Indian Council of World Affairs

The European Union (EU) has been pursuing its goal of tackling climate change for a very long time. It proposed the European Green Deal in 2019 as a roadmap to make key policies for the EU’s climate programme. This deal has faced challenges from issues such as COVID-19, the Russia-Ukraine war and the recently held EU parliamentary elections which resulted in a loss of 18 seats for the Greens/European Free Alliance (EFA) party which played a key role in pushing the Green Deal. These issues have implications on the implementation of environmental policies. This viewpoint focuses on the Green Deal as a policy priority for the EU in both — the short and long run. 

BREAKING DOWN THE GREEN DEAL 

The European Green Deal was launched in 2019 by the European Commission. It is a set of proposals to make policies on the EU’s climate, energy, taxation and transport to achieve zero net emissions of greenhouse gases by 2050 and reduce emissions by at least 55 per cent by 2030, compared to the levels from 1990.[1] With rising concerns over climate change and environmental degradation, the first carbon reduction scheme, the “Kyoto Protocol,” was signed in Japan in 1997. The protocol was signed by Annex I countries responsible for most greenhouse gas emissions, which included the EU along with the US, Canada, Russia, Japan and Australia. 

This was followed by several climate conferences. Yet, it has been observed that the levels of carbon emissions remained high. Despite the US withdrawal from the Kyoto Protocol in 2001, the EU strengthened its credentials in addressing climate change by securing enough support in various forums on international environment.[2] In 2015, 195 countries signed the Paris Agreement, pledging to keep the global temperature under 2 degrees Celsius. 

By 2018, the EU had reduced its greenhouse gas emissions by 23 per cent compared to the 1990s. The withdrawal of the US from the Paris Agreement in 2019 resulted in faltering climate commitments from other nations. The EU presented the Green Deal in 2019 as its “Man on the Moon” moment. The European Commission’s President, Ursula von der Leyen, termed it a new growth strategy for making the EU’s economy sustainable.[3] The EU brought in several laws, like the European Climate Law, the Farm to Fork Strategy, the Biodiversity Law and the recent signing of a partnership on sustainable and critical minerals with Australia to obtain renewable resources.[4] The targets include reducing greenhouse gases, reversing biodiversity loss and achieving economic sustainability to build climate resilience. 

This deal has successfully adopted “Fit for 55”[5] legislation, placing the EU on track to achieve its 2030 targets. For example, Germany’s energy needs were achieved through renewable sources by reducing carbon emissions by 73 million metric tonnes compared to 2022 figures.[6] 

CHALLENGES TO GREEN POLICIES 
 
Since its launch, the deal has faced several challenges in its implementation. 

First, the COVID-19 crisis resulted in an economic downturn and unemployment due to the temporary closure of industries. The reduction in tax receipts also pushed the government to spend on economic stimulus programmes to support industries and citizens.[7] Countries like Poland and the Czech Republic voiced concerns over the European Green Deal hindering economic recovery after the crisis. 

Second, the Russia-Ukraine crisis, followed by global trade tensions, has put security and defence, combating economic slowdowns and competition in industrial activities ahead of climate action on the priority list. The crisis itself is responsible for the release of greenhouse gases and chemicals into the atmosphere due to bombings. 

Grievances like spikes in energy, fertiliser and transport costs and the import of cheap products like meat and grains from Ukraine have disrupted domestic markets. This raised concerns about the EU’s food security, fueling farmers’ protests across Europe.[8] This also led to the scrapping of the pesticide reduction bill, i.e. the Sustainable Use of Pesticides (SUP) regulation, which is also part of the Green Deal. 

Third, changing priorities among the voters in the recently held EU parliamentary elections led to a decline of 18 seats for the Greens/EFA party who backed the Green Deal. One of the factors contributing to the decline in seats for the Greens/EFA include farmer protests across Europe towards the implementation of Common Agricultural Policy (CAP), which is part of the Green Deal. 

This had also led the largest party in the European parliament, European Peoples Party (EPP), to lean strategically towards right in the last two years. The delayed implementation of the Nature Restoration Law and the shelving of Sustainable Use of Pesticides Regulation (SUP), which aimed to halve the usage of pesticides, corroborates this.[9]

Fourth, Chinese-manufactured Electric Vehicles (EVs) are becoming relatively cheaper in comparison to their European counterparts. This has created global trade tensions and a difference of opinion in the EU. Countries like Spain, France and Italy pushed for tariffs on Chinese electric vehicles. Germany, Finland and Sweden abstained from voting on this issue, further complicating Europe’s green transition and affecting the Green Deal, which supports domestic production of EVs.[10]

CONCLUSION 

The EU's pursuit of climate action and implementation of the Green Deal in this challenging environment seems to face numerous obstacles. With the rise of focus on industrial and agricultural sectors and economic competitiveness at its core, balancing climate goals will be a challenge for the EU considering the changes underway in the political and social landscape. 

The poor performance of the Greens/EFA in the recent EU parliament elections has impacted their influence in pushing the policies backing the Green Deal. Right-wing parties opposing some of the policies affecting their interests in the Green Deal may demand amendments to the climate policies. However, the internal divisions in the right and far-right parties are curbing their influence in decision making. Despite obstacles, Europe has much to gain by being a supporter of the green agenda.

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*P Rama Krishna Teja, Research Intern, Indian Council of World Affairs, New Delhi
Disclaimer: Views expressed are personal.

Endnotes

[1] E. Commission, "The European Green Deal," https://commission.europa.eu/strategy-and-policy/priorities-2019-2024/european-green-deal_en.  [Accessed July 15, 2024].

[2] M. Siddi, "The European Green Deal assessing its current state and future implementation," p. 4, 2020.

[3] E. Commission, "The European Green Deal," December 11, 2019. https://ec.europa.eu/commission/presscorner/detail/en/ip_19_6691.  [Accessed July 17, 2014].

[4] E. Commission, "EU and Australia sign partnership," May 28, 2024. https://ec.europa.eu/commission/presscorner/detail/en/ip_24_2904.  [Accessed July 17, 2024].

[5] E. Commission, "Completion of key 'Fit for 55' legislation," 9 October 2023.  https://ec.europa.eu/commission/presscorner/detail/en/ip_23_4754.  [Accessed July 16, 2024].

[6] A. Energiewende, "Germany's CO2 emissions drop to record low," January 04, 2024. https://www.agora-energiewende.org/news-events/germanys-co2-emissions-drop-to-record-low-but-reveal-gaps-in-countrys-climate-policies. [Accessed July 15, 2024].

[7] E. Parliament, "Impact of corona virus on climate action and the European Green Deal," April 14, 2020. https://www.europarl.europa.eu/RegData/etudes/BRIE/2020/649370/EPRS_BRI(2020)649370_EN.pdf  [Accessed July 17, 2024].

[8] Z. Weise, "POLITICO," 11 April 2024. https://www.politico.eu/article/leaked-eu-priority-list-reveals-absence-climate-change-focus/  [Accessed 14 July 2024].

[9] S. J. a. L. T. Jon Henley, "The Guardian," Feb 06, 2024. https://www.theguardian.com/environment/2024/feb/06/symbol-of-polarisation-eu-scraps-plans-to-halve-use-of-pesticides  [Accessed July 16, 2024].

[10] Reuters, "ET energyworld," July 17, 2024. https://energy.economictimes.indiatimes.com/news/power/eu-countries-divided-on-chinese-ev-tariffs-in-vote/111805280  [Accessed July 17, 2024].