Updated: July 2023

The European Green Deal
In 2019, the European Commission presented the European Green Deal, which is an overall strategy that will serve to accelerate European efforts in the green transition and make the EU the world's first climate-neutral region by 2050. With this strategy, the EU set several objectives based on the global climate agreement (the "Paris Agreement") and the United Nations Sustainable Development Goals.

The strategy includes:
- A 2030 Climate Target Plan to cut greenhouse gas emissions by at least 55 % compared to 1990 levels,
- a Climate Law, which legally obliges the member states to meet the targets set forth in the Green Deal,
- an EU Climate Pact, which aims to facilitate debate, the sharing of information, and participation of citizens and organisations in climate action across Europe,
- a Circular Economy Action Plan, including revision of the Eco-design Directive increasing the scope beyond energy related products and a Green Claims Directive to reduce greenwashing,
- a Fit for 55 package containing concrete legislative proposals to facilitate the process of reaching the Green Deal’s targets,
- a Green Deal Investment Plan to ensure the financial means for reaching the targets,
- a European Emissions Trading System for buildings and transport, which allows member states to buy or sell allowances to cover their emissions,
- a Carbon Border Adjustment system to ensure that the European climate objectives are not undermined by having a lower carbon price on goods imported to the EU than on domestically produced goods,
- and much more.

To concretise and facilitate the objectives formulated in the Green Deal, the EU has adopted several sub-targets with its 2030 Climate Target Plan, which must be achieved by 2030.
The 2030 Climate Target Plan aims to set a more ambitious and cost-effective path towards achieving climate neutrality by 2050, including by creating more climate-friendly jobs and ensuring a reduction in greenhouse gas emissions while growing the European economy.
In addition, all parties are called upon to increase their ambitions to limit the global temperature increase to 1.5 degrees Celsius in the hope to avert the worst consequences of climate change.

The European Climate Law was adopted in 2021, which legally obliges member states to jointly achieve a 55 % reduction in greenhouse gas emissions by 2030 compared to 1990 levels.
The Climate Law also contains criteria for continuously monitoring progress and, on this basis, adjusting the individual countries' efforts.

As a further step in achieving the Green Deal's climate policy ambitions, also in 2021, the Fit for 55 package was adopted, which contains several proposals to review and update existing EU legislation and ensure that it is equipped to achieve the 2030 targets.
In this context, 5 laws were adopted on 25 April 2023 to enable reducing greenhouse gas emissions in primary economic sectors and ensuring that the most vulnerable citizens, businesses, and sectors receive the support they need in the green transition.

To finance the actions needed to achieve the Green Deal's objectives, the European Green Deal Investment Plan was adopted in 2020, which will mobilise around 1 trillion euros from public and private actors.
In this regard, the InvestEU Investment Programme will allocate 30 % of its resources to finance projects that can contribute to the achievement of the EU's climate objectives and 60 % of its resources to the financing of sustainable infrastructure.

In addition, the Green Deal leans on the Horizon Europe investment programme, which utilises EU funds to attract public and private investors and contribute to research and development into sustainable solutions for the transition, from policies on more sustainable lifestyles to climate-neutral steel production without the use of coal.
The programme aims to promote cooperation and to facilitate the sharing of knowledge and technology across European countries, strengthen the EU's competitiveness and create jobs in Europe.
Horizon Europe is divided into 3 main pillars:
1) scientific excellence, where Europe's best researchers are supported in their independent research, mobility and education;
2) global challenges and the competitiveness of European industry, grouped into 6 clusters, including health, culture, security, climate and energy, food and natural resources, space, industry and digital;
3) the innovative Europe, in which, inter alia, the European Innovation Council is developing new forms of support and loans for innovative solutions.

More concretely, the Green Deal’s objectives contain the following elements:


- Zero Pollution, Air, Water, and Soil
With its Zero Pollution Action Plan, the EU has a vision of zero pollution by 2050, so that by then there will be zero harmful impacts of pollution from all sources, including replacing all harmful substances such as microplastics and medical chemicals with sustainable alternatives.


- Clean Energy
For the EU to reach its goal of climate neutrality by 2050, the EU wants to decarbonise European energy systems by prioritising energy efficiency, developing an electricity sector based primarily on sustainable resources, ensuring an affordable European energy supply, and establishing a fully integrated, connected, and digitalised EU energy market.
To work towards these goals, in 2020 the EU adopted a strategy setting out measures for the creation of a more circular system and formed the European Clean Hydrogen Alliance.


- Sustainable Industry
Following on from the foregoing, in 2020 the EU adopted its industrial policy on a circular economy and on sustainable products to empower citizens, revitalise regions and ensure the best technologies.
This policy will, for example, strengthen modern industries and accelerate the development of climate-neutral and circular-oriented markets.
As part of the transition to a sustainable industry, the EU is paying particular attention to more energy-efficient consumption and the development of low-emission production technologies, while renewables such as offshore energy need to be expanded, developed, and better integrated into European electricity systems.
In addition, products must to a much greater extent be manufactured in such a way that they are easier to reuse or recycle, rather than the precious materials from which they are made being wasted after a short period of use.
By moving to a circular economy, 700,000 new jobs could be created in the EU by 2030, especially in small and medium-sized enterprises.


- Building and Renovation
The construction industry has so far made use of many unsustainable resources, which is why the EU will promote the use of energy-efficient methods such as climate-proofing buildings, digitalisation, energy renovation and ensuring compliance with rules on the energy performance of buildings.


- From Farm to Fork
To make food production sustainable, by 2030 the EU will achieve 25 % organic farming, 50 % less use of pesticides, 20 % less use of fertilisers, 50 % less use of antibiotics, 50 % less food waste, 50 % less loss of nutrients, sustainable food labelling, and 10 billion euros to research and development of sustainable food solutions.
In this context, a major criticism is that the European Commission continues to provide high funding to the production of meat and dairy products, even though it has been made clear that it is necessary to reduce this production and facilitate the transition to a more sustainable, plant-based food sector.
Even though this necessity is known to the Commission, the adopted version of the Farm to Fork Strategy makes no explicit mention of such a transition, but only of 'alternative sources of protein'.
In an earlier version, which was leaked prior to its adoption, the Commission mentioned, on the other hand, a desire to "stimulate the production and consumption of new sustainable protein sources such as algae or insects".
However, this wish was apparently omitted for the sake of the welfare of the meat industry.


- Sustainable Mobility
The transport sector currently contributes to around 25% of the EU's total greenhouse gas emissions, and it is therefore of great importance to transform this sector.
This is why the Commission wants at least 30 million zero-polluting cars and 80,000 lorries on European roads by 2030 and for zero-polluting commercial aircraft to be available from 2035.
The number of high-speed trains is also to double by 2030.
By 2050, rail freight should double, while by 2030 there should be a 25 % increase in short sea shipping and inland waterway freight transport.
The Green Deal's goal is to reduce pollution from passenger and freight transport by replacing fossil fuels with sustainable alternatives, promoting intelligent transport management systems, and motivating the purchase of low-CO2 vehicles by increasing the availability of EV chargers.
In addition, on 25 April 2023, the EU adopted the ReFuelEU Aviation proposal, which aims to help reduce the carbon footprint of the aviation sector by around 66 % by 2050 by gradually increasing the amount of sustainable aviation fuels, such as biofuels, recycled coal fuels and synthetic aviation or e-fuels.


- Biodiversity
Finally, the EU will protect European nature and biodiversity by implementing organic farming practices, facilitating pollination processes, restoring forest areas and free-flowing rivers, and reducing the impact of pesticides on wildlife.
In this context, by 2030, the EU wants to restore biodiversity in Europe to reduce the consequences of climate change, such as forest fires, food shortages and disease outbreaks.
The EU's concrete action plans include, for example, increasing the areas protected under the Natura 2000 network for breeding and resting areas of rare and endangered species, ensuring that human activities are severely restricted and subject to strict sustainability criteria.
Overall, the EU's plan is for member states to adopt and implement policies for the restoration of destroyed or weakened ecosystems through concrete commitments and actions.
This is particularly true of those ecosystems that have great potential to absorb CO2 and prevent or reduce the consequences of natural disasters, for the benefit of both humans and the planet.


REPowerEU
As a result of Russia's invasion of Ukraine on 24 February 2022, many politicians and heads of government in European countries have realised that the EU is too dependent on Russian energy supplies.
For example, before the war in Ukraine, Russian gas accounted for more than half of the natural gas consumed by Germany, while it accounted for around 45% of total gas imported into EU countries.
In addition, Russia was one of the EU's largest sources of crude oil, kerosene, and coal, and 18 European nuclear power plants run on Russian fuel.
During 2022, the EU's dependence on Russian energy supplies was drastically reduced, but this was due mainly to Russian rather than European measures, as the Kremlin had imposed requirements for gas to be paid in rubles and shut off the flow of gas in the Nord Stream pipeline.
Germany has managed to break away completely from Russian gas and the EU's overall gas consumption has fallen by 10-12% in 2022, thanks in part to a relatively warm winter and autumn period, the more environmentally friendly behaviour of populations because of the energy crisis, and a reduction in industrial production.

In response to this, and to promote a further detachment from Russia, in May 2022 the European Commission presented the REPowerEU Plan, which includes various measures related to renewable energy and energy efficiency, to make the EU less dependent on Russian energy sources and accelerate the green transition.
Among the primary goals of the plan is an increase of the energy saving target to 13 % rather than the 9 % target fixed in the Energy Efficiency Directive.
To achieve this, several legislative acts have been proposed, including the Energy Performance of Buildings Directive and the Regulation on Ecodesign for Sustainable Products.
In addition, the Commission encourages Member States to lower VAT rates for high-efficiency energy systems and products, and regions and cities to mobilise citizens, to raise awareness and support, implement energy audits and management plans, and commit to energy savings targets.

In terms of renewable energy, the REPowerEU Plan proposes an increase of the Renewable Energy Directive’s target from 40 % to 45 % by 2030, which would mean a 1236 GW production capacity from renewable energy sources.
More specifically, the Commission wishes to achieve a 320 GW solar energy capacity by 2025 and 600 GW capacity by 2030, in addition to strengthening the supply chains for offshore wind energy and accelerating the permission process for new offshore wind installations.
Additionally, the Commission envisages a domestic production of 10 million tons of renewable hydrogen and 10 million tons of renewable hydrogen imports by 2030, which will replace natural gas, coal and oil in carbon-heavy industries and transport.
To facilitate this, the Commission will increase by 200 million euros its financing of hydrogen flagship projects and calls on industry to define missing hydrogen standards for production, infrastructure, and end-use products.

As part of the REPowerEU Plan, the Commission also encourages a massive increase in the use of individual heat pumps as well as an improvement of district and communal heating systems.
The proposal is based, among other things, on a survey in which 85 % of European citizens express a desire for the EU to break away from Russia's influence as soon as possible to support Ukraine and increase the resilience of its energy system.

The proposal consists of three main actions:
1. Alternative supplies
This measure is intended to ensure that the EU is not dependent on a single form of energy and therefore risks suddenly being in deficit due to a crisis or conflict, as we have seen with Russia's invasion of Ukraine.
That is why alternative sources of supply of gas, oil and coal must be found and, in addition, renewable production of hydrogen must be built up as soon as possible.
The variety of energy supplies will both detach the EU from Russia, bring about a green transition and strengthen the EU's competitiveness as an international technological frontrunner.

2. Energy savings
To ensure a long-term sustainable energy supply, citizens, businesses and organisations must save energy as much as possible. Therefore, it is necessary to encourage and facilitate a change in behaviour.
Energy savings are the cheapest, safest and cleanest way to reduce dependence on fossil fuels imported from Russia, and it is easy to involve all actors in society in reducing energy consumption.
For example, you can avoid too frequent use of air conditioning, use household appliances more efficiently, drive more economically and use more public transport, and remember to turn off the lights when leaving a room. Increased energy savings and electricity switching could save European industry 35 billion cubic metres of natural gas consumption by 2030, exceeding the targets of the Fit for 55 package.
In addition, around 30% of the EU's primary steel production can be expected to rely on renewable energy by 2030.

3. More clean energy sources
Furthermore, it is necessary to speed up the development of clean energy sources that can be produced locally, such as wind farms, photovoltaic systems, etc.
This should also serve to phase out fossil fuel sources, reduce energy prices and reduce dependence on imported energy supplies.
In this context, in March 2023, the EU has raised its ambitions for the green transition to 42.5 % renewable energy by 2030, and hopes to reach 45 %, equivalent to the production of 1236GW of renewable energy.

REPowerEU needs 210 billion euros in additional investment until 2027 to phase out imports of Russian fossil fuels.
The import of Russian fossil fuels currently costs European taxpayers 100 billion euros a year, so the necessary funding will presumably bring a great benefit to the European people in the long run.
To facilitate this funding, the EU encourages its member states to include a chapter on REPowerEU in their national Recovery and Resilience plans to channel investments and adopt the necessary reforms.
Finally, as part of the REPowerEU Plan, the EU will build partnerships with international partners to the benefit of all parties.
In this context, renewable energy and energy efficiency will be strengthened worldwide and cooperation to develop green technology and innovation will be strengthened.
The new EU Energy Platform will play a crucial role in coordinating infrastructure, negotiating with international partners, and preparing joint procurement of gas and hydrogen.

For older EU climate policies, see here.

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