Swift death of the ‘Green Consensus’

Source: The post is based on the article “Swift death of the ‘Green Consensus’– Countries across the world are scaling back their climate ambitions from the high points of the past few years” published in “Business standard” on 25th September 2023.

Syllabus: GS3- Environment- climate change

News: This article discusses how, between 2020-2023, global leaders aimed for “green growth” in economic recovery plans to combat climate change. However, by late 2023, this consensus seems fragile and potentially reversible due to various challenges and shifting political priorities in several countries.

How does the green growth consensus build after the pandemic?

Global Leaders’ Agreement: After the pandemic, leaders worldwide leaned into greener recovery packages. For instance, Joe Biden’s Inflation Reduction Act in the U.S. allocated almost $370 billion for clean energy.

China’s Green Push: President Xi Jinping targeted newer, less carbon-intensive sectors. By 2023, China stood responsible for nearly half of the world’s low-carbon spending. The nation’s ambition was for carbon emissions to peak before 2030.

European Union’s Roadmap: The EU quickly approved a $1.2 trillion roadmap for green investments over the next decade, funded by new carbon tariffs on imports and member states’ contributions.

Developing Countries’ Initiatives: Countries like India, South Africa, Indonesia, and Vietnam initiated reforms. Notably, India aimed to triple its renewable energy by 2030 and targeted carbon neutrality by 2070.

Private Sector’s Participation: Businesses worldwide focused on decarbonisation. Investments favored projects with high environmental, social, and governance (ESG) scores.

What are the challenges to the green growth consensus?

U.S. Political Turmoil: The United States faces the risk of having a climate-sceptic leader by 2025, which could reverse current green policies. The Inflation Reduction Act is also potentially weakened by compromises and lacks a carbon tax.

European Implementation Issues: Europe faces difficulties in green policy execution. Germany is reopening coalfields due to the Russian invasion, and there’s a delay in the implementation of many provisions of the Green Deal due to objections from various sectors.

UK Policy Reversals: The United Kingdom, after a narrow election victory, has reversed many green policies, prioritizing voter appeasement over environmental considerations.

China’s Re-evaluation: China is revisiting coal power due to power shortages and geopolitical conditions, approving new coal plants rapidly.

Depth of Global Commitment: The global commitment to green growth is questioned, as it seems the focus is more on economic growth and job creation, revealing a hesitancy to make genuine sacrifices for climate action.