FH to the EU: The green and social dimension should co-exist

The landmark climate proposal from the EU, The Green Deal Industrial Plan, offers little to no attention to social justice in the labour market

“We have to consider both the green and the social aspects if we are to succeed with the green transition. Initiatives that promote the green transition should at the same time encourage companies to raise wages and working conditions.” Says vice-president in FH, Morten Skov Christiansen.

The proposal of a Green Industrial Plan from the Commission, which was presented last week, is on the agenda when the European Council is having a summit the 9^th and 10^th of February in Brussels.

The Commission’s proposal introduces initiatives to make sure that the European industry can maintain its world leading green position, despite increased competition from around the world.

The EU does not integrate social aspects

But if you compare the social aspects in this new proposal with the newly adopted Inflation Reduction Act (IRA) in the United States, it becomes clear that there is a lack of focus on social justice and working conditions in the European approach compared to the American initiatives.

In the European approach, the social aspects are limited to upskilling and reskilling. In the American approach, they include a number of social conditionalities.

The Inflation Reduction Act aims to tackle the climate crisis while lifting up workers and creating good-paying, union jobs across the US through: bonus tax credits for companies and their subcontractors that pay decent wages, invest in training and hire apprentices; tax corporate stock buybacks to encourage businesses to invest instead of enriching CEOs; extra tax credits for clean energy projects established in communities previously reliant on extractive industries.

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“When the US shows that it is possible to introduce social clauses in climate legislation, the lack of the same provisions in the European legislation becomes very clear.. I hope that EU leaders will decide on a more social and just approach”, says Morten Skov Christiansen, vice-president in FH.

There is still quite a road ahead before we see the final result. The European Council are discussing the climate proposal this week and hereafter there is a possibility that the Commission will present legislative proposals and different initiatives.

In FH we aim to include measures on social justice and workers participation throughout  all climate related European legislation, where appropriate.