Event Summary: Making Transatlantic Relations Green

A conference on The Future of Transatlantic Relations, co-organised by the Paris School of International Affairs, the Edmund A. Walsh School of Foreign Service, and the Georgetown Global Economic Challenges Network, took place on April 5, 2024. This event aimed to address pressing issues at the forefront of transatlantic relations. From charting pathways for green transition and sustainable growth to navigating the complex terrain of regulating emerging technologies, the panels explored the multifaceted dimensions of transatlantic cooperation and contention. In an era marked by rapid climate change, escalating inequality, ongoing wars in Europe and the Middle East, and the disruptive forces of technological advancement, the discussions examined collaborative opportunities, tensions, and divergent approaches to these global challenges. The conference aimed to shape a more resilient and interconnected transatlantic community in the face of shared global imperatives and uncertainties.

The first panel session, ‘Making Transatlantic Relations Green,’ discussed the future of green transition in the context of transatlantic relations. The panel, described in more detail below, featured insights from the following leading experts:

• Vishal Agrawal, Henry J. Blommer Family Endowed Chair in Sustainable Business and Professor of Operations Management, Georgetown University
• Anne Epaulard, Director of OFCE Economy & Environment Department, Sciences Po
• Philip Kearns, former Chief Investment Officer, D.E. Shaw Investment Management
• Marc Ringel, Chairholder at the European Chair for Sustainable Development and Climate Transition, Sciences Po
• Moderator: Natacha Valla, Dean, School of Management and Impact, Sciences Po

Anne Epaulard kicked off the discussion with an optimistic view on progress that has been made over the last 5 years, pointing to the implementation of a number of new policies aimed at mitigating climate change. She underscored the necessity of addressing both energy supply and demand in order to achieve net zero emissions: in addition to energy sobriety (reducing consumption) at the household level, significant investments and policy changes are critical. Epaulard suggested an ideal policy mix should involve a carbon tax and complementary subsidies to limit its adverse impacts, alongside significant investment in clean technologies. However, she warned that the transition will be costly, will slow down GDP growth, and while the EU has been implementing policies similar to this ideal policy mix (e.g., the EU Emissions Trading Scheme, Carbon Border Adjustment Mechanism), they risk incentivising the movement of funds from the EU to across the Atlantic.

Marc Ringel shared his insights on the European Green Deal, framing it as a strategic growth plan, rather than strictly ecological, poised to position Europe as the first carbon-neutral continent by 2050. He underscored the Deal’s ambition, noting that there has been a wave of transforming ambitious targets (e.g., reducing EU emissions by at least 55% by 2030) into regulations across a number of sectors. Despite the challenges, Ringel asserted the necessity of these regulations for sector-wide transformation and highlighted the role of crises such as COVID-19 and geopolitical tensions in likewise accelerating the shift towards energy security. He highlighted the transatlantic influence on many of the EU policies relating to the green transition, pointing out the inspiration that was drawn from policies already implemented by individual US states. He emphasised the potential for these policies to be replicated and adapted to different contexts around the globe, demonstrating the global scalability of localised environmental strategies.  However, he cautioned about the costs inherent to the green transition and hinted at the forthcoming European elections as a litmus test for the European Green Deal’s future – while also recognising that there is no real alternative.

Philip Kearns shifted the focus to the finance sector, highlighting the important role of investments in facilitating the green transition. Despite the increasing cost-effectiveness of renewable energy sources, Kearns pointed out the continued reliance on fossil fuels, attributing part of the challenge to regulatory bottlenecks, especially in the US. He advocated for a combination of policy support and market mechanisms to address emissions from the industrial and agricultural sectors, suggesting government-sponsored research and investor pressure as tools to encourage sustainable practices. Kearns also proposed financial strategies, such as creating low-carbon versions of indices, to incentivise investments in low-carbon industries, acknowledging the initial need for public finance to spur private equity flows into renewable energy.

Finally, Vishal Agrawal discussed the intersection of ecological strategies and business models, highlighting the diverse regulatory landscape across the US that complicates international operations. He emphasised the strategic importance of supply chain management in meeting sustainability targets, noting that many top companies have voluntarily set carbon reduction goals. Agrawal argued for a balanced approach that leverages both policy incentives and industry initiatives to drive cost-effective sustainability solutions across sectors. He underscored the potential of harmonising regulations to simplify the complex matrix of global business operations in pursuit of environmental goals.

The Q&A session with the audience explored themes central to the green transition, sparking a rich dialogue that wove together concerns over sustainability, technological innovations, and the political environment and financial underpinnings necessary for environmental progress. The discussion underscored the critical roles of agriculture and transport in the green transition, emphasising the necessity for both regulatory frameworks and business-led innovations. The conversation also touched on the potential of geo-engineering and carbon capture and storage as part of the solution while also highlighting their challenges and costs. Financial strategies, particularly the blending of public and private investments, were identified as crucial for advancing renewable energy adoption. The panellists, while acknowledging the important policy reforms that have been made in recent years, also cautioned against overestimating the importance of changing political climates to achieving continued progress. Irrespective of the results of the upcoming European elections, for example, there is an overarching momentum for the European Green Deal that will be difficult to derail at this stage, particularly given its growth-centric approach. Finally, the dialogue underscored the importance of global cooperation and shared innovation in fostering a sustainable future, recognising the interconnectedness of policy, technology, and behavioural change in achieving net zero emissions.

The full recording of this panel discussion can be found on the Sciences Po YouTube channel here.

For more information on this conference, please visit the event website.