Is the Just Transition fund in Europe’s Green New Deal funded adequately?

Europe’s landmark Green New Deal was unveiled on December 11 2019, but eu flag heldcriticisms abound over the structure, ambition, and particularly the funding.   “Question marks raised over scale of EU’s new climate fund” in Euractiv (Jan. 14) discusses the Just Transition Mechanism funding, and “Commission warns of Green Deal failure if Transition Fund not well financed” ( February 12) states that the European president warned Members of the European Parliament that “she would ‘not accept’ any result that does not guarantee at least 25% of the budget devoted to the fight against global warming and to proper funding of a just transition for regions and workers.”

A more general criticism comes in “The EU’s green deal is a colossal exercise in greenwashing”, an Opinion piece in The Guardian on February 7.  Authors Yanis Varoufakis and David Adler  compare the €1tn (over 10 years) allocated for the GND with an estimated €4.2tn spent to support the European financial sector after the 2008 recession.  Furthermore, they state that the  €1tn GND money “is mostly smoke and mirrors”…”composed of reshuffled money from existing EU funds and reheated promises to mobilise private-sector capital down the road.”  As for the Just Transition mechanism itself, they state: “the deployment of just transition funding in the green deal is a pork-barrel payoff to rightwing governments that supported Von der Leyen’s election and who she fears might throw a spanner into her signature proposal.”  (Euractiv helps to explain this in “Poland, Germany get largest slices of Just Transition Fund” ).

Yanis Varoufakis and David Adler are part of the Democracy in Europe Movement 2025,  a coalition of European scientists, activists and trade unionists. Their Blueprint for Europe’s Just Transition  outlines a strategy for a radical, activist  pan-European movement for a Green New Deal: “The climate movement today — whether it takes the form of student strikes, Extinction Rebellion, or the Gilet Jaunes — has articulated a shared enemy: climate and environmental breakdown. But it has yet to come together to articulate a set of shared demands…. It advocates “ channeling the energies of activists across the continent to clash with the institutions that sit at the Belgian capital — through strikes and sit-ins, occupations and demonstrations: the full arsenal of direct action and civil disobedience.”

The Blueprint is built around three major actions: 1. Green Public Works: (“an investment programme to kickstart Europe’s equitable green transition”);  2. an EU Environmental Union: (“a regulatory and legal framework to ensure that the European economy transitions quickly and fairly, without transferring carbon costs onto front-line communities”); and 3). an Environmental Justice Commission: (“an independent body to research and investigate new standards of ‘environmental justice’ across Europe and among the multinationals operating outside its borders”).

Further, with emphasis on the democratic, grass-roots activism demanded:

  …. This Blueprint provides a general framework for Europe’s just transition, but it must be complemented by deliberation at the ground level to decide where the resources raised by the Green Public Works programme will be directed. No campaign, movement, union, NGO, or political party can devise a climate plan on its own; the People’s Assemblies for Environmental Justice offer a common process by which to develop it.

Historic European Green New Deal includes funding for a Just Transition Mechanism

ursala eu green new dealNew European Commission President Ursula von der Leyen presented the European Green Deal on December 11 (here on YouTube ), calling it “Europe’s man on the moon moment”.    The 10  key points are outlined here , with the flagship commitment that the EU will aim to reach net-zero greenhouse gas emissions by 2050, a goal that will be enshrined in a ‘Climate Law’ to be presented in March 2020.  To achieve net-zero, EU’s ambitions must rise to a 50-55% cut in greenhouse gas emissions, replacing the current 40% objective.

In “Europe’s Green New Deal“,   Jeffrey Sachs of Columbia University writes for Project Syndicate that it “ is the first comprehensive plan to achieve sustainable development in any major world region. As such, it becomes a global benchmark – a “how-to” guide for planning  the transformation to a prosperous, socially inclusive, and environmentally sustainable economy.”  Clean Energy Wire compiles reaction from German politicians, NGO’s and think tanks: reactions are mixed – like Sachs, most commend the symbolic and political achievement of the EU statement, while tempering their enthusiasm with concerns for implementation details.  An article in The Guardian also summarizes the deal with some sense of the opposition and difficulties ahead.

The Euractiv summary  quotes EU Commissioner von der Leyen  on the proposal for a Just Transition Mechanism:  “We have the ambition to mobilise €100 billion precisely targeted to the most vulnerable regions and sectors”  and describes the initiative as having  three “legs”: 1. A just transition fund that will mobilise resources from the EU’s regional policy budget; 2. An  “InvestEU” programme, with money coming from the European Investment Bank (EIB); and 3.  EIB funding coming from the EU bank’s own capital.  The EU Commission website provides Details of the Just Transition Mechanism for download.