The European Green Deal – a Feasible Ambitious Initiative?



Elena Loredana Pîrvu 1



Abstract: THE EUROPEAN GREEN DEAL is an EU initiative to make Europe the first climate neutral continent by 2050. This plan, proposed for the first time in the history of the Community, is a revolutionary, strategic and legislative one and will have a significant impact on the European economy and society. Given that current energy and climate forecasts show that emissions can only be reduced by 60% by 2050, reaching the objective of this deal (transforming Europe into a climate neutral continent) will be the greatest challenge of the European Union. This deal proposes a set of 47 actions, the main element of this deal being the Climate Neutrality Law, setting the year 2050 as a goal and direction for all EU policies, offering probability/predictability to all citizens, companies and public authorities. This deal aims to make Europe abandon classical energy in the coming decades and switch entirely to clean energy.

Keywords: climate neutrality; green deal; decarbonizing; economic growth



1. Introduction

The European Climate Pact (GREEN DEAL) is an EU initiative to make Europe the first climate neutral continent by 2050. This plan, proposed for the first time in the history of the Community, is a revolutionary, strategic and legislative one and will have a significant impact on the European economy and society.

On 14 December 2019, the European Commission presented the European Green Deal, which covers all sectors of the economy – a roadmap (COM(2019) 640)2 with actions to boost the efficient use of resources, thanks to the transition to a clean, circular economy, in order to stop climate change, put an end to the loss of biodiversity and reduce pollution, therefore to make the EU’s economy sustainable by turning climate and environmental challenges into opportunities across all policy areas and making the transition just and inclusive to all.

The European Climate Pact of the European Green Deal is a large legislative package, including 48 European regulations, and will cover about 30%, perhaps even 40% of the European budget.

President Ursula von der Leyen said about this deal, “by showing the rest of the world how to be sustainable and competitive, we can convince other countries to move with us.”3

Therefore, by 2050, Europe may become the first continent in the world with zero climate impact, offering new impetus to the economy, improving people’s health and quality of life and protecting nature.

The Commission’s vision for a climate-neutral future encompasses almost all EU policies and meets the objective of the Paris Agreement to keep the temperature increase well below 2°C and to continue efforts to keep it at 1.5°C. For the EU, the role of world leader with respect to climate neutrality means to achieve this by 2050.4



2. Community Actions Announced in the Communication

Some of the main actions announced in the communication (COM(2019) 640) concerning the Green Deal include the following:

  1. a climate neutrality law by 20505, which was proposed by the Commission on 4 March 2020 and which is the essential element of this deal;

The legal basis of the proposal for a regulation presented by the Commission (COM(2020) 80)6 is identified in Articles 191 and 193 TFEU, which state that the EU and the Member States have joint competence to improve the environment. Consequently, the Commission says that an agreement has been reached with respect to the ambitious targets set for 2050, which are intended to set the mandatory target for EU Climate Neutrality by 2050.

To this end, the Commission defines a way to gradually and irreversibly reduce greenhouse gas emissions, unlimited to CO2 for all sectors.

The European Parliament, the Council and the Commission are bound by Art. 2 that, in addition to the Member States, they take all required measures to achieve the objectives and take all such required measures at national and Union level.

The Commission is charged with checking the progress made by Member States and the Union every 5 years, proposing and recommending measures in case the initiatives already adopted prove to be inadequate, having to take into account, among others, the safeguarding of competitiveness of EU economies and solidarity among Member States (Art. 5 and 7).

  1. the introduction of a carbon adjustment mechanism at borders to avoid carbon leakage due to production by third countries with the lowest environmental ambitions and restrictions and to ensure that the price of imports takes more account of their carbon content;

  2. a new climate change adaptation strategy – the biodiversity strategy for 20307 to develop resilience to projected damage, despite mitigation efforts;

  3. the new industrial strategy;

  4. the action plan for a circular economy;

  5. the producer-consumer strategy for a sustainable food policy;

  6. and proposals for a pollution-free Europe.

The first foundations of the climate pact were laid on 14 January 2020, forecasting the financial basis of the program. These are as follows:

The Government considers the Just Transition Fund to be an important tool for the implementation of the European Green Deal, saying that no details have yet been set regarding the method of allocating resources to be distributed to Member States, including cap and net safety criteria, claiming that this should not translate into a “reward” mechanism for Member States that have put less effort into their energy transition, to the detriment of more virtuous states with regard to meeting their climate targets which have already assumed the objective of the professional consequences of the transition.

All the actions proposed in the communication are interconnected, as objectives are proposed for all sectors of activity, as follows:

  1. Climate

Given the new intermediate climate goals for 2030, which should be defined by the end of 2020, in the summer of 2020, the Commission intends to revise (by June 2021) the following regulatory tools:

  1. Energy

The Commission intends to revise the legislation on the energy sector by June 2021 as the energy sector is considered to be responsible for the largest share of emissions (26.3%). To this end, it will review:

Finally, the Commission announces the possibility:

To this end, it can be noted that the documents offers no estimate, be it provisional, of the additional resources to be allocated to this target.

By June 2020, the Commission intends to evaluate the final texts of national plans for energy and climate (which they should update taking into account the Green Deal targets) by 2023.

  1. Industry and the circular economy12

The Commission says that the EU industry contributes 20% to greenhouse gas emissions and that due to the fact that it uses only 12% of recycled materials it is far too dependent on the extraction of raw materials. In this sector, the European Commission has announced:

- the presentation of an industrial strategy based on digitalization and new technologies for decarbonizing and modernizing the energy-intensive industry.

The proposal (COM (2020) 102)13, presented on 10 March 2020, provides for, among others: an action plan on intellectual property; reviewing EU competitiveness rules; a white paper to counteract the disastrous effects of foreign subsidies on the single market; measures to modernize and decarbonize energy-intensive industries, supporting industries with sustainable and smart mobility and promoting energy efficiency; an action plan for essential raw materials and pharmaceuticals; an alliance for clean hydrogen, carbon-based industries, cloud platforms and raw materials; standards and guidelines on green public procurement; a renewed focus on innovation, investment and skills.

Furthermore, other measures are announced for the full implementation of the circular economy and promoting production cycles and sustainable products.

In particular, the Commission intends to present a new action plan for the circular economy14. The proposal, presented on 11 March 2020 together with the Communication COM(2020) 9815, provides measures to encourage the production of sustainable, durable and reusable products, taking into account, among others, the introduction of a “right to repair”. The plan is primarily intended for sectors characterized by a more intensive exploitation of resources and a greater production of waste: textiles, construction and construction materials, electronics, plastics, vehicles, packaging, batteries.

The planned initiatives aim to:

a) encourage the reuse of raw materials and secondary raw materials;

b) counteract the wear of electronic devices, favouring their recovery, reuse and modernization;

c) combat false declarations of ecological compatibility of “green” products;

d) introduce requirements for the production and reuse of packaging.

The plan also includes:

a) measures to encourage the sustainable use of plastic and promoting its recycling;

b) monitoring the implementation of standards with regard to single-use plastic;

c) measures to limit the use of microplastics and plastic emissions from materials such as fabrics or tires;

d) new rules for waste and an initiative to harmonize selective collection systems. The Commission promises to limit waste transports to non-EU countries and combat illegal waste exports;

e) legislative acts and guideline documents to introduce environmentally-friendly requirements for public procurement.

  1. The environment

The Commission intends to present a strategy on biodiversity, the protection of marine areas, expanding protected areas from those defined as being of European interest, increasing greenery in cities and the reforestation of forests, which contribute to CO2 absorption, to promote environmental resistance to climate change; this strategy will prepare the European Union’s position for the Conference of the Parties to the Convention on Biological Diversity to be held in October 2020 in Kunming, China.

The Commission also intends to present:

- measures to combat global deforestation and to protect the seas and oceans;

- an action plan to achieve the objective of “zero pollution” of air, water and soil whose objective is:

1) protecting the water against contamination from manufacturing, agricultural and urban runoff, industrial discharges and pharmaceuticals;

2) limiting endocrine disruption, harmful chemicals from the circulation of EU imported products;

- a chemicals strategy and industrial accident prevention measures

This new proposal envisages to update the strategy presented in 2013 (COM(2013) 0216)16 in order to ensure that investors, businesses, insurance companies and citizens can develop tools to integrate climate change into their risk management practices.

  1. A European climate pact

In March 2020, the Commission launched a Public Consultation (open until 17 June 2020) on the European Green Deal, bringing together regions, local communities, the civil society, businesses and schools, and through which the EU gives citizens a say and a role in formulating new actions, in the exchange of information and in the presentation of basic solutions that others can pursue. As the fight against climate change and environmental degradation has global dimensions, the response must also be global.

This “Climate Pact”17 is divided into 3 parts: exchange of information on issues related to climate change and environmental degradation; physical and virtual spaces for the presentation of initiatives related to the Green Deal objectives; the Commission’s support for environmental initiatives from the outset. The pact should be based on the experience of dialogues with citizens sponsored by the Commission (public discussions with European Commissioners and other EU decision-makers), EU-wide citizen meetings and social dialogue committees (discussions between social partners and the European institutions).

  1. Investments

In early 2020, the Commission presented an investment plan for a sustainable Europe to help meet investment needs. The investment plan: 25% of the EU climate budget, with the European Investment Bank and the European Climate Bank providing additional support. In order for the private sector to contribute to the financing of the green transition, the Commission will present a green financing strategy in 2020.

The EU will continue to promote its environmental goals and standards in the context of UN conventions on biodiversity and climate and strengthen its “green” diplomacy. G718 and G2019 summits, international conventions and bilateral relations will be used to persuade other parties to step up their efforts. The EU will also use its trade policy to ensure sustainability and build partnerships with neighbouring Balkan and African countries so as to assist them in their transitions.20



3. Is the Future European Climate deal Impacted by the Spread of the New Covid-19 Pandemic?

In their attempt to reduce the spread of the new COVID-19 (coronavirus) pandemic caused by the SARS-CoV-2 virus, governments across the European Union have imposed unparalleled measures, with a strong impact on travel and economic activity. Given that the rate of new coronavirus infections has begun to decline in the European Union, EU governments and officials have begun to look for strategies and ways out of the deadlock to stimulate the economy in its current state. It is understandable that States are entitled to take short-term measures regarding public health, social protection and economic measures to help sectors in difficulty, but it is essential that governments and officials do not overlook the need to implement strategies for the medium and long term in order to get out of the deadlock imposed by the COVID-19 pandemic.

However, if the required internal advocates are missing, the risk for Member States to delay or at least dilute the climate ambitions of the European Green Deal cannot be ruled out.

In this context, many discussions focus on how to better integrate and give up the commitments enshrined in the European Green Deal, while developing new policies aimed at reviving the EU economy.

Although various industries have lobbied for the delay in the implementation of certain environmental policies, and even members of different governments and politicians in EU States have suggested abandoning the European Green Deal or at least postponing its implementation so as to direct funds to address the short-term effects of the COVID-19 pandemic, more and more voices are calling for an ecological recovery at EU level.

In this context, in the second half of April, the EU Parliament adopted a resolution21 on coordinated EU action to combat the COVID-19 pandemic and its consequences, calling on the Commission to propose a recovery and reconstruction package that “should have the Green Deal and digital transformation at its core in order to kick-start the economy.”

To support this direction, 17 climate and environment ministers from EU Member States issued a joint letter22 in April urging Europe to remember the challenges of climate change when designing economic recovery strategies from the “unprecedented crisis” of the pandemic. And they urge others to maintain joint efforts “for a resilient reconstruction post-Covid 19”, through green transition and digital transformation.23

The 17 ministers believe that States must give up the temptation to implement short-term solutions in response to the current crisis, which threatens to block the EU in a fossil fuel economy for decades to come, they must meet the timetable set by the Paris Agreement, despite the postponement of COP26 and to stimulate other world actors to raise their ambitions one by one. Furthermore, “prompt actions to protect and conserve biodiversity must also be a key part of our response to the global health and environmental crisis and a key issue in ensuring the survival and well-being of our societies.”24

In addition, 180 European politicians, business leaders, business associations, the European Trade Union Confederation, NGOs and think tanks signed a letter25 expressing their view on the need to increase green investment in the Community and to develop “a new model of prosperity” in the EU. So, apparently, the notion of rebuilding the EU economy, while ensuring climate neutrality and adhering to the principles set out in the European Green Deal, also supports other decision-makers in the EU Member States, as well as key economic actors in the private sector.

Following these letters, Brussels revised its priorities with respect to the European Climate Pact in April 2020 due to the Covid-19 pandemic.

In the light of the new conditions due to the Covid-19 pandemic, the European Commission is examining its work program for 202026.

In this work program, the EU executive has defined a line-up of “urgent, new and existing files, related to covid-19”, considering that some initiatives under the European Green Deal may be delayed, as they are considered “less essential”, although climate policies remain mostly a priority. Even though climate policies remain mostly a priority, “absolute key priorities” include “in particular files relating to environmental and digital transitions27.

Therefore, the European Commission’s sustainable financial strategy, considered to be an essential contribution to recovery from the coronavirus crisis, is indicated as a priority initiative of the climate pact. Among the priorities is a so-called “renovation wave”, the details of which have not yet been defined, and which is considered a key point of the post-Covid-19 recovery plan. In fact, the economic benefits derive from the focus on energy transition and efficiency, particularly in the construction sector. The 2030 climate targets are also considered a key factor, because even though the UN Climate Conference in Glasgow (COP26) has been postponed, it was considered that more time should be given to a complex analytical exercise that is behind the development of new objectives.

The European Climate Pact is one of the initiatives postponed until the end of 2020, as its targets also included the creation of a platform in the autumn, ahead of the planned conference of the parties in Glasgow. The Farm to Fork Strategy has also been postponed because it should “reflect the teachings of the covid-19 pandemic on food safety.

Among other things, the revision of the non-financial reporting directive; the smart sector integration strategy (“an important project” for the energy transition); the great offshore renewable energy, timed to coincide with the announcements of EU Member States that are members of the North Sea Alliance; the chemical strategy for sustainability, considered “a key element of the Commission’s ambition to address all sources of pollution”; and the strategy for sustainable and smart mobility, the content of which is “linked to the 2030 climate targets”.

However, the actions that will be green-lighted in 2021 are the new EU strategy on adaptation to climate change and the new forestry strategy, which are considered to be important but not critical initiatives over time in relation to the overall political climate. However, “the strategy on adaptation to climate change was originally planned for 2021 in any case, and the delay will now allow for the preparation of an impact assessment”.

The programs ReFuelEU Aviation – Sustainable Aviation Fuels and FuelEU Maritime - Green European Maritime Space will also be postponed to next year, together with the strategy to empower consumers for the green transition, as it is considered to be an important part of the circular economy package and could be accompanied by circular economy initiatives for sustainable products”.

Finally, the EU 2030 Biodiversity Strategy, closely linked to the Farm to Fork initiative, will be postponed to the end of 2020, together with the Environment Action Programme.

The European Climate Pact – Green Deal gives us a roadmap to make the right choices to respond to the economic crisis, transforming Europe into a sustainable and climate-neutral economy. The lesson we should learn from the Covid-19 crisis is that early action is crucial. We must therefore maintain our ambition to mitigate the risks and costs of inaction due to climate change and biodiversity loss.

The EU’s capacity to act depends to a large extent on our ability to work together in solidarity to build the bridge between combating Covid-19, biodiversity loss and climate change.28



4. Allocations per Member State

The European Commission has already presented a first allocation of the Fund’s resources to each Member State. Since Poland stated at the European Council of 12 and 13 December 2019 that, at this stage, it cannot commit to implementing the 2050 emission reduction target with EUR 2 billion (the maximum allowed per Member State) and an per capita aid intensity of EUR 52.7, it would have the largest share of resources. It is followed by Germany (EUR 877 million, with a per capita aid intensity of EUR 10.6), Romania (EUR 757 million, with a per capita aid intensity of EUR 38.8), the Czech Republic (EUR 580 million, with a per capita aid intensity of EUR 54.7), Bulgaria (EUR 458 million with a per capita aid intensity of EUR 65) and France (EUR 401 million with a per capita aid intensity of EUR 6).

It seems that the allocation of the Fund’s resources under the conditions proposed by the European Commission does not guarantee a balanced distribution of tasks and potential benefits among different Member States, in terms of new investments, which have a clear impact on technological innovation.



5. Conclusions

I believe that the EUROPEAN CLIMATE PACT is an ambitious initiative proposed by the European Commission because through this challenge in the sustainability of climate action it aims, of course, to change the economic model from the current consumerism-based economy to a green economy.

I believe that for many Member States, the costs of meeting the European Commission’s emission targets will be much higher than the money allocated through the Just Transition Mechanism and some EU countries do not have the necessary resources or they have other priorities, and this could create tensions within the EU, which could push some Member States to leave the Union.

Nevertheless, I believe that this pact could be profitable for all EU States because it will stimulate both the economy and the quality of life in the EU, if it acknowledges the specificities of each Member State, if it is properly funded, taking into account the needs of each Member State, without affecting traditional EU policies, such as the common agricultural policy and cohesion policy.

I am therefore confident that the EUROPEAN CLIMATE PACT, which fulfils all the conditions to become the defining mission of the European Union, is a feasible ambitious initiative.



References

Brussels, 11.12.2019 COM (2019). 640 final, Annex to the Communication from the Commission to the European Parliament, the European Council, the Council, the European Economic and Social Committee and the Committee of the Regions. The European Green Deal.

https://ec.europa.eu/romania/news/20191211_pactul_ecologic_european_ro.

https://www.investenergy.ro/strategia-comisiei-europene-pe-termen-lung-europa-sa-devina-neutra-din-punctul-de-vedere-al-impactului-asupra-climei-pana-2050/.

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Brussels, 14.1.2020 COM (2020). 21 final Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions Sustainable Europe Investment Plan European Green Deal Investment Plan.

Brussels, 14.1.2020 COM (2020). 22 final 2020/0006 (COD) Proposal for a Regulation of the European Parliament and of the Council establishing the Just Transition Fund.

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Regulation (EU) 2018/842 of the European Parliament and of the Council of 30 May 2018 on binding annual greenhouse gas emission reductions by Member States from 2021 to 2030 contributing to climate action to meet commitments under the Paris Agreement and amending Regulation (EU) No 525/2013.

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https://www.climatechangenews.com/2020/04/20/four-eu-nations-back-green-post-coronavirus-recovery/.

https://www.rinnovabili.it/ambiente/cambiamenti-climatici/coronavirus-piano-ue-di-ripresa/.

https://www.rinnovabili.it/ambiente/politiche-ambientali/green-deal-2020-covid-19/.

https://www.climatechangenews.com/2020/04/09/european-green-deal-must-central-resilient-recovery-covid-19/.



1Associate Professor, PhD, “Alexandru Ioan Cuza” Police Academy, Romania, Address: Privighetorilor 1-3, Bucharest, Romania,

2 Brussels, 11.12.2019 COM(2019) 640 final, Annex to the Communication From The Commission To The European Parliament, The European Council, The Council, The European Economic And Social Committee And The Committee Of The Regions “The European Green Deal” retrieved on 27.05.2020.

3 https://ec.europa.eu/romania/news/20191211_pactul_ecologic_european_ro.

4 https://www.investenergy.ro/strategia-comisiei-europene-pe-termen-lung-europa-sa-devina-neutra-din-punctul-de-vedere-al-impactului-asupra-climei-pana-2050/.

5 See https://ec.europa.eu/commission/presscorner/detail/en/FS_20_360 european-climate-law-march-2020_en(2777.714 kB - PDF).

6 Brussels, 4.3.2020 COM(2020) 80 final 2020/0036(COD) Proposal for a Regulation Of The European Parliament And Of The Council establishing the framework for achieving climate neutrality and amending Regulation (EU) 2018/1999 (European Climate Law) retrieved on 22.05 2020.

7 See https://ec.europa.eu/info/strategy/priorities-2019-2024/european-green-deal/actions-being-taken-eu/EU-biodiversity-strategy-2030_en.

8 Brussels, 14.1.2020 COM(2020) 21 final Communication From The Commission To The European Parliament, The Council, The European Economic And Social Committee And The Committee Of The Regions Sustainable Europe Investment Plan European Green Deal Investment Plan.

9 Brussels, 14.1.2020 COM(2020) 22 final 2020/0006 (COD) Proposal for a Regulation of the European Parliament And Of The Council establishing the Just Transition Fund.

10 Brussels, 14.1.2020 COM(2020) 23 final 2018/0196 (COD) Amended proposal for a Regulation Of The European Parliament And Of The COUNCIL laying down common provisions on the European Regional Development Fund, the European Social Fund Plus, the Cohesion Fund and the European Maritime and Fisheries Fund and financial rules for those and for the Asylum and Migration Fund, the Internal Security Fund and the Border Management and Visa Instrument.

11 Regulation (EU) 2018/842 of the European Parliament and of the Council of 30 May 2018 on binding annual greenhouse gas emission reductions by Member States from 2021 to 2030 contributing to climate action to meet commitments under the Paris Agreement and amending Regulation (EU) No 525/2013.

12 See the article “Plastics in the Circular Economy” 9th International Conference The Danube - Axis of European Identity, 2019, Elena-Loredana Pîrvu.

13 Brussels, 10.3.2020 COM(2020) 102 final Communication From The Commission To The European Parliament, The European Council, The Council, The European Economic And Social Committee And The Committee Of The Regions A New Industrial Strategy for Europe.

14https://ec.europa.eu/commission/presscorner/detail/ro/fs_20_437EU_Greendeal_Circular_economy_ro(1143.332 kB - PDF).

15 Brussels, 11.3.2020 COM(2020) 98 Final Communication From The Commission To The European Parliament, The Council, The European Economic And Social Committee And The Committee Of The Regions A new Circular Economy Action Plan For a cleaner and more competitive Europe.

16 Brussels, 16.4.2013 COM(2013) 216 final Communication From The Commission To The European Parliament, The Council, The European Economic And Social Committee And The Committee Of The Regions An EU Strategy on adaptation to climate change.

17 See https://ec.europa.eu/commission/presscorner/detail/en/FS_20_361, climate-pact-for-all-europeans-march-2020_en(5306.474 kB - PDF).

18 The Group of Seven (G7) is an international forum for the governments of economically, technologically and militarily developed countries: Canada, France, Germany, Italy, Japan, the United Kingdom of Great Britain and Northern Ireland, and the United States of America. Between 1997 and 2014, the G7 was known as the Group of Eight (G8), consisting of G7 countries plus Russia. On 2 March 2014, due to Russia’s involvement in the conflict in Ukraine, participants from seven countries (excluding Russia), together with representatives of the European Union and the European Commission, suspended its participation in the Sochi summit and instead met in Brussels in the G7 format, effectively excluding Russia from this group. Since 2014, the G8 group actually includes seven states and the EU as the eighth participant.

19 It is a group of finance ministers and central bank governors from 20 economies – 19 of the largest national economies, plus the European Union.

20 https://www.innovationpost.it/2019/12/12/ambiente-europa-a-impatto-zero-entro-il-2050-al-via-il-green-deal/.

21 https://www.europarl.europa.eu/news/en/press-room/20200415IPR77109/covid-19-meps-call-for-massive-recovery-package-and-coronavirus-solidarity-fund.

22 The initial letter signed by the first 10 representatives of the EU government can be accessed at this link. Following its execution, other 7 EU governments joined the call of the other EU Member States-link.

23 https://rlw.juridice.ro/17140/is-the-future-of-the-european-green-deal-threatened-by-the-covid-19-pandemic-focus-on-the-national-energy-sector.html.

24https://www.repubblica.it/dossier/ambiente/green/2020/04/11/news/coronavirus_i_ministri_dell_ambiente_ue_green_deal_sia_centrale_-253750693/.

25 https://www.climatechangenews.com/2020/04/20/four-eu-nations-back-green-post-coronavirus-recovery/.

26 https://www.rinnovabili.it/ambiente/cambiamenti-climatici/coronavirus-piano-ue-di-ripresa/.

27 https://www.rinnovabili.it/ambiente/politiche-ambientali/green-deal-2020-covid-19/.

28 https://www.climatechangenews.com/2020/04/09/european-green-deal-must-central-resilient-recovery-covid-19/.