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
 
 

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