The great new Idea? The EU Green Deal

The EU has recently released its most ambitious plan yet for tackling climate change in Europe – The European Green Deal. Eur Digital Village summarises the plan within this issue to highlight how it will affect various sectors across the EU.

The Green Deal is European Commission President Ursula von der Leyen’s first policy paper with the main objective of making Europe the first climate neutral continent by 2050. It will focus on seven policy areas: clean energy, sustainable industry, a cleaner construction sector, sustainable mobility, biodiversity, farm to fork - sustainable food systems, and eliminating pollution. The Commission has confirmed that it will propose the first European ‘Climate Law’ by March 2020. This will turn combating climate change into a legal requirement for Europe. Over the next 18-24 months, the EU will work on producing further legislation and building programmes to put the Green Deal into action. 

To achieve carbon neutrality, the EU will have to undergo a serious transformation. Since 1990, the Union has reduced its carbon emissions by 23-24%, but under the Green Deal these reductions would be significantly increased. The EU is committing to a 50-55% reduction in emissions by 2030 with the aim of reaching a net zero level of carbon emissions by 2050. This objective will be achieved through a two-prong approach requiring an overall reduction of greenhouse gas production and the balancing of emissions through carbon removal. Carbon removal can be achieved in a biological way, through the use of plants, trees, and soils, or using new carbon capture technologies which store carbon and prevent it from being released into the environment.

These targets will require a significant economic restructuring with an additional €270 billion of annual investment required in the seven big areas. This amounts to approximately 2% of the GDP for the EU and will require cooperation from both the public and private investment sectors. Additionally, to ensure that industry does not simply relocating to countries where climate laws and carbon tax are less ambitious, the EU proposes a carbon border adjustment which will reduce carbon leakage. This mechanism will ensure that the price of imports reflect their carbon content, making certain that the reduction of carbon emissions remains a priority for all who trade in the EU.

The Green Deal also includes a conscious social focus: ensuring that nobody is left behind during this period of intense transition. There will be supports made available for those who work in carbon-heavy industries – such as steel production – enabling them to upskill and find work within a greener EU. Workers will be given training and education to ensure that they will be able to find work, regardless of the transformations that various sectors are undergoing.

Here is an overview of the seven key policy areas that the EU Green Deal addresses:

Energy

The Green Deal will prioritise energy efficiency and the development of a power sector based largely on renewable sources. It will promote a fully integrated, interconnected and digitalised EU energy market. It will seek to create a secure and affordable EU energy supply for all EU citizens.

Industry

The Green Deal’s industrial policy will be based on the circular economy. Industry will need to tackle waste production and work towards avoiding waste entirely – reusing materials, rather than disposing of them. A particularly strong focus will be on moving away from coal-manufactured steel towards hydrogen-manufactured steel and improving the recycling of batteries in Europe. The Commission will propose measures to ensure that all packaging in the EU is reusable or recyclable by 2030. There will also be a focus on the digitisation of industry, and a push for schemes that encourage people to take old technology back to industry to be recycled.

Construction 

The Green Deal aims to produce a renovation wave in the housing industry. This will promote the renovation of houses to ensure that they are energy efficient and in line with the circular economy. Particular attention will be paid to the renovation of social housing, to help households who struggle to pay their energy bills. There will be opportunities for those working in the construction sector to upskill into greener methods of building construction.

Mobility

Transport accounts for a quarter of the Union’s greenhouse gas emissions and these continue to grow. The Green Deal seeks a 90% reduction in these emissions by 2050. To achieve this, the Green Deal proposes a digitisation of transport systems, using automated mobility and smart traffic management systems. It will also promote the use alternative modes of transport, such as more freight transported by rail or water. By 2025, about 1 million public recharging and refuelling stations will be needed for the 13 million zero- and low-emission vehicles expected on European roads – the Green Deal is pushing to meet that need.

Agriculture

In spring 2020, the Commission will present a Farm to Fork Strategy to tackle climate change, protect the environment, increase organic farming and preserve biodiversity. There will be legislation to reduce the levels of antibiotics used in animals and the amount of fertilizer spread on the land. Each member state will create their own agricultural strategy in line with the overall goals of the Green Deal.    

Biodiversity

The Commission will present a Biodiversity Strategy by March 2020. The EU will work towards an ambitious new global framework to protect biodiversity at the UN Biodiversity Conference in October 2020. This will include an expansion of biodiversity within cities, a Forest Strategy for planting new trees, and the development of a blue economy.

Eliminating Pollution

The Commission will adopt a zero-pollution action plan to prevent pollution of air, water and soil. These measures will preserve biodiversity in our lakes, rivers and wetlands, reduce the impacts of micro-plastics and pharmaceuticals and reduce pollution from excess nutrients. The measures will also ensure that citizens have access to clean air in cities, that there is a reduction of pollution from large industrial installations, and that citizens are protected against dangerous chemicals.