Germans seek ‘greener’ Lisbon

EU ministers will next week be asked to consider rewriting Europe’s key economic growth strategy in favour of the environment.

The Germany presidency of the the EU will ask environment ministers at an informal council meeting to discuss ‘greening’ the Lisbon Agenda as part of a broad ‘European ecological industrial policy’.

The Lisbon Agenda was agreed by EU leaders in 2000 and aims to make Europe ‘the most competitive and the most dynamic knowledge-based economy in the world’ by 2010. In principle, it already covers environmental - as well as economic and social - renewal.

But a presidency paper, to be discussed at an informal council in Essen on 1-3 June, says that "in light of the challenges posed by climate change, Europe’s efforts to become the world’s most competitive economy need to be adjusted".

It adds that "without rapid eco-innovation the specific objectives of Lisbon cannot be reached".

Lisbon was agreed, says Germany, "in answer to the challenges of the time - large-scale unemployment and a declining competitiveness".

A "revised Lisbon Strategy" is now needed to deal with modern challenges, including global warming and resource use. "The European Council can confirm this new approach to Lisbon at its meeting in spring 2008," suggests Germany.

The paper estimates that Europe already holds a third of the global markets in environmental products. EU companies already have a 40% share of international renewable power technologies and 50% of the world’s waste management and recycling technologies. Eco-innovation therefore offers a perfect opportunity to boost growth and competitiveness.

Other elements of a European ecological policy, according to the working paper, could be an increased use of economic instruments (including taxes) and "further harmonisation of energy taxation". Germany suggests encouraging EU countries to agree guidelines for minimum environmental taxes and targets through the open method of co-ordination if, as is likely, unanimous support for environmental tax legislation cannot be reached.

Trade policies should also be adapted to encourage more environmentally friendly growth in poor countries, notably China. Existing external trade policies recognise the importance of avoiding pollution and promoting clean technologies, says Germany, but fail to turn this into practical objectives.

"Concrete measures" are needed at home as well, if Europe is to meet ambitious renewable energy, efficiency and greenhouse gas emission targets agreed in March, the paper reminds ministers.

Overall, it predicts a huge upsurge in the importance of environmentalism for every EU industry, from cars to chemicals. "Future competition will not just be over novelty, price, quality and design," says Germany. "It will also be over eco-efficiency…eco-innovation will become a key driver of growth, competitiveness and employment."

EU ministers will next week be asked to consider rewriting Europe’s key economic growth strategy in favour of the environment.

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