Debate: Sustainable Europe Investment Plan - How to finance the Green Deal
Date: THURSDAY, 12 NOVEMBER 2020
Speaker: Paul Tang
Country: Spain
Language: EN

Indeed, what this report does is build a bridge between ambition and reality. Our bridge has four arches and we need all of them to reach our aims. The four arches are the EU budget, the EU’s monetary and financial institutions, private investment and public spending. Let me start with the EU budget. Siegfried Mureşan has already addressed part of it, including own resources, but let me add two things. First, don’t allow green washing. With the EU taxonomy, we obliged the financial sector to back any claims of sustainability. But what kind of government applies a set of rules to others and not to itself? That’s why we clearly state EU spending on sustainability must be taxonomy compliant. Second, don’t shoot yourself in the foot. How can we spend money on fighting climate change if we subsidise fossil fuels at the same time? How can we spend money on social services if public money supports a company that dodges taxes and exploits employees. That is why all EU spending, including the Next Generation EU, including through the EIB, should adhere to the important principle of do no significant harm. Environmental and social progress need to go hand—in—hand.  Next up are the EU’s monetary and financial institutions. The EIB and the ECB have billions to spend. Let’s make sure that they spend it wisely – again, in line with the EU taxonomy and without harming people or the planet – to reach our aims of the Paris Agreement. In doing so, no stone should be left unturned. New Green Bonds should be issued by the EIB, whereas the ECB needs to reform its corporate sector purchasing programme. As supervisor, the ECB needs to force banks to address climate—related risks that are still on the balance sheets of banks.  The third arch concerns private investment. The report insists on the phasing—out of all investment in harmful activities. Soon investment in new fossil fuel plants and unsustainable heavy industry will be history. The market is already moving in that direction, but sometimes a lack reliable data can hamper progress. We need good and publicly accessible data and for credit rating agencies to take these data into account.  The last part of the bridge between ambition and reality is public spending. The national governments make the bulk of public spending and investments. The EU should stimulate them to do it sustainably, not hamper them. Therefore, we call for new tools, such as a Green Bond standard, to make this easy. But governments also need revenue. Tax avoidance cuts the ground under governments’ feet. We need to fight tax avoidance as concerns corporate profits and private wealth. Other incomes should come from taxing polluters – the polluter pays principle. Indeed, the Energy Tax Directive is out of date. The excise duties have lost their effect due to inflation and they should be corrected. Let’s face it, kerosene should eventually be taxed in line with other fossil fuels. With this report, the European Parliament shows how it bridges the gap between ambition and reality, bringing a sustainable society closer and closer.  My last remark is to thank Siegfried Mureşan, my co—rapporteur, for very close and fine cooperation. It is much appreciated. I would also like to thank very much the shadows because we have worked in difficult circumstances and we required a lot of your patience and efforts. You have always been very constructive, which Siegfried and I appreciate very much.