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The recently nationalised Anglo Irish Bank should be reconfigured
as a green bank - offering green mortgages, car loans and
SSIA savings accounts.
In addition, it could act as a one-stop-shop for environmental
finance and support for green business development. That’s
according to Comhar Sustainable Development Council (SDC),
which launched ‘Towards a Green New Deal’ - a document
setting out how Ireland can move towards economic recovery
through the employment of sustainable approaches.
In addition to a green bank, Comhar SDC’s Green New Deal
recommendations also propose the establishment of a National
Decarbonisation Fund. This fund would be created through revenues
raised from environmental taxes and green bonds, with its
investment activities targeted at climate change measures
which offer a good financial return. The Fund, it is proposed,
would be managed by the National Treasury Management Agency.
Unveiling ‘Towards A Green New Deal’, Chairperson
of Comhar SDC, Professor Frank Convery, said - “Incredibly,
Ireland’s recession offers an opportunity - we can fundamentally
change the way our economy and society operate, so that we
can avoid ‘boom and bust’ patterns. The movement of
the global economy in a low-carbon, high-energy-efficiency
direction is a trend that will intensify and it is timely
that Ireland takes full advantage of this new direction.
“Now that our banking system has become very weak, efforts
to rebuild it should take into account the needs of future
generations. We need a banking system that supports the creation
of jobs in the smart economy and ensures that the challenges
of climate change are addressed. By building in mechanisms
that are linked to the environment and sustainability, we
can mobilise a green economy which will create jobs that are
sustainable into the long-term.”
Comhar SDC’s Green New Deal - which has been developed through
a consultation process involving business, academics and environmental
interests - proposes that the Government commits two per cent
of our Gross Domestic Product (GDP) to green stimulus measures
over the next three years as a mechanism to create jobs and
reduce our carbon emissions.
The priority areas for investment would include improving
the energy efficiency of the existing housing stock, transforming
the national grid to cater for more green electricity and
investing in skills that can ensure the workforce is competent
in green technologies.
“Across the globe, green stimulus packages have been developed
to assist in recovery. While some green stimulus measures
were linked to the Government’s plan for recovery - ‘Building
Ireland’s Smart Economy’ - much more focused and rigorous
stimuli are needed,” added Professor Convery.
“If we are to meet climate change targets - while creating
jobs and getting the economy moving again - at minimum, Ireland
will need to invest €3.7 billion into green stimulus packages.
This is significantly less than the amount of taxpayers’ money
that was used to recapitalise AIB and Bank of Ireland and
is almost the same as our annual fossil fuel bill. While finding
the money is a short-term challenge, a green stimulus package
would create jobs and save on our carbon bill into the future.”
One of the funding mechanisms for Ireland’s Green New Deal
would be a carbon tax. “A gradual shift of the tax base away
from taxing things we need - like labour - and towards things
we don’t need - like pollution - is now needed. By moving
tax away from labour and towards consumption, we will have
a wider tax base which can help offset the implications of
a declining workforce and an ageing society.”
Other funding mechanisms proposed include revenues from waste
charges - both domestic and industrial, green bonds and a
carbon levy.
Under the Green New Deal, Comhar SDC envisages job creation
in the areas of renewable energy, green technology, tourism
and agriculture. “Wind energy, retro-fitting of our housing
stock and the delivery of more green public services can all
produce jobs for this and future generations. However, it’s
vital that we have the skills-set to take advantage of the
green-wave and this is why upskilling and research and development
must concentrate on the green, smart economy,” said Professor
Convery.
In addition to fiscal and labour market measures, the Green
New Deal points to the importance of having a ‘green infrastructure’
in which to deliver a more sustainable economic model and
healthier society. Critical to this, the report recommends,
is the protection of our biodiversity. It suggests that investment
in biodiversity protection can save money in the long term,
since a properly functioning biodiversity system can provide
society with ‘free’ services - such as water purification,
flood protection and pollution regulation’.
Professor Convery presented the Green New Deal to the Minister
for Environment, Heritage and Local Government, John Gormley
TD, for consideration in the upcoming renegotiation of the
Programme for Government.
Professor Convery said - “A Green New Deal for Ireland requires
a paradigm shift in how we produce and consume. If we make
that shift, we can create jobs that will last and are not
dependent on a property bubble, we can build communities where
the quality of housing and services do not disadvantage people
and we can hugely reduce our energy consumption so that we
are not over-reliant on fuel imports to keep our economy moving.
"The implementation of a Green New Deal requires political
leadership and engagement with citizens. It’s an opportunity
for Ireland to create a sustainable model economy.”
In addition to securing input from relevant interests in
Ireland and Northern Ireland in the development of the Green
New Deal proposals, Comhar SDC also secured expertise from
a representative from the UK Green New Deal Group.
To download ‘Towards a Green New Deal’ - Click
Here
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