Global financial crisis leaves a dirty carbon footprint

EU environment ministers locked horns over carbon emissions policy at European Union (EU) environment talks held in Luxembourg earlier this month. While some pledged to honour reduction targets for the bloc others expressed deep opposition to the plan, fearing a loss of billions of euros and the weakening of their economies in light of the global financial crisis. Last year the EU pledged to cut greenhouse gas emissions by 20% of 1990 levels by 2020 and to ensure that renewable energies would make up 20% of its energy sources. To achieve these targets, heavy industry which accounts for around 40% of the EU's carbon emissions, would have to cut its emissions by 21% from 2005 levels. Italian Prime Minister Silvio Berlusconi labelled the plan unreasonable, arguing that such lofty emission targets coupled with the financial crisis would place an unacceptable burden on the economy. He called for a review mechanism that would allow for changes to the EU's targets once the plan's costs had been accurately calculated. The Baltic states – Bulgaria, Hungary, Romania, Slovakia and Poland – also raised objections to the EU plan, exposing concerns that their coal-reliant energy sectors would not be able to adapt in time. French environment minister Jean- Louis Borloo however noted that “the financial crisis does not stop climate change”. German environment minister Sigmar Gabriel added that “the financial crisis was being used as an excuse by states afraid of the economic consequences of bridling carbon emissions”. This is in line with the opinions of speakers at the green supply chain conference recently held in South Africa. Rose Luke, senior researcher of the department of transport and supply chain management at the University of Johannesburg (UJ), noted that no commercial entity in the world would voluntarily adopt a green supply chain. The reason, said Alex Novitzky, supply chain development manager at Maersk Logistics, is that the current mindset erroneously equates reducing CO2 with an increase in costs.