As we already know, in 2018 the European Union positioned itself as a potential climate champion for the entire planet, pledging to achieve climate neutrality by 2050. Since then, Europe has written this goal into law, along with an interim target — to cut net emissions by 55% by 2030. The European Union's legislators had agreed on a broad range of laws, both new and revised, in order to move towards a more sustainable economy. Yet geopolitical chaos, security concerns, competitiveness, the cost of living, and indecision too have drawn attention away from the "all-encompassing green transition". Of late, Europe's so-called green policy has provoked widespread resistance in the member states, among politicians and business people alike. Renewable energy is, of course, the main factor in Europe's transition to climate neutrality, but a great deal of meaningful work still remains to be done for the transition to take place across all sectors, including forestry and agriculture. In fact, the most important thing for us here in Latvia is that overzealous measures and interpretations in implementing the European Union's "green policy" should not wreck the land-use sectors.
The key questions at present
So, the European Union's goal is to reach "climate neutrality" by 2050, a target enshrined in the Climate Law. This means that in order to balance emissions in the atmosphere by the middle of the century, emissions must be reduced and then neutralised. As we noted earlier, the European Union's Climate Law also includes the target of cutting net emissions by 55% by 2030 compared with 1990 levels. That could rise to 57% if the European Union meets its goal of capturing 310 million tonnes of CO₂ equivalent in nature by 2030.
Lively discussions are under way about a second interim target for reducing the European Union's emissions by 2040. This, in turn, would provide the basis for Europe's climate and energy policy after 2030 and signal to businesses the emission reductions required over the coming decade. In July 2025 the European Commission, drawing on the recommendations of the Scientific Advisory Board, proposed a target of 90%. It also included, however, so-called additional flexibility options, which were debated in the Council.
Europe agreed on the emissions reduction target for 2035 set out in the Paris Agreement only a few days before COP30, namely on 5 November 2025, having missed two deadlines for submitting it. The target is to cut net emissions by 66.25-72.5% by 2035 compared with 1990 levels.
Calculations on the EU member states' energy and climate plans (NECPs) indicate that the European Union is on track for a 54% cut in emissions by the end of this decade, which means that if all the measures are implemented fully and successfully, Europe will fall only slightly short of the 2030 target.
Climate regulation is a shared competence of the European Union and its member states. This means that Brussels sets the tasks (on matters concerning Europe, since most of its institutions are located in Brussels) needed to achieve the Union's common goals. National governments may set their own legally binding targets in areas where the European Union has not chosen to exercise its powers, or targets more ambitious than the EU's. The legislative process usually begins with a proposal from the European Commission, which is then amended and negotiated by the European Parliament and the member states' representatives in the European Council.
A historic body of policies, rules and targets is brought together in the "European Green Deal". Its aim is to align processes in the EU with its climate objectives while maintaining economic growth and social cohesion. Most of this body has been turned into European Union legislation that member states must implement.
It should be noted that surveys conducted in the European Union show that most EU citizens regard climate change as a serious threat. A majority of Europeans think the EU and national governments must act, and believe that efforts in this regard should be stepped up, not scaled back. In the 2024 European Parliament elections, however, climate change did not seem as important an issue to voters as it had been in the 2019 elections.
Internationally, Europe is a significant "agent of influence" in climate diplomacy and finance. In 2023 the EU and its 27 member states mobilised 28.6 billion euros in climate finance from public sources. The EU's role has grown following the United States' withdrawal from the Paris Agreement. Even so, the EU has twice missed the deadline for updating its climate targets for 2035.
Costs, competition and the problem of a common approach
Security, competitiveness and cost-of-living concerns are putting pressure on the European Union and its member states, creating budget constraints and diverting attention from green initiatives. This situation provides grounds for slowing down the "green transition". In some cases, however, green policy can soften the impact of these trends, for instance by replacing imported fossil resources with renewable energy.
By 2029 the European Commission plans to cut the administrative burden on large companies by 25% and on SMEs by 35%. This has already brought about significant changes to existing legislation, for example to the sustainability reporting rules. As a result, concerns have arisen that Europe is retreating from its targets under pressure from both member states and foreign governments.
Europe also wants to be a leader in clean technology, but that has yet to be proved, since the EU faces fierce competition, particularly from China. Much depends on whether Brussels can rely on its regulatory clout and the strength of the single market against its competitors' financial might. The Clean Industrial Deal (CID), unveiled in February 2025, envisages mobilising more than 100 billion euros to support the European Union's clean industry products. The European Commission will adopt an Industrial Accelerator Act and a European Grids Package.
If Europe's climate and energy targets are to be met, it is essential that all 27 member states implement the agreed legislation. It matters that the transition is carried out in every region. Programmes such as the Just Transition Fund and the Cohesion Fund are intended for this purpose. Changes may come in the next seven-year budget period, from 2028 to 2034. The European Commission submitted its plan for the next seven-year budget in July 2025, allocating 35% of it to climate and environmental measures. Negotiations on it will now follow.
In the 2024 European Union elections the number of right-wing politicians in the European Parliament grew, while support for green and left-wing parties fell. This has raised questions about the Parliament's ability to form ambitious negotiating positions on green policy, and about whether the so-called von der Leyen coalition that backed the Green Deal policy will hold. The new term also brought new people to the leadership of the European Commission, including the centre-left Spaniard Teresa Ribera as vice-president responsible for energy and climate matters.
The European Commission has submitted plans to abandon Russian oil and gas by the beginning of 2028. Imports of Russian coal and seaborne oil have already been banned. The EU aims to end imports of Russian nuclear fuel, though no specific date has been set for this
Under the trade agreement concluded in July 2025, the European Union announced that by 2028 it would purchase 750 billion US dollars' worth of energy from the United States. Critics have voiced doubts about how this can be achieved in practice.
Very serious measures are needed if the European Union is to reach the target set for renewable energy in its energy mix by 2030. The target is 42.5%. In addition, modernising and expanding Europe's grid system is vitally important in order to avoid curtailing renewables and to keep generating during periods of falling demand by storing the output. According to industry figures, investment in Europe's distribution grids must double by 2050, reaching 67 billion euros a year. The European Commission has proposed a European Grids Package and an electrification action plan.
Useful links on European Union climate, environment and energy policy:
Eurostat renewable energy statistics