authorising the opening of negotiations on an agreement between the European Union and the Global Green Growth Institute

EXPLANATORY MEMORANDUM

1.CONTEXT OF THE PROPOSAL

•Reasons for and objectives of the proposal

The Global Green Growth Institute (GGGI) is an international organisation, established in 2012, dedicated to supporting and promoting strong, inclusive and sustainable economic growth in developing countries and emerging economies. It aims at a resilient world achieved through strong, inclusive sustainable green growth, and has a mission to support the transition of countries to a green growth model by developing and implementing strategies that simultaneously achieve poverty reduction, social inclusion, environmental sustainability and economic growth.

The UNFCCC Paris Agreement, adopted in December 2015, will strengthen the global response to the threat of climate change by holding the increase in the global average temperature to well below 2° Celsius above pre-industrial levels and to pursue efforts to limit the temperature increase to 1.5° Celsius. Each Party to UNFCCC maintains a Nationally Determined Contribution (NDC) setting out the measures it intends to take in order to achieve these goals. Parties also agreed on the importance of technology development and transfer in order to improve resilience to climate change and to reduce greenhouse gas (GHG) emissions.

The Paris Agreement necessitates a strongly reinforced and sustained international effort by all countries to mitigate GHG emissions to a maximum extent, in the fastest way possible. The Paris Agreement recognized the need to assist developing countries on delivering their climate plans.

In this context, the GGGI has emerged as a leading international actor on green growth. Through membership in the GGGI, the Union would gain access to a forum through which it can strengthen its climate diplomacy outreach towards developing and emerging economies, while also contributing with valuable experience, gained from the development of Union climate policies. Since the GGGI focuses on comprehensive green growth strategies, this would also help to exploit the synergies between climate objectives and the sustainable development goals adopted as part of the 2030 Sustainable Development Agenda.It is proposed to open negotiations with the GGGI on EU membership, as opposed to the alternative possibility to propose the accession of the Union to the Agreement on the Establishment of the GGGI. The reason is that the issue of EU voting rights as a future member of the GGGI should be clarified before the Union becomes member of this international organization.

•Consistency with existing policy provisions in the policy area

In order to limit the temperature increase to well below 2°C, the Paris Agreement needs to be truly global and effective. All countries would need to start implementing their intended nationally determined contributions. Through membership in the GGGI, the Union can:

–Encourage existing and future member countries of the GGGI to implement and raise ambition of their National Determined Contributions to the Paris Agreement by, among other means, using good practices which are developed and implemented under the green growth approach.

–Cooperate with the GGGI in the context of the Union climate diplomacy strategy, fully taking into account synergies between reaching climate objectives and sustainable development goals.

–Conduct an exchange of best practices at a political and expert level based on the significant experience in developing and implementing climate strategies that the Union has gained.

•Consistency with other Union policies

The work of the GGGI, given its focus on green, sustainable growth is clearly linked to environmental and development matters as well as renewable energy and energy efficiency policies.

2.LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY

•Legal basis

Article 216 of the Treaty on the Functioning of the European Union (TFEU) specifies that the Union may conclude an agreement with an international organisation. Article 218 sets out the procedure to be followed when concluding an agreement with an international organisation and Article 218(3) the detail when nominating the Commission as negotiator on behalf of the Union.

• Subsidiarity (for non-exclusive competence)

Climate change is a trans-boundary issue. Coordination of climate action both at the global and European level is necessary and Union action is justified on the ground of subsidiarity. Article 191 TFEU specifies Union competencies in the area of the environment including climate change.