The Green Deal continues to dominate the headlines of the domestic media. However, the important fact that this is not an exceptional EU issue, but that countries as different as Japan and China have similar programmes, rarely comes up in the debate. We should approach our European Deal responsibly, take it as our own and take advantage of the opportunities it offers. Especially as its implementation will now be led by a Czech.
The Green Deal is a set of policy initiatives designed to set the EU on a path to environmental transformation, with the ultimate goal of achieving climate neutrality by 2050. Building a modern and competitive economy is an integral part of this goal. It includes elements that address a number of closely interlinked areas - climate, environment, energy, transport, industry, agriculture and sustainable finance. The transition to climate neutrality is expected to bring with it significant opportunities such as the potential for economic growth, new business models and markets, new jobs and technological development.
So what is the best way to deal with all that has been sanctioned and what we have committed to as a country? The Green Deal is a set of many different plans. And we need to figure out which ones are realistic and which ones are not. We need to try to make it above all iDEAL, so that it suits the interests of Czech exporters and citizens. In this way, it will represent its own golden mean, which will pragmatically combine ecological goals with the economic needs of the Czech Republic. And so another success story can be written, such as the case of energy savings, where, under the pressure of the energy crisis, companies quickly found out how much such savings pay off. What is more, much greater opportunities are now opening up.
It is not just Europe that is going down this road, as we recently wrote on this blog about emissions trading schemes in the United States. Now, for even more contrast, let's look on the other side of the globe, in East Asia. All three major economic players have their own "Green Deals" - Japan, South Korea, and even China.
Japan - sustainable industry fund and broad cooperation with the non-governmental sector
In 2021, the Japanese government announced its Green Growth Strategy, which outlines the current status and challenges in specified areas. A Green Innovation Fund of approximately $15 billion has been created to support ambitious green projects such as batteries, offshore wind, next-generation solar cells, hydrogen technology and carbon recycling.
Dating back to 2018, the Japan Climate Initiative aims to enable stakeholders from all sectors to work more closely together to accelerate and expand their efforts. Currently, over 700 companies, local governments and NGOs are members of the initiative.
South Korea's Green Deal has been in place for three years
South Korea is responsible for approximately 1.6% of global greenhouse gas emissions, making it the 12th largest emitter in the world. Its latest target, under the Carbon Neutrality Act, is to achieve zero net greenhouse gas emissions by 2050, similar to the EU. It has set an interim target of reducing emissions by 40% from 2018 levels by 2030. This includes phasing out coal-fired electricity generation, expanding renewable energy sources and increasing the uptake of zero-emission vehicles.
Recognising the impact this could have on workers and regions, the government has introduced measures to support those adversely affected by the measures. In 2021, the government also announced the Green New Deal (yes, the parallel with Europe is in the title), which aims to provide funding for renewable energy, green infrastructure and to support green industries.
China to spend trillions of dollars on green transformation
China has already set a number of climate targets for 2025, including increasing the share of renewable energy to 20% and reducing the carbon intensity of the economy by 18%. More than 800 large Chinese companies have set carbon neutrality targets for 2060. Especially in the ICT, textiles and manufacturing sectors, companies are striving to achieve carbon neutrality before national climate targets are set.
Under China's 14th Five-Year Plan, $6 trillion is expected to be invested in climate change and digital economy-related investments. By 2050, China then needs about $26 trillion in green investments. The People's Bank of China has set up a special credit facility worth 500 billion yuan (about $70.47 billion) to support scientific and technological innovation, technical transformation and equipment renovation. In the future, China is likely to introduce a green taxonomy system, as is now being introduced in the European Union. It will use private capital to expand its innovation chain and build a broader innovation ecosystem.
Dusík will lead the fight against carbon
And finally, an answer to the question of who will be the Czech leader. It is former Environment Minister Jan Dusik, who recently became the European Commission's Deputy Director-General for Climate Policy and thus the de facto "number two" of EU climate policy. In this post, he will be in charge of preparing Member States to implement green legislation. He will also be a key player in negotiating possible changes. This is a huge opportunity for the Czech Republic, and it would be a shame to throw it away!
Join those who see the Green Deal as an iDeal and are already using ESG as a strategic tool for growth.
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