EU lags US, China in green investment to boost economy

16 June 2009
EU lags US, China in green investment to boost economy

European governments lag China and the United States in green investment to boost the economy, Karl Falkenberg, the head of the EU Commission's environment department, told reporters.

Germany is leading the way in the 27-country European Union, with some of the bloc's newer and poorer member states in eastern Europe furthest behind.

"EU states spent three to 13 percent of recovery aid on what we would call green activities," he said. "On the U.S. side we come up with about 14 percent but we see China in the upper 30s."

Karl Falkenberg,
Director-General,
DG Environment
Photo: EU

"Our competitors are using the crisis in strengthening green products and services and moving to more efficient production and consumption patterns," Falkenberg said, according to Reuters. "If we are not ready, others will simply take the market."

Europe has made green investment a priority in its plan to spend 1.8 percent of gross domestic product on boosting the economy. Those discretionary measures could total around EUR220 billion (USD305 billion) this year and next.

China announced a 4 trillion yuan (EUR420billion, USD585 billion) economic stimulus package last November and is expected to make energy efficiency a key part of its next five-year development plan from 2011.

The United States launched a USD787 billion (EUR566 billion) stimulus plan in February, and green projects will receive a boost under USD80 billion of spending on transport infrastructure and USD30 billion on energy.

Source: Reuters