Decarbonization is now a strategic imperative

By Josep Borrell and Werner Hoyer
Josep Borrell (left), High Representative of the European Union for Foreign Affairs and Security Policy, is Vice President of the European Commission. Werner Hoyer (right) is President of the European Investment Bank.

The geopolitical rationale for doing so overlaps with the imperative to tackle climate change. The Intergovernmental Panel on Climate Change’s latest report on mitigation underscores the urgency of that task. Total greenhouse-gas emissions must peak by 2025 if we are to avoid a catastrophic increase in global temperatures. Moreover, the economy-wide shift to clean energy must be managed carefully to account for the inevitable social and economic consequences; it must be a “just transition”.

The EU and the European Investment Bank have a vital role to play in this transition. Investments in renewables, energy efficiency, and innovative technologies such as green hydrogen are important tools for dealing with Russia’s aggression and helping to save the planet from dependence on fossil fuels. Every euro we spend on the energy transition at home is a euro we keep out of the hands of an authoritarian power that wages aggressive war. Every euro we spend on clean energy enhances our freedom to make our own decisions. Every euro we spend helping our international partners accelerate their own decarbonization strategies is an investment in resilience and in the fight against climate change.

Mobilization at all levels

Since Russia’s invasion on February 24, the EU has been accelerating its energy transition plans to help end Europe’s reliance on Russian fossil-fuel imports as soon as possible. Although this will not happen overnight, the incentives to do so are now greater than ever. We can achieve energy independence by improving efficiency, diversifying supplies, and ramping up renewables. This process requires a mobilization at all levels – from supranational bodies down to households and individuals.

There are two important caveats to consider. First, the search for alternative suppliers of natural gas – critical as it is in the short term – must not lock us into a new long-term dependence that requires heavy investments in fossil-fuel infrastructure. That would be costly, catastrophic for the planet, and ultimately unnecessary, given the more climate-conscious options that are available. Second, we must not trade one bottleneck for another by swapping our over-dependence on fossil fuels for over-dependency on raw materials needed for the green transition. These resources are heavily concentrated in just a handful of countries, not all of which hold the same values and interests as the EU. Strengthening the EU’s strategic autonomy and resilience must remain a key objective of the transition.

Global response required

Europe cannot do this alone. Winning the battle against climate change and standing up to Russian aggression are global challenges that demand a global response. Russian President Vladimir Putin’s war has strengthened the strategic rationale for all countries to reduce their fossil-fuel imports and invest more in climate-friendly energy solutions.

That is why the EU is actively engaged in climate diplomacy. We want to encourage others to raise their climate ambitions, and we have committed considerable resources to working with partner countries so that they, too, can move to a resilient net-zero-emissions economy. Through the European Green Deal and the EU’s new Global Gateway initiative, EU institutions and member states are mobilizing up to €300 billion of investment in green and digital infrastructure to address the climate, biodiversity, and energy crises.

Moreover, the EIB has pledged to support €1 trillion of investment in climate action and environmental sustainability by 2030. Through its new development arm, EIB Global, the bank is working with partners around the world to mobilize finance for energy efficiency, renewables, and electricity grid projects.

Accelerate clean energy financing

Working as part of the EU’s joint effort under Team Europe, the EIB’s support for a clean-energy future ranges from investing in solar power in Senegal to financing more energy-efficient kindergartens in Armenia. The bank has also helped forge a Just Energy Transition Partnership with South Africa; provided backing for the India-based International Solar Alliance, which supports solar power development across 105 tropical countries; and signed on to an integrated water management and flood prevention scheme in Argentina.

The EU stands ready to support the global community in ending its dependency on fossil fuels. Russia’s war on Ukraine is not a reason to delay investments in climate action. On the contrary, more green investment will give us more strategic autonomy. Decarbonization has become a geopolitical imperative. We call on our global partners in government and across international financial institutions to join us in accelerating finance for clean energy. By pursuing climate neutrality, we can also achieve energy security.

In cooperation with Project Syndicate, 2022.


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