The European green deal: effectiveness, implementation, and
business opportunities
Introduction
The European green deal represents one of the most ambitious and far-reaching
environmental initiatives in the world. It is a comprehensive plan by the EU to
transform the region into a climate-neutral continent by 2050. This presentation
will critically analyze the effectiveness and implementation requirements of the
European Green Deal and explore the challenges and opportunities it presents for
businesses operating in the EU.
It covers various sectors and areas, such as energy, transport, agriculture,
biodiversity, and circular economy. EU. The European Commission has adopted a
set of proposals to make the EU's climate, energy, transport and taxation policies
fit for reducing net greenhouse gas emissions by at least 55% by 2030, compared
to 1990 levels.
The European Green Deal will improve the well-being and health of citizens and
future generations by providing:
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fresh air, clean water, healthy soil and biodiversity
renovated, energy efficient buildings
healthy and affordable food
more public transport
cleaner energy and cutting-edge clean technological innovation
longer lasting products that can be repaired, recycled and re-used
future-proof jobs and skills training for the transition
globally competitive and resilient industry
Effectiveness of the European Green Deal
Ambitious goals: The European Green Deal sets ambitious targets that align with
the Paris Agreement's goal of limiting global warming to well below 2 degrees
Celsius. By aiming for climate neutrality by 2050, the EU demonstrates global
leadership in addressing climate change.
Legislation and regulation: To achieve these goals, the EU has proposed a range
of legislative measures and regulations, such as the European Climate Law, which
legally binds the EU members for reduction of 55% of emmision. This approach
enforces accountability and encourages compliance.
Financial commitment: The EU has committed a significant portion of its budget
to the Green Deal, including the Just Transition Fund, which supports regions
heavily dependent on carbon-intensive industries. This financial commitment
helps drive the transition toward a greener economy.
Green investment: The European Green Deal encourages private and public
investment in green technologies and sustainable practices. The EU aims to
mobilize €1 trillion in investments over the next decade, fostering innovation and
job creation in the process.
International cooperation: The EU actively engages in international cooperation
to combat climate change, collaborating with other nations and organizations to
set global standards and share best practices.
EU Renovation Wave: it supports renovation of 220 million buildings by 2050 to
increase their environmental performance while generating costs savings for
households.
EU Code of conduct on responsible food business and marketing practices: signed by
65 organizations in order to increase the affordability and availability of the healthier
and more sustainable food options.
Implementation Requirements
Policy coherence: EU member states must align their national policies with the
Green Deal's objectives. Achieving coherence across diverse economies and
political landscapes is challenging.
Investment needs: The transition to a sustainable, low-carbon economy requires
substantial investments in renewable energy, energy efficiency, and sustainable
infrastructure. Businesses need access to funding and incentives to make these
investments. The EU Next Generation Fund requirement to devote at least 37% of
all national recovery and resilience plans to climate-positive initiatives represents
a unique opportunity for governments to ensure a green recovery.
Infrastructure overhaul: Achieving climate neutrality necessitates a fundamental
transformation of energy, transportation, and industrial infrastructure. This
entails substantial costs and logistical challenges. This is something that need to
further developed so it can follow the agenda.
Social and economic impacts: The transition may have adverse effects on certain
industries and regions. Ensuring a just transition, where affected communities are
supported through reskilling and economic diversification, is essential, so the
people and communities can continue normal living.
Technology innovation: Innovation is crucial for achieving the Green Deal's goals.
Businesses must develop and adopt new technologies that reduce emissions
while remaining competitive. They must invest in innovations and have skilled
staff that can follow that.
Compliance costs: Meeting strict emissions targets can be costly for businesses,
particularly those in carbon-intensive sectors. They may need to invest heavily in
technology upgrades and emissions reduction measures. That’s why they need to
be informed about many EU funds made for this purpose.
Transition risk: Many businesses are still heavily dependent on fossil fuels or highcarbon processes face significant transition risks, including stranded assets and
declining market demand. While reducing emissions, there is a risk they won’t be
able to find an alternative instead they will go bankrupt eventually due to not
being competitive.
Regulatory compliance: Adhering to evolving environmental regulations and
standards can be complex and requires continuous monitoring and adaptation, so
all legislations can be covered and respected since not following it can contribute
to bad reputation and even fines.
Conclusion
The European Green Deal is a bold and necessary initiative to combat climate
change and transition to a sustainable future. While its effectiveness relies on
rigorous implementation, it also offers numerous opportunities for businesses
that adapt to the changing landscape.
The challenges are substantial, but the rewards in terms of environmental
sustainability, economic growth, and global leadership are equally significant.
Businesses that proactively engage with the European Green Deal can not only
contribute to a greener future but also thrive in a world increasingly focused on
sustainability.
https://commission.europa.eu/strategy-and-policy/priorities-2019-2024/european-greendeal_en
https://www.consilium.europa.eu/en/policies/green-deal/
https://www.eiir.eu/publications/strategic-affairs-publications/the-european-green-deal-ananalysis-of-key-aspects/
https://www.weforum.org/agenda/2021/07/what-you-need-to-know-about-the-europeangreen-deal-and-what-comes-next/
https://kpmg.com/xx/en/home/insights/2021/11/european-green-deal-policy-guide.html