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Impact of the EU Green Deal on industrial sector

The main aim of the EU Green Deal is to integrate EU Industrial policy into the EU climate policy ambitions. Climate action is increasingly treated as an integral part of the EU's foreign and trade policy agenda. The European Commission promotes the notion of “climate neutrality” and zero greenhouse gas emissions by 2050. Therefore, the EU Green Deal is not just another EC initiative, but it is a very ambitious plan that wants to bring together the economy, environment and the society.

• Climate ambition The European Commission proposes a European “Climate Law” enshrining the 2050 climate neutrality objective. That means updating the EU’s climate ambition for 2030, with a 50-55% cut in greenhouse gas emissions to replace the current 40% objective. The 55% figure will be subject to a cost-benefit analysis. Furthermore, revisions of the energy efficiency directive and other relevant pieces of legislation are planned for 2021. Building renovation (public and private buildings) will be one of the flagship programmes of the EU Green Deal. 

• Industrial strategy for a clean and circular economy The European Commission will propose a circular economy action plan which will include a “sustainable products” policy to support the circular design of all products based on a common methodology and principles. It will prioritise reducing and reusing materials before recycling them. It will foster new business models and set minimum requirements to prevent environmentally harmful products from being placed on the EU market. Extended producer responsibility will also be strengthened.

The circular economy action plan aims to mobilise industry for a clean and circular economy. While the focus will be on the resource intensive sectors such as textiles, construction, electronics and plastics; it will have an impact on all manufacturing sectors. It gives a strong message for the shift to low-emission technologies, sustainable products and services. 

• Sustainable and smart mobility The European Commission will propose to revise by June 2021 the legislation on CO2 emission performance standards for combustion-engine vehicles (cars and vans), to ensure a clear pathway from 2025 onwards towards zero-emission mobility.

• Towards a zero-pollution ambition for a toxic free environment The European Commission will adopt in 2021 a zero pollution action plan for air, water and soil. Furthermore, the Commission will review EU measures to address pollution from large industrial installations. It will look at the sectoral scope of the legislation and at how to make it fully consistent with climate, energy and circular economy policies.

• EU as a global leader EU will continue to lead the international climate and biodiversity negotiations, further strengthening the international policy framework and will strengthen the EU’s Green Deal Diplomacy in cooperation with Member States. The aim will be to induce global partners to act and to ensure comparability of action and policies.

Finally, the European Commission will present a new environmental action programme to complement the European Green Deal that will include a new monitoring mechanism to ensure that Europe remains on track to meet its environmental objectives. The Commission will also launch a dashboard to monitor progress against all of the European Green Deal objectives.