Why is the European Green Deal important?

In recent years, the issue of climate change has become increasingly urgent, with scientists warning that we must take immediate action to prevent catastrophic consequences. The EU imports in 2023 amounted to $7.60 trillion, while the total EU exports accounted for $7.47 trillion in the same year. The European Green Deal is a comprehensive plan aimed at making the European Union climate-neutral by 2050, and it has been hailed as one of the most ambitious climate policies in the world. But why is the European Green Deal important? In this article, we will explore the key reasons why this initiative is crucial for the future of our planet. The European Union (EU) wants to become carbon neutral by 2050 and transition to a green economy. To that end, the European Green Deal is a set of policy measures. The agreement is significant because it seeks to: 

1. Address global warming

The Green Deal uses clean energy sources and lowers greenhouse gas emissions to halt climate change before it turns uncontrollable.

2. Encourage a just and thriving society

The goal of the Green Deal is to establish a competitive, modern economy that upholds an equitable and successful society.

3. Preserve the environment

By 2030, the EU Biodiversity Strategy under the Green Deal seeks to save the environment, stop ecosystem degradation, and assist Europe in making the shift to a green economy.

4. Encourage parity

Through assisting the global transition to greener modes of transportation, the Green Deal's environmentally friendly transportation strategy seeks to advance equality.

5. Boost overall public health

The Green Deal's objective is to improve public health by using sustainable energy sources.

Where is the European Green Deal most utilized? 

The Green Deal covers several important policy sectors, including energy efficiency, offshore renewable energy, and emissions trading:

• Trading emissions: The European Union uses carbon trading as a means of mitigating the adverse effects of greenhouse gas emissions on employment and economic growth.
• Energy effectiveness: To address the renewable energy trilemma of supply security, competitive pricing, and sustainability, the EU seeks to reduce energy usage and waste.
• Renewable energy sources offshore: Europe cannot reach its energy and climate targets without offshore renewables.

How Does the European Green Deal Affect Trade?

The EU has the largest export market in the world, comprising 80 countries. In the EU, 16 percent of import and export activity takes place. Trade has a big impact on other countries and the EU. Non-EU countries must therefore carefully and accurately review the memorandum to maintain strong and long-lasting links with the European Green Deal. In a short while, the EU wants to finish all import and export activities under a new framework for international trade and the environment. By 2030, the EU wants to help poor countries reach the Sustainable Development Goals (SDG) and improve their socioeconomic status.

What effect does the Green Deal exhibit on EU imports and exports?

Due to the anticipated two-year prolongation of the data access deficiency, businesses operating in and out of the EU are anticipated to face challenges. Adopting new systems and technologies and altering the manufacturing environment would cost more after the European Green Deal (EGD). The first rule to be put into place to stop them is to restrict the production locations that contribute considerably to carbon emissions. According to European Commission predictions, several export sectors may experience carbon leakage at borders by 2030. A few of these industries are coal, steel, iron, cement, aluminum, textiles, chemicals, synthetic rubber, glass and glass products, ceramics, paper pulp, and certain agricultural products.

• If carbon costs in the EU are 30 euros per ton, then the carbon cost at border points is 478 million euros. Including other products used in the process, this amount increases to 1085 million euros.
• According to the EU's Border Carbon Regulation (SKD) and a carbon fee of 50 euros, emissions from finished goods total 797 million euros. Including additional commodities linked to production brings this cost up to 1809 million euros.
• Based on whether the cost of carbon is 30 or 50 euros per ton, exporting enterprises will be forced to pay more if they disregard these factors and keep producing carbon.

Conclusion

In conclusion, the European Green Deal is important for a variety of reasons, from addressing climate change to promoting clean energy and protecting biodiversity. By committing to becoming climate-neutral by 2050, the EU is taking a significant step towards a more sustainable future for the planet. We all must support and implement policies like the European Green Deal to ensure a healthy and thriving world for future generations.