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Aishwarya Mudgadkar,
MP Law College
Introduction
The urgency of climate change is at an all-time high, which has led countries and regions to redesign their environmental policies and economic models. In this regard, the European Union (EU) has demonstrated an exemplary approach by launching the European Green Deal (EGD). The EGD was presented in December 2019 to become a bold and comprehensive political undertaking aimed at making Europe the very first continent to be climate neutral by 2050. As we delve into this strategy, it is evident that it goes beyond the adverse effects of climate change. This strategy also develops its economies, improves better living conditions, and promotes social justice in all the countries that are part of it.
The EGD is based on the understanding that the changing climate threatens to destabilise not only the environment but also the economy and public health. Drafting the strategy includes the principles on how to achieve the lowering of greenhouse gas emissions, the use of clean energy, and the implementation of the waste-free economy. The EGD seeks to integrate all areas of governance and policy making with respect to the economy to achieve society’s cohesiveness with nature and to bring about a society that is both progressive and resilient.
Key Components of the European Green Deal
· Legislative Framework
1. European Climate Law: The European Climate Law, which includes EU’s pledges to cut down greenhouse gases emissions to net zero by the year 2050. This law also requires that emissions must be reduced to at least 55% lower than the level of emission in the year 1990 by the year 2030. Hence, by enshrining such targets into law, the EU renders all member states liable for their obligations against the attainment of climate neutrality.
2. Fit for 55 Package: Extending the Climate Law further is the Fit for 55 Package, which is a variety of initiatives for updating climate, energy and transport policies. This package covers, among other things, the revision of the EU Emissions Trading System (ETS), changes in energy efficiency targets, and the introduction of better and more efficient transport systems. The Fit for 55 Package is an important tool for ensuring that existing policies are consistent with the EU’s climate goals in the longer term.
Sectoral Initiatives
1. Energy Transition: The EGD is focused on addressing the energy transition with the goal of at least 40% of the energy mix coming from renewable sources by 2030. This, however, calls for measures on energy efficiency in buildings, the use of electric vehicles, research and development of energy oppressive technologies among others. Reducing the dependence on fossil fuels would help in reducing the carbon footprint as well as enhance energy security of the member states.
2. Circular Economy Action Plan: Circular Economy Action Plan is an integral aspect of the EGD that focuses on waste reduction and optimum use of resources. This plan advocates for the design of sustainable products, supports the notion of upcycling and downcycling products, and wishes to ensure that resources do not exit the economy of the EU for as long as possible. Because of this circular economy, the member state is able to restrain the environmental damage while tapping additional sources of the economy.
3. Farm to Fork Strategy: Since it is acknowledged that agriculture is a double-edges sword with implications in climate change and also food security, the Farm to Fork Strategy is poised to establish a food system that meets the demands of the Union without compromising the environment. This has measures encouraging the use of biodynamic farming, stricter control on the use of harmful chemicals, and responsible aquaculture development.
4. Zero Pollution Ambition: The Efforts being made in the EGD Objectives are quite high when it comes to air and water pollution control by undertaking pollution mitigating strategies geared towards a toxic free planet by the year 2050. This incorporates tightening rules on discharges of harmful substances into the environment as well as active campaigns for the adoption of green technologies in various sectors.
Financial Mechanisms
1. Just Transition Mechanism: In order not to leave any region behind in such a shift from fossil fuels, the Just Transition Mechanism puts aside €100 billion worth of funding directed at regions or sectors most impacted by such changes. This mechanism seeks to alleviate the economic stress caused by the changes by offering economic aid to requalify the workforce, implement a new technology, and encourage other industries in the regions dependent on fossil fuels.
2. European Green Deal Investment Plan: EGD also plans to catalyse not less than Euro One trillion investment in sustainable projects by 2030 using a wide range of financial instruments. Also, this plan aims to implement big projects which have climate positive outputs and promote economic growth by use of public funds and draw in private investments.
Economic Implications for Member States
· Positive Impacts
1. Job Creation: A more significant possibility of the EGD is that it will create jobs in different areas of the economy. The movement towards a green economy is expected to create a host of opportunities in renewable energy, sustainable agriculture, green technologies or the circular economy. This change not only creates jobs for people but also encourages them to be better and improve their skills and competency.
2. Investment Opportunities: Since a significant amount of funding will subsequently be raised by the EGD, injection of new investments in activities regarding clean technology will be welcomed by businesses. This in turn helps commercialize the environmentally friendly innovations developed and utilized in the other industries.
3. Long-term Sustainability: Sustainable economic growth is essential. The increasing energy security policies in favour of the member states through the rational use of resources, and reduction of reliance on fossil fuels will help mitigate the impacts of the volatile crude oil and natural gas markets on the economies of member states. Stability in energy supply and prices can be achieved through a wider energy mix.
Challenges
1. Economic Disparities: The EGD is intended to be inclusive, but regions that depend on fossil fuel-related industries are likely to encounter considerable challenges during this transition. The purpose of the Just Transition Mechanism is to soften such effects; however, its success will greatly depend on implementation so that vulnerable groups are properly cushioned.
2. Regulatory Compliance: National policies and legislation shall be amended by the Member States in order to be in conformity with EU directives on EGD. Governments evolve within these legislative changes that are often complex and local interests are often at cross purposes with the changes and thus this will require enormous administrative resources.
3. Investment Requirements: Because of the ambitious goals set out in the EGD, substantial public and private funding across many sectors will be needed. Certain member states will find it unfavourable to obtain the required financial resources or might even get opposition from green politics due to other economic priorities.
Conclusion
As part of the European Green Deal, this broad goal is not only about fighting climate change but also sets its sights on changing the economic paradigm of the European Union. With the adoption of the new EU 2050 Climate Action Policy, the regional bloc is able to take a clear stand that economic development can be achieved without compromising the integrity of the environment. EGD is not simply a set of rules; it is a comprehensive ideology which reconciles all the aspects of human life: environmental, social and economic, into a common vision of sustainability The multi-faceted nature of the EGD covers a plethora of issues and actors such as energy, transport, agriculture, as well as industry. By trying to address the said sectors separately, the EU intends to accrue benefits that would culminate in enhanced efficiency. For example, while the optimal transition to renewable sources of energy reduces emissions of greenhouse gases and other pollutants, it also creates jobs in new industries that arise. In the same vein, the objective of the Farm to Fork Strategy of promoting Agriculture that is sustainable for health care systems, achieves food security as well as soil and biodiversity conservation. One of the most noteworthy effects of the European Economic Community is the possible strengthening of economic resilience. The reduction of fossil fuel consumption and an increase in energy efficiency can reduce the exposure of member states to global energy markets’ risks. The attention given to innovation and the development of new technologies will most certainly facilitate the emergence of clean technologies, enabling Europe to become the epicentre of the green economy. In turn, this leadership can provide benefits in the markets as the other continents start to implement such measures for sustainability. To be fair, the European Green Deal is a forward-thinking project for a sustainable future which carries an awareness for the need to act on climate change and poses possibilities for economic and social development. In this sense, as Europe progresses in fulfilling this ambition, it is also at a turning point as to the kind of society that would either be healthy or sick and stagnant. What is being determined today will affect the prospects not only of Europe but even the course of events beyond its folds as regards sustainability.
References
QIMA. (2020). What Is the EU Green Deal – Retrieved from QIMA. Council of the European Union. (n.d.).
European Commission. (2019). The European Green Deal. Retrieved from http://ec.europa.eu/info/strategy/priorities-2019-2024/european-green-deal_en
European Parliament. (2021). European Climate Law: A European Green Deal initiative. Retrieved from http://www.europarl.europa.eu/thinktank/en/document.html?reference=EPRS_BRI(2021)690844
European Commission. (2021). Fit for 55: Delivering the EU's climate goals. Retrieved from http://ec.europa.eu/clima/policies/eu-climate-action/fit-for-55_en
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