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The European Green Deal – What It Is and Why It Matters
- Peter Bjellerup
- Mar 26
- 14 min read
This NASA animation of Earth’s average temperature from 1880 to 2022 should suffice as explanation to why we, politicians and population, need to take climate change seriously.
The EU Parliament and Commission do. That’s why they have decided on the Green Deal, with the ultimate goal of reaching climate neutrality by 2050 (in 25 years!)
European green deal summary
In this text we’ll give an idea of the Green Deal, where the Digital Product Passports Regulation (DPP), is a key tool.
Overview of the European Green Deal
The Green Deal, launched in 2019, is a combination of a growth strategy for the EU and a path for a green transition, aiming at climate neutrality by 2050.
Its purpose and introduction
The Green Deal is the EU’s contribution to the Paris Agreement to curb climate change and keep global warming to a maximum of +1.5°C compared to pre-industrial levels (a cap that we have already failed to achieve, unfortunately.)
At the same time it intends to support transforming the EU into an economy that is:
Fair
Prosperous
Modern
Competitive
Sustainable and Circular
Environmentally sound
Clean and Healthy
It goes across economic sectors, covering energy, transport, industry, agriculture, commercial models, trade, finance and more.
Under the Green Deal, the Council and the European Parliament develop and have adopted legislation to turn the strategy into laws and rules applying to EU member states and those wanting to sell to or work with the EU.
Why the Green Deal is Needed
Curbing climate change and our overuse of resources requires action. We can’t all wait for someone else to take the initiative. The EU decided to take the lead.
Addressing climate change
Mid March 2025, the WMO (World Meteorological Organization) declared that the world experienced unprecedented 151 natural disasters in 2024. 2024 was (again) the hottest year on record, with multiple heat waves, floods, storms, catastrophic fires and droughts. At the same time, we deplete our planet’s resources at a pace requiring three Earths. Colonising March will not resolve the challenge, not in time. We had better take care of our existing planet instead of looking for another to wreck.
Although global warming might be the environmental hazard discussed the most, it’s not the only threat to our planet caused by our wasteful way of living. But, let’s start with it.
Global Warming
Putting it simply, global warming is caused by our use of fossil fuels to create energy, heat our buildings, cook our food and power our vehicles. All this combustion releases carbon dioxide into the atmosphere, more than our forests and other foliage manages to extract from our atmosphere through photosynthesis, especially as we keep destroying the forests for housing, roads or farming (which catches less CO2 than trees do).
The warming of our atmosphere destabilises sensible weather systems that are too complex for us to fully understand the repercussions. So far, we’ve seen results like increases in droughts, forest fires, storms, floods and - counterintuitively - colder weather in surprising places due to imbalanced jet streams.
In recent years, there has been an accelerating increase in sea temperatures, the consequences of which we know even less. Fears are that it may impact the huge sea currents that move in circular patterns on each side of the equator. A slow-down of those currents might lead to a weakening of the Gulf Stream whose warm waters flowing from the Caribbeans to Europe are the main reason for Europe being as habitable as it is.
Obviously, warmer atmosphere and water has knock-on effects. Like melting of land based glaciers in combination with the fact that the volume of water increases with temperatures. That’s the reason for the worry of rising sea levels, threatening low-lying land areas - often fertile and among the most populous areas on Earth.
Another knock-on effect is thawing of the permafrost in Arctic Russia, Canada and Alaska. When thawing, the permafrost releases methane that has been trapped for millennia, a powerful greenhouse gas that accelerates global warming even further.
Pollution
Apart from us releasing greenhouse gases, we cause many other kinds of pollution, affecting humans, land animals, sea creatures and insects. The list is too long for this text, but there are substances that cause cancer, impact fertility and fetal development, respiration, hormonal balance and other health aspects, many of which we might not yet know.
There is the issue of plastic pollution of our waters, creating gigantic “islands” of floating plastic debris. Microplastics have been found in the most remote living organisms and there are plenty of stories of whales and turtles dying of malnutrition with their stomachs full of plastics.
Depletion of resources
Most of our resources are finite or regenerated at a pace infinitely much slower than the speed at which we consume them. Basically, our only non-finite resources are wind, solar and water energy, and what we can grow or farm. If we keep consuming as we do today, we’ll run out of resources, quite simply. Similar to financially irresponsible people we spend more than we have and will “go broke” sooner or later, except that we don’t talk about financial resources, but natural resources used to produce what we consume at break-neck speed.
Climate refugees and social unrest
The combination of the environmental threats mentioned above, will not hit evenly.
There are estimates of 1.2 billion climate refugees globally by 2050. In “the rich north” we often assume that it will hit poor countries first and the hardest, not us. But that might be unrealistic.
Obviously, low-lying areas are at risk from rising sea levels - irrespective of continents. In Europe, Netherlands, Denmark and other low-lying countries may get into serious trouble.
If the Gulf stream collapses, it would be devastating for Europe, especially in the north.
So the streams of climate refugees might not flow as we expect. But as surges of refugees and displacement usually do, they will cause hardship for the refugees and unrest in receiving countries.
The need for a sustainable economy
Looking at the impact of our way of living and thinking of future generations and our planet, it’s obvious that we need to change our ways. We need to transform our economy to be more sustainable. Ultimately we have to transform into a circular economy instead of linear. We risk “going bankrupt, leaving only debts for our children and grandchildren with no-one to bail them out”.
The EU’s role in global environmental action
A fundamental issue with many aspects of environmental issues is that the assets consumed or destroyed are shared assets, with no commercial price set. What is the price of clean air and water? Who sets it? Who foots the bill for spreading pollutants that cause cancer, hormonal disruption or other illnesses? Rarely the polluters, but victims and authorities.
Being a supranational organisation, the EU has a mindset of looking beyond national borders and dealing with “challenges that cross borders”.
As earlier in other aspects, for example with GDPR, the EU has decided to take the lead in environmental responsibility. Someone has to be “the adult in the room”.
Supposedly, the EU hopes that others will follow suit, like in the case of GDPR, where similar legislation has since been introduced in several countries and states.
Key Goals of the Green Deal
Climate Neutrality - Drastic reduction of greenhouse gas emissions for the EU to become the 1st climate-neutral area in the world.
Circular Economy - New economic model where products are reused, repaired and recycled, reducing waste and conserving resources.
Clean Industry - Push for cleaner, more sustainable and energy-efficient industries which thrive in the EU and global markets.
Healthier Environment - Plan to restore nature and work towards zero pollution to ensure a healthy environment for future generations.
More Sustainable Farming - Greener farming practices to protect the environment while providing healthy and affordable food.
Climate Justice and Fairness - Plan to make the transition fair and inclusive to help people most affected by the transition and leave no one behind.
To work towards these goals, the EU Council and Parliament work in a range of policy areas:
Climate Change / Climate Neutrality
The EU aims at reaching a climate neutral EU by 2050, with net-zero greenhouse gas emissions. All EU member countries are legally bound by this goal. To reach this goal, the UE has to work with a combination of reducing CO2 emissions, and carbon removal, either through vegetation (reforestation) or mechanically - a technology still being developed.
The EU has agreed on intermediate targets for reducing CO2 emissions compared to 1990:
-20% by 2020 (actually -30% partly helped by the COVID-pandemic, but actually it was -24% already in 2019)
-55% by 2030 (increased in 2023 from -40%)
Net-zero by 2050
The means to reach this pace of reduction are:
Boosting renewable energy
Improving energy efficiency
Increasing carbon removals
Reforming and expanding emissions trading
Making transport more environmentally friendly
Supporting people in shifting to a greener economy
Success has varied across sectors. The industrial sectors that have reduced their carbon emissions the most from 1990 to 2020 are:
Energy Industries -47% (the biggest CO2 emitter of all sectors)
Manufacturing & Construction -44.2%
Waste -34.9% (a very small sector comparatively)
Industrial Processes -32.1%
Unfortunately, the second biggest sector, Transport, has gone in the wrong direction: +7.2%
Greening Energy
Energy use and production account for 75% of total EU greenhouse gas emissions. Therefore, this is a key area to reach the goals of the Green Deal.
Reducing reliance on fossil fuels by shifting to renewable energy is not only a matter of climate for the EU, but also of energy independence. As long as the EU relies on fossil fuels from other countries, it is susceptible to coercion from producing countries.
To fulfil this goal, the measures are:
More renewable energy - The goal is 42.5% renewables by 2030
Better energy efficiency - The goal is -11.7% energy use by 2030
Hydrogen and decarbonised gas
Energy efficient buildings - Residential buildings are supposed to decrease energy use by:
16% by 2030
At least 20-22% by 2035
Net-zero by 2050
Geothermal energy
Grids and systems integration - aiming at improving distribution of energy across the EU, to achieve better balance and redistribution of energy.
Circular Economy
A circular economy is focused on economising on resources by using less of them and making better use of what is made from them, through ecodesign of products, production and logistics, through re-use, repurposing and recycling.
Resources
Through smarter design, production and logistics - demand for virgin resources is decreased. Less resources needed in total, more recycled resources used.
The Critical Resouces act stipulates that by 2030, 25% of materials in the EU must be sourced from recycling.
Production
In a circular model, products are made to last and are more recyclable, energy-efficient and repairable. In this context, Digital Product Passports play an important role by increasing transparency about these characteristics of products in an easily comparable way.
Consumption
To drive change towards circularity, consumers need to be informed and empowered. Digital Product Passports are a key component in this context, through providing easy to access, transparent and easily comparable information on the environmental performance of products.
Recovery and Waste
In a circular economy, waste should be minimised and seen rather as a resource than as waste. A special type of waste is plastic. To begin with, 80% of the waste in our oceans is plastic. In addition, plastic is made from oil, both finite, polluting and imported.
Therefore, the EU has set targets restricting plastic items and certain types of packaging as well as, since 2021, banning the ten most common types of single use plastic items from the market.
Greening Agriculture
“A sustainable, resilient and healthy food system” is how the EU describes it. Apart from being a major industry, agriculture is both a substantial emitter of greenhouse gases but it also can lead to soil degradation and biodiversity loss.
⅓ of the world emissions come from food systems
In the area of greening agriculture, the focus of the Green Deal is to:
Make farming and food systems more sustainable
Strengthen resilience against crises and climate change
Ensure that food is healthy and affordable
There are also secondary focus areas:
Improving animal welfare
Reduce food loss and waste
Promote healthy diets and sustainable food consumption
Fight overuse of pesticides and antimicrobials
Combat food fraud
Fit for 55
Fit for 55 is a package of laws aiming to reduce EU greenhouse gas emissions by at least 55% by 2030. The package comprises:
Increasing the ambition of the EU emissions trading system - a carbon trading market
A social climate fund - The social climate fund aims to address the social and distributional impact of the new emissions trading system for buildings and road transport.
A Carbon border adjustment mechanism (CBAM) - aims to ensure – in full compliance with international trade rules – that the emissions reduction efforts of the EU are not offset by increasing emissions outside its borders through the relocation of production to non-EU countries (where policies applied to fight climate change are less ambitious than those of the EU) or through increased imports of carbon-intensive products. CBAM is sometimes referred to as climate tariffs.
Member states’ emissions reduction targets - for sectors that are not covered by the EU emissions trading system (EU ETS) or the regulation on land use, land use change and forestry (LULUCF).
Emissions and removals from land use, land use change and forestry (LULUCF) - With the Fit for 55 package, the provisions are made more ambitious.
CO2 emission standards for cars and vans - The 55 package sets stricter rules for cars and vans, which account for 15% of total EU emissions of CO2
Reducing methane emissions in the energy sector - Methane is the second greenhouse gas in volume, with Carbon dioxide being the first by far. But, methane is much more powerful than carbon dioxide. Methane has 84 times the warming potential of carbon dioxide, on a 20 year timescale. Globally, 60% of methane emissions are the result of human activities:
Energy sector - ⅕ of methane emissions in the EU
Agriculture
Waste
Biomass burning
The EU work on reducing methane emissions involves:
Measuring and reporting within the EU
Reducing methane emissions in the EU
Tackling methane emissions from imported energy, starting by working for better monitoring tools and reporting
Sustainable aviation fuels - Only 0.05% of total fuel consumption in the aviation sector is sustainable. Therefore, the EU has introduced the ReFuelEU Aviation regulation, intended to change that.
Decarbonised fuels in shipping - Similar to aviation, the maritime sector relies almost entirely on fossil fuels, often of low quality, with disproportionate pollution as a consequence. Therefore, the EU has launched theFuelEU maritime initiative aiming to reduce the greenhouse gas intensity of the energy used on-board of ships by up to 80% by 2050. The new rules promote the use of renewable and low-carbon fuels in shipping.
Alternative fuels infrastructure - To boost change, it has to be easy to adopt new habits. Distribution and ease of access to better fuels is therefore essential. The EU wants to ensure the growth of a network of charging and hydrogen refueling stations, coupled with ease of payment.
Renewable energy - The EU has revised it’s target up by another 2.5% to renewable energy to be 45% by 2030. The types of renewable energy highlighted are:
Wind Power
Solar Power
Hydro Power
Tidal Power
Geothermal Energy
Heat Pumps
Biofuels
Renewable Part of Waste
Energy efficiency - Changing the sources of energy is one thing, but becoming more efficient in our use of energy is also essential. Therefore the EU aims at reducing the energy consumption level by 11.7% in 2030 compared to predictions made in 2020.
Energy performance of buildings - Buildings account for 40% of energy consumed and 36% of energy-related direct and indirect greenhouse gas emissions in the EU. Therefore, the EU has issued a directive for:
All new buildings to be zero-emissions buildings by 2030
Existing buildings to be zero-emission by 2050
Hydrogen and decarbonised gas market package - In May 2024, the Council adopted a package to replace fossil gasses with renewable and low-carbon gases, including hydrogen.
Energy taxation - Taxation needs to work in lock-step with environmental efforts. Therefore, the EU works to do just that, while work on harmonising taxes between member states for the same purpose and ensure that tax revenues aren’t impacted negatively.
Transport
Transports account for 25% of EU greenhouse gas emissions. Decarbonising the transport sector is therefore a key to reaching the EU climate targets.
To reach the goal of Net Zero by 2050, the transport sector needs to reduce its greenhouse gas emissions by 90% compared to 1990 levels.
In addition to general targets for cutting emissions, the EU is setting new standards for emissions, Euro 7, aimed at charging heavy-duty vehicles for the use of certain road infrastructure.
A range of initiatives are about increasing and simplifying rail transport of both people and goods. In 2018, only 0.4% of total EU greenhouse gas emissions came from rail transport. Stitching from any other means of transport to rail is an environmental win.
Pollution
While climate change might be the most talked-about environmental issue, pollution is often the most visible for the general public. It’s not a minor issue either. One in eight deaths in Europe is linked to pollution. It is also one of the main causes of biodiversity loss.
The EU addresses pollution across several sectors:
Air quality - Setting standards and limiting air pollutants
Water - Making Europe’s rivers, lakes and ground water healthy
Soil - Protect and restore soils and ensure that they are used sustainably
Waste - Ensure that waste is managed in an environmentally sound manner, minimising pollution from waste
Plastics - Reduce plastic pollution by banning certain types of plastic packaging and single-use items
Chemicals - Minimise the risk from toxic chemicals and support innovation to design safer and more sustainable products
Transport - Reduce pollution from transport (not only reduce greenhouse gases)
Industry - Set limits for harmful emissions from industrial activities
Nature and Biodiversity
As mentioned above, biodiversity is under threat, an environmental issue that many have not yet fully grasped.
The EU works both to protect and to restore habitats and biotopes.
Biodiversity - Stop the loss of biodiversity and increase populations of threatened species
Pollinators - is maybe the aspect of biodiversity risks that has received the most attention. The EU works to reverse the decline in pollinators such as bees, butterflies and birds.
Forests - Forests are the lungs of our planet. The EU wants to enhance forests and their biodiversity
Water, rivers and wetlands - The EU wants to reduce pollution in surface and ground water, remove barriers in rivers, restore wetlands and improve ecosystem health
Farmland - 70% of EU soils are in bad health. The EU aims to reduce soil pollution and make agriculture more environmentally friendly.
Urban areas - The EU aims to make cities greener, primarily because trees are key to mitigating heat.
The Role of the European Council in the Green Deal
The European Council is responsible for setting the overall political strategy and guidance for the EU, also regarding the Green Deal. Every five years, leaders in the Council adjust and adopt the strategic agenda to set priorities for the UE’s policy work. The Green deal is the result of the vision agreed on in 2019.
How EU institutions support Green Deal policies
The EU Council acts as co-legislator together with the European Parliament, as in the ordinary legislative process.
The commission submits proposals
EU ministers meet in various Council configurations to discuss the proposed actions, introduce changers and negotiate with the EU Parliament
Finally the laws get adopted by both institutions and become EU law.
Criticism and Challenges of the Green Deal
Not everybody assigns the same priority to environmental protection as the EU Council and Parliament. Context and conditions change over time as well.
Defence against environmental challenges or aggressive countries?
Maybe the most imminent conflict of priorities has developed as a result of Russia’s aggression against Ukraine and European democracy. In combination with the uncertainty of the USA, their loyalties and commitment to defence alliances and agreements, this has triggered a frenzy of investments in defense spending that could possibly negatively impact willingness to spend on environmental action.
Social and competitive concerns
The initial wave of criticism was about concerns for the competitiveness of European industry and fears of environmental action fuelling inflation already on the rise due to, among other things, the Russian invasion of Ukraine.
Also, the Biden initiatives to boost US green industry created worries in the EU of losing the initiative in the green industry.
Fairness aspects
Some criticism has focused on concerns that the Green Deal would impact population groups and geographical areas unfairly, aspects that the EU Council and Parliament have tried to address through adjustments in some policies.
Combative Farmers
As many times before, combative farmers in certain EU member states have protested intensively against some aspects of the Green Deal, leading to politicians in those countries trying to backtrack on their support for the Green Deal to protect their positions of power.
Image by Rafmaster on iStock
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