Green Shift Talks in EU Ramp Up as Germany Takes The Lead

(Bloomberg) -- Germany is set to underline the need to combine the European Union’s economic recovery with measures to tackle climate change, ahead of it assuming the bloc’s presidency.

EU environment ministers will discuss Tuesday how the bloc’s Green Deal plan to reach climate neutrality in 2050 can help the economy rebound from the coronavirus crisis. Germany will present its priorities for the second half of this year ahead of it taking on the EU presidency.

The 750-billion-euro ($841 billion) recovery program unveiled by the European Commission is the world’s greenest, with the EU executive proposing to link the use of funds with the bloc’s climate objectives. Germany may seek more specific ways to tie the recovery fund with Europe’s green goals, for example by requiring a clear commitment from member states to set ambitious emission-reduction targets.

The German government will also push for progress on a draft EU law to make the mid-century climate neutrality goal binding. A key moment in the talks will come at the end of September, when the commission presents the outcome of a study on tightening Europe’s 2030 emissions-reduction goal to 50-55%. The current goal is to cut greenhouse gases by at least 40% from 1990 levels.

The study could also spark a wider discussion about putting a price on carbon in sectors outside the EU Emissions Trading System, a direction that Germany is already pursuing.

The tighter 2030 goal will also become a basis for a more ambitious EU pledge under the global Paris Agreement. Germany wants Europe to agree on it this year despite the delay of the United Nations’ annual climate talks.

©2020 Bloomberg L.P.