Shaping a Responsible Tomorrow: Why Sustainable Economic Growth Matters
Key Highlights
1. The Imperative of Sustainability
- Challenges Ahead: Climate change, resource depletion, and social inequality demand innovative and tailored responses beyond traditional paradigms.
- Opportunities for Growth: Sustainability is not just a moral responsibility but a strategic pathway to long-term economic prosperity.
2. Europe’s Commitment to Sustainability
- Ambitious Climate Goals:
- EU Climate Law targets a 55% reduction in greenhouse gas emissions by 2030.
- The European Green Deal integrates sustainability into actionable plans to leave no person or place behind.
- Budget Allocation:
- 30% of the EU’s long-term budget (2021–2027) is dedicated to climate-related projects.
- A fiscal stimulus package focuses on building sustainable and inclusive economies.
- Carbon Neutrality Leadership:
- Portugal was one of the first countries to set a carbon neutrality target for 2050.
- By 2023, 83% of Portugal’s electricity came from renewable sources, with the grid running entirely on renewables for several days in November 2023.
3. Enabling a Green Transition
- Capital and Regulation:
- A substantial mobilisation of capital is essential, supported by clear regulations and effective incentive schemes.
- Striking a balance between innovation and regulation ensures economic growth while fueling green investments.
- The Role of the Private Sector:
- A vibrant private sector is critical to financing and driving the green transition.
- Startups and entrepreneurs are pivotal in delivering innovative solutions for sustainable development.
4. Financial Sector as a Catalyst
- Impact Economy:
- The financial sector plays a central role in funding sustainable economic growth and accelerating climate transition.
- FinTechs are crucial in democratizing access to financial services, fostering inclusion, and supporting marginalised communities.
- ESG Standards and Incentives:
- EU regulations on ESG-related disclosures and green bonds facilitate capital flows to sustainable businesses.
- Companies integrating ESG principles attract more investment, talent, and customers while reducing risks.
5. Twin Transition: Sustainability and Digitalisation
- Transformational Technologies:
- Digital tools such as AI, IoT, and cloud computing enhance resource efficiency, reduce waste, and optimise supply chains.
- Portugal’s Role:
- Startups and scale-ups in Portugal are spearheading innovative solutions, establishing the country as a testbed for sustainable and digital transitions.
- Events like the Web Summit in Lisbon are catalysts for connecting global innovators and driving progress.
6. Collaboration on a Global Scale
- Portugal as a Bridge:
- Portugal’s unique position as a gateway to Europe, Africa, and Latin America allows it to connect global markets and drive sustainable innovation.
- Global Trade and Cooperation:
- Achieving a sustainable economy requires worldwide collaboration, promoting innovation, and ensuring equitable economic growth.
7. A Just and Inclusive Transition
- Social Inclusion:
- Financial schemes should protect vulnerable populations, offering reskilling programs and access to jobs in new economic sectors.
- Building resilience involves preparing for climate events while strengthening economic frameworks for the most vulnerable.
Conclusion
The journey towards sustainable economic growth is a shared endeavor. Governments, businesses, and individuals must collaborate to ensure resilience, prosperity, and justice for future generations. Let us embrace financial innovation and shared responsibility to leave a lasting legacy.
Speaker:
- H.E. Pedro Reis, Minister of Economy, Portugal