About this book:

The European Green Deal, launched in 2019, is the EU's comprehensive strategy to achieve climate neutrality by 2050, fundamentally reorienting its economy towards sustainability. This book systematically unpacks the intricate web of policies, funding, and governance mechanisms driving this transition. It begins by outlining the Deal's origins, objectives—decoupling economic growth from resource use, protecting natural capital, and ensuring a just transition—and its architectural cornerstone, the EU Climate Law, which legally binds the 2050 climate neutrality goal and sets an interim 55% emissions reduction target by 2030.

Key instruments include the 'Fit for 55' package and REPowerEU plan, which detail the legislative overhaul. This involves strengthening and expanding the EU Emissions Trading System (ETS) to cover new sectors like buildings and road transport (ETS2), increasing targets for renewable energy (Renewable Energy Directive) and energy efficiency (Energy Efficiency Directive and Energy Performance of Buildings Directive), and revising national emission reduction targets under the Effort Sharing Regulation (ESR). Significant attention is given to sectoral decarbonization, with chapters dedicated to power system transformation (grids, storage, market design), hydrogen and low-carbon gases, industrial decarbonization (CBAM, ETS benchmarks, Innovation Fund), and clean transport (CO2 standards, charging infrastructure for road, and fuel mandates for aviation and shipping).

The book also highlights the crucial role of finance and governance. Sustainable finance initiatives, such as the EU Taxonomy, Sustainable Finance Disclosure Regulation (SFDR), and Corporate Sustainability Reporting Directive (CSRD), aim to redirect private capital towards green investments by enhancing transparency and preventing greenwashing. Public funding streams like the Multi-annual Financial Framework (MFF), Recovery and Resilience Facility (RRF), InvestEU, and the Just Transition Mechanism provide essential financial support and de-risk pioneering projects. Furthermore, the roles of state aid, Contracts for Difference (CfDs), and green public procurement are examined for their market-shaping influence.

Finally, the book addresses the overarching societal and practical aspects of the transition. It covers the transformation of agriculture and food systems through CAP reform, methane reduction, and nature restoration, and the shift towards a circular economy with Ecodesign, Batteries Regulation, and Critical Raw Materials Act. The indispensable role of cities and regions in local climate action, energy communities, and urban planning is emphasized. Business strategies for compliance, transition planning, and supply chain decarbonization are detailed. The critical role of innovation, from research (Horizon Europe) to large-scale deployment (IPCEIs), is explored. The social dimension is addressed through initiatives like the Social Climate Fund, focusing on skills, jobs, and ensuring a just workforce transition. The concluding chapter underscores the paramount importance of robust Monitoring, Reporting, and Verification (MRV) systems, data quality, and anti-greenwashing measures to ensure accountability and the credibility of Europe's ambitious journey to a low-carbon, sustainable future.