European Commission proposal for a fair transition towards climate neutrality: Correct objective but wrong instrument

In its proposal for a Council Recommendation, the European Commission suggests that Member States should “ensure that the Union’s transition towards a climate–neutral and environmentally sustainable economy by 2050 is fair and leaves nobody behind” and take the necessary measures “to adopt and, in close cooperation with social partners as relevant, implement comprehensive and coherent policy packages, addressing the employment and social aspects to promote a fair transition across all policies, notably climate, energy and environmental policies, as well as to make optimal use of public and private funding.” Specific measures a proposed to ensure that green transition will not bring adverse effects for citizens and employees. The role that quality green job creation, the maintenance of working conditions as well as inclusive access to education, training and life-long learning in green skills have for a socially fair transition is highlighted.

The proposal now needs to be deliberated and agreed on within the Council. The European Parliament is not formally involved.

In line with a consultation statement submitted to the European Commission during its drafting phase of the text, CESI:

• welcomes the European Commission’s initiative to address social and labour aspects of the just transition towards climate neutrality, as part of its European Green Deal. The objectives laid out in the proposal are generally correct and important to attain.
• stresses however that unfortunately a Council Recommendation is an insufficient legal tool to achieve socially fair and sustainable green transitions. Experience has shown that Member States implement (or not) non-binding Recommendations at their convenience. CESI questions the impact that a Recommendation will have.
• moreover underlines that a more holistic approach and streamlining across EU legislation would instead be necessary, comprising, most notably: (1) further reviewing EU legislation with the aim to better enforce existing legislation and identify legislative gaps to close and make labour markets and working conditions fairer and fit for the green age, (2) further binding measures for a strengthened participation of workers and their representatives in change management, and (3) more emphasis in the EU macroeconomic governance system and in EU funding tools, e.g. through the Recovery and Resilience Facility, Just Transition Fund European Globalisation Adjustment Fund, to ensure that the necessary resources and infrastructure are provided to give to the at-risk jobs of today a future.

CESI Secretary General Klaus Heeger said: “Already during CESI’s last Congress in 2020, we demanded a Social Deal to accomany the Green Deal at par. The EU imposes new rules for energy transitions and climate protection which will also involve significant costs for many citizens and employees. It is irreponsible that the EU set rules with impacts down to the level of the individual but then leaves the management of these impacts at the entire discretion of the Member States. A recommendation will likely be a paper tiger that Member States can just ignore without any consequences if it suits them.”