It is possible both to achieve growth and reduce carbon emissions, even during an economic slowdown. Some sectors, namely construction, transport, chemicals and cement, have major potential for developing the green economy. Growth of the green economy does not depend solely on regulations and public stimulus which should nonetheless be more constant and more selective.
The importance of targeted incentives
Like Japan, Europe stands out for its strong political will to reduce carbon gas emissions in order to combat climate change and reduce pollution. This said, in the present era of budgetary austerity, governments will undoubtedly reduce the tax incentives in favour of the green economy. These incentives, however, are measures that stimulate growth in the short term (bonuses for ‘green’ cars, tax deductions for photovoltaic installations, etc.) and, above all, make it sustainable over the long term (investment in R&D and new market potential). Emerging economies, like the industrialised countries, have a strategic interest in investing more in the green economy. However, this would require faster transfer of technology between the different regions of the world, which is a delicate issue, particularly in very competitive markets such as the automobile market.
“
There are green growth opportunities for companies providing they invest in their long-term profitability by tightening their margins in order to reduce future production costs and gain market share in promising sectors,” adds
Ludovic
Subran. “
Targeted and steady incentives are useful, such as those in favour of ‘green’ cars or energy efficient buildings. They would strengthen international competitiveness. However they can only provide support if there is already a sector momentum seeking to reduce costs and capture new market segments. Adding a ‘green’ dimension to the already difficult task of achieving the right balance between stimulating growth and reducing deficits would seem overly complicated. However, in view of the sector opportunities that exist, it might be a good idea for further structuring and enhancing public support for the private sector.”
*HEQ: High Environmental Quality – ensures conservation of natural resources, reduced air pollution and waste
The importance of targeted incentives
Like Japan, Europe stands out for its strong political will to reduce carbon gas emissions in order to combat climate change and reduce pollution. This said, in the present era of budgetary austerity, governments will undoubtedly reduce the tax incentives in favour of the green economy. These incentives, however, are measures that stimulate growth in the short term (bonuses for ‘green’ cars, tax deductions for photovoltaic installations, etc.) and, above all, make it sustainable over the long term (investment in R&D and new market potential). Emerging economies, like the industrialised countries, have a strategic interest in investing more in the green economy. However, this would require faster transfer of technology between the different regions of the world, which is a delicate issue, particularly in very competitive markets such as the automobile market.
“
There are green growth opportunities for companies providing they invest in their long-term profitability by tightening their margins in order to reduce future production costs and gain market share in promising sectors,” adds
Ludovic
Subran. “
Targeted and steady incentives are useful, such as those in favour of ‘green’ cars or energy efficient buildings. They would strengthen international competitiveness. However they can only provide support if there is already a sector momentum seeking to reduce costs and capture new market segments. Adding a ‘green’ dimension to the already difficult task of achieving the right balance between stimulating growth and reducing deficits would seem overly complicated. However, in view of the sector opportunities that exist, it might be a good idea for further structuring and enhancing public support for the private sector.”
*HEQ: High Environmental Quality – ensures conservation of natural resources, reduced air pollution and waste
