EU green policies require support mechanisms for vulnerable economies, says think-tank
The EU needs to improve regulatory co-operation with its trading partners if it wants to safeguard the legitimacy of its sustainability agenda, according to research by the Institute for European Environmental Policy.
In a new report, the think-tank argues that policies agreed under the EU’s Green Deal would benefit from prior consultation with the bloc’s trading partners.
This would allow EU leaders to consider more effectively the economic realities of countries that have lower institutional capacities, the report says.
Some of the landmark legislation passed under the Green Deal — such as the Carbon Border Adjustment Mechanism, the EU Deforestation Regulation, and the Corporate Sustainability Due Diligence Directive — is being reviewed under the omnibus proposals in an attempt to cut red tape and increase the bloc’s competitiveness.
These regulations embed extraterritorial requirements, with some middle and high-income countries, including Brazil, India, China and the US, complaining that they restrict market access and amount to unfair competition.
“The EU Green Deal has the potential to drive a transformative global agenda, but only if it is implemented in ways that are fair, inclusive and development-friendly,” the report’s authors state.
They insist the review and final implementation of EU Green Deal policies “must better reflect the asymmetries of the global system”.
The authors recommend the EU aligns its green trade policies better with equity concerns from countries that are not equally responsible for global environmental degradation and do not have the same resources to address it.
This would require more inclusive partnerships, technical assistance, strategic investments and “adaptive regulation” so the bloc can improve its image from “environmental rulemaker” to a climate justice leader in uncertain times, the report says.
Read the full report here.