Green economy has jumped to the first position in the investments plan of the pandemic Recovery fund.
Yes, this is not a joke, this is real . What seemed to be an impossible goal up until a few months ago, is now clearly stated in the front pages of all the newsmagazines.
Yesterday, Ursula Von der Leyen, President of the European Commission, presented her plan to exit the Covid-19 crisis and the green economy is at the top.
Europe’s moment to lead the way?
President Von Der Leyen used delicate and heartwarming words to describe the overall situation we are facing on a global level.
A virus a thousand times smaller than a grain of sand exposed how delicate life can be.
It brought into sharper focus the planetary fragility that we see every day through melting glaciers, burning forests and now through global pandemics.
It showed us just how fragile our community of values really is – and how quickly it can be called into question around the world and even here in our Union.
But people want to move out of this corona world, out of this fragility, out of uncertainty. They are ready for change and they are ready to move on.
The moment has come for Europe to lead the way from fragility to a new vitality.URSULA VON DER LEYEN
You can agree or not; we are not here to campaign.
Yet what’s crystal-clear is that among the various topics she touched on upon in her speech, two are key for the green economy:
- Fighting climate change
- Digitalization of the European continent
A European Green Deal
The President Von der Leyen opened up this chapter with these words:
While much of the world’s activity froze during lockdowns and shutdowns, the planet continued to get dangerously hotter. We see it all around us.
Fighting Climate Change
To get out of the crisis and lead future global challenges, the President Von Der Leyen only sees one solution: The European Green Deal.
The European Green Deal is the blueprint to make Europe a Sustainable continent.
At the heart of it lies the mission to become the first climate-neutral continent by 2050.
What does it mean?
- CUTTING EMISSIONS:
the European Commission is proposing to increase the 2030 target for emission reduction from 40% to at least 55%.
This is an ambitious target for Europe but a great opportunity for all the virtuous companies that are developing circular business models making an impact on society.
- GREEN FINANCE:
37% of NextGeneration EU will be spent directly on our European Green Deal objectives.
This means that huge funds will be available to invest in green projects.
The debt will make up about 30% of the EU’s 750 billion euro rescue package. The bloc’s offering will be equivalent to roughly all the green securities sold globally last year, likely making it the largest issuer, according to data compiled by Bloomberg.
- EUROPEAN HYDROGEN VALLEYS:
new European Hydrogen Valleys able to modernize industry, mobility and agriculture.
Digitalization of the European continent
Second chapter included in the recovery fund is Digitalization.
20% of the Recovery Fund will be invested in Digital.
Technology is what now turns our beautiful ideas into winning businesses. The growing need for technology pushes many start-ups and companies to turn to tech companies USA or China based.
This lack of digitalization encourages European companies to yield capital share in exchange for access to technology generating a waste of innovation in the continent.
Today, the European commission wants to give these companies, SMEs, start-ups and researchers the opportunity to draw on their full potential.
Europe must now lead the digital path – or else it will have to follow the way of others, who are setting these standards for us.
A comprehensive plan based on three pillars:
- DATA – EUROPEAN CLOUD:
we need to secure this data for Europe and make it widely accessible in common data spaces. For example, in the energy or healthcare sectors. This will support innovation ecosystems in which universities, companies and researchers can access and collaborate on data.
- ARTIFICIAL INTELLIGENCE:
People at the centre. Even if artificial intelligence are able to serve us and anticipate our needs, a set of rules that puts people at the centre is needed. This to ensure that business can be run without compromising privacy.
40% of people in rural areas still do not have access to fast broadband connections. This is a huge opportunity and the prerequisite for revitalizing rural areas. Only then can they fully exploit their potential and attract more people and investment.
The overall goal is to obtain Europe’s digital sovereignty, on a small and large scale.URSULA VON DER LEYEN
To do so, in addition to the 20% of the Recovery Fund invested in Digital, 8 billion euros will be invested in the next generation of supercomputers Made in Europe.
The Old Continent now has the opportunity to show the world how Integrity, Culture and Business Acumen can make a difference.
The Green Deal is a first step towards a worldwide circular economy. A proof of courage, a smart take from the Old Continent that seemed stuck for years.
We hope that the direction President Ursula Von der Layen is taking can mark the beginning of a new “Green economical epoch”