Is Europe Losing Its Appetite For Green?

But gaining an appetite for saving cash?

"People hate this green stuff" a senior member of the British Shadow Cabinet was recently quoted as saying.

That may come as a surprise - until very recently I’ve been writing enthusiastically of the rapid progress of European governments on green issues. However, as high energy prices begin to bite, and the world teeters on the brink of recession Europe is looking "at this green stuff" like a 10 year old staring at a plate of sprouts.

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After strong rhetoric from Britain’s Labour government last year promising emissions cuts of up to 80%, the harsh face of reality looks very different. 60 of Britain’s138 green targets have been missed, and planned policies on many issues, from landfill to transport to renewable energy, are being reconsidered as voters recoil at the prospect of additional pressure on household budgets.

And it’s not just the UK government that’s under pressure. On the mainland, Germany is attempting to reduce its generous solar energy subsidies, and the European Parliament is facing renewed calls from airlines to delay pollution measures amid renewed fears of bankruptcy in the aviation industry.

Meanwhile, alarmed by unexpected costs, Shell has pulled out of the London Array wind farm project which is planned to provide carbon free energy to 750,000 homes. "We’ve made a decision not to proceed with it and we don’t feel very good about that," said Shell spokesman James Smith. Conversely, high oil prices now make the dirty process of oil extraction from tar sands a viable option. Explaining his company’s new investments in tar sands, Smith explained somewhat sheepishly "It is a step in the wrong direction, but not quite as large a step as some people suggest."

But is it all doom and gloom?

Probably not. Governments may be wavering as consumers count the pennies, but they are aware that voters will hold them to account in the long run over their management of the environment. Likewise, the loss of face for firms that have invested heavily in a green image, such as Tesco, Marks & Spencer and HSBC, would be too expensive to contemplate in all but the most desperate of times.

And, at the end of the day, green measures usually just make good economic sense. "The green pound really can go further" says British environment minister Phil Woolas, pointing out the obvious fact that reducing emissions has the benefit of reducing inputs, and hence costs.

Making this point to consumers, a group of companies have joined forces at together.com, providing practical information on simple consumer options that do save real money. Having calculated that the average household could potentially save more than £1,100 ($2,143), together’s David Hall claims "People can save hundreds of pounds a year by making greener everyday choices. The green penny is definitely dropping for British shoppers feeling the pinch from rising living costs."

More sprouts, anybody?

Read more on Britain’s Green Appetite at the Financial Times.

Image credit: rudiriet at Flickr under a Creative Commons license

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