I would like to start by welcoming the President of the European Investment Bank, Mr. Werner Hoyer, and wishing him success in the difficult duties he has assumed.
I would also like to thank and congratulate the European Investment Bank and Mr. Sakellaris for organizing this important conference, which is taking place at time when the country is being called upon to take great strides, both in terms of how it functions, as well as in terms of its development model.
I must note that the European Investment Bank performs a vital job in Europe, given that apart from everything else, one of its main missions is to fund and support SMEs, which are the backbone of the real economy, particularly in a country like Greece. That is why I stress the issue of SMEs.
In this context, we are in ongoing contact with the EIB, and, in cooperation with the European Commission, we are exploring the best ways to capitalize on the Bank’s tools and means, to the benefit of SMEs in Greece, which can and must be the principle vehicle in the country’s development efforts.
Ladies and Gentlemen,
Climate change is one of the greatest threats and challenges to our planet, to Europe, to Greece, to all of us. Facing its many and indisputable repercussions needs to be one of our immediate priorities.
This phenomenon has taken on vast significance, not just for the environment, but also for the economy, society and politics. It impacts all sectors, from agricultural production and health to foreign policy and international security. It is a challenge that demands an immediate and coordinated global commitment and actions if we are to confront it effectively.
In Europe and throughout the world, it is now the concern of the highest levels of leadership, given that by its very nature, climate change cannot be held within geographical boundaries. I must admit that during the past two or three years it has fallen among the priorities of leaderships around the globe. So, there is a need for intensified political support for more effective actions on the national and international level, for dealing with climate change and promoting green economies with low carbon dioxide emissions, so that we can arrive at a global solution for saving our planet.
Given that this is not a short-term issue that will fall from the political horizon at some point, but is something that will concern us more and more, for many years, the programmes, actions and investments aimed at confronting it need to be adapted to a long-term time horizon, and there is no time to waste.
It has been twenty years since the UN’s first global conference on the environment and sustainable development – the Rio conference of 1992 – and this reminds us, without a doubt, of our responsibility to mankind as a whole and to future generations. And this is why the Rio conference will be repeated this coming June, with the aim of reaffirming global political commitment on the issues of that historic meeting.
The European Union perceived the threat early on. It plays a leading role on the international level in confronting it, and it is at the avant-garde of comprehensive policy actions, both within the EU and in its relations with third countries.
With the Kyoto Protocol, the European Union set an ambitious goal: to reduce emissions by 8% from 2008 to 2012, as compared to levels in 1990. In this context, each member state had its own national goals to meet based on Community regulations, and those goals were met. The European Union met the goal it set.
Concurrently, in 2007 the European leaders approved a climate and energy policy package aimed at achieving a three-fold goal, known as “20-20-20 by 2020”. This means a reduction in greenhouse gases, an increase in the proportion of renewable sources in the production of energy, and reductions of primary energy consumption through improved energy performance – all by 20%, as compared to levels in 1990.
In this way, the European Union is setting an example and leading internationally.
The EU policy on reduction of greenhouse emissions to confront the repercussions of climate change in a timely manner is, I would say, a contract with our planet, with all its inhabitants and with future generations. The EU’s firm goal is to extend this contract and render it legally binding for all the countries in the world. This goal got a significant push at the December 2011 Durban Conference, where it was agreed, among other things, that a Roadmap will be drawn up for a new, internationally binding framework for confronting climate change through 2015.
Turning our attention now the region of Southeast Europe, we observe that, though steps have been taken towards achieving the EU goals, there is still a long way to go.
More specifically, the current energy situations in the countries of the region – despite individual differences – share three common characteristics:
• a significant dependence on the use of petroleum and coal for production of electricity,
• a similarly significant dependence on imports of hydrocarbons for covering domestic demand, and
• relatively little progress in developing renewable energy sources, which means a small share for renewable energy sources in the “energy mixes” of these countries.
We need to make it a top priority to reverse this state of affairs and significantly increase the proportion of renewable energy sources, while also improving energy efficiency and energy savings.
A number of efforts are being made in these sectors. According to UN data, Greece – along with the whole Mediterranean – is in one of the 18 regions on the plant that are most vulnerable to climate change. Being aware of the problem, Greece is trying to improve the situation, albeit in the midst unfavourable economic and fiscal circumstances. For these countries and countries operating under very austere budgets, like Greece, the fall in public revenues necessarily impacts most financial sectors.
So, it is beyond question that increased efficiency is vital, so that we can ensure that we achieve more while spending less. And we can do this, using new, innovative ideas that will help bolster our economy in a “greener” way. Last June, the Bank of Greece published a very good study on the environmental, economic and social repercussions of climate change.
Despite the given difficulties, in recent years Greece has followed the procedures for confronting climate change. Thus, in the summer of 2010, Community Directive 2009/28/EC, on the “promotion of the use of energy from renewable sources” was adopted into national legislation. The Greek state aims to greatly increase the proportion of renewable energy sources in the country’s energy mix by 2020. I was please a few days ago, as a Minister of this government, to approve the incorporation of Directives that I had promoted as a European Commissioner.
The market in the renewable energy sources sector is expected to expand significantly in the coming years, as the national goal is to greatly increase energy production via renewable energy sources from current levels – which are not insignificant – through 2020. Implementation of this plan will involve projected investments of €20 billion and the creation of 210,000 new jobs.
Major renewable energy source projects are already under way throughout the country, and Mr. Papakonstantinou talked about those, but I would like to say a few words about the ambitious “Helios” plan, which involves the installation of photovoltaic panels on some 20,000 hectares throughout Greece, with projected revenues of €80 billion, of which €20-25 billion will be available to service the public debt. Let me say again that it is a very ambitious plan, but it is worth the effort because it will be an achievement that will set a global example.
Additionally, beyond the purely national level, we think that regional initiatives on these issues are very important.
The Mediterranean Climate Change Initiative, inaugurated by Greece, in Athens, in 2010, in close collaboration with 17 other Mediterranean countries sensitive to climate change and energy security issues, is an important element of Greece’s green strategy.
In the same year, within the framework of Greece’s BSEC Chairmanship, the Foreign Ministers of the 12 member states adopted the “Black Sea Turns Green” initiative for the promotion of clean energy and sustainable development.
The Mediterranean and Southeast Europe, as regions, provide major opportunities for joint development strategies for low CO2 emissions, and one of the first goals of our policy should be to explore and exploit all potential synergies in the sector of climate change with our neighbouring countries. We mustn’t forget, after all, that we share with these countries many natural resources that are very susceptible to any change in the environment.
Ladies and Gentlemen,
The Eurogroup decision is extremely important for helping to end the cycle of uncertainty that undermined the efforts and sacrifices of the Greek people. This decision reduces the risk of default and confirms Greece’s place in Europe. It gives us the time and means we need to emerge from this crisis. It opened a prospect of hope that Greece will limit the recession, will be able to lay the foundations for recovery, will revitalize the real economy and create jobs. At long last, emphasis needs to be put on growth.
Dealing with the crisis requires our changing the development model followed in recent years. After the Brussels agreement, we now have the potential, in a more stable environment, to emphasize actions and initiatives that will break the vicious cycle of recession.
Within this framework, in the policies that are adopted to boost the market and create new opportunities and jobs, particular emphasis needs to be put on green development; on investments, that is, in renewable energy sources, as well as in sectors like agriculture, through the promotion, for example, of biological farming.
In short, there are two major gains to be made from successfully emphasizing renewable energy sources and related technologies: on the one hand, it will help us to effectively confront the global phenomenon of climate change, ensuring our future and that of our children. And on the other hand, it will help us get through the current economic crisis and get back to growth, because this sector is a comparative advantage to us thanks to our country’s ample natural resources. In this effort, we look forward to the cooperation and support of the European Investment Bank. Together, we can do it.
Thank you very much.
February 23, 2012