How to Balance Economy and Environment? - Newsweek
After the financial crisis, female leaders walk a fine line between economic recovery and green activism.
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Fast-forward to 2010: in the U.S., Barack Obama has shelved clean-energy legislation, focusing instead on health-care and jobs bills. In Europe, where last year’s Copenhagen climate talks were considered a failure, even Merkel is backpedaling on green pledges as Germany tries to shore up its industrial strength. Meanwhile, a flush China adds record numbers of gas guzzlers to its roads and invests in mammoth development projects that displace villages and mar the countryside, to the dismay of green activists.
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What a difference three years has made for Merkel. Under pressure from German industry, which is wary of competition from countries with fewer climate-protection rules, she’s now reversing the very goals she once trumpeted. In December 2008, she insisted, “We must ensure that our energy-intensive industry, which is driven by exports, is of course excluded from the [EU] emissions quotas.” She also has balked at the so-called 20/20/20 targets (which she once pushed as EU president), which call for a 20 percent cut in Europe’s emissions, 20 percent improvement in energy efficiency, and conversion to 20 percent renewable fuels by 2020. One way to achieve the targets is Europe’s carbon-credit scheme, which will require firms to pay to offset emissions starting in 2013. Merkel has demanded that German factories receive free carbon credits until 2020—a call that prompted other countries to follow suit, and muddied the project with accusations of national self-interest.
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