European Green Deal
The European Green Deal aims to make the EU the first climate-neutral continent in the world by 2050. Its interim milestone for 2030 is a legally binding target to reduce greenhouse gas emissions by at least 55 percent, relative to 1990 levels. The strategy is based on the combination of carbon pricing, regulation and enabling action such as Social Climate Fund to support a fair and socially just transition.
With the Fit for 55 climate and energy policy package at its core, the EU Green Deal goes beyond energy and climate, covering also industrial policy, agriculture, and finance. Globally, the EU Green Deal has inspired more ambitious climate action in countries ranging from the United States to South Korea.
To reach climate neutrality, energy and climate policy action will be important in Europe also after Fit for 55 policy package is implemented. Most importantly, the EU legislator has yet to set an EU greenhouse gas reduction target for 2040 that will determine the speed with which greenhouse gas emissions in Europe will decline on the path to climate neutrality. Furthermore, important areas that wait to be addressed include include a systematic approach to reducing methane emissions (a short-lived but highly potent greenhouse gas), a comprehensive approach to ensure the transition of EU industry to climate neutrality, including by creating lead markets for climate-neutral products, ensuring sustainability of bioenergy or preparing the European power system for at least 70 percent renewables share by 2030. Furthermore, a shifting tax base due to successful climate policy calls for analysis to understand how the significant investments into Europe’s green transition could be financed.
As part of our international work, we also analyse and compare similar strategies to the EU Green Deal in different countries such as South Korea, drawing lessons from their adoptions and formulating targeted policy proposals.