A study conducted by Eco Austria on behalf of the Oecolution association, an organization funded by the Chamber of Commerce and the Association of Industrialists, reveals the need for substantial economic growth in Austria. The study suggests that the national economy needs to grow at least 4.3% per year to meet climate goals. If Austria aims to achieve climate neutrality by 2040, the growth rate would need to increase to 7.4% annually.
Köppl-Turyna, one of the proponents of the study, argues that it is possible to separate economic growth from emissions. From 2005 to 2022, Austria managed to reduce emissions by 22%, while real gross domestic product (GDP) grew by a quarter. This is a common trend in developed economies where technical advancements and the expansion of the service sector lead to rising incomes, but decreasing emissions. The study confirms this trend for Austria, even when taking into account trade effects, as wealthier countries tend to consume more than they produce.
Political Measures
However, the economic outlook is not as optimistic. The economic research institute predicts an average growth rate of 1.6% by 2027, which is significantly lower than the growth required to meet environmental goals.
To meet these ambitious goals, Oecolution and Eco Austria suggest several measures. These include accelerating the expansion of the electrical grid and financing it through the budget rather than network costs. They also recommend increasing technology transfers to developing countries to reduce global emissions, which would simultaneously generate opportunities for the export industry.
Oecolution’s Managing Director, Elisabeth Zehetner, criticizes the current form of the EU Supply Chain Act, labeling it as a “bureaucratic monster”. She suggests using supplier certifications as a more efficient alternative to placing the responsibility on companies.
