European Green Deal
European Green Deal: Put people first where economic growth is decoupled from resource use. Protect the health and well-being of citizens from environment-related risks and impacts. The European Green Deal will accelerate and underpin the transition needed in all sectors and put Europe firmly on a new path of sustainable and inclusive growth. As part of the Green Deal, the Commission will refocus the European Semester process of
macroeconomic coordination to integrate the United Nations’ sustainable development goals, to put sustainability and the well-being of citizens at the center of economic policy, and the sustainable development goals at the heart of the EU’s policymaking and action. The Commission has estimated that achieving the current 2030 climate and energy targets will require €260 billion of additional annual investment about 1.5% of 2018 GDP. This flow of investment will need to be sustained over time.
The magnitude of the investment challenge requires mobilizing both the public and private sectors. The EU budget will play a key role.
The Commission has proposed a 25% target for climate mainstreaming across all EU programs.
Europe has always been the home of industry. For centuries, it has been a pioneer in
industrial innovation and has helped improve the way people around the world produce,
consume and do business. Based on a strong internal market, the European industry has long
powered our economy, providing a stable living for millions and creating the social hubs
around which our communities are built.
Throughout its long history, industry has proven its ability to lead change. And it must now
do the same as Europe embarks on its transition towards climate neutrality and digital
leadership in an ever-changing and ever more unpredictable world.
The twin ecological and digital transitions will affect every part of our economy, society and
industry. They will require new technologies, with investment and innovation to match. They
will create new products, services, markets and business models. They will shape new types
of jobs that do not yet exist which need skills that we do not yet have. And they will entail a
shift from linear production to a circular economy.
These transitions will take place in a time of moving geopolitical plates which affect the
nature of competition. The need for Europe to affirm its voice, uphold its values and fight for
a level playing field is more important than ever. This is about Europe’s sovereignty.
Industry is central to Europe’s future progress and prosperity. It makes up more than 20% of the EU’s economy and employs around 35 million people, with many millions more jobs linked to it at home and abroad. It accounts for 80% of goods exports and is a key reason behind the EU’s position as top global provider and destination for foreign direct investment.
Small and medium sized businesses (SMEs) account for over 99% of all European firms – the vast majority of which are family run companies – and are our economic and social 3 backbone.
Europe’s industry has a global competitive advantage on high value-added products and
services. It leads by example complying with the highest social, labour and environmental
standards, allowing Europe to project its values. Thanks to a strong innovation capacity, it is
also a world leader in green technology patents and other high tech sectors. Our single market
empowers European companies of all sizes to innovate, scale-up and employ more people.
These strengths need to be channelled towards gaining leadership in areas where the EU still
lags behind, such as on cloud and data applications.
European industry is already undergoing a significant transformation. There is a pronounced
shift from products to services and from exclusive to shared ownership of products and
services. The pressure on natural resources is already leading to a more circular approach to
manufacturing. Thanks to disruptive technologies like 3D printing, Europe also needs to make
the most of localisation as an opportunity to bring more manufacturing back to the EU in