What Is the EU Green Deal? Goals, Key Legislation, and Impacts on Business
The EU Green Deal is a comprehensive plan introduced by the European Union to make the region's economy sustainable and address climate change. The initiative encompasses various sectors, including energy, transportation, and agriculture, aiming to achieve carbon neutrality and foster environmental protection by 2050.
This article aims to provide a clear and concise overview of the EU Green Deal, breaking down its key components, goals, associated legislation, and the impact it seeks to achieve. As we delve into the details of this ambitious plan, you'll gain a better understanding of how the EU is taking substantial strides towards a greener and more sustainable future.
Overview: What Is the EU Green Deal?
The EU Green Deal is a comprehensive action plan introduced by the European Union with the ambitious aim of making its 27 member states carbon-neutral by 2050. It was first presented in December 2019. This initiative represents a fundamental transformation of the EU's economy and society to ensure a sustainable future. The Green Deal encompasses multiple sectors, including energy, agriculture, and transportation, and sets out specific measures to address climate change, preserve biodiversity, and reduce pollution. In essence, it's the European Union's roadmap towards a greener, more sustainable future.
The EU Green Deal involves the implementation of legislative measures to support its objectives, with several laws and regulations enacted under the “umbrella” of the EU Green Deal to enforce sustainable practices and combat climate change across member states.
EU Green Deal Goals and Targets
The EU Green Deal’s three main goals can be summarized as follows:
Achieving no net emissions of greenhouse gases by 2050
Decoupling economic growth from resource use
Ensuring that no person and no place is left behind
In order to achieve those goals and facilitate a sustainable transition, the EU Green Deal has set several specific targets. These include:
By 2030, the plan commits to cutting the EU's greenhouse gas emissions by at least 55% compared to 1990 levels. EU leaders hope to reach this target through a legislative package known as “Fit for 55.”
It also seeks to enhance the energy efficiency of buildings, with the ambitious goal of doubling renovation rates by 2030. This could mean renovating 35 million buildings to be more energy-efficient.
The Green Deal prioritizes a shift towards sustainable and smart mobility, aiming to reduce the 75% of transport emissions currently contributed by road transportation. According to the European Commission, the 55% decrease in greenhouse gas emissions can only be achieved with a 90% reduction in transport-related emissions.
The Deal envisions a 'zero pollution' ambition for a toxic-free environment, focusing on air and water quality, and the reduction of plastic waste.
There are seven key policy areas that the EU Green Deal aims to legislate to achieve the targets outlined above. These include:
Climate: becoming the first climate-neutral continent by 2050
Energy: building a clean and efficient energy transition
Industry: creating an industrial strategy for a competitive, green, and digital Europe
Environment and Oceans: protecting our biodiversity and ecosystems
Agriculture: ensuring a healthy food system for people and the planet
Transport: providing efficient, safe, and environmentally-friendly transport
Finance and Regional Development: ensuring sustainable investments to deliver the EU Green Deal
Key EU Green Deal Legislation and Strategies
Since its introduction in late 2019, the EU rolled out numerous strategies, action plans, taxes, legislative revisions, and new laws under the Green Deal. Each initiative is designed to deliver to a specific target within key policy areas outlined above.
Many of these strategies, plans, and laws are interconnected, affecting various topics and industries simultaneously.
The interlinkages between these initiatives are a natural outcome of the dependencies among different topics and industries. As a result, businesses must adopt a systems-thinking approach to effectively address these challenges.
Here is a brief overview of important EU Green Deal strategies, action plans, taxes, legislative revisions, and new laws:
Fit for 55 Package: part of the EU's efforts to reduce greenhouse gas emissions by 55% by 2030, with an emphasis on revising current laws and introducing new measures across all economy sectors
Batteries Regulation: involves creating a competitive, sustainable, and circular battery value chain in Europe, supporting the green transition and the digitalization of the economy
Circular Economy Action Plan: designed to promote sustainable consumption and keep resources within the EU economy for as long as possible
Zero Pollution Action Plan: aims to prevent and reduce air, water, and soil pollution to levels no longer harmful by 2050
Ecodesign for Sustainable Products Regulation: promotes products designed with sustainability in mind, focusing on energy and resource efficiency
European Strategy for Plastics: aims to transform the way plastic products are designed, used, produced and recycled in the EU, with all plastic packaging on the EU market being reusable or efficiently-recyclable by 2030
Organic Action Plan: provides a roadmap to achieve the EU's ambitious target to have 25% of farmland under organic farming by 2030 and to increase organic aquaculture significantly
Farm to Fork Strategy: aims to create a fair, healthy and environmentally-friendly food system, reducing the use and risk of pesticides by 50% and the use of fertilisers by 20% by 2030.
Impacts of the EU Green Deal on Businesses
The EU Green Deal and its associated legislation will significantly impact businesses, necessitating a shift towards more sustainable practices. Companies will need to adapt to new regulations such as the "Fit for 55" and "Ecodesign for Sustainable Products Regulation", which require a focus on environmental impact and resource efficiency. The "Circular Economy Action Plan" and "European Strategy for Plastics" will drive changes in product design and waste management, whilst the "Farm to Fork Strategy" will have direct implications for the agriculture and food industry. Businesses across all sectors – and across the EU and beyond – will need to evolve and innovate to meet these new sustainability standards.
Get more information by downloading our whitepaper, Understanding The EU Green Deal: A Comprehensive Guide for Businesses, or contact us to learn how we can support you in compliance and more.
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