Awwal 18, 1432 H/Feb 21, 2011, SPA -- A tougher European Union goal for cutting greenhouse gas emissions could create jobs and boost economic growth by 2020, rather than slow it down as many EU governments fear, a study said on Monday, according to Reuters. A shift to emissions cuts of 30 percent below 1990 levels by 2020, from the EU's existing 20 percent target, would help spur innovation and investment in a low-carbon economy after the financial crisis, it said. "Post-crisis Europe can revitalize its economy by tackling the climate challenge," according to the study, led by the Potsdam Institute for Climate Impact Research and commissioned by the German Environment Ministry. It said a 30 percent cut could boost EU gross domestic product (GDP) growth by 0.6 percent a year, create up to 6 million extra jobs in Europe by 2020 and increase European investments from 18 percent of GDP to up to 22 percent. By 2020, that would increase European GDP by 620 billion euros ($847.4 billion), or by 6 percent above business as usual trends, it said. The study said many countries had recovered from a global crisis in 1929 with a surge of investments, especially in the military. Now, investment in cleaner growth could drive recovery after the financial crisis of 2007-08, it said. Britain, like Germany on target to make deep cuts in emissions by 2020 unlike many EU countries which have been struggling to clean up fossil fuel use, hailed the report. "Until now, studies have worked on the basis that new resources to tackle carbon emissions would have to come from competing uses, and would therefore cost a small amount," British Energy and Climate Change Secretary Chris Huhne said.
