“This transition is not just about environmental sustainability,” says Özlem Terzi, assistant professor in International Relations at Vrije Universiteit Amsterdam. “It’s also about reshaping the EU’s economy to maintain its competitiveness in the global market, while prioritising innovation and digitalisation.”
The Green Deal’s ambitious goals
Launched in 2019, the European Green Deal aims to achieve climate neutrality by 2050 through a green transition. Özlem Terzi, a political scientist at Vrije Universiteit Amsterdam who researches the Green Deal, says: “The European Green Deal is more than just a policy aimed at reducing carbon emissions; it stems from the very identity and values of the European Union. The EU has long committed to environmental protection and climate leadership, and sees the Green Deal as a way to reassert itself as a global leader in climate change mitigation. Its goal to become the first carbon-neutral continent by 2050 is not only a matter of complying with international agreements, but also a statement of the EU’s vision for its future—a liberal, peaceful, but also competitive entity that cares about the future of its citizens in the face of climate change.”
The Green Deal aims to decarbonise key sectors of the economy, including transportation, industry and energy production. Terzi continues: “This shift is supported by a broader strategy of digitalisation and innovation. The EU aims to make the European economy not only greener but also more competitive in the face of growing (de-)regulatory rivalry from global powers like the US and China.”
Challenges and controversies
Despite its bold vision, the Green Deal has faced significant opposition. According to Terzi: “One of the main criticisms is the economic and social costs associated with the green transition – coming from both within EU member states and abroad. For many businesses, the need to decarbonise has created significant financial pressures, leading to concerns about competitiveness and job losses. Moreover, as the EU moves away from fossil fuels and towards electricity, the demand for raw materials used in battery production has skyrocketed. This has led to increased dependence on countries like China, which dominates the mining and processing of critical raw materials, raising questions about the long-term sustainability and security of Europe’s energy and resource supply.”
Furthermore, the extraction of these materials often has devastating environmental and social consequences, particularly in developing countries or sparsely populated regions where mining operations are concentrated, like the European Arctic. The scientist notes: “The EU’s reliance on these raw material sources has been criticised as a form of ‘green colonialism,’ where the environmental costs of Europe’s green transition are borne by others.”
From “green” to “clean, just and competitive”
The Green Deal has evolved since its inception, with the European Commission now referring to it as the “clean, just and competitive transition,” to reflect a growing recognition of the limitations of the original deal. Terzi explains: “Many of the deal’s initial environmental ambitions have been scaled back or compromised. While the EU remains committed to decarbonisation, the focus has shifted towards making sure the transition is socially and economically just, particularly for the industries and workers most affected by the shift away from fossil fuels and other carbon-emitting activities. This balancing act between social and environmental sustainability and economic competitiveness is delicate. On one hand, the EU needs to maintain its environmental leadership, a core part of its identity. On the other, it must also ensure that its economy remains competitive in a rapidly changing global market.”
This has led to difficult choices, like the decision to reintroduce some extractive industries to reduce dependence on external parties, despite the inherent pollution risks. The EU’s Critical Raw Materials Act, for instance, aims to increase the extraction, processing and recycling of critical raw materials within Europe.
The path forward: innovation and circularity
“One of the key solutions to these challenges lies in innovation for circularity,” says Terzi. “The EU’s Circularity Act, which emphasises the reuse and recycling of materials, offers a way to reduce the environmental impact of production while maintaining economic growth. Recent legislation encourages companies to recycle their products after being used by consumers. For example, instead of customers purchasing and discarding electronics, companies would retain ownership of them and be responsible for their repair and recycling. This would not only reduce waste but also incentivise companies to design products that are more durable and easier to repair. This shift from a ‘buy and dispose’ model to a ‘rent and reuse’ model could revolutionise industries and significantly reduce waste.”
While the European Green Deal has faced significant challenges, particularly in terms of its social and environmental impact, it remains a bold and ambitious effort to lead the world in the fight against climate change. Terzi concludes: “The path forward lies in innovation for circularity, and a commitment to maintaining the high environmental and social standards that should continue to represent the European way of going green.”
