#EUinTwo: How the EU Green Deal is taking shape
The European Green Deal is the flagship political project of the von der Leyen Commission and is expected to impact business across sectors.
The European Green Deal will redirect all Commission policy efforts towards achieving climate neutrality in Europe by 2050. The plan sets out a new approach for growth that promotes a more sustainable EU economy with climate-friendly industry and clean technology.
The plan will also increase CO2 reduction targets for 2030 and 2040. These ambitious targets will be supported by the new European Climate Law and Circular Economy Action Plan, as well as revisions to the existing European Emissions Trading Scheme. The Renewable Energy Directive may be revised as well. The Commission may also introduce ambitious legislation on making buildings more energy efficient, reducing environmental pollution to zero, as well as establishing a carbon border adjustment mechanism.
Executive Vice-President Frans Timmermans has also announced that the European Commission will be looking at technical solutions such as hydrogen, carbon storage, and electrification of transport while maintaining an emphasis on energy efficiency and an increase in renewables.
To accomplish these ambitious targets, the Commission plans to allocate one trillion euros over the next decade, including funds from the European Investment Bank and through attracting private investors.
The European Green Deal is here to stay, and it will reframe the economic landscape for years to come, with major implications for business in and outside of the EU. This will impact every aspect of the economy: from transport and energy, to agriculture and construction.
Operating sustainably is no longer discretionary: it is now a requirement. All stakeholders engaging with the EU institutions will have to demonstrate how their business model aligns with this new and ambitious European Green Deal.