If the EU achieves a smooth transition to a low-carbon economy by 2030, as set out in the 2015 Paris climate agreement, the bloc will be rewarded with increased GDP and reduced unemployment, a report by Cambridge Econometrics and Eurofound’s European Jobs Monitor, released February 12, has said.
The EU’s GDP could increase by 1.1 percent and unemployment fall by 0.5 percent if the terms of the agreement are met
In total, the EU’s GDP could increase by 1.1 percent and unemployment fall by 0.5 percent if the terms of the agreement are met. China is expected to reap similar rewards, with a predicted 4.7 percent growth in GDP and a 2.3 percent boost to employment.
The US, on the other hand, would experience a 3.4 percent contraction in GDP and a 1.6 percent increase in unemployment if it transitioned to a low-carbon economy. Such figures are likely to gratify US President Donald Trump, who pulled the country from the Paris agreement in 2017.
Within the EU, Latvia, Malta and Belgium are among the countries likely to experience the most positive effects of implementing cleaner energy. The report predicts that Latvia would see a nearly six percent increase in GDP, over double the 2.5 percent increase Malta looks to experience.
Belgium meanwhile, would see approximately a 0.9 percent boost to employment. Countries such as Denmark, which are already at an advanced stage of implementing sustainable reforms, will see less of an impact.
Miguel Arias Cañete, EU Energy and Climate Action Commissioner, tweeted: “The Juncker Commission is sparing no effort in making Europe a modern, competitive and socially fair Paris-aligned economy. Here’s why: Implementation of the #ParisAgreement could boost EU GDP by 1.1%.”
The Juncker Commission is sparing no effort in making Europe a modern, competitive and socially fair Paris-aligned economy. Here’s why: Implementation of the #ParisAgreement could boost EU GDP by 1.1%. https://t.co/T5TIkf2vaX #ClimateNeutralEU #CleanEnergyEU
— Miguel Arias Cañete (@MAC_europa) February 12, 2019
Globally, the economy could expand by 0.1 percent if the terms of the Paris Agreement are met. The report cites large variations between countries, especially the poor figures predicted for the US, as the reason for this small overall figure.
China, the planet’s biggest polluter, has stepped up to shrink its environmental impact by reducing its reliance on coal and investing in renewable energy.