Climate change is the single biggest threat to humankind. It is real, imminent and deserves the full attention of lawmakers across the world if any action is to have any meaningful impact on keeping global temperatures short of apocalyptic.
The effects are already being felt. Malta is enduring its harshest summers since records began. Deaths in southern Europe are rising alongside temperatures. Just like the pandemic, climate change is indiscriminating. It is true that both are global issues but some are either much better or much worse placed to weather the effects of both of them.
As the EU begins wrangling with fighting climate change legislatively, we cannot forget those who are most vulnerable to the changes that Europe is undergoing. This isn’t just about meteorological effects – important as they are – but also about shorter term economic and social changes brought about during the transition.
Because the political initiatives that aim to wean society and markets off fossil fuels will impact the market, it is our responsibility to legislate responsibly.
With an arsenal of key proposals already making their way through the legislative process, it would be bad policy to disregard the disproportionate effects on lower-income earners that result from transitioning away from fossil fuels.
We know that the package proposed by the European Commission leaves many social questions unanswered. Any sloppy moves will set us back precious years and do much more harm than good. If regulations cause price increases, then stopgap measures to increase supply risk reneging on crucial climate pledges.
All this does not mean that we should go slower or do less. It just means that we should do more to help those who need it most.
This is why I was particularly proud to have been appointed rapporteur for the Social Climate Fund Regulation, on behalf of the Employment and Social Committee (EMPL). This is the second major multibillion-euro fund with which I have been entrusted, following the success of the European Social Fund Plus.
The mission now is to preserve the ambitious goals to mitigate climate-related destruction without exerting too much pressure on those families who proportionately spend the most on energy. In this respect, the Social Climate Fund is the EU’s answer to the anticipated effects of the European Green Deal on the most vulnerable.
Shifting to cleaner energy can mean higher prices. While some forms of clean energy can cost more than dirty energy, the environmental and health cost of fossil fuels are much starker. It is all well and good to close polluting power plants but readily available and cost-effective measures need to step in. Because energy prices are predicted to rise as a direct result of efforts to reduce emissions, we have a head start to effect socially just plans and cost-effective alternatives.
It is still early days and the task ahead is gargantuan- David Casa
Similarly, zero- or low-emission means of transport are pricier than current fossil fuel options. Prices for goods that require fossil fuels to be produced might also rise if the energy costs for production rise too.
These risks should not be reasons to compromise on climate goals. The truth is that fighting climate change is the cornerstone priority. We have the tools to limit the social and economic impacts and we should use them.
Our best bet is to continue to drive innovation. This is a key priority of the EU as it strives to make climate policies mainstream.
Taking transport as an example, we need to start taking zero- and low-emission transport seriously. More than an alternative, non-fossil fuel cars should and will be becoming mainstream.
Importantly, revenues from higher energy prices will not be lost to private profit margins. On the contrary, they will be directed toward bolstering funds that will directly benefit EU citizens and invest in cleaner alternatives. EU funds are earmarked to make green transport more affordable and more widely accessible, including through improved public transport.
This is the kind of thing we are working to secure in the Social Climate Fund: incentivising a shift away from fossil fuels by implementing a social climate safety net.
In the short term, the fund will be geared toward financially cushioning families and workers toward the bottom of the income scale who are most likely to be adversely affected by rising prices. This should only be a short-term measure. In the interim, cleaner solutions should proliferate thanks to investments and schemes set to be supported by the fund in the medium term.
The second goal of the Social Climate Fund is, therefore, to bring down prices of zero- and low-emission transport through investments and make them more available and accessible. It will also help with making buildings more energy efficient.
It is still early days and the task ahead is gargantuan. The measures that are being formulated in the institutions promise effects that will be felt throughout society and industry.
It will mean a shake-up on a huge scale that will happen over several years. But we can and will get there, through ambitious action and equally ambitious support to ensure that nobody gets left behind in the transition toward a more sustainable future for humankind.