Current Environmental Policy of the European Union: The struggle for resources and conflict of interests in various market segments (Part 2)

Sokolov Roman ORCID: 0000-0002-8626-5629 Student, research assistant, International Interdisciplinary Research Laboratory "Study of global and Regional socio-political processes", Nizhny Novgorod State Linguistic University named after N.A. Dobrolyubov. 603095, Russia, Nizhegorodskaya oblast', g. Nizhnii Novgorod, ul. Minina, 31a romasokolov777@gmail.com Other publications by this author     Rogozhina Evgeniya Mikhailovna ORCID: 0000-0003-3515-2699 PhD in Politics Associate Professor, Department of International Relations and World Political Processes, Federal State Budgetary Educational Institution of Higher Education "Nizhny Novgorod State Linguistic University named after N.A. Dobrolyubov" 603155, Russia, Nizhegorodskaya oblast', g. Nizhnii Novgorod, ul. Minina, 31a evgenia-amiga@yandex.ru Other publications by this author

Tikhomirova Aleksandra Dmitrievna ORCID: 0000-0001-8320-7389 Student, Department of International Relations and Foreign Regional Studies, Nizhny Novgorod State Linguistic University named after N.A. Dobrolyubov 603155, Russia, Nizhegorodskaya oblast', g. Nizhnii Novgorod, ul. Minina, 31a, of. 1407 a.tikhomirovaaa@mail.ru Other publications by this author

            Without a doubt, the topic of ecology is extremely important in the modern world: the global problem of environmental pollution can be solved only through the joint efforts of the absolute majority of countries in the world. In this case, the European Union is a model of a coordinated policy of bringing production and consumption to the required standards, in an attempt to achieve a reduction in emissions by at least 55% by 2030 compared to 1990 levels in the framework of the "European Green Deal" ^[1].

The EU policy within the framework of the ecological transformation of the economy of all the countries of the Union is multifaceted. It covers almost all spheres of society, is aimed at educating the population on "ecological" behavior and preventive activities in the field of environmental conservation. At the same time, this is one of the significant shortcomings of the EU policy and the reason for its conflict-causing potential. It should be noted that the union's activities at the supranational level are focused on the formation of framework agreements setting targets equal for each EU member state. This policy in the field of ecology, in our opinion, is not entirely applicable. The EU member states, which differ in their geographical location, level of economic development, and concentration of production, are obliged to form their legislation in order to achieve equal indicators, such as reducing greenhouse gas emissions as a percentage of the volume produced by the country in 1990. Not all countries are able to finance such projects independently without prejudice to their domestic policy. ^[2] In light of the deterioration of relations between Russia and the EU countries after February 24, 2022, the success of the EU eco-policy in the planned time period is declining. The EU is developing an accelerated plan to reduce energy dependence on Russia, which will require the union to abandon part of the norms and standards in the field of environmental protection. As a result of the rejection of nuclear energy by most EU countries at the end of the 20th century, the only "fast" alternative to Russian hydrocarbons remains coal, deposits of which are in Germany and France^[3]

The European Union is in a state of readiness for a radical revision of its domestic policy in the field of energy and ecology. Objective environmental conditions incline EU governments to accept "dirty" energy sources as a temporary alternative, but the population exerts significant political pressure, continuing to bend the line of further environmental protection and preservation of plans for the implementation of environmental policy on time. [4a] This work largely answers the question of how the politically active population forms the environmental agenda and how ecopolitics itself affects the economy and society.

The purpose of this study is to trace the relationship and mutual influence of the environmental policy of the European Union with the current trend of the struggle for resources in the context of the ongoing conflict of interests on this issue in various market segments. Also in this article, the authors tried to trace the dependencies of the mechanism of implementation of the environmental policy of the European Union, establishing what impact it has on public opinion in European countries, as well as on their economy and politics, and what reverse impact these areas have on environmental policy itself as such.

Objectives of this study are as follows:

1. To consider the relevance of the issue of environmental policy for the European Union in modern conditions;

2.                  To identify the reasons for the popularity of environmental policy, especially among young people;

3.                  To determine the role of environmental policy in the process of transformation of the economic situation in the European Union;

4.                  To analyze the degree of influence of modern EU environmental policy on the pricing process;

5.                  To propose the study of EU environmental policy as a technology of political and economic influence;

6. To make forecasts and identify possible trends in the implementation of modern EU environmental policy.

In accordance with this research direction, the authors selected and applied the following methodological approaches: systemic and institutional: when considering the relationships of actors both at the global and regional levels. Within the framework of a systematic approach, the interaction of the European Union countries within the framework of a new environmental policy is considered, affecting internal changes in the political, economic and social spheres on the example of individual participating countries. Thanks to the institutional approach, the analysis of the regulatory framework of the documents and programs necessary for the study was carried out. The authors also used the following research methods when writing the article: thanks to the historical method, we established causal relationships between various processes and events; the institutional method was used by us for a comprehensive analysis of the legislative framework of the European Union countries, as well as the programs of political parties of major European countries.

Environmental issues in the youth environment of the European Union

The popularity of the environmental agenda has, among other things, one important reason for the interest of European youth in this problem. The EU pursues an active policy on environmental education of schoolchildren and students.

A good example is the European Youth Climate Forum, organized by the European Economic and Social Committee on March 18-19, 2021 ^[4]. After two days of lively virtual discussions and debates, more than 234 students aged 16 to 18 who took part in the Your Europe your say 2021 summit developed specific recommendations, which were presented at the final plenary session. The students had to try on the role of a stakeholder group in modeling the United Nations Climate Change Conference and work together with other groups to create a plan to limit global warming to a safe level well below 1.5°C by the end of the century. The groups represented real sectors and industries whose activities and propaganda affect global warming. Specific proposals were submitted to the Executive Vice-President of the European Commission, Frans Timmermans, which were later reflected in the European Union's climate change prevention programs. Thus, the younger generation is actively involved in environmental issues, because from a young age they understand and realize the problem of climate change, they also see its impact on their daily lives. Many of them believe that environmental problems affect human life and our future, so they want to bring something meaningful into their lives by combining their studies and their interest in nature and environmental problems ^[5].

We can also give an example of the Fridays for future movement ^[6], organized by a young eco-activist Greta Turnberg. The effect of peaceful demonstrations and strikes is described in detail in the work "From Dictatorship to Democracy" by Gene Sharp ^[7], however, apart from the actualization of the problem and the creation of inconveniences for residents of large cities, the researchers of this movement have not revealed any other influence. The response to calls for strikes with detailed instructions on their implementation is undoubtedly one of the manifestations of destructive political tactics, however, this movement retains its popularity ^[6]. The existence of this movement is certainly an example of a youth climate initiative. At the same time, the authors note the political potential in conjunction with the coverage of significant masses of young people throughout the European Union and even the world, which has a public and political resonance, influencing the governments of countries ^[8], primarily the EU, in the direction of updating environmental problems and speeding up the decision-making process on them.

The popularity of ecology among young people contains quite definite reasons that are characteristic of both an organized political environmental movement, in this case equal to the "green" parties, and for an unorganized movement, mainly expressed in environmental associations, clubs, interest groups in social networks, etc.

These reasons can be defined into 3 main groups:

1)    Ideological – the position of the Hippie movement in a new understanding, together with the desire of young people to protest state policy, became the basis for the emergence of environmental ideas in the minds of young people ^[9]. An additional influencing factor is the development of terrorist movements in the late XX- early XXI centuries, which helped to realize the inapplicability of violent protest and the actualization of the ideas of pacifism, which in fact experienced the second peak of popularity after the Cold War.

2)    Ecological – gradual pollution of the environment, the beginning of fundamental climate changes that have led to various natural disasters. Such as the wildfires in California in 2018, Hurricanes Katrina in 2005, the drought in North America in 2012, the heat wave in Russia in 2010, which caused the death of about 50,000 people and others. According to research, these events are directly related to global warming by human influence on the environment.^[11] The high rates of industrial development in Europe in the second half of the twentieth century, combined with the active use of nuclear energy, which experienced a crisis of confidence after the Chernobyl nuclear power plant accident on April 26, 1986, caused the emergence of an active youth movement for improving the environmental situation and preventing environmental risks.

3)    Political – slogans and programs of green movements/parties seem to be quite real and feasible. The fight against climate change is, first of all, the achievement of certain quantitative indicators on the level of pollution, recycling and the share of clean energy. Unlike the pre–election promises of representatives of the left and right parties, mainly focused on solving qualitative problems, such as: "a decent standard of living for all citizens", the fight against unemployment and the guarantee of protection, the activities of the "greens" and the achievement of their declared goals by their parties and organizations in the election programs can be traced quite clearly and is not difficult. Measures to implement these provisions, in fact, are not innovative and complex. In this case, the hypothesis is as follows: the popularity of a party/ideology directly depends on how its provisions are implemented, and since the provisions of the party /ideology are implemented and this is reflected in reality, the party/ideology gets more supporters.

The role of environmental policy in the process of transformation of the economic situation in the European Union

The economy of the European Union is a complex interdependent system of national economies of the member countries of the association with a high degree of diversification. At the same time, thanks to the measures of the supranational government, subsidized and special financing programs help to gradually ensure the alignment of social guarantees in all countries of the Union. European environmental standards directly affect the development of the economy at both the national and supranational levels. As noted earlier, the directive management method is aimed at unifying key indicators, when specific measures to achieve them remain the responsibility of each Member State ^[10].

In this regard, the impact of environmental policy on the economic indicators of different countries is not equal. At the same time, the variability of legislative norms and restrictions that can lead to the achievement of the required environmental standards is not high. And, taking into account the desire of the EU countries to unify legislation, the trends existing in different EU countries regarding the "economy –environmental policy" relationship will be fair in the long term for all countries of the Union. The authors of the article separately note that it is the trends in the economy of the EU countries that arise due to or contrary to the European environmental policy that are of particular scientific interest, and their quantitative measurement by country or by the union as a whole will serve as the subject of further research.

The impact of modern EU environmental policy on prices.

The world economy will have to undergo far-reaching transformations in order to comply with the 2015 Paris Agreement on limiting the increase in the average global temperature by 1.5° Celsius compared to the pre-industrial level ^[12].

At the heart of these efforts is the need to radically reduce greenhouse gas emissions. According to the United Nations, global emissions must decrease by 7.6% each year between 2020 and 2030 in order to achieve the Paris goal ^[10].

The economies of the European Union are no exception in this case. Radical emission reduction programs affect not only industrial enterprises, but also ordinary EU citizens. In many countries of the Union, from 2030 it will be prohibited to sell cars with internal combustion engines ^[13]. Fuel and energy prices are gradually increasing. From January 1, 2021, firms supplying vehicles with fuel and buildings with fuel for heating are required, as industrial enterprises have been doing for a decade and a half, to acquire certificates for CO2 emissions. They shift their cost to end users, which is why a liter of gasoline has risen in price by about 0.07 euros (for comparison: at the moment, a liter of AI-95 costs an average of 1.60 euros) ^[14].

The purpose of the new environmental tax is to stimulate more economical fuel consumption and encourage owners of cars with internal combustion engines to switch to electric vehicles, the purchase of which the state supports with large sums, and the owners of individual houses are forced to replace outdated heating systems with more environmentally friendly ones, which is also subsidized. 

The gradual increase in energy prices, however, does not solve the environmental problems of the European Union in full. The increase in the cost of energy resources directly affects the level of the cost of the final industrial product, which makes it less accessible to consumers both within the EU and outside it.

State subsidies do not cover all the costs of upgrading private and commercial buildings, industrial facilities, and transport. The relative cost of modernization currently exceeds the possible savings in the short term, the payback period of some target modernization/replacement facilities exceeds the lifetime of these facilities or the period of their effective operation in the long term ^[15].

The transition from the use of fossil fuels to relatively cleaner energy sources, such as nuclear power, renewable energy sources, natural gas – all this does not take into account changes in the proportion of energy production and the degree of assessment of potential improvements in the efficiency of electric cars and alternative sources of heat production, which are quite possible in the very near future ^[16].

The authors of this article deliberately do not take into account these factors during the analysis, since the modern environmental policy of the European Union assumes its implementation in the next 10 years, and we can observe its effectiveness and impact on the economic state already now, in the short-term historical perspective.

The implementation of the norms of European environmental legislation at the present stage leads to an annual increase in the cost of fuel and energy resources, which leads to a gradual increase in the cost of goods and a decrease in the competitiveness of European goods on the world market, which is associated with an increase in the cost and cost of transportation.

The quantitative expression of this influence, however, is not so significant. Without taking into account the project of complete abandonment of motor transport with internal combustion engines by 2030 in a number of European countries, the annual increase in the cost of goods due to environmental policy is estimated at 2-7%, depending on the EU country ^[17]. Europeans are forced to pay more, however, taking into account structural changes in the European economy, sharp jumps in energy prices on world exchanges, a shortage of some raw materials and a global shortage of semiconductors, the environmental component of the rise in price is not so significant for the average European and is not the reason for a multiple increase in the cost of most goods.

The new EU Environmental Policy as a technology of political and economic influence

The modern environmental policy of the European Union enables states and enterprises to increase the competitiveness of their own goods and profit from non-core assets. It's all about the mechanism of implementation of restrictive measures in the legislation of the EU countries. A direct ban on greenhouse gas emissions into the atmosphere could potentially lead to the shutdown of enterprises, the closure of companies and unemployment, which will be a heavy burden on the budget of European countries, which, in turn, will reduce the possibility of financing modernization programs of enterprises that will be forced to close. Exponential expansion of the problem can destroy the economy of any country.

European countries, as well as their overseas partners, use a system of quotas and payments for greenhouse gas emissions into the atmosphere.  In the EU, prices under the Emissions Trading System (ETS) have recently begun to rapidly approach the required levels per tonne of carbon released into the atmosphere, partly reflecting expectations that the EU insists on ensuring a transition to clean energy.

In early December, ETS prices reached a new record high of almost 90 euros per ton of carbon, which is almost three times higher than at the beginning of 2021, and several times higher than their level a few years ago ^[18].

A measurable increase in carbon prices will help accelerate the transition to a green economy. If it persists, it will greatly deter new investments in fossil-fuel energy carriers. Also, the European Investment Bank refused to finance any projects related to the production of fossil fuel energy ^[19].

Emission quotas are an effective tactic that leads to the desired results in the long term. The increase in the carbon price should motivate the industry to switch to renewable energy sources in order to reduce costs ^[14].

Quotas, by the way, have an additional effect. Developed companies that initially worked with the active use of "green" technologies have the opportunity to sell their emission quotas at commercial prices to other enterprises. Thus, by removing carbon from the atmosphere, planting trees, producing energy from renewable sources and in the production of electric vehicles, concerns not only receive subsidies from the state for the development of enterprises, but also sell the received emission quotas to less "green" enterprises.

Emission quotas have become an element of speculation that allows factories to continue polluting the atmosphere and prevent the transition to green technologies. Up to a certain volume of production, determined separately in each company, the purchase of emission quotas is a more economically correct solution compared to the multimillion-dollar costs of upgrading production capital to fully comply with green standards.

Developed environmental legislation, for example, can be used to create competitive preferences for household goods and conduct a hidden protectionist policy.

The application of EU measures and environmental standards is indirectly used by Member States to increase import duties or a direct ban on the import of certain goods in the production of which the Union's environmental standards have not been met. It is almost impossible to implement restrictions on the movement of goods and services within the EU. However, for trading partners external to the EU, similar measures are applied. Thus, in certain categories of goods on the EU domestic market, the supply is formed from the products of European factories, while imported products are not allowed as not having passed environmental certification.

Forecasts and possible trends in the implementation of modern EU environmental policy

In the final part of the study, the authors identify several main trends in the life of European societies, the appearance of which should be expected in the near historical perspective in connection with the implementation of the modern environmental program of the EU:

1) Carbon offsetting will become mandatory. The current trend in the legislation of European countries to apply the obligation for a number of companies to compensate for the carbon produced and released into the atmosphere as part of production or transportation. The reduction of industrial emissions will contribute to the implementation of the European green deal, however, at the next stage, it is possible to apply emission quotas for trade companies, heat suppliers and individual homeowners using non-renewable energy sources for the operation and heating/cooling of premises ^[1]. The purchase of carbon emission quotas for such "pollutants" can be implemented not directly, but in the form of inclusion in the price of energy resources and/or equipment maintenance.

2)    Transition to energy-efficient personal transport. The expansion of the application of emission quotas for ordinary citizens of the union, regardless of the form of implementation, will directly affect the cost of operating cars and other personal vehicles with internal combustion engines. Modern technologies are not capable of a rapid transition of commercial vehicles to alternative energy sources, because they are not perfect. Personal transport is quite capable of being powered by electricity, which reduces operating costs and seems to be a more environmentally friendly option.

3) Reducing the level of operation of personal transport in the EU. The ban on the sale of cars with internal combustion engines and the increase in fuel prices do not seem to the authors to be a sufficient motivator for some EU citizens, especially from less developed countries, to switch to transport with alternative fuels. The ban on the operation of cars with internal combustion engines in a number of EU states by 2030-2035 ^[13] will lead to a decrease in the number of owners of private cars. The policy of motivation pursued by the governments of developed European countries to abandon a personal car in combination with the development of public transport, with the high relative cost of cars using alternative energy sources, will definitely cause some reduction in the operation of personal cars.

4)    Transition to reasonable consumption. The era of consumer society is passing into the past ^[20]. The modern generation, which will become the basis of the workforce by 2030-2040, is involved in the pursuit of solving environmental problems like no other generation. Studies show that 54% of these young people consider environmental and social efforts of the company very or extremely important when making a decision to purchase a service or product ^[5]. The same study claims that 40% of young people tend to buy goods produced in the nearest regions in order to reduce emissions from transportation. It is expected that the rate of consumption of goods and services will decrease, as well as a relative increase in the time of operation of industrial goods by the consumer, which will have a negative effect on producers.

5)    Recycled materials as the basis of all new products. Companies are already striving to create a closed-cycle production, where all new components are made from the materials of processing outdated products of the company. This approach is promising, given the manufacturer's obligations, according to the laws of a number of European countries, to be responsible for the processing of its own decommissioned goods. Processing, with modern technologies, makes it possible to obtain raw materials for production at a cost of extraction cheaper than obtaining completely new resources from mines, plantations or oceans. Achieving a complete closed production cycle is currently assessed as impossible, but the level of reuse of materials obtained from the processing of old products already reaches 80-95% in a number of industries ^[21].

6) Fossil fuels and non-renewable energy resources will not disappear. Fossil fuels, such as oil and coal, are used to produce a number of industrial products, including gasoline, coal briquettes, kerosene, fuel oil, and not limited to them. Oil and coal are used as raw materials for the production of polymers, metal processing and the production of alloys and power structures. Despite the active actions of eco-activists against coal mining in the EU ^[22], this fossil fuel, or rather a resource, will not disappear from production processes in Europe. The movement of ships and aircraft is impossible without oil refining products, experimental commercial aircraft manufactured by European Airbus within the framework of the ZEROe project ^[23] will appear no earlier than 2035. In some regions, the use of alternative energy sources for lighting and heating cities is difficult: these include the island of Svalbard, the northern part of Norway, Sweden and Finland, the regions of Switzerland, and European overseas territories. Weather conditions, a difficult landscape, problems with logistics and repair of existing alternative energy sources will become an obstacle to the implementation of a complete transformation of the EU to renewable energy sources. Resource dependence on Russia as part of the gas purchase, as well as the refusal of a number of countries from nuclear energy, primarily Germany, are considered by the authors as additional obstacles to the European Union's path to full carbon neutrality.

The European Union is actively advocating for solving the problem of climate change at the international level. The European Union believes in involving young people in these decision-making processes, giving young Europeans the opportunity to express their position on environmental issues and have the right to vote, thereby encouraging their environmental awareness and participation. Previously, environmental policy was perceived as a tightening of the use of natural resources. Currently, it is multifaceted, covering all spheres of public life. Its effect and the inevitability of its implementation are its competitive advantage. Responsible attitude to the resources of the planet, regulation of human intervention in the global environmental situation can improve the quality of life of people around the world, which ultimately is the goal of the environmental policy of the European Union.

Conclusions

1. The environmental policy of the European Union remains relevant in many respects. Despite the events of February-March 2022, which largely actualized the issue of reducing resource dependence on the supply of Russian hydrocarbons in Europe, the European Commission expresses its intentions to implement the environmental transformation plan on time.

2. Youth environmental movements play an essential role in updating the environmental agenda. At the same time, their destructive potential is noted, since their actions are largely implemented to the detriment of the educational process, the comfort of residents of large cities. The actions of such environmental organizations can be reduced to a simple formula: "we say that it is important for the environment to be counted, but we do not know how to improve it." The authors note that there are many local and pan-European competitions and grants where young people can put forward provisions for a new environmental policy or present technologies for environmental protection. Such forums are in demand and their resolutions are taken into account in the development of practical measures for the implementation of eco-policy.

3. In general, the environmental policy of the European Union regarding its impact on the economy of different countries cannot be unified. The framework nature of the Union's norms in this case is an advantage, since its practical implementation remains the responsibility of individual States. Taking into account local factors makes it possible to minimize short-term losses of enterprises while reducing emissions, which is an advantage of this approach.

4. Eco-policy definitely increases the expenses of the average European citizen. Basically, the new environmental protection measures are aimed at the energy and transport sector, which increases the cost of transportation, and, at the same time, the cost of resale of goods. Regardless of the country of origin, only as a result of measures to compensate for the emissions of transport companies, goods within the euro zone become more expensive by 3-7 percent annually. In the current economic and political situation, the rise in the cost of goods and services is likely to only increase.This is primarily due to energy problems and compensation of emissions from "dirty" coal-fired power plants.

Summarizing all the above, the authors note a high level of dependence of the economic development of the European Union and its environmental policy. The applied measures are quite effective in the long term, however, they have some side effects, the impact of which is assessed by the authors as destructive. The use of environmental policy as a tool for the transformation of the export-import balance is assessed as a positive experience for the EU, since in this way companies get the opportunity to finance additional environmental transformation and, in general, EU partners are forced to move towards greening. This phenomenon is undoubtedly a positive factor for the preservation and improvement of the environment around the world.

At the same time, the active involvement of young people in environmental movements seems to the authors to be far from the most positive trend. This practice is quite natural for a developed democratic society of the old EU, but the destructive potential of the most popular of these movements, such as Fridays for future, is obvious. The presence of such movements once again confirms the interest of European society in long-term environmental transformations, however, the question remains. Is such youth activity in the field of ecology an objective need of society or a fashion trend?

The authors note the complexity and coordination of the European environmental policy, some provisions of which, as well as the principles of implementation, can be borrowed by other states. Ultimately, the problem of environmental conservation is a global problem of humanity, the solution of which is possible only through the efforts of most countries of the world.