EUROPEAN GREEN DEAL: A GAME CHANGER?

The European Green Deal is the EU Commission’s new growth strategy. It aims to turn the climate and environmental challenges into an opportunity to modernise the EU economy, endorsing a large investment program. The plan targets emissions reduction of at least 55% by 2030 and climate neutrality by 2050.

Highlights:

  • The European Green Deal is the EU Commission’s new growth strategy. It aims to turn the climate and environmental challenges into an opportunity to modernise the EU economy, endorsing a large investment program. The plan targets emissions reduction of at least 55% by 2030 and climate neutrality by 2050. 
  • To foster the change the EU will deploy its budget aiming to mobilise about 0.7% of GDP annually. Overall, investment needs are estimated at about 2% of EU GDP annually until 2050. The deal implies substantial structural changes. The most involved sector is Energy but the plan basically cuts across the whole economy. 
  • The Green and sustainable bond market is now at a turning point. Forthcoming sizeable green issuance in the EU will help growing and greening European finance in a more balanced and standardised way. Meanwhile the ECB will likely add green layers to both its monetary policy and regulatory objectives. 
  • Among sectors, building and materials are the main beneficiaries while Utilities and Autos will have to adapt.

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CORE MATTERS - EUROPEAN GREEN DEAL: A GAME CHANGER?

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