Introduction to the European Green Deal
In 2019, the European Commission announced an ambitious plan called the [European Green Deal](# "A plan announced by the European Union in 2019 to transform the EU into a sustainable, climate-neutral economy
An economy that does not contribute to the overall increase of greenhouse gases in the atmosphere, meaning it has net-zero carbon emissions. The goal is to achieve this by reducing emissions and using renewable energy sources.
carbon neutrality
A state where the amount of carbon dioxide released into the atmosphere is balanced by the amount removed from it. This is often achieved through a combination of reducing emissions and offsetting any remaining emissions.
The EGD is seen as an opportunity to reshape the EU's regulatory framework and build upon existing legal developments and political commitments that have integrated climate change considerations into EU law. Alongside the EGD, the European Commission also introduced the [European Green Deal Investment Plan](# "A plan to mobilize at least 1 trillion euros in sustainable investments
Investments that consider environmental, social, and governance factors to promote long-term, responsible growth and have a positive impact on the environment and society.
The EGD can be analyzed from multiple perspectives, including its constitutional implications
The potential effects that the European Green Deal could have on the legal foundations and structure of the European Union, such as how it may influence the EU's laws, policies, and decision-making processes.
EU legal system
The set of laws, regulations, and legal principles that govern the European Union and its member states. This includes treaties, directives, and court rulings that establish the rights and obligations of the EU and its citizens.
enforceable legal instruments
Laws, regulations, or other legal tools that can be effectively implemented and upheld, ensuring that the goals and commitments made in the European Green Deal are actually achieved in practice.
The Legal Dimension of the European Green Deal
The Evolution of Environmental Protection in EU Law
Environmental protection has undergone a significant transformation within the EU legal order
The system of laws and rules that govern the European Union and its member countries. This includes the treaties, directives, and regulations that establish the EU's authority and guide its policies.
The Court of Justice of the European Union
The highest court in the European Union, responsible for interpreting and applying EU law. It ensures that EU law is interpreted and applied consistently across all member countries.
transversal concept
A concept or principle that cuts across and influences multiple areas or policies within the EU legal framework. It is not limited to a single specific policy domain.
Charter of Fundamental Rights
A document that outlines the fundamental rights and freedoms of people living in the European Union. It is part of the EU's legal framework and helps protect the rights of EU citizens.
The EGD as a Policy Initiative
While the EGD sets ambitious targets and outlines a roadmap of technical measures to achieve its goals, it is legally a non-binding soft-law instrument
A policy or guideline that is not legally binding, but still has some influence on the actions and decisions of the European Union and its member countries.
duty of sincere cooperation
The obligation for EU member countries to work together in good faith to achieve the objectives of the European Union, even if they may have different interests or priorities.
One of the shortcomings of the EGD is that it does not adequately address the constitutional dimension of environmental protection in the EU legal order. It fails to fully leverage the key environmental principles and the environmental integration principle
The idea that environmental protection should be a key consideration and integrated into all areas of EU policy and decision-making, not just in specific environmental policies.
The EGD does introduce a new "do no harm" principle, but the scope and enforceability of this principle remain unclear. Further substantiation of this principle is expected to come through upcoming legislative proposals that will be part of the EGD's implementation.
Overall, the EGD represents a significant policy effort by the European Commission, but its full legal potential is yet to be realized during the implementation phase.
The Financial Dimension of the European Green Deal
Achieving the objectives of the European Green Deal will require substantial investments. The financial and economic dimension of the EGD is, therefore, crucial to making the EU's regulatory framework an effective tool for the green transition.
The COVID-19 pandemic has had a significant impact on the EU's economic viability, triggering various financial responses at the EU level. These include the Coronavirus Response Investment Initiative
A program launched by the European Union to provide financial support and investments to help countries and businesses respond to the economic impacts of the COVID-19 pandemic.
Next Generation EU recovery plan
A large-scale economic recovery plan developed by the European Union to help member states rebuild their economies after the COVID-19 crisis, with a focus on making them more sustainable and resilient.
EU's own resources system
The system that provides the European Union with its own sources of revenue, such as contributions from member states and taxes, to fund its activities and policies.
The EGD seeks to reshape the European Semester
A yearly cycle of economic and fiscal policy coordination among the European Union and its member states, aimed at monitoring and improving economic performance.
competitive sustainability
An approach that aims to balance economic stability, social fairness, environmental sustainability, and productivity and competitiveness, in order to achieve the European Union's goals.
UN Sustainable Development Goals
A set of 17 global goals adopted by the United Nations to address challenges such as poverty, inequality, climate change, and environmental degradation, with the aim of creating a more sustainable and equitable future.
Sustainable finance, which involves considering environmental, social, and governance factors in investment decisions, is a key aspect of the EGD. The EU's Taxonomy Regulation
A framework developed by the European Union to establish a common classification system for identifying and labeling economic activities that are considered environmentally sustainable, in order to guide investment decisions.
The Just Transition Mechanism
A program launched by the European Union to provide financial and other support to regions and communities that are likely to be most affected by the transition to a climate-neutral economy, in order to ensure a fair and inclusive transition.
Just Transition Fund
A fund set up to help communities and workers who are affected by the transition to a greener economy. It provides financial support to regions and industries that may face challenges as they move away from fossil fuels and other polluting activities.
InvestEU
A program that aims to mobilize public and private investment to support the European Union's policy objectives, including the goals of the European Green Deal. It provides guarantees and other financial instruments to encourage investment in sustainable projects.
Conclusion
The European Green Deal is a significant initiative that aims to address environmental and climate considerations at multiple levels, including the political, institutional, regulatory, administrative, and individual levels. While the work on the EGD is progressing, it carries the potential for substantial financial impact across the EU economy and industry.
The success of the green transition and its financing depends on the involvement and cooperation of the EU, member states, and EU citizens. They must be willing to bear the associated costs and actively participate in the process, particularly through the announced Climate Pact
An initiative that encourages EU citizens to get involved and take action to address climate change. It aims to bring together individuals, communities, organizations, and businesses to contribute to the EU's climate and environmental goals.