What is the European “Green Deal”? (In brief and general terms) - Zeme un valsts

What is the European “Green Deal”? (In brief and general terms)

The “Green Deal” explains and incorporates initiatives that the European Commission will gradually introduce in more detail over the coming years. We encountered some of them as early as 2020.

  • A proposal to establish a Just Transition Mechanism. The Just Transition Fund will be included in the next multiannual financial framework.
  • Commission proposal: to give legal force to the objective of reaching climate neutrality by 2050 (the “Climate Law”), which would irreversibly set the EU on the relevant path (towards climate neutrality).
  • A communication setting out the Commission's view on what the European Union should do to protect and promote its biodiversity locally and internationally ahead of the UN Convention on Biological Diversity international conference of parties held in Kunming (China) in November.
  • An action plan to promote a more circular economy, which will focus on more sustainable products and supplement the new industrial policy strategy.

The Communication on the “Green Deal” has also launched analytical work that will be used as a basis for future initiatives affecting the majority of economic sectors. New initiatives will be proposed gradually. Many of them will have to be developed and submitted simultaneously (together) because they are very closely linked. The most important ones are:

  • proposals to revise the EU's greenhouse gas emission reduction targets for 2030;
  • proposals to revise the EU's Emissions Trading System for the power and industrial sectors if necessary, possibly extending European emissions trading to include road transport, shipping, and building emissions, as well as revising member state targets for sectors outside the emissions trading system;
  • a strategy for clean and smart mobility regarding a series of actions aimed at reducing greenhouse gas emissions from road, water, and air transport. The strategy will include actions towards cleaner fuels, electric charging infrastructure, taxes, road usage charges, and the promotion of rail freight transport;
  • a strategy for addressing chemical-related problems (in the second half of 2020). Together with other initiatives related to air and water pollution, it will help implement the “zero pollution” plan included in the political guidelines of Commission President U. von der Leyen;
  • a “Farm to Fork” strategy to improve the sustainability of food production and distribution systems. Following the Commission's communication, a wide-ranging consultation was planned for early 2020, with specific actions to be taken later throughout the Commission's term of office;
  • strategies and measures to mobilise sustainable public and private investment for building a more environmentally friendly economy.

Which economic sectors are involved in the European “Green Deal”?

All of them! Some, such as transport, buildings, agriculture, and energy production, generate a significant portion of greenhouse gas emissions. Others, such as finance, will play a role in directing private capital into more sustainable investments.

How will the European “Green Deal” be financed?

Achieving the goals of the European “Green Deal” will require significant additional investment. The Commission has calculated that to achieve the current 2030 climate and energy targets, an additional annual investment of 260 billion euros will be needed, which is approximately 1.5% of the 2018 EU GDP. Both the public and private sectors will need to maintain these investment flows over many years.

In early 2020, the EC presented a Sustainable Europe Investment Plan to address the funding gap. The plan will combine specific funding to support sustainable investments with proposals for developing an improved legal framework. It will be important to build a pipeline of sustainable projects using technical support and advisory services to assist project promoters. The EU budget (along with the commitment to reach 25% earmarked for climate action) and the activities of the European Investment Bank, together with national funding sources, will support the Sustainable Europe Investment Plan.

The private sector will be encouraged to make its contribution to financing the transition to a “green economy”. Long-term signals are needed to direct financial and capital flows towards environmentally friendly investments. In the third quarter of 2020, the EC introduced a “green” financing strategy, which will focus on a number of actions to promote and mobilise sustainable private funding.

When will the implementation of policies included in the “Green Deal” begin?

The “roadmap” attached to the “Green Deal” communication indicates indicative timelines for when the Commission will present key initiatives. The Commission's first work programme provided more details on actions for 2020. Other measures will be developed during the term of the current Commission and will be included in future programmes.

How can a socially fair transition to a “green” economy be ensured?

In early 2020, the Commission launched a Just Transition Mechanism aimed at promoting 100 billion euros of investment in regions that will be most affected by the economic and social challenges of the climate change transition during the next multiannual financial period. The mechanism will use and combine various funding sources: the EU budget, national budgets through co-financing, and the stimulation of EIB and private investment. The mechanism will include a dedicated Just Transition Fund, which will be implemented within the framework of cohesion policy, supplemented by tailored technical assistance and the regulatory flexibility needed by regions to ensure a successful transition.

The goal of the mechanism is to support the regions that will be most affected by the transition to a climate-neutral economy. These are regions that are highly dependent on fossil fuels or carbon-intensive industrial processes. The goal of the mechanism is to protect citizens, retrain workers, and help develop a climate-neutral economy.

Working with the relevant member states and regions will be a key component of the mechanism. Transition plans will be developed to ensure that the mechanism focuses support on addressing the right issues and that local communities fully take responsibility for the process. A just transition will require greater efforts, involving the full spectrum of policies and resources.

How will the “Green Deal” improve citizens' health and quality of life?

The European “Green Deal” includes specific actions that will directly improve public health and well-being. Firstly, actions to prevent pollution from air and water and pollution caused by hazardous chemicals. This will have a direct impact on human health.

More than 400,000 people still die prematurely each year due to air pollution, as agreed EU air quality standards are exceeded in many cities. Water pollution is a widespread problem throughout Europe, as high concentrations of harmful chemicals and nutrients remain in many places. As there are 3 million potentially contaminated sites in the EU, there is still a risk to human health from soil pollution. Exposure to hazardous chemicals or combinations of chemicals remains one of the primary factors underlying human health problems, such as cancer, reproductive diseases, or respiratory sensitisation, as well as environmental degradation (e.g., the decline of insect and bird populations). This leads to significant healthcare costs, pollution remediation work, lost working days, damage to buildings, and crop losses for farmers.

Initiatives related to halting the loss of biodiversity will also provide indirect benefits by improving nature, restoring ecosystems, planting trees, and protecting carbon-rich ecosystems such as peatlands. Actions at the farm level to reduce the amount of and risks from pesticides will provide direct benefits to society by reducing exposure to potentially hazardous chemicals. Furthermore, the European “Green Deal” emphasises the importance of stepping up efforts to adapt to the impact of climate change. Such actions will reduce the impact of floods or droughts and improve the quality of the built and natural environment if carried out using “green infrastructure” and nature-based solutions.

How will the “Green Deal” ensure the protection of our environment, seas, and oceans?

Health and environmental quality are at risk in various ways. The scale of the threat and current impact are significant, and urgent action is needed to prevent some of them. The most important of these are climate change, biodiversity loss, resource use, and air, water, and chemical pollution.

Climate change is, among other things, linked to the environmental impact of forest fires, ocean acidification, melting glaciers, and biodiversity loss. EU action, together with international partners, can help limit them. The European Union is committed to reducing emissions by 20% by 2020 and by 40% by 2030, compared to 1990 emissions. The EU was the first major party to the Convention to embed its 2030 targets into legislation, and this was supplemented by an energy-saving target and a renewable energy share target, as well as a series of legislative acts promoting the reduction of greenhouse gas emissions. However, the intensity of global emission reduction policies needs to be tripled to reach the 2°C limit and quintupled to adapt to the 1.5°C limit. The Intergovernmental Panel on Climate Change (IPCC) has stated that achieving and maintaining net-zero carbon dioxide emissions and reducing the infrared reflection of other greenhouse gases will take several decades to stop anthropogenic global warming.

There is scientific evidence that biodiversity and related ecosystem services are rapidly deteriorating and that land degradation and biodiversity loss have significantly accelerated in recent decades. The IUCN Red List of Threatened Species assesses the global conservation status of more than 105,700 species; more than 28,000 of them are threatened with extinction: 40% of amphibians, 25% of mammals, 34% of conifers, 14% of birds, 30% of sharks and rays, 33% of reefs and corals, and 27% of certain crustaceans. The European “Green Deal” announces a strategy to halt biodiversity loss both in the EU and internationally. This has helped shape the Union's position at the conference in Kunming (China) regarding international efforts to halt biodiversity loss.

The European “Green Deal” also addresses the need to use fewer resources and create less waste, such as plastics, which often end up in the world's seas and oceans. The Commission will present a plan to promote a more circular economy in the EU, which will also discuss plastics. Reducing pollution from industrial sources and agricultural run-off containing excess nutrients will also help improve water quality as well as the quality of coastal regions.

What will be the benefits of the “Green Deal” for consumers?

Consumers will benefit from more sustainable products that are designed to be repairable, durable, recyclable, and consume less energy. This can help reduce the operating costs associated with the products they purchase. Additional and more accurate information for consumers will also allow them to make more informed decisions and thus promote the transition to cleaner products and a healthier environment.

Other actions to renovate buildings and improve their energy usage can reduce energy consumption and energy bills. This could help 50 million households that suffer from problems with maintaining heat in their homes.

How can citizens get involved in the implementation of the “Green Deal”?

Citizens can get involved in several ways. Firstly, the Commission usually holds broad consultations on new legislative proposals by organising public online consultations. These are increasingly published in all EU languages and are accessible to everyone through the Commission's “Have Your Say” website. Citizens' views are particularly welcome. Secondly, citizens can also contact their national (and regional) authorities and their Members of the European Parliament, who will negotiate the content of new European legislation. Thirdly, along with the proposal for the Climate Law, the Commission will also introduce a “Climate Pact”. This will be designed to give the public an opportunity to express their views on the development of new policies related to the “Green Deal”. This will also provide a space for the exchange of information and experience so that people can learn from what others have done in promoting the achievement of “Green Deal” goals.

What will businesses gain from the “Green Deal”?

The transition planned in the “Green Deal” is an opportunity for businesses to modernise and become more competitive. With support from the multiannual financial framework's investment and innovation programmes, the sector will be encouraged to develop new market-leading environmentally friendly technologies and sustainable solutions. The “Green Deal” (and its subsequent actions) sets a strategy to provide the industrial sector with predictability and a regulatory framework that creates investment opportunities, prevents the creation of stranded assets, and fosters innovation. Commission actions to mobilise sustainable private funding will also help meet the sector's investment needs. Furthermore, the transition to a more circular economy and the growth of the secondary raw materials market should reduce industry's dependence on critical raw materials.

How will the competitiveness of European companies be maintained?

The EU has developed rules that prevent “carbon leakage”, i.e., the relocation of economic activity and its emissions from the EU to countries/regions with less ambitious climate policies. These rules are part of the European Emissions Trading System and grant free emission allowances to sectors at risk of carbon leakage. Regarding the “Green Deal”, the Commission will consider using a carbon border adjustment mechanism as an alternative to free allowances in the Emissions Trading System. The EU will continue to emphasise the need for sustainability in its free trade agreements and has appointed an official to assess whether the Union's international partners comply with such rules.

Will the EU be able to stop environmental degradation globally?

The Union is a party to many international conventions that address a range of environmental issues. Progress is made by cooperating with international partners to find acceptable solutions within the framework of the legal system. The process is based on cooperation and trust. The EU is actively involved in green diplomacy at a bilateral level and in international forums such as the G7 and G20, and has a comprehensive external action policy to support sustainable development in third countries.

Is the “Green Deal” ambitious enough to stop and positively influence climate change?

The “Green Deal” supports a significant increase in the Union's targets for reducing greenhouse gas emissions. They are consistent with scientific observations on how to prevent the average temperature of the Earth's surface from rising by 1.5°C. However, the EU cannot prevent the impact of climate change alone. Cooperation with third countries is extremely important. Moreover, the EU can show its responsibility and commitment by striving to persuade others.

What is the Commission doing to reduce its carbon footprint?

To reduce its environmental impact and lead by example, the Commission has been registered with the Eco-Management and Audit Scheme (EMAS) since 2005. This system is used at the eight main Commission operating sites in Europe (there are 4 such sites) located in seven member states. This involves approximately 35,000 people and 1.6 million square metres.

In Brussels, for which the Commission has long-term verified data, the period from 2005 to 2018 shows the following changes (per capita):

  • energy consumption of buildings has been reduced by 65%, resulting in total savings exceeding 110 million euros;
  • carbon dioxide emissions from buildings decreased by 87%;
  • CO2 emissions of the vehicle fleet (manufacturer specifications) per kilometre were reduced by 53%;
  • water consumption was reduced by 61%;
  • paper consumption was reduced by 71%;
  • non-hazardous waste was reduced by 28%.

In 2019, the Commission's EMAS Coordination Committee adopted a Global Action Plan, which includes 227 actions already started or planned, including addressing issues of resources (energy, water, paper), carbon dioxide emissions, waste, and biodiversity.

The Commission wants to reduce its environmental impact and be an example for it. In 2020, it introduced an action plan to implement the principles and recommendations set out in the “Green Deal” itself with the goal of reaching climate neutrality by 2030.

What should citizens and businesses do to reduce their carbon footprint and ensure sustainability?

Citizens and businesses are informed about the energy consumed in buildings and cars. There are opportunities to purchase or use more energy-efficient products, appliances, and vehicles, and to improve energy efficiency by insulating buildings. Despite the potential energy savings, many citizens and businesses do not make investments, even though they could save money.

Businesses can participate in the Eco-Management and Audit Scheme to improve environmental performance. To determine environmental impact, it is possible to use the methodology developed by the Commission.

Consumers and households can use information provided online and in stores about the energy efficiency of goods, such as refrigerators, freezers, and automobiles. Many public authorities and regions offer both financial incentives to improve the energy efficiency of buildings and promote more energy-efficient products and vehicles.

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