– The following piece is a guest column by Gabriel Hautdidier, The Greens/EFA MEP from Lithuania –
A French President once said “Our home burns and we are looking away.” 20 years later our home keeps burning and we cheer on the pyromaniacs.
How did we get there? In 2015, the world seemed to have realised the urgency of the situation when approving the Paris Agreement. Finally, 195 states agreed on emission reduction targets and were about to act together to mitigate climate change.
And Europe was ahead. With the European Green Deal, it bet on the future rather than on an outdated economic model based on the destruction of our environment. Taking advantage of the green transition, it would overcome the economic gap that started to emerge vis-à-vis China and the US. This was not only a dream. We achieved the famous “decoupling:” while the EU reduced its emissions by 37% compared to 1990, it also grew by 71% in the same period (European Commission).
Yes, we are facing great challenges. The European economy is slowing down. The gap with our competitors is growing. And the European companies face increasing competition, especially from China.
But we can make it change. Europe is at a crossroad. We can keep blaming the Chinese competition and the green regulations. Or we can move forward. Of course, abolishing regulations that industry lobbyists blame for their difficulties is easy and popular. But considering the European regulations as the cause of the difficulties of the EU’s industry creates an oversimplified picture of reality. It comes down to forgetting what is making the success of the Chinese companies. The time is over, when their competitiveness only relied on lower prices. They are now filling the gap in terms of quality and even taking the lead in some sectors. The automobile sector is of course the best example of this ongoing trend.
And so no, we cannot just deregulate to get a renewed competitiveness. It would basically mean going backwards hoping to catch up with the Chinese lead (What a bizarre idea!). Maybe those promoting this idea hope that, like in F1, we end up being one lap late and therefore visually in front of China. But the one winning is the one finishing first the correct number of laps, not the one which looks to be in the front.
We need a long-term vision here. Defending the old-style automobile industry might help preserve jobs in the short term. But at some point, we will have no choice but to face the environmental consequences of our indecision and our responsibility to decarbonate. And then, we will realise that the industry of the future has been developed in other countries. Or we can choose determination towards change. Yes, it might be more painful, with more visible short-term consequences. But those investments will pay off in the long-term. They will allow us to become one of the forerunners of green cars. And even to take the lead, should we be determined enough to adopt the reforms needed. It is the duty of the European legislators to lead the Union toward future prosperity. Investing in the technologies of the future is the condition for it, and we must incite manufacturers to do so, even if it is going against their short-term interests.
Of course they need to be supported. This is the sense of the Proposal for a Clean corporate vehicles Regulation of the Commission. More demand for (European) carbon neutral vehicles will allow the transition to be more profitable for the manufacturers. This will not be enough though. Green ambition will be the key to bridge the gap with China. All legislators shall have this in mind while discussing this proposal. And be aware that their decision will determine the future position of Europe in the global economic order.
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