EU Climate Policy
How the European Green Deal aims to make Europe the first climate-neutral continent, the policy instruments driving the transition, and the political backlash it has generated.
The European Green Deal
Announced in 2019, the European Green Deal is the EU's strategy to become the first climate-neutral continent by 2050. The European Climate Law makes this target legally binding. Intermediate targets require a 55% reduction in greenhouse gas emissions by 2030 compared to 1990 levels. The ambition is to transform the European economy: energy systems, transport, agriculture, industry, and buildings must all be decarbonized.
The policy package known as 'Fit for 55' includes dozens of legislative measures. The EU Emissions Trading System (ETS), the world's largest carbon market, puts a price on carbon emissions from industry and power generation. Regulations mandate the phase-out of internal combustion engine cars by 2035. New building standards, renewable energy targets, and energy efficiency requirements touch virtually every sector of the economy.
