EU Elections: Achievements and Challenges of the European Green Deal

In just a few days, voters in the EU will head to the ballot box to elect the next European Parliament. The outcome of these elections will have a big influence over the level of political ambition for planetary action for the next five years. Following a cycle where the EU transformed key areas of its climate and energy legislation as part of the EU Green Deal, the 2024 poll will be crucial in shaping European Policies for the Green Transformation.

In the run-up to these elections, polling shows there's still broad consensus in support of continued climate and environmental action from voters across the political spectrum. But in a context where economic and security concerns are prioritized in people’s minds and choices, it will be essential to ensure green solutions are seen as important answers to these challenges too.

The European elections will take place from 6^th to 9^th of June, and adelphi will be closely monitoring the results. adelphi has been an important partner in implementing aspects of the European Green Deal.

After five years and in the run up to the elections, we take a closer look: What are the main achievements of the European Green Deal in context of our fields of action? What remains to be done?

Green and Circular Economy

The Circular Economy Action Plan (CEAP) is one of the main building blocks of the European Green Deal, aiming to make sustainable products the norm and empower consumers to take more sustainable choices. Especially the Directive (EU) 2024/825 on Empowering Consumers for the Green Transition seeks to protect consumers from unfair practices, significantly impacting environmental and social advertising. 

The CEAP has led to numerous recommendations and proposals enhancing regulations on eco-design and packaging waste, with the 2023 revision of the Packaging and Packaging Waste Directive promoting packaging reuse and recycling, crucial for tackling plastic waste. By establishing and enforcing these directives, the EU can lead by example and become a best-in-class player in terms of creating waste management structures that truly enable circularity.

Recently, the EU also approved the Corporate Sustainability Due Diligence Directive, requiring large companies to prevent negative impacts on human rights and the environment, solidifying the EU's leadership in sustainable practices. Our subsidiary, phiyond by adelphi, sees the need for companies to implement the new Directive as well as the Corporate Sustainability Reporting Directive (CSRD) and develop coherent pragmatic solutions to avoid inefficient compliance work so they actually benefit from sustainability regulations rather than suffer from them.  

Moving forward it will be crucial that promising proposals like the Directive on Green Claims (GCD) come into force and that this directive, along with the Directive on Empowering Consumers and the Corporate Sustainability Due Diligence Directive, are implemented into national regulations. Strict enforcement across all EU Member States is essential to create the necessary impact in Europe and the world. Additionally, strengthening monitoring and reporting mechanisms to track progress and prevent non-compliant commercial practices is important.

Climate Adaptation

The European Commission has included adaptation to climate change as one of the six environmental objectives that has increased attention for the important topic of physical climate risks.

Going forward, we need to provide businesses with an easily accessible database on regional climate risks. The EC should provide case studies for climate risk assessments that yield robust insights without requiring too many resources. In the medium-term, the requirements for such assessments should be simplified for those businesses who are less at risk and more guidance on conducting such assessments should be provided. Guided by the Federal Environment Agency (UBA), adelphi has provided starting points for these measures in the publication titled “How to perform a robust climate risk and vulnerability assessment for EU taxonomy reporting?”

Carbon Markets & Pricing

Last year marked a significant milestone in the EU’s climate agenda. The adoption of the 'Fit for 55' package has been a big step forward and the scope of the EU Emissions Trading System has been expanded. Its cap is now aligned with the 55% emission reduction target and its resilience enhanced through reforms strengthening the Market Stability Reserve. The EU launched a Carbon Border Adjustment Mechanism (CBAM) and will introduce a new ETS for buildings and road transport from 2027, to encourage climate action and strengthen the role of carbon pricing in new sectors.

However, there's more to be done. As we aim for net zero, the EU needs a clear long-term vision for emissions trading. Low-carbon technologies must become dominant rapidly, and removal technologies need to be scaled. Looking ahead, the Social Climate Fund will play a critical role in supporting vulnerable groups throughout the EU. A fair distribution of the costs of transition is essential to prevent backlash and ensure the successful implementation of the EU's climate goals.

Sustainable Finance

In recent years, the EU has made important and impactful advances to fight climate change. Our projects with the European Investment Bank (EIB) promote sustainable investments and a green transition using EU funds. Now it is essential for the EU to maintain its commitment in this area and foster conducive market conditions for scaling up sustainable finance. 

While the banking sector is inherently based on risk assessment and financial viability of investments, many conventional investments do not properly factor in climate risks or essential ecosystem services such as clean air, water, or biodiversity. Therefore, sustainable finance, driven by individual motivations rather than being the most efficient and cost-effective financing method, remains relatively limited. The European Union could promote the integration of biodiversity and ecosystem services into our financial system. adelphi explored one approach for the G20 to advance the proper valuation of nature in our financial system in the report titled "Improving Sustainable Finance Implementation”.

Given the current and anticipated impacts of climate change on our societies, we need to prioritize financing for climate change adaptation projects. This ensures that our economies are adequately equipped to address shifting temperatures, as well as the rise in occurrences of droughts, floods, and other natural hazards.

Biodiversity

The Green Deal included exciting advancements for biodiversity, particularly the EU Biodiversity Strategy for 2030, which set new targets for nature protection. adelphi closely followed the strategy's development, advising the BMUV and BfN during Germany's EU presidency.

A key initiative of the strategy is the proposed Nature Restoration Law. This law aims to shift focus from mere conservation - which remains no less important - to actively restoring species and habitats, integrating climate change, water management, and biodiversity challenges, acknowledging their common root causes and solutions.

Unfortunately, the law faces strong opposition, fuelled by lobby groups including wide use of social media to spread misinformation about its economic impacts. Despite the efforts of a wide coalition of progressive forces fighting to preserve this crucial legislation, its future remains uncertain as elections approach.

An ambitious restoration law is vital, and optimism is crucial: Small victories, such as constructive discussion about solutions for coexistence with wildlife and celebrating efforts on Natura 2000 sites, represent the concept of the EU as a whole so well. A portion of society understands that our well-being is tied to healthy ecosystems, and we hope this awareness will influence national governments to pursue these goals, with adelphi continuing to support them.

Looking ahead, adelphi stays committed to driving sustainability initiatives forward, advocating for robust climate policies and fostering collaboration among stakeholders for a resilient future. The results of the EU elections and the subsequent decisions will set the framework for our work.