Vulcan View: The latest EU developments 2 September – 6 September

The Future of the European Green Deal

The European Green Deal is a set of policy measures designed to guide the EU toward a green transition, with the eventual goal of reaching climate neutrality by 2050. Introduced in 2019 under the leadership of European Commission President Ursula von der Leyen, the comprehensive strategy seeks to reduce greenhouse gas emissions, promote clean energy, and foster sustainability across all sectors. Now, with von der Leyen’s re-election, there’s growing debate about whether the Green Deal will remain a priority in the new term or face resistance from groups like farmers.

While the European Green Deal has achieved significant progress since its launch five years ago, it remains a long-term strategy with much work still ahead. Key issues for the upcoming mandate include a framework for sustainable food systems, revision of the chemicals regulation and a full animal welfare package. To support agriculture, a new vision for the Common Agriculture Policy (CAP) is needed as is a better approach to policy integration.

Shifting geopolitical tensions and potential trade conflicts are casting uncertainty over the future of the European Green Deal. In the upcoming mandate, industrial policy and competitiveness are expected to take centre stage in EU policymaking. The results from the European Parliament elections on June 6-9 have highlighted a political shift to the right and a stronger push for competitiveness and economic success.

Von der Leyen’s Political Guidelines for 2024-2029 confirm that action on climate and energy will remain a key priority for the EU and will be intrinsically linked with the new competitiveness agenda. The guidelines propose a European Prosperity Plan, which includes a new Clean Industrial Deal aimed at supporting industry in its green transition by channelling investments, lowering energy costs, simplifying administrative processes and creating new market opportunities.

For the EU to stay competitive, it must do its part for the climate and build mutually beneficial partnerships to maintain global relevance. This includes transitioning away from fossil fuels within industry and moving towards clean energy, and better leveraging the internal market to support the business case for clean and strategic industries.

As competitiveness concerns dominate European politics, delivering on the European Green Deal is now firmly linked with the EU’s plan to boost its industry, leverage new markets and create high-quality jobs. The European Green Deal will remain a vital part of the EU’s next mandate, but its progress will depend on balancing climate goals with economic competitiveness. As politics shifts, sustaining momentum for green initiatives will become a key challenge.

Key Points from the Climate Action Plan 2024 and Political Insights

The Climate Action Plan 2024 (CAP24) has outlined Ireland’s progress in terms of reaching climate targets. 20 out of 33 new climate actions were completed on schedule. In the first half of the year, several high-impact actions were accomplished. These include:

• The development of a low-cost finance scheme for home retrofits.
• The publishing of a national electric vehicle charging strategy.
• The development of a decarbonisation road map.
• Revision of the shadow price of carbon.
• The adoption of 31 local authority CAPs.
• The development of a national adaptation framework.

Despite the positives outlined in the CAP24, the report emphasised that the risk of failing to meet international, EU, and national emissions reduction targets is still very much apparent. Efforts must be increased to advance Ireland’s transition to a “cleaner, healthier and more resilient” future.

Political Insights

Taoiseach, Simon Harris, welcomed the report’s indication that Ireland must progress further in terms of climate action. Harris indicated the government’s interest in continuing engagement and collaboration with sectors, communities and households to ensure an “achievable” and “fair” transition to a greener economy. He stated that the government will continue to offer incentives, protections and support to aid adjustment to climate policies, suggesting an opportunity for the industry to become more sustainable through utilising government support.

Tánaiste, Micheál Martin, outlined that the government is helping people develop new incomes. The biomethane strategy, particularly relevant to the agricultural industry and farmers who are interested in generating energy, will create scope for land use and multifarious income opportunities. Concerning the forestry industry, a 1.3-billion-euro investment in a new forestry programme will break ground in terms of afforestation.

Roderic O’Gorman, Minister for Children, Equality, Disability, Integration and Youth, discussed the government’s concern with reducing travel emissions. According to O’Gorman, the expansion of public transport and transport-led development is central to achieving this. Furthermore, an efficient public transport system is crucial for people to access essential amenities and services. Increased investment in public transport can generate economic growth subsequently supporting a strong economy and workforce.

Moreover, O’Gorman indicated that the delivery of offshore wind projects is imperative to achieving Ireland’s climate goals. CAPs are a crucial monitoring mechanism for the delivery and improvement of such projects. Offshore wind farms enhance Ireland’s competitive appeal as they provide renewable energy, act as a cheaper source of energy for businesses, generate job opportunities and contribute to the country’s overall sustainability ratings.

For more information, please contact the Vulcan team here.

Compliments of Vulcan Consulting – a member of the EACCNY.