{"id":11649,"date":"2019-02-15T04:28:00","date_gmt":"2019-02-15T03:28:00","guid":{"rendered":"https:\/\/www.sonnenseite.com\/economy\/implementation-of-paris-climate-agreement-could-boost-eu-gdp-by-1-1.html"},"modified":"2019-02-15T04:28:00","modified_gmt":"2019-02-15T03:28:00","slug":"implementation-of-paris-climate-agreement-could-boost-eu-gdp-by-1-1","status":"publish","type":"post","link":"https:\/\/www.sonnenseite.com\/en\/economy\/implementation-of-paris-climate-agreement-could-boost-eu-gdp-by-1-1\/","title":{"rendered":"Implementation of Paris Climate Agreement could boost EU GDP by 1.1%"},"content":{"rendered":"<p>The successful transition towards a low-carbon economy, as defined by the Paris Climate Agreement, is projected to result in a 1.1% growth in GDP, and a 0.5% growth in employment, in the EU between now and 2030.<\/p>\n<p> <!--more--> <\/p>\n<p>This is compared to a &lsquo;business as usual&rsquo; baseline forecast.  Globally, China is also projected to benefit from a low-carbon  transition, but the United States would experience a 3.4% drop in GDP,  and a 1.6% decline in employment.<\/p>\n<p>This analysis is based on a global macro-economic model run by  Cambridge Econometrics and Eurofound&rsquo;s European Jobs Monitor. It is  detailed in the Energy scenario: Employment implications of the Paris  Climate Agreement report from the Future of Manufacturing in Europe  (FOME) project. FOME is an EU project proposed by the European  Parliament and delegated to Eurofound by the European Commission.<\/p>\n<ul>\n<li>Publication:&nbsp;<a href=\"https:\/\/www.eurofound.europa.eu\/publications\/report\/2019\/energy-scenario-employment-implications-of-the-paris-climate-agreement\">Energy scenario: Employment implications of the Paris Climate Agreement<\/a><\/li>\n<\/ul>\n<p>The projections detailed in the report are modelled on a basis  that there will be no significant labour market frictions from the  transition, in particular that the labour force will adapt to the  structural change with regards to skill requirements. This assumes that  finance is made available for the restructuring, and that countries  maintain current levels of performance in key economic sectors.<\/p>\n<p>The modelling shows that the full implementation of the Paris Climate  Agreement is positive for the EU as a whole, both in terms of GDP and  employment growth. This is mainly attributable to the investment  activity required to achieve such a transition, together with the impact  of lower spending on the import of fossil fuels. The shift towards  production of capital goods, such as equipment, machinery and buildings,  will result in a notable increase in demand for construction and for  labour from related occupations.<\/p>\n<p>On a national level, the study projects that Latvia, Malta and  Belgium will experience the largest boost to GDP. At close to 6%, the  projected growth in Latvia&rsquo;s GDP is by far the most significant &ndash; this  is largely due to the energy efficiency investment required, and the  reduction in fossil fuel imports relative to GDP.<\/p>\n<p>Belgium is also among the countries that would experience a marked  increase in employment from the economic restructuring required to fully  implement the Paris Agreement, resulting in increased consumer  expenditure in labour intensive sectors such as retail, hospitality and  catering. Spain and Germany would experience a similar phenomenon; in  the case of Spain the report pinpoints the importance of solar  photovoltaic electricity and lower consumer energy prices in generating  disposable income to the benefit of labour-intensive sectors. The only  country projected to experience a net decrease in employment is Poland,  due to its large coal mining sector.<\/p>\n<p>Commenting on the findings in the report, Eurofound Chief Researcher  Donald Storrie said, &ldquo;Climate change is expected to have very serious  implications for living and working conditions on a global scale; it is  the people who are socially, economically, or otherwise marginalised  that are particularly vulnerable. This report shows the considerable  economic and employment dividends for Europe in tackling climate change  and fully implementing the Paris Agreement.&rdquo;<\/p>\n<p>The findings of this report, as well as other key outputs from the  project will be discussed at the Future of Manufacturing in Europe event  in Brussels on 11 April<strong>. <\/strong><\/p>\n<ul>\n<li>Event:&nbsp;<a href=\"https:\/\/www.eurofound.europa.eu\/events\/the-future-of-manufacturing-in-europe\">The Future of Manufacturing in Europe<\/a><\/li>\n<li><a href=\"https:\/\/www.eurofound.europa.eu\/publications\/report\/2019\/energy-scenario-employment-implications-of-the-paris-climate-agreement\" target=\"_blank\" rel=\"noopener noreferrer\">&#8220;Future of manufacturing in Europe Energy scenario: Employment implications of the Paris Climate Agreement&#8221;<\/a><\/li>\n<\/ul>\n<h5 class=\"green\">Source<\/h5>\n<p><a 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