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EU Foreign Policy in a Changing Climate: A Climate and Energy Strategy for Europe's Long-Term Security

06 June, 2016
Luca Bergamaschi, Nick Mabey, Jonathan Gaventa and Camilla Born

In this report, Luca Bergamaschi, Nick Mabey, Jonathan Gaventa and Camilla Born from E3G explore practical actions that EU foreign policy institutions could undertake to manage climate risk and an orderly global transition. Read on for a summary of the report here:

Success of EU foreign policy hinges on climate and energy security

European leaders are set to agree on a new EU Global Strategy at the end of June. Europe’s interests have fundamentally changed since the last European Security Strategy in 2003. The prosperity, security and freedom that the previous strategy boasted about is becoming increasingly challenged. Europe is continuing to struggle to reboot growth, investment and employment after the worst financial and economic crisis since World War II. A wave of instability across the Middle East and North Africa is unleashing war, human suffering and the massive displacement of people.

Against this backdrop, it is increasingly evident that Europe’s global strategic interests have become inseparable from managing climate risk and the global energy transition. The growing urgency of delivering climate security and an orderly energy transition require a reset of EU foreign policy objectives. These issues need to have higher priority, stronger support capacity and consistent mainstreaming across all aspects of EU foreign policy.

No security without climate security

Climate change is already undermining European internal security through an upwards trend in the frequency and intensity of heat waves, droughts and flooding. Across Europe they have increased by 60% over the past three decades causing thousands of human losses and significant economic disruption. The European Commission agreed that unless action is taken now the economic cost to European cities, which host 78% of the EU’s citizens and generate 85% of its GDP, could reach over €190 billion annually by 2070.

European security could be also jeopardised by the collapse of the oil and gas producing economies. Falling demand and volatile prices are undermining the basis of stability as they are overwhelmingly dependent on oil and gas revenues to fund social spending, such as food and energy subsidies, and meeting debt repayments. Many of EU suppliers’ countries are fragile states ruled by repressive and autocratic regimes with poor records on democracy, civil rights, media freedom, development and gender equality. The ongoing support of elite groups who use fossil fuel wealth to maintain power and repress access to basic rights poses a huge problem to the credibility of European diplomacy.

In addition, many of these countries are highly exposed to climate change impacts, which will further exacerbate existing political, economic and social instability, especially in the Middle East and North Africa. This region just suffered the worst drought in 900 years. In Syria, a record drought between 2006 and 2010 drove 1.5 million people from the country's breadbasket areas to urban peripheries, where the first protests ahead of the civil war began. By 2040, the risk of similar 1-in-100 year food production shocks is expected to increase to 1-in-30, and 1-in-15 years in the decades after 2050.

Climate change is already acting as the “ultimate threat multiplier”, escalating the potential for conflicts over water, large-scale disruptions of food systems and related mass displacement of people.

Clean energy markets are more important than access to fossil fuels

Strong clean and efficiency policies are driving a “demand revolution” across Europe. While EU GDP has grown, electricity demand has fallen 1% per year since 2010 and gas demand has fallen 22% below its peak across all sectors (power, industry and buildings) and in almost all Member States. The new energy economy is now at the heart of Europe’s energy security.

In 2013, renewables cut demand for fossil fuels by 110 Mtoe, equivalent to 9% of all fossil fuels used across the EU equal to the annual fossil fuel consumption of France.

In 2014, generation from new renewables installed over the past 10 years delivered gas savings equivalent to more than half the EU annual import capacity of Nord Stream 2 or 200% that of the Southern Gas Corridor. This led to a reduction of CO2 emissions equivalent to the yearly GHG emissions of Poland.

As Europe faces a rapid energy transition, its energy security, technological leadership and competitiveness will depend on clean investment, cost reductions, low carbon trade, and market growth to safeguard its future.

This report reminds EU leaders that if left unmanaged, climate change and a disorderly energy transition could undermine the foundations of Europe’s security and prosperity.

The way forward

The Paris Agreement was a significant achievement of EU diplomacy and multilateralism. It makes us safer but not safe. Without continued efforts to increase ambitions the world risks facing temperature increases of up to 3.7°C to 2100. This level of warming risks breaching tipping points, resulting in unmanageable economic and security impacts across the globe. While the US and China are scaling up their investment in climate and energy diplomacy and cooperation, Europe is losing ground and is no longer the global engine for clean energy investment. In 2015, they shrunk by 58% compared to 2010, its weakest level since 2006. At this critical time the EU should step up commitments to stay secure and prosperous. 

Managing climate risk and an orderly global energy transition must be central threads running throughout EU foreign policy. The new discussion paper “EU foreign policy in a changing climate – A climate and energy strategy for Europe’s long-term security” sets out how:

  1. The European External Action Service (EEAS) should use the lessons of Paris to rebuild confidence in multilateralism and redesign its approaches to other international negotiations. This requires developing an integrated diplomatic strategy to support other countries to ramp up their climate contributions and to review the EU’s domestic commitments.
  2. Climate change is already driving an upwards trend in the frequency and intensity of heat waves, droughts and flooding hitting European citizens and undermining the stability of neighbours. EU institutions and Member States need a new approach to climate risk both to reduce the probability of bad outcomes, including worst-case scenarios, and to manage the potential severity of their consequences.  
  3. Fossil fuels suppliers are dependent on fossil fuels revenue to maintain their internal stability. Europe has a strategic interest in managing the orderly transition of fossil fuels producing countries whose fragility will be exacerbated by increasing climate impacts and successful climate policy. This is particularly important for the wider neighbourhood, including Russia. The EU should work together with them to help diversify their economies through sustainable investment packages and make them more resilient to future climate shocks.
  4. Europe’s security rests on its neighbours’ stability. Ensuring the stability of Europe’s neighbourhood requires ensuring sustainable investment, including developing resilient infrastructure, food, water and energy systems and addressing unemployment and low growth. This investment will directly benefit the EU through business opportunities for EU companies and integrating energy markets.

Delivering existing commitments will require at least $2 trillion over the next 15 years in clean energy and achieving global growth expectations $90 trillion in infrastructure investment. Europe needs access to clean markets to stay prosperous. Global trade in clean technology and growth of resilient infrastructure markets needs to become the core focus of EU energy and climate diplomacy and finance.

Read the full report EU foreign policy in a changing climate.

This summary has originally been published on E3G.

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Topic
Climate Change
Climate Diplomacy
Energy
Security
Sustainable Transformation

Region
Europe

Topics

Adaptation & Resilience

All countries will need to adapt to some of the environmental, social and economic impacts of climate change that are already unavoidable. Food security, livelihoods, water resource availability and public health are some affected areas. People living in poverty are more vulnerable, having a lower capacity to adapt. Thus, it is essential to promote resilience building. The adaptation and resilience aspects need to be mainstreamed into planning by policy makers and the private sector as well as integrated into development strategies.

Biodiversity & Livelihoods

Nature protection is most sustainable if it essentially contributes to the long-term stability of human needs. Today many regions around the world are confronted with increasing destruction of the natural foundations of life. The consequences of wide-ranging resource destruction are no longer regionally limited, but rather represent a global threat. Those affected are mainly rural populations, who find the sources of their income and the foundations of their way of life swept away. The depletion and destruction of natural resources goes hand in hand with decreasing agricultural yields and increasing poverty, which in turn forces the affected populations to deplete the remaining resources.

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Capacity Building

On the one hand, conflicts are caused by structural factors, such as economic and social inequality or environmental destruction. On the other hand, conflicts are fuelled by a lack of democratic structures, deficient mechanisms of non-violent conflict settlement, inadequate rule of law, the destruction of social and cultural identity and the disregard of human rights. Against this backdrop, development policies have been dedicated to a broad concept of security, which comprises political, economic, ecological and social stability. As a consequence, development cooperation agencies and actors have developed a broad spectrum of approaches for conflict prevention and transformation as well as for sustainable use of natural resources.

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Cities

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Civil Society

Civil society is the first victim of environmental pollution, under-development and conflicts. Economically disadvantaged and politically marginalized population groups are particularly affected by violent conflicts as well as increasing resource degradation. Simultaneously, civil society is a fundamental pillar for implementing sustainable development. It contributes in many ways to strengthening conflict prevention and plays a significant role in the peaceful and democratic development of states. It must be supported to strengthen civil rights, adherence to human rights in general and democratic participation.

Climate Change

Climate change resulting from the emission of greenhouse gases represents one of the vital challenges for international environmental policy. Flooding, droughts, shifting of climate zones and increasingly frequent and intense extreme weather events will have serious economic and social consequences for entire regions. The climate problem is also directly linked to the question of future energy generation.

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Climate Diplomacy

To address the challenges posed by climate change, a new profile of climate diplomacy is evolving. This utilises a full range of policies, including development cooperation, conflict prevention efforts, and humanitarian assistance, in addition to more traditional measures of climate change adaptation and mitigation. Moving from a risk analysis of climate-related threats to well-timed preventive action requires a greater commitment to integrating climate change concerns into development, foreign, and security policies. Examples include strengthening diplomatic networks, building new alliances with partners, and raising awareness – not only of potentially negative climate change impacts, but also of opportunities to embark on a sustainable transformation of our societies.

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Co-Benefits

Climate action entails an array of economic, social, political and environmental co-benefits. It provides an opportunity for economic growth and new jobs. Many investments can take into account climate considerations without becoming more costly. Further important co-benefits include: improved energy security, less local air and water pollution, health benefits as well as ecosystem and biodiversity protection.

Conflict Transformation

In order to overcome the structural causes of violent conflicts and thus bring about an improvement in the framework conditions for peaceful and fair development, it is essential to have long term and broadly planned peace development and peace advancement. Various governmental and non-governmental, national and international actors and groups are involved in these processes.

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Development

Climate change and development are inextricably linked. Climate change endangers the development agenda and has the potential to reverse development goals. Furthermore, successful mitigation of climate change heavily depends on development choices around the world. Therefore, development strategies need to be climate-compatible to provide long-term success, and there are viable policy options that support this compatibility. Many mitigation and adaptation activities can present development opportunities to developing countries and avoid the lock-in to environmentally damaging technologies.

Early Warning & Risk Analysis

The reasons for the development and escalation of conflicts and the incidence of risks are multifaceted and complex. Simultaneously, the assessment of the specific causes in the form of risk and conflict analyses can contribute to a better understanding of these processes and make it possible to provide warning of negative developments, or ideally help prevent them. In the context of natural resource use, risks and conflicts have gained increasing attention in the past years. The debate on possible future water wars is merely one example.

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Energy

The well-being of individuals, communities and nations depends on the availability of energy resources. The gap between energy supply and demand appears to be growing, making the world vulnerable to serious economic shocks. At the same time, the burning of fossil fuels causing climate change is one of the vital challenges of international environmental policy. So far, only rudimentary approaches exist for shaping climate and energy security in a sustainable way. The components of a strategy that can contribute to reducing vulnerabilities related to climate change and energy policy include a greater role for renewable energies, the improvement of energy efficiency and a stronger decentralisation of energy supply.

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Environment & Migration

The economic, social and environmental consequences of climate change aggravate the breakdown of eco-system-dependent livelihoods and are likely to become dominant drivers of long-term migration. Natural disasters already cause massive shorter-term displacement and the number of temporarily displaced people is likely to further increase with climate change. For vulnerable populations in vulnerable regions, such as the Sahel zone or the Ganges delta, migration often becomes the sole survival strategy. In order to address climate-related displacement and migration successfully, knowledge of effective adaptation and an improved understanding of how environmental change affects human mobility is essential. 

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Finance

Climate finance, from all sources, plays a key role in supporting and enabling adaptation and mitigation action as well as climate and energy innovation. The Paris Agreement ensured that the Green Climate Fund and the Global Environment Facility are at the core of climate finance architecture as entities entrusted with the operation of the Financial Mechanism of the UNFCCC. Increasing climate finance from all relevant public and private sources is crucial. Furthermore, much needs to be done to redirect finance flows to sustainable paths, e.g. reducing fossil fuel subsidies, introducing maritime and air transportation taxes. The conditions for green investment in developing countries should also be improved.

Forests

Forests are disappearing at an alarming rate. Competition for forest resources triggers, exacerbates, or finances numerous crises and conflicts in tropical developing countries. Illegal logging and timber trade foster instability and sometimes violent conflict by strengthening illegal and armed groups, increasing corruption and exacerbating use and claim conflicts among local communities, the state and the business sector. Forests are a vital resource to poor people but they can also become areas of conflict. Sustainable management of forest resources is therefore key to preventing violent conflict over and within forests.

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Gender

Gender plays an important role as a category of conflict for many reasons. The interlinkages between gender, environment and conflicts are complex and much research is still needed. Existing insights suggest that conflicts may worsen gender inequalities that existed before the outbreak of violence. The unequal distribution of land property rights in many parts of the world serves as an example. Moreover, women (and children) are among those most affected by both violent conflict and natural disasters. At the same time, women carry much of the burden of trying to implement rehabilitation measures after crisis events.

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Land & Food

Increasing water scarcity, desertification and crop failures due to extreme weather events are becoming more and more of a threat to global food production. While the world’s population continues to grow rapidly, food production is unable to keep pace. Due to the global food crisis in 2008, the number of hungry people reached the symbolic one billion threshold for the first time – corresponding to about 16 percent of world population. Food insecurity may be a consequence or cause of conflicts. Violent conflicts often lead to the destruction of agricultural infrastructure and means of production, as well as to the displacement of local communities.

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Minerals & Mining

In the past, the discovery and tapping of valuable or strategic resources like valuable minerals, oil and natural gas, particularly in developing and emerging countries, has often led to large scale environmental contamination and negative development. The "resource curse" of some countries shows that the wealth from resource yields is frequently unfairly distributed; instead of serving development it advanced the formation of corrupt elites and in some cases even led to conflicts and civil wars. Measures in various sectors and at all levels are important in order to use the potential of these natural resources in a manner that is sustainable and prevents conflicts.

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Private Sector

The spread of violent conflict not only affects people but also companies located in such regions. Destruction of investments and infrastructure, collapse of markets and trade partnerships, flight and expulsion of employees are phenomena of conflicts and environment-induced crises that directly affect companies in unstable regions. Almost all branches of the economy thus have a clear interest in a stable and peaceful environment for their activities. Conversely, the business sector plays an important role in the interaction of economic growth, social development and a healthy environment, all of which can advance peace and sustainable development. 

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Security

Environmental issues have a significant security dimension. Access to, and overuse of, natural resources often play a key role in civil wars or other forms of internal domestic conflict. This is compounded by climate change and environmental degradation. Climate change is now widely recognised as a non-traditional, risk-multiplying threat that will have increasing security impacts. Key risks with possible implications for human and national security include water scarcity, food crises, natural disasters, and displacement. More preventive diplomacy and advocacy is needed to address the strategic implications of climate and environmental change.

Sustainable Transformation

Sustainable Transformation allows societies to profit from a growing, environmentally sustainable and socially inclusive economy – especially in emerging and developing countries. This requires a higher up-front investment, but the benefits of a sustainable transformation in the medium and long term are significant. For instance, energy cost savings and reducing the impact of price volatility offer major incentives for deploying renewable energies and promoting energy efficiency. Such benefits exist in all key sectors of the economy.

Technology & Innovation

Innovations and technologies are already readily available and affordable but their global diffusion and uptake remains a challenge. Innovation and technology are crucial to achieving ambitious climate change mitigation and adaptation targets. However, research and development often do not receive appropriate public support. Developing countries can leapfrog high-carbon industrialisation phases by adopting, deploying and improving existing innovations and technologies. For this, it is essential to minimise financial, administrative and political barriers.

Water

The availability of freshwater resources in sufficient quantity and quality is essential for the preservation of human health and sound ecosystems. The use of water resources is also vital, however, for economic development: whether for agriculture, industrial production or for electricity generation. The world's freshwater resources are distributed very unevenly in terms of geography and seasons. In addition, water shortage is becoming more prevalent in several regions due to population growth, economic development, urbanisation and increasing environmental pollution. Thus, water resources can hold potential for conflicts between parties who have different interests and needs.

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Regions

Asia

The environment in Asia is already under tremendous pressure as a result of the unsustainable use of land, forests, water and even air in many regions. Climate change will only exacerbate these challenges. Rising sea levels will likely endanger densely populated areas, changes in the monsoon patterns can strongly impact agriculture, melting glaciers will increase long-term water scarcity, and extreme weather events such as heavy rainfall and cyclones can pose further hazards.

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Central America & Caribbean

Natural disasters and water scarcity are key challenges for most of Central America and the Caribbean. These challenges will become even more pronounced as the climate changes. Weak resource and disaster risk management and land disputes pose additional security challenges for large parts of the region. Several countries of Central America and the Caribbean have limited adaptive capacities as they face political instability caused by high social inequality, crime, corruption, and intra-state conflicts.

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Europe

As one of the most developed and most densely populated regions in the world, Europe makes heavy use of its resources, resulting in difficult trade-offs and negative consequences for the environment and ecosystems. Land is used for settlements, agriculture and dense infrastructure, creating problems of soil degradation. Water resources are stressed due to unsustainable agricultural practices. Despite nature protection policies, Europe continues to lose biodiversity at an alarming pace. Some of these trends are exacerbated by climate change, which is expected, for instance, to lead to shifts in water availability.

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Global Issues

Resource scarcities, environmental pollution and climate change are not limited by national borders, but often have a transboundary or even global impact. These issues interact with political stability, governance structures and economic performance, and can trigger or worsen disputes and violent conflicts. Exacerbating some of these trends, climate change is likely to lead to the degradation of freshwater resources, declines in food production, increases in storm and flood disasters and environmentally induced migration. All these developments pose potential for conflict.

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Middle East & North Africa

The geopolitical position of the Middle East and North Africa (MENA), its fossil fuel resources, high population growth and the political changes spurred by the Arab Spring all make the region one of the most dynamic in the world. Nevertheless, it is also one of the most arid and environmentally stressed. Dwindling water resources, limited arable and grazing land, high pollution from household and industrial waste, remnants of conflicts and increasing desertification are key environmental challenges.

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North America

Climate change has various impacts on the three North American countries of Canada, Mexico and the US. Canada and the US have well-developed adaptive capacities and foster the strengthening of capacities in other regions as well. With high per capita emissions, these two countries also bear a greater responsibility for a changing climate. Mexico has a sound national strategy for climate change adaptation, yet fewer capacities than Canada and the US. The poorer and rural populations of Mexico are especially vulnerable to climate change, due to an increased sensitivity and a lower adaptive capacity.

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Oceania & Pacific

In Oceania, population growth and economic development trends put a strain on oceanic and island ecosystems. Freshwater scarcity, overexploitation of fisheries, loss of land biodiversity, forests and trees, invasive species, soil degradation, increasing levels of settlement, poor management of solid and hazardous waste and disproportionate use of coastal areas are some of the problems. Climate change exacerbates most of these trends, while also raising questions about the future sovereignty of some island states.

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South America

South America has diverse and unique ecosystems and is very rich in biodiversity. Weak natural resource management, land disputes and extreme weather events bring about significant challenges for the region. While South America accounts for relatively few CO2 emissions, the changing climate will alter its ecosystems and greater climate variability will lead to more hurricanes, landslides, and droughts.

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Sub-Saharan Africa

In many African states, environmental security issues rank high on the political agenda. Throughout the continent, countries suffer from water scarcity, food insecurity and energy poverty. These chronic and worsening resource scarcities have severe livelihood implications and are exacerbated by political conflicts over access to and control over these resources. Climate change may seriously threaten political and economic stability in Africa. It may also put a severe strain on the capacities of states and societies to co-ordinate activities, to communicate and to organize.

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