SUSTAINABLE DEVELOPMENT & CLIMATE CHANGE – International & European Policy. Department of Economics, University of Athens (EKPA)

SUSTAINABLE DEVELOPMENT & CLIMATE CHANGE

International & European Policy

Department of Economics, National and Kapodistrian University of Athens (NKUA)

Anna Karamanou, PhD in Political Science and Public Administration

Former MEP (Member of the European Parliament)

The concept of sustainable development.

It started as a purely economic concept in the 1960s. Over time, it was enriched with ecological elements in the 1970s and humanitarian elements in the 1980s. In the 1990s, the concept matured and was completed, recognizing the importance of all three pillars of sustainable development and their interconnection and interaction. The expansion of the concept of sustainable development with the introduction of ecological and social parameters was seen by many as moving away from its economic approach. However, the study shows that the foundation remains economic. Sustainable development is based on three pillars: economy, environment, society.

Until 1945, the concept of economic development was entirely different from what it is today. After World War II, with the significant growth that followed, questions began to arise about whether the planet’s given natural resource abundance could continue to support the massive population increase and meet its needs. The key question of the era was how much development the planet could withstand and whether a limit could be placed on growth. The main points of public debate were summarized as follows:

A continuous increase in the population is observed, with expanding needs, resulting in an ever-growing demand for natural resources.
Despite technological progress, more natural capital is consumed each year than is produced.
If development continues at the same pace, the main sources of natural resources will face shortages, their prices will increase excessively, the expansion of industrial production will stop, and development will reach its limit (World Bank Environment paper No 2, 1992).

These views were influenced by Malthus’ theory (1766-1834). The theory emphasized population growth and suggested that there would come a point where resources would no longer be sufficient to sustain it, and therefore, population growth must be controlled. Malthus developed his theory before the industrial revolution, at a time when the primary need for humans was to find food. Therefore, the main natural resource was considered to be arable land, a resource that, with proper use, is considered renewable.

To some extent, the theorists of the 1950s and 1960s adopted Malthus’ theory, replacing the need for food with the need for energy, considering oil as the key natural resource, which is non-renewable (the theory of limits to growth). From the mid-1960s, a shift occurred from the perception of the theory of limits to a more ecological approach, driven both by socio-political conditions (Vietnam War, May ’68, critique of capitalism) and by deep economic factors. In the theory of limits to growth, the focus on the environment is purely anthropocentric. Economic theory succeeded in capturing and integrating the concept of sustainable development.

The first to raise the alarm about climate change were scientists. Data from the 1960s and 1970s showed that CO₂ concentrations in the atmosphere were increasing significantly, which led climatologists initially, and later other scientists, to push for action. Unfortunately, it took many years for the international community to respond to this call.

The oil shock of 1974, which led to a quadrupling of oil prices and an increase in production costs, dramatically brought to the forefront the issue of the wasteful use of natural resources. A second shock followed in 1980, resulting in a reduction in growth rates to levels that, despite recovering after 1985, never reached the levels before the first shock. The oil shocks, in a way, acted as a simulation of oil depletion, giving the system time to prepare long before the actual depletion occurred. It is worth noting that by the 1970s, new reserves were discovered, which somewhat alleviated concerns about the depletion of this natural resource, but also led to the development and application of less wasteful production technologies and the search for renewable energy sources.

The Contribution of the UN

In the 1970s, the UN’s contribution to strengthening the concept was particularly significant. From 1968 to 1978, the UN took strong action. The most important activity during this period was the Stockholm Conference in 1972, which made a significant effort to raise public awareness about environmental degradation. The concept of sustainability began to gain recognition and popularity. This led to the inclusion of Article 24 in the Greek Constitution of 1975, which established the protection of the natural and cultural environment as a state obligation and a right of all citizens, within the framework of the principle of sustainability. During this period, NGOs played an important role.

The first official use of the term “sustainable development” was in the report of the World Commission on Environment and Development, established by the UN in 1983. In 1987, the Commission produced a document titled *Our Common Future*, which included a definition of sustainable development that became known as the Brundtland definition, after its chairwoman. The definition was as follows: *Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs.*
With the Brundtland Report, the concept of sustainable development was fully defined. From its purely economic character in the 1960s and the ecological shift in the 1970s, the focus now shifted to the third pillar and reinforced the anthropocentric perspective. The Brundtland Report emphasizes human needs.

However, as simple as the definition may seem, it hides complexity and contradictions arising from the different needs of people under varying conditions, cultures, and societies. A second element concerns the needs of future generations. What are they? Do they resemble today’s needs? Given the current globalized environment, however, a universal definition and a common action are a one-way street.

The Rio Declaration 1992

The Rio Declaration, a document with a strong legal character, reflects the process of globalization that had already started in the previous decade. The action plan (Agenda 21) addressed a) desertification, b) biodiversity, and c) climate change. The establishment of international institutional mechanisms was proposed for more effective problem-solving. It had already been understood that environmental issues and sustainability could not be tackled by individual states alone. However, there were strong reactions from OPEC member states and from China, India, and Brazil, who did not want their development path to be interrupted. Only the EU defended the strict regime.

We can say that the Rio Declaration was an initial attempt at global governance in the environmental sector. At the same time, a significant shift in the concept of sustainable development occurred, moving from the idea of human needs to the concept of human rights. Thus, the discussion began to address a broader field of social sciences, raising issues such as the distribution of power and income on a global scale.

During the conference, five conventions were signed, of which only the last two were binding.

The Rio Declaration on Environment and Development, which included 27 principles for sustainable development, recognized the precautionary principle and the “polluter pays” principle.
The Agenda 21 Guide (Local Agenda 21), which included 40 chapters, over 100 program sectors, and 3,000 recommendations, established the relationship between cities and the environment.
The Declaration of Principles for the Management, Conservation, and Sustainable Use of Forests of All Types
The Convention on Biological Diversity and
The Framework Convention on Climate Change.

After 5 years in Kyoto, Japan, limits were set for 5 substances and different levels of responsibility for developed countries. The Kyoto Protocol is a ‘roadmap’ that includes the necessary steps for the long-term tackling of climate change caused by the increase of anthropogenic greenhouse gas emissions. According to this, the countries that have signed it are committed to reducing greenhouse gas emissions in the first commitment period (2008-2012) by a specific target relative to the 1990 emissions (or 1995 emissions for certain gases).

This is attempted to be done in the most cost-effective way, so as not to burden the global economy. Therefore, the Kyoto Protocol includes three flexible mechanisms:

the emission trading system,
joint implementation, and
the clean development mechanism.

The first mechanism allows the buying and selling of emission rights between interested parties (such as states and obligated installations) under the theory of property rights, while the other two are based on project-based programs.

It is noted that the negotiations for the Kyoto Protocol were tough, as various countries had different interests in the international effort to solve the problem of global temperature rise. For example, regions with cold climates would benefit from the trend of rising average temperatures, while other areas, which were relatively arid, could see their marginally arable land turn into desert, which would result in a decrease in their ability to produce food.

As a result, many opposing camps were created with divergent views that sought to impose them on the other parties. The European Union was the most active group in the negotiations for environmental protection and continuously pushed for the adoption of strict measures. It is noted that during the negotiations, the European Union consisted of 15 member states, but it was also supported by the 12 new members from the enlargement.

Rio+20

A significant milestone was also the Johannesburg Summit in 2002, where a decade was reviewed, but no significant decisions were made. Ten years after Johannesburg and 20 years after Rio, in June 2012, the UN Conference ‘Rio+20’ was held in Rio.

The conference was attended by heads of state, representatives from the public and private sectors, NGOs, and others, with the common goal of reshaping and reorganizing development policies capable of contributing to the reduction of poverty, the promotion of social equality, and the strengthening of environmental protection. The main topics of the conference included the recognition of the Green Economy, within the framework of sustainable development and the fight against poverty.

In this context, the issues revolved around seven sectoral priorities:
• Creating decent jobs,
• Energy,
• Sustainable cities,
• Food security and sustainable agriculture,
• Water,
• Oceans,
• Disaster preparedness.

These priorities were incorporated into the document adopted at the Conference, titled ‘The Future We Want.’

The Paris Agreement.

The Paris Agreement on climate change is the first universal, legally binding global climate accord. It was signed on April 22, 2016, and ratified by the European Union on October 5, 2016. The agreement aims to limit global warming to well below 2°C above pre-industrial levels, with efforts to limit the temperature increase to 1.5°C. It also includes commitments from both developed and developing countries to reduce greenhouse gas emissions and enhance climate resilience.

At the United Nations Climate Conference held in Paris in December 2015, the participating parties from all over the world agreed to limit the global temperature rise to well below 2°C above pre-industrial levels. Without additional emissions reduction policies, the average global temperature is expected to rise further, ranging from 1.1°C to 6.4°C by the end of the century. According to the Fifth Assessment Report of the UN Intergovernmental Panel on Climate Change (IPCC), it is highly likely that human activities are responsible for the planet’s warming. Activities such as the burning of fossil fuels, deforestation, and agriculture contribute to the emission of carbon dioxide (CO₂), methane (CH₄), nitrous oxide (N₂O), and fluorinated gases. These greenhouse gases (GHGs) trap heat emitted from the Earth’s surface and prevent its release into space, thereby causing global warming.

Global warming has already led to, and will continue to lead to, even more extreme weather events (floods, droughts, intense rainfall, and heatwaves), wildfires, water shortages, glacier melt, rising sea levels, changes in the distribution or even extinction of various species of fauna and flora, plant diseases, and attacks by harmful organisms. It will also contribute to food and fresh water shortages, the expansion of photochemical smog which causes health problems, and the displacement of populations to avoid these risks. According to scientific data, the risks of irreversible and catastrophic changes will significantly increase if the global temperature rises by more than 2°C compared to pre-industrial levels.

The cost of taking action, compared to the cost of inaction.

According to the Stern report, published by the UK government in 2006, managing the rise in the planet’s temperature is expected to cost 1% of the global GDP annually. In contrast, inaction could cost at least 5% of GDP, with the worst-case scenario reaching up to 20%. Therefore, only a small portion of the global GDP would need to be invested in a low-carbon economy, and in return, tackling climate change would bring benefits for human health, enhance energy security, and reduce other damages.

The EU has committed to reducing greenhouse gas emissions by at least 40% below 1990 levels by 2030, while simultaneously improving energy efficiency by 27% and increasing the share of renewable energy sources to 27% of final energy consumption. A key mechanism in the EU’s fight against climate change is its Emissions Trading System (ETS).

The Renewable Energy Directive aims to ensure that by 2020, renewable energy sources such as biomass, wind, hydro, and solar will account for at least 20% of the EU’s total energy consumption, including electricity production, transportation, heating, and cooling. To achieve this, each member state approved its own national action plan for renewable energy, including sector-specific targets. Under the general goal, member states have committed to sourcing at least 10% of the fuels used in their transport sectors from renewable energy. To reach the EU’s agreed target of a 27% share of renewable energy by 2030, the Commission proposed a revision of the directive.

The 2030 Agenda for Sustainable Development, approved by the international community in September 2015, represents an ambitious new strategic plan to address global trends and challenges. At the core of the Agenda are the 17 Sustainable Development Goals (SDGs) and their associated targets, which must be achieved by 2030. Alongside other international conferences and summits held in 2015, in Addis Ababa and Paris, the global community now has a new framework within which all countries can cooperate to address common challenges. For the first time, the SDGs are applied universally across all countries, and the European Union has committed to leading their implementation.

The EU Policy

The 1957 Treaty of Rome, as is well known, did not include environmental protection as one of its objectives. European policy on the environment emerged in the following years due to the rapid environmental degradation, the development of scientific knowledge, growing citizen awareness, and the need for the smooth functioning of the internal market and competition policy. Environmental protection gained significant political importance with the Single European Act of 1987 and the Maastricht Treaty of 1992. The Amsterdam Treaty of 1997 integrated the principle of sustainable development and environmental protection as one of the Union’s absolute priorities.

It is worth noting that during the period between 1972 and the Treaty of the EU, despite the challenges arising from the lack of a clear legal basis, community action on the environment developed through the adoption of successive action programs and the issuance of legislative acts in accordance with the procedures of Articles 100 and 235 of the EEC Treaty. By 1992, over 200 legislative acts and four action programs had been adopted. Relevant initiatives included the Directive 75/442/EEC on solid waste (Dousi, 2001, p. 25 & 42).

The sixth environmental action program (approved in July 2002) defined the EU’s priorities until 2010, placing particular emphasis on four areas:
a/ Climate change
b/ Nature and biodiversity
c/ Environment and health
d/ Management of natural resources and waste (Koutoupa-Regkakou, 2005).

The EU has a notable record with its continuously renewed action programs and its efforts to mainstream environmental concerns across all policies. Additionally, the EU’s international environmental actions are also recognized as positive contributions.

The issues that arise should primarily be sought in the reluctance of the member states to comply with the legislation that their governments agree on at the European level but fail to implement at the national level. This confirms the “two-level game” theory (Putnam, 1998), according to which member states act based on their own interests and aim to effectively address domestic pressures within their countries.

In Greece, for example, waste management has become one of the most complex environmental, legal, and social issues. However, the overall environmental quality in Greece is considered good, despite the fact that environmental policy, which dates back to Article 24 of the 1975 Constitution, faces significant challenges. Greece has adopted all the relevant EU Directives, but the real issue lies in the practical implementation.

The main issue, therefore, is not whether Greece has adopted EU law or if it has legislation—albeit with flaws and gaps—but whether there is the political will to implement it. The repeated condemnations from the European Court of Justice (ECJ) and the international embarrassment highlight that environmental concerns and effective waste management are not prioritized by the Greek government and local authorities.

“It is inconceivable to talk about sustainable development and the fight against the scourge of inequality and poverty without fully acknowledging the risk of environmental degradation due to Climate Change,” said the President of the Republic, Prokopis Pavlopoulos, as he welcomed prominent professors and co-organizers of the 1st “Convergences Greece Forum – Convergences for innovation, social economy, and sustainable development.”

Agenda 2030 & EU

The 2030 Agenda of the United Nations, which was adopted in September 2015 in Paris, represents the new global framework for sustainable development. It sets out 17 Sustainable Development Goals (SDGs). The goal of this agenda is to eradicate poverty and achieve sustainable development worldwide by 2030, ensuring that no one is left behind.

The SDGs represent a combination of the three dimensions of sustainable development: the economic, the social, and the environmental dimensions. These are specific goals with a horizon of the next 15 years, which focus on the following, among others:

human dignity
regional and global stability
ensuring the “health” of our planet
fair and resilient societies
prosperous economies.

These goals promote the convergence of EU countries, both on a social level and in relation to the rest of the world.

The EU has solid foundations regarding sustainable development and has also fully committed to leading, together with its member states, the implementation of the United Nations 2030 Agenda. In November 2016, the European Commission presented its strategic approach for the implementation of the 2030 Agenda.

The Sustainable Development Goals are taken into account in the 10 priorities of the EU:

Employment, growth, and investment
Digital single market
Energy union & climate – safer, cheaper, and sustainable energy
Deeper and fairer internal market
Deeper and fairer Economic and Monetary Union (EMU)
Balanced trade policy – Free trade without sacrificing European standards.
Greater cooperation between the different justice systems of the EU member states – Safeguarding the rule of law.
Migration
Stronger global power
More democratic EU

Key actions of the EU for the implementation of the 2030 Agenda:

Inclusion of the Sustainable Development Goals in all EU policies and initiatives, so that sustainable development becomes a fundamental guiding principle in all European Commission policies.
Regular reporting on the progress of the EU, starting from 2017.
Promotion of the implementation of the 2030 Agenda together with the governments of the EU member states, the European Parliament, other European institutions, international organizations, civil society organizations, citizens, and other stakeholders.
Creation of a high-level platform with the participation of numerous stakeholders, which will promote the exchange of best practices in all areas at national and European levels.
Formulation of a long-term vision with a horizon beyond 2020.

In order to promote sustainable development worldwide, the EU will continue to cooperate with its external partners, using all the tools available within the framework of its external policies, and will particularly support the efforts of developing countries.

A new European Shared Understanding of Development.

The proposal for a new European Shared Understanding of Development reflects a shift in the development cooperation model within the 2020 Agenda, so that it responds to the more complex and interconnected challenges the world faces today.
The proposal establishes a common vision and action framework for all EU institutions and member states, with particular emphasis on the horizontal drivers of development, such as gender equality, youth, sustainable energy and climate action, investments, migration, and mobility.
The goal is to increase the credibility, effectiveness, and impact of the EU’s development policy, based on common analyses, common strategies, joint programming, joint action, and improved reporting.
The new Shared Understanding should serve as the framework for all development actions of the EU and its member states. An example of this approach is the proposed European External Investment Plan, which will leverage official development assistance to attract funding from other sources and create sustainable development for the benefit of the poorest.

The Commission asserts that it will use all the tools at its disposal, including those for improving legislation, to ensure that both existing and new policies take into account the three pillars of sustainable development: social, environmental, and economic.

The role of the European Parliament.

The Parliament sent a strong message in response to the Commission’s proposal for a framework on climate and energy policies with a 2030 horizon, calling for three binding targets (more ambitious than those ultimately agreed upon): a reduction in domestic greenhouse gas emissions by at least 40% compared to 1990 levels; a total share of renewable energy in final energy consumption of 30%; and an increase in energy efficiency by 40%.

Before the 2015 Paris Climate Conference, the Parliament reiterated the urgent need for “effective regulation and limitation of emissions from international air and sea transport.” In its resolution, it expressed disappointment that the International Civil Aviation Organization (ICAO) did not agree to reduce emissions through the introduction of the CORSIA system (approved by ICAO in 2016), instead focusing primarily on offsetting measures which had no guaranteed quality and would only become legally binding from 2027 onwards, with significant ICAO members still not committed to participating in the voluntary phase. Similarly, the European Parliament emphasized the importance of strengthening the EU’s targets and policy instruments in due course.

The UN Secretary-General António Guterres, speaking at the World Economic Forum in Davos in January 2019, emphasized that climate change constitutes the biggest systemic threat to the global economy. In his speech, he referred to three megatrends.of 2019: migration, digitalization, and climate change, assessing climate change as the greatest risk and expressing the fear that we are losing the battle. The Climate change is happening faster than us and is worse than the predictions of scientists, he emphasized.

The times are therefore urgent! Otherwise, climate change will drown sustainable development.