that the case, a rangeof simpler, and potentially even cheaper, alternatives forclimate change mitigation might have emerged as preferredpolicy options. Instead, the European Union has,whether by design or not, embarked on a policy suite thatcouples progress on emissions reduction to action on energysecurity and economic competitiveness. Doing sohas allowed the cross-subsidization of different policygoals between the member states, keeping political coalitionsfor action together where action on only one goalmight have generated defection.In doing so, the EU has embarked on a strategy thatknits together many of the “green growth” proposals discussedin Huberty et al. (2011). Improved competitivenessfrom reduced reliance on imported fossil fuels, export-ledgrowth in renewable energy industries via market promotionat home, and revenue recycling from emissions pricingto research and development all represent prominentgreen growth strategies. That the EU understands this isclear from statements by the Commissioners themselves.Commissioner for Energy Günther Öttinger argued forincreased European spending on low-emissions energytechnologies by stating that “in global competition weneed to avoid that we start lagging behind China and theUSA.”20 EU Commissioner for Climate Action, ConnieHedegaard, has also endorsed the growth potential of climatechange mitigation. (Hedegaard, 2010)Many of these strategies have worked well for individualmember states. Denmark has profited from bothexport-led growth in the wind turbine industry andincreased global competitiveness through insulationfrom fluctuating fossil fuel costs. Germany has donewell through promotion of renewable energy firms likeSiemens at home (though as Frondel et al. (2009) show,that has come at a very high cost, particularly for solarenergy technologies). Portugal and Spain both sought touse domestic market expansion to drive export competitivenessabroad and industrial redevelopment at home.(Rosenthal, 2010) Finally, a range of countries, from theUnited Kingdom to Poland, view offshore wind energyas new source of demand for skilled labor displaced fromdeclining sectors such as offshore gas and oil exploration(in Scotland) and ship building (in Poland). As Hubertyet al. (2011) noted, though, each of these strategiesremain limited in scope and potential duration. In thecase of the European Union, two threats in particularstand out. First, the process of market integration, criticalto cost containment, has run into various regulatoryRenewable power potentialPhotovoltaic (PV) Potential in the EU RegionsPV PotentialPV output for a 1 kWp system mounted at optimum angle (kWh/y)LisboaAr Ribat676,1 - 845,0845,1 - 951,0951,1 - 1.113,11.113,2 - 1.291,31.291,4 - 1.506,2No DataReykjavikMadridDublinTounisOsloHelsinkiStockholmTallinnWind Power Potential in the EU RegionsFigure 3: Wind and solar photovoltaic power generationpotential maps for the European Union. Source: ESPON Regionsat Risk of Energy Poverty (ReRisk) project.Source: ESPON Regions at Risk of Energy Poverty (ReRisk) project.RigaVilniusMinskLondonAmsterdamAcoresBerlinWarszawaBruxelles/BrusselKyivLuxembourg PrahaParisWien BratislavaVaduzBudapest KishinevBernLjubljanaZagrebBeograd BucurestiSarajevoPodgorica SofiyaRomaSkopjeTiranaAnkaraEl-JazairWind Power Potential (m/s*km 2 )0 - 7918079.181 - 204.546204.547 - 487.852487.853 - 1.031.0761.031.077 - 1.795.408No DataKøbenhavnVallettaGuadeloupe Martinique RéunionAthinaCanariasGuyaneMadeiraNicosia0 250 500km0 250 500Km20 Speech of Commissioner Öttingerat ENERI 2010, Belgian PresidencyConference on Infrastructureof Energy research. Brussels,29 November 201028