Erika Strazzante, Carys Richards, Sebastian Baciu and Zoe Skipper Reed
Illustration by Adam Choudhury
‘Sustainable growth’ as we know it is no longer an option, as our planet is reaching many of its tipping points – a place of no return. Redesigning our economic system to fit planetary boundaries must become a priority to ensure that we address the climate and biodiversity crises with the highest urgency. With many models emerging as potential roadmaps for moving beyond growth, doughnut economics offers a potential alternative to EU policies for people and the planet.
The (un) sustainability of economic growth
In an attempt to decouple economic growth from environmental degradation, the Agenda 2030 of the United Nations aims to promote inclusive and sustainable economic growth through the achievement of SDG 8. The targets refer to the use of technological innovation and better resource management as key factors to dismantle the link between our ways of living and their devastating effects on the planet.
However, this is not enough. In fact, the goal fails to consider that economic growth as we know it – that is an idea of human progress depends on an infinite increase in production, consumption and resource use – cannot be compatible with the Earth’s finite capacity to sustain current human well-being and its future existence. Furthermore, studies from the European Environmental Agency (EEA) suggest that ‘absolute decoupling’ of economic growth from carbon emissions is not only impossible but incompatible with global commitments to emissions reduction targets, namely the Paris Climate Agreement.
As the EEA points out, our idea of growth is culturally, politically and institutionally rooted in modern societies as separated from environmental issues. In a European context, the growth strategy of the recent European Green Deal undermines the recovery of present and future inhabitants of our planet from both the COVID-19 pandemic and mitigating the climate crisis. But it does not have to be like this. Our “business as usual” model can be rethought, especially in the context of global sustainability. European institutions must pursue alternative models to economic growth which support intergenerational equity, promote environmental protection and provide opportunities for citizens to participate in the redesign of our economic and social systems. Doughnut economics stands out as an interesting example of these alternative models to economic growth, proving that thinking outside the box is possible.
The European Green Deal: can growth be green?
The EU has approached the reconciliation of climate action and economic growth with the development of the European Green Deal. The Green Deal aims to decouple economic growth from resource use through green innovations that tackle the climate crisis, supposedly leading the EU to carbon neutrality by 2050. Whilst the importance given to tackling the climate crisis seems to mark a break with placing the economy before the environment, does the Green Deal really put climate action on par with economic growth?
Worryingly, the Green Deal is framed as a “new growth strategy”. This contributes to a belief that economies can become greener and more resource-efficient, rather than questioning the unsustainability of the growth model. The Green Deal is based on the understanding that economic growth can be decoupled from resource use at a scale in line with the carbon reduction needed under the Paris Climate Agreement. As of yet, there is no evidence to suggest that decoupling is happening, or that it is even possible without significant technological developments. In light of its severe impact on young people and future generations, Generation Climate Europe called the European Commission to reconsider the primary growth focus of the European Green Deal. Whilst the Green Deal represents the EU’s willingness to engage with climate action, economic growth, no matter how ‘green’, remains incompatible with carbon reduction. In other words, pursuing SDG8: Decent Work and Economic Growth in this way undermines SDG13: Climate Action. It is, for this reason, we echo this recent statement made by the EEA, a sentiment that has since been endorsed by the European Environmental Bureau (EEB). They suggest that alternatives to mainstream ideas of economic growth can offer valuable insights into how we can shape society going forward.
Could doughnut economics be the answer?
The goal is to meet the needs of the people within the needs of the planet. This is the central tenet of doughnut economics, a novel concept that aims to go beyond traditional economic models and change the way we organise our life on the planet. To this end, doughnut economics does not rely on GDP figures, which continue to be used as a measure of economic success by many countries around the world despite their failure to provide an accurate picture of human welfare. Today’s challenges are much more complex, ranging from climate breakdown to global pandemics, which in turn require a systemic change in our economic mindset.
Doughnut economics brings forth the recognition that the economy operates within the broader framework of society and the living world. The main message behind this innovative concept is that we need to turn today’s degenerative economies into regenerative ones and allow for a greater redistribution of resources in order to put an end to inequality. In a nutshell, while today’s economic system is growth-addicted, doughnut economics is growth-agnostic, helping people thrive and live in sync with the planet.
How does doughnut economics work?
Doughnut economics can be viewed as a compass that helps humanity thrive in the 21st century without putting extra pressure on planetary ecosystems. It thus consists of two concentric rings: the inner circle of the Doughnut represents the social foundation – 12 basic human needs for a fulfilling life, inspired by the UN’s SDGs; the outer ring is the ecological ceiling, made up of 9 planetary boundaries. If we overshoot them, then the Earth’s life-supporting systems will eventually collapse. This is why we need to stay within the essence of the Doughnut, the green ring whose boundaries are the social foundation and the ecological ceiling. This is a space that is both ecologically safe and socially just.
Ever since the publication of ‘Doughnut Economics’ by Kate Raworth in 2017, policymakers have sought to apply this model to national and local levels. The concept is particularly popular among the Dutch, with Amsterdam being the first city to publicly implement doughnut economics as part of its post-pandemic recovery plan, with other cities such as Sydney, Berlin and Brussels also joining the initiative. Officials in Amsterdam hope to make the city fully circular by 2050. They established 49 specific goals all embedded within the Doughnut and created a comprehensive strategy to turn Amsterdam into a thriving and innovative city.
This marked the first use of the Doughnut as a tool that can transform cities and account for both local aspirations and global responsibilities. The Dutch capital thus sets an inspiring example for policymakers around the world, including those within Europe, whose duty should be turning doughnut economics into a global reality.
Mainstreaming alternatives to economic growth into EU policy
The doughnut economics project in Amsterdam shows that societies based on a socially just and environmentally sustainable model can, and must be rolled out across Europe. Indeed, cities can be unique incubators for change and show how to scale up successful solutions for the climate crisis.
The European Commission must mainstream alternatives like doughnut economics, post-growth and degrowth to initiate a just transition away from unsustainable economic growth and the associated global and ecological inequalities. We must move towards a circular model of Economy that will encourage global prosperity, allowing us, and future generations, to live within a system that is ecologically safe and socially just.