Climate change and its impact on the economy

Key points

The EESC:

• points out that climate change is primarily the result of human activity and emphasises that, in nature, everything is interconnected. If nature is in balance, then the conditions are in place for good economic growth and a healthy population. This means that a long-term strategy must be adopted to safeguard public health in the wake of unanticipated instances of climate change;

• considers that climate change is an existential threat to economic and social development in the EU Member States and that it has a very negative effect on both macro and microeconomic development, business, financial and social stability, infrastructure and human health;

• stresses that no time can be lost in adopting and implementing all necessary measures to reduce emissions (mitigation) and adapt to the new conditions (adaptation), including introducing prices on emissions and a carbon tax in line with the latest recommendation of the European Commission;

• considers that investment linked to climate change is an historic economic opportunity to support and seize the enormous innovation and development potential in the EU Member States;

• points out that in addition to harnessing valuable growth potential, reduced running costs for the economy and society is another key long-term effect of the economic response to climate change;

• is aware that the response to climate change is very demanding, in terms of the investment required and the fiscal and financial efforts needed;

• is aware of the fact that an inappropriate response or the failure to tackle the problems related to climate change can lead to enormous risks, in terms of both economic growth and, subsequently, harm to society;

• considers that it is imperative not to underestimate the importance of the human factor in the broadest meaning of the term when responding to climate change;

• stresses that measures must be adopted and implemented to ensure that the impact of climate change on Member States’ economic and social development is systematically analysed, evaluated and forecast;

• considers that all actions must be coordinated and aligned at international level and strongly supports the EU’s efforts to give the fight against climate change the highest priority. This will involve a collective commitment at national, subnational, EU and global level, in all areas such as economic and social areas, with clear, well defined roles and responsibilities at all levels of the decision making process.