President Werner Hoyer's opening statement at the Project Syndicate The Green recovery virtual event, 16th September 2020

Check against delivery

Ladies and Gentlemen,

I am delighted to have the opportunity to address this forum on a critical issue of our time: the Green Recovery.

In these extraordinary times, there will be increased pressures to trade off a green for a brown recovery.

While a swift, job-rich recovery, in Europe and globally, is imperative and cannot be compromised, we can no longer prevaricate when it comes to the dual climate and environmental emergencies. Climate change is not slowing. And neither is biodiversity and ecosystem loss!

The latest United Nations Emissions GAP report is clear: we must reduce Greenhouse Gas emissions by 50% this decade.

So there can be no return to “business as usual”. Simply, there is no time. Our recovery must be Green in both climate and environmental senses and we must ensure that it is socially-inclusive, supporting livelihoods and communities.

Indeed, the COVID-19 crisis, despite the terrible loss of life and incomes, allows us to “build back better”, to replace lost jobs with those supporting a sustainable economy, resilient to health and climate shocks.

And the EIB Group, the largest global multilateral financier of climate action, stands ready to play its part. In November 2019, we committed:

  • to ending our financing of unabated fossil fuel energy,
  • to aligning all financing activities with the goals of the Paris Agreement by the end of this year,
  • to dedicating at least 50% of EIB financing to climate action and environmental sustainability by 2025, and
  • to supporting €1 trillion of climate and environmental  investment in this decade.

And our responses to the pandemic have been framed by these commitments. We are a key partner in the Recovery Plan for Europe. Our largest initiative, the Pan-European Guarantee Fund, will support up to €200 billion of financing, with a focus on SMEs - the backbone of Europe’s real economy.

In the midst of a global pandemic, that has affected all our lives, many people may be tempted to turn inward, to turn their back away from the rest of the world, and move only within national borders.

But this would be the wrong conclusion!

Our fates on this planet are intertwined, and the global spread of COVID-19 should be another reminder of this fact.

Outside the EU we are stepping up our support to developing countries, communities and companies, not only in COVID-19 relief, but in building resilience and financing low carbon investment. One example is the City Climate Finance GAP fund, to be operationalised this month, which will support cities in developing countries in implementing their climate projects.

We can expect investment to be depressed in the foreseeable future.

For how long? It took a decade for European business investment to recover from the global financial crisis.

We know that the huge investment gaps that we could see before the virus, in climate, digitalisation, skills, infrastructure, will widen. But we know where they are and we can support the efforts to bridge them.

While crucial, the public sector alone cannot take the entire burden of leading our economies towards a Green Recovery. The required acceleration will depend on deep technological changes, the way markets will be shaped and, critically, on private sector engagement.

To this end, we have contributed to the landmark EU Taxonomy for sustainable finance. By establishing clear, robust definitions of “green” investments, with disclosure and reporting requirements, the Taxonomy will help channelling financial resources towards the multitude of projects needed for decarbonisation and avoid greenwashing.

Under the Taxonomy, the term “green” will apply to investments contributing substantially to averting the climate and environmental emergencies.

If we consider the worsening polar ice melt, droughts, hurricanes and forest fires around the world; if we note the kilometre-wide islands of plastics in our oceans; then we know that the climate and environmental crises are speeding up. If ever there was a time to avoid greenwashing, it is now.

Every cent spent on the recovery must have positive climate, environmental, as well as social impact.

Ladies and gentlemen,

The younger generation has made it clear: they need a new perspective  in a world which is sustainable.

…So for future human generations and for all species on earth, let us not miss this opportunity. We must turn our pandemic recovery into a defining successful moment in our fight against climate change and environmental degradation.

Thank you very much.