Economic stimulus plans have not been green enough Commission report says member states have missed opportunities to improve the environment.

EU governments have missed chances to improve the environment and boost their economies at the same time, according to an assessment of their economic stimulus plans by the European Commission.

The most glaring missed “opportunities” that the report found were in recycling and the treatment of waste, more efficient use of water and nature conservation.

Only five member states (Finland, France, Malta, the Netherlands and the UK) have plans for greener waste and water treatment as part of their recovery plans. Four countries (Estonia, France, Malta and the UK) are using their economic stimulus plans to reduce waste, and two mentioned nature conservation in their plans – Denmark wants to increase its conservation zone by 75,000 hectares and the Maltese government has introduced a tree-planting scheme.



The report said that “most” member states have used the crisis to develop a greener economy and tackle climate change, but that “efforts vary widely”. While the French government devoted more than a fifth (21%) of its recovery plan to green activities, the Italians used just 1.3%. In between are Germany (13%), the UK (6.9%) and Spain (5.8%). The average for other EU states is 2%. These figures, cited in the Commission report, come from a study by the bank HSBC.

In contrast, the US is using 17% of its economic recovery plan to finance green measures. In China the proportion of green spending is 34% and in South Korea it is 69%.

Senior Commission officials have expressed concern that the EU is lagging behind its commercial rivals. Last month Karl Falkenberg, the director-general of the Commission’s environment department (whose officials carried out the study), said that: “Europe could have done better so far…competitors are more vigorously using the crisis to spend on strengthening the environment.”

But the report avoids such conclusions. It also says that the quality and efficiency of the green stimulus efforts cannot be assessed because of limited information.

The report also found that:

● Energy efficiency is the most popular form of green action for EU governments. Nearly all countries have opted for measures aimed at renovating public buildings and/or private homes in a more eco-friendly way. Other building policies include France’s zero-rate loan for people buying or building low-energy homes and Malta’s plans to give away low-energy lightbulbs to all families.

● More than half of EU member states are using taxes or fiscal incentives to promote green behaviour. The Netherlands has changed how cars are taxed, so liability is based on carbon dioxide emissions rather than price, while Ireland plans incentives to boost the take-up of electric cars.

● 13 countries have introduced or are planning car-scrapping schemes based on emissions-related criteria, although these vary in ambition. French and Spanish consumers can receive subsidies for cars emitting 160 grams of CO2 per kilometre or less - the current average of emissions from new cars. In contrast, Portuguese and Italian consumers have to buy cars emitting no more than 140 grams of CO2 per kilometre to qualify for a subsidy.

● 19 countries plan to increase the amount of renewable energy they produce, with wind turbines the most popular choice.

● Improving transport infrastructure is a priority for more than half of EU member states. Denmark and Finland are building more cycle lanes, Belgium is spending money on new tram and metro lines and Germany, France and Malta are improving ports and canals. Even more countries are making improvements to their railways.

The report was written at the request of EU environment ministers and presented to them at an informal meeting in Åre, Sweden, that finished today (25 July).

