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Resource Efficiency in the European Semester: Path to Sustainability

Explore the role of resource efficiency in the European Semester cycles, assess the impact on EU sustainability goals, and propose a greening strategy for a more sustainable Europe. Recommendations include raising environmental taxes, phasing out harmful subsidies, and enhancing stakeholder involvement for robust implementation.

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Resource Efficiency in the European Semester: Path to Sustainability

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  1. Green Budget Europe ENVIRONMENTAL FISCAL REFORM IN THE EUROPEAN SEMESTER Putting resource efficiency back on the agenda? 24 November 2014 · Brussels · Friends of the Earth Europe

  2. Outline The European Semester: Does it matter?  Role of resource efficiency in the European Semester Hook or much ado about nothing?  Critical assessment of 4 EU Semester cycles Recommendations  How could a greening of the European Semester contribute to a more sustainable EU

  3. The European Semester –Does it matter? ?

  4. Europe 2020 strategy & Fiscal Policies Europe 2020 five headline targets Stability and Growth Pact Europe 2020 Integrated Guidelines (IG) Macro-economic surveillance Thematic surveillance Fiscal surveillance Stability and Convergence Programmes National Reform Programmes National level Commission’s Annual Growth Survey EU annual policy guidance and recommendations EU flagship initiatives and levers EU level

  5. Rising labour costs Labour costs have continually and visibly risen: Labour costsmanufacturing industry 1969–2004 in €/h (2010)

  6. Falling commodity prices Overall, commodity prices have fallen since the beginning of the industrial revolution: Economist „Metal-Detector“: Industrial metal-index 1845–2011 (1845 = 100%)

  7. TELL ME…. …what you tax and what you spend, and also what you don´t tax and don´t spend - and I´ll tell you what your true objectives are! Dr. Anselm Görres, GBE President

  8. RATIONALE: price = strongest market signal & driver for changes and efficient allocation of resources Reduce taxes on activities not harmful to the environment, e.g. labour Increase taxes on activities harmful to the environment Tax what you burn…. not what you earn

  9. Tradable permits Border tax Adjust- ments fees

  10. Environmental Tax revenue in % of GDP Source: Eurostat 2013

  11. Environmental Tax revenue in % of GDP Denmark: 4,1 % The Netherlands: 3,5 % Slovenia: 3,4 % Spain, France, Lithuania, Romania and Slovakia: below 2 % Source: Eurostat 2013

  12. Hook or much ado about nothing? • A critical assessment of 4 Semester cycles

  13. CSR assessment 2012-2014 Source: European Commission and Green Budget Europe

  14. Implementation of CSRs 2010-2012

  15. Weaknesses • Democratic legitimation • European and national Parliaments have a very weak role • Consultation of CSOs, MoE, regional decision makers! • Enforcement • Low political priority regarding green taxes, 2030 “targets” • Deliver robust data! CEPRiE • Visibility • Communication between Ministries, Services other MS? • FRE-communicate! contra EU jargon • Implementation • Strong sectoral lobby • Best practices and front runners 15

  16. Green Budget Europe activities • Developing alternative CSRs • Lobby European Commission (Sec Gen, Cabinets DG ECFIN, ENVI and CLIMATE), at Hearing (EP), Green New Deal WG (EP), Member States (EESC), ESOs • European Commission Experts Group • Monthly meetings with environmental NGOs in Brussels • Get involved in the National Reform Programmes

  17. Recommendations

  18. Recommendations • Stop thinking in dichotomies • Europe 2020 versus fiscal surveillance • EFR is part of the solution! • Climate and energy scoreboard and indicators • deepening or broadening? • Assess CSR implementation via cohesion policy • Enhance process: Strong CSO’s involvement

  19. CONTENT: • Raise environment and resource taxes  10% of total taxes • Member States should develop a concrete strategy by 2015 on how to phase out Environmental Harmful Subsidies by 2020 • PROCESS: • EP needs to get involved in the decision making process • CSRs should deliver on all Europe 2020 targets with strong CSO’s involvement

  20. T H A N K Y O U! Dr. Constanze Adolf Director Brussels Office Rue du Trône 4 • 1000 Brussels T: +32 25 88 57 65 M: +32 486 66 65 79 constanze.adolf@green-budget.eu www.green-budget.eu

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