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29th Mar 2024

European stimulus packages lacking green investment

European governments have announced stimulus packages worth billions over the past months to lift economies out of the economic crisis, but only a tiny fraction of the money will be invested in 'green growth' - climate, energy and environmental measures, a new study reveals.

The largest 13 EU economies have announced economic packages worth €90 billion, or 0.78 percent of their gross national product, from 1 September 2008 to 28 January 2009.

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  • US president Barack Obama is set to invest heavily in green technology over the next ten years (Photo: VELUX / ESTIF)

But of this only €1.2 billion – 1.3 percent – will be devoted to green investments, according to a new analysis published by Danish weekly, Monday Morning. The study is based on figures from the Brussels based think-tank Bruegel.

"Much more could be done in the areas of energy- and climate," said Jakob von Weizsäker from Bruegel to the Danish weekly.

The financial aid packages reflect a traditional and outdated way of thinking by European governments, he pointed out.

The main tools in the crises kits are a mix of advancing public investments such as for renovating public buildings and transport networks, lowering taxes and aid for certain groups such as children and the unemployed.

Finally, large sums are devoted to aid sunset industries such as the car industry, all considered old textbook initiatives.

"The picture is the same everywhere. Rescue packages are designed to give us our old lives back", said Staffan Laestadius, professor at the Royal Institute of Technology in Stockholm. "It is all about saving jobs in the car industry".

The European approach is quite different to plans announced by the newly installed American government, with president Barack Obama set to invest heavily in green technology over the next ten years.

His financial stimulus package presented to US Congress includes $58 billion for green and climate friendly investments, which is in sharp contrast to the €1,2 billion to be invested by EU governments, concludes Monday Morning.

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