Policy brief

The geopolitics of the European Green Deal

The Green Deal will redefine Europe’s global policy priorities; as such, it is a foreign policy development with profound geopolitical consequences

Publishing date
02 February 2021

Policy Contribution co-writted by Mark Leonard and Jeremy Shapiro from ECFR.

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The European Green Deal is a plan to decarbonise the EU economy by 2050, revolutionise the EU’s energy system, profoundly transform the economy and inspire efforts to combat climate change. But the plan will also have profound geopolitical repercussions. The Green Deal will affect geopolitics through its impact on the EU energy balance and global markets; on oil and gas-producing countries in the EU neighbourhood; on European energy security; and on global trade patterns, notably via the carbon border adjustment mechanism. At least some of these changes are likely to impact partner countries adversely.

The EU needs to wake up to the consequences abroad of its domestic decisions. It should prepare to help manage the geopolitical aspects of the European Green Deal. Relationships with important neighbourhood countries such as Russia and Algeria, and with global players including the United States, China and Saudi Arabia, are central to this effort, which can be structured around seven actions:

Help neighbouring oil and gas-exporting countries manage the repercussions of the European Green Deal. The EU should engage with these countries to foster their economic diversification, including into renewable energy and green hydrogen that could in the future be exported to Europe.

Improve the security of critical raw materials supply and limit dependence, first and foremost on China. Essential measures include greater supply diversification, increased recycling volumes and substitution of critical materials.

Work with the US and other partners to establish a ‘climate club’ whose members will apply similar carbon border adjustment measures. All countries, including China, would be welcome to join if they commit to abide by the club's objectives and rules.

Become a global standard-setter for the energy transition, particularly in hydrogen and green bonds. Requiring compliance with strict environmental regulations as a condition to access the EU market will be strong encouragement to go green for all countries.

Internationalise the European Green Deal by mobilising the EU budget, the EU Recovery and Resilience Fund, and EU development policy.
Promote global coalitions for climate change mitigation, for example through a global coalition for the permafrost, which would fund measures to contain the permafrost thaw.

Promote a global platform on the new economics of climate action to share lessons learned and best practices.

 

Recommended citation
Leonard, M., J.Pisani-Ferry, J. Shapiro, S. Tagliapietra and G. Wolff (2021) ‘The geopolitics of the European Green Deal’, Policy Contribution 04/2021, Bruegel

About the authors

  • Jean Pisani-Ferry

    Jean Pisani-Ferry holds the Tommaso Padoa Schioppa chair of the European University Institute. He is a Senior Fellow at Bruegel, the European think tank, and a Non-Resident Senior Fellow at the Peterson Institute (Washington DC). He is also a professor of economics with Sciences Po (Paris).

    He sits on the supervisory board of the French Caisse des Dépôts and serves as non-executive chair of I4CE, the French institute for climate economics.

    Pisani-Ferry served from 2013 to 2016 as Commissioner-General of France Stratégie, the ideas lab of the French government. In 2017, he contributed to Emmanuel Macron’s presidential bid as the Director of programme and ideas of his campaign. He was from 2005 to 2013 the Founding Director of Bruegel, the Brussels-based economic think tank that he had contributed to create. Beforehand, he was Executive President of the French PM’s Council of Economic Analysis (2001-2002), Senior Economic Adviser to the French Minister of Finance (1997-2000), and Director of CEPII, the French institute for international economics (1992-1997).

    Pisani-Ferry has taught at University Paris-Dauphine, École Polytechnique, École Centrale and the Free University of Brussels. His publications include numerous books and articles on economic policy and European policy issues. He has also been an active contributor to public debates with regular columns in Le Monde and for Project Syndicate.

  • Guntram B. Wolff

    Guntram Wolff was the Director of Bruegel. Over his career, he has contributed to research on European political economy and governance, fiscal, monetary and financial policy, climate change and geoeconomics. Under his leadership, Bruegel has been regularly ranked among the top global think tanks and has grown in influence and impact with a team of now almost 40 recognized scholars and around 65 total staff. Bruegel is also recognized for its outstanding transparency.

    A recognized thought leader and academic, he regularly testifies at the European Finance Ministers' ECOFIN meeting, the European Parliament, the German Parliament (Bundestag) and the French Parliament (Assemblée Nationale). From 2012-16, he was a member of the French prime minister's Conseil d'Analyse Economique. In 2018, then IMF managing director Christine Lagarde appointed him to the external advisory group on surveillance to review the Fund’s priorities. In 2021, he was appointed to the G20 high level independent panel on pandemic prevention, preparedness and response. He is also a professor (part-time) at the Solvay Brussels School of Université Libre de Bruxelles, where he teaches economics of European integration.

    He joined Bruegel from the European Commission, where he worked on the macroeconomics of the euro area and the reform of euro area governance. Prior to joining the Commission, he was coordinating the research team on fiscal policy at Deutsche Bundesbank. He also worked as an external adviser to the International Monetary Fund.

    He holds a PhD in economics from the University of Bonn and studied in Bonn, Toulouse, Pittsburgh and Passau. He taught economics at the University of Pittsburgh and at Université libre de Bruxelles. He has published numerous papers in leading academic journals. His columns and policy work are published and cited in leading international media and policy outlets. Guntram is fluent in German, English, French and has good notions of Bulgarian and Spanish.

  • Simone Tagliapietra

    Simone Tagliapietra is a Senior fellow at Bruegel. He is also Adjunct professor of Energy, Climate and Environmental Policy at the Università Cattolica del Sacro Cuore and at The Johns Hopkins University - School of Advanced International Studies (SAIS) Europe.

    His research focuses on the European Union climate and energy policy and on the political economy of global decarbonisation. With a record of numerous policy and scientific publications, he is the author of Global Energy Fundamentals (Cambridge University Press, 2020), L’Energia del Mondo (Il Mulino, 2020) and Energy Relations in the Euro-Mediterranean (Palgrave, 2017).

    His columns and policy work are published and cited in leading international media such as the Financial Times, The New York Times, The Guardian, The Wall Street Journal, Le Monde, Die Zeit, Corriere della Sera, Il Sole 24 Ore and others.

    Simone holds a PhD in Institutions and Policies from Università Cattolica del Sacro Cuore. Born in the Dolomites in 1988, he speaks Italian, English and French.

  • Jeremy Shapiro

    Jeremy Shapiro is Research Director at ECFR. Previously he was a fellow in the Project on International Order and Strategy and the Center on the United States and Europe at Brookings, where he edited the Foreign Policy program's blog Order from Chaos. Prior to Brookings, he was a member of the U.S. State Department’s policy planning staff, where he advised the secretary of state on U.S. policy in North Africa and the Levant. He was also the senior advisor to Assistant Secretary of State for European and Eurasian Affairs Philip Gordon, providing strategic guidance on a wide variety of U.S.-European foreign policy issues.

  • Mark Leonard

    Mark Leonard is co-founder and director of the European Council on Foreign Relations, the first pan-European think tank. His topics of focus include geopolitics and geoeconomics, China, EU politics and institutions.

    Leonard hosts the weekly podcast “Mark Leonards’s World in 30 Minutes” and writes a syndicated column on global affairs for Project Syndicate. Previously he worked as director of foreign policy at the Centre for European Reform and as director of the Foreign Policy Centre, a think tank he founded at the age of 24 under the patronage of former British Prime Minister Tony Blair. In the 1990s, Leonard worked for the think tank Demos where his Britain™ report was credited with launching Cool Britannia. Mark has spent time in Washington, D.C. as a Transatlantic Fellow at the German Marshall Fund of the United States, and in Beijing as a visiting scholar at the Chinese Academy for Social Sciences.

    He was Chairman of the World Economic Forum’s Global Agenda Council on Geoeconomics until 2016.

    Honoured as a “Young Global Leader” of the World Economic Forum, he spends a lot of time helping governments, companies, and international organisations make sense of the big geo-political trends of the twenty-first century. He is a regular speaker and prolific writer and commentator on global issues, the future of Europe, China’s internal politics, and the practice of diplomacy and business in a networked world. His essays have appeared in publications such as Foreign Affairs, the Financial Times, the New York TimesLe MondeSüddeutsche ZeitungEl PaisGazeta WyborczaForeign Policy, the New Statesman, the Daily TelegraphThe EconomistTime, and Newsweek.

    As well as writing and commenting frequently in the media on global affairs, Leonard is author of two best-selling books. His first book, Why Europe will run the 21st Century, was published in 2005 and translated into 19 languages. Leonard’s second book, What does China think? was published in 2008 and translated into 15 languages. He has published an edited volume on Connectivity Wars and is working on a forthcoming book on the same topic.

    conomic Forum’s Global Agenda Council on Geoeconomics until 2016.

    Honoured as a “Young Global Leader” of the World Economic Forum, he spends a lot of time helping governments, companies, and international organisations make sense of the big geo-political trends of the twenty-first century. He is a regular speaker and prolific writer and commentator on global issues, the future of Europe, China's internal politics, and the practice of diplomacy and business in a networked world. His essays have appeared in publications such as Foreign Affairs, the Financial Times, the New York Times, Le Monde, Süddeutsche Zeitung, El Pais, Gazeta Wyborcza, Foreign Policy, the New Statesman, the Daily Telegraph, The Economist, Time, and Newsweek.

    As well as writing and commenting frequently in the media on global affairs, Leonard is author of two best-selling books. His first book, Why Europe will run the 21st Century, was published in 2005 and translated into 19 languages. Leonard's second book, What does China think? was published in 2008 and translated into 15 languages. He has published an edited volume on Connectivity Wars and is working on a forthcoming book on the same topic.

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