EU Green Deal’s policies in Energy, Industry, Transport, Finance, Research and Innovation sector
21/12/2023 2Besides climate, environment – ocean and agriculture, the European Green Deal also mentions green policy objectives in many other sectors (Industry, Energy, Transport, Research and Development, Finance, Construction, etc.). Most of the contents which are categorized by European Commission into these sectors only relate to the EU actors in the EU territory and/or internal issues of the EU and its Member States.
Below are short brief of main contents of the European Green Deal in some typical sectors in these groups.
- Energy
The production and use of energy account for more than 75% of the EU’s greenhouse gas emissions. Decarbonizing the EU’s energy system is therefore a critical task for EU to achieve objectives of European Green Deal.
The EU’s Green policies in energy sector are being implemented positively with a set of big policies, featuring:
- The EU strategy on energy system integration: launched on 8 July 2020, with actions to (i) boost linking the various energy carriers (electricity, gas, petroleum, etc.) with each other and with the end-use sectors (buildings, transport vehicles, industrial production, etc.); create favorable conditions for the development of technology, digitalization, market models relating to integration;
- Smart Grid Initiatives, use of information technology and communication to optimize electricity transmission and distribution between producers and household consumers, integration of electricity infrastructure with information and communication infrastructure;
- EU action plan for digitalization of energy: presented in Oct 2022, this project includes measures to (i) exploit information technology to enhance transparency and efficiency in controlling the energy consumption of people and authorities, organizations. There are now 25 EU’s specific actions to implement objectives in this Plan;
- EU Hydrogen strategy: this strategy was presented on 08 July 2020 and includes policies in 05 areas (investment, production and demand, market and infrastructure, research and international cooperation). As of first Quarter, 2022, there were 20 specific actions being implemented for this Strategy. Fit for 55 Package has put forward several noticeable legislative proposals to particularize this Strategy;
- EU strategy on offshore renewable energy: presented on 19 November 2020, this Strategy sets targets for the EU’s offshore wind and ocean energy capacity for 2030, 2050 and directive policies to achieve these objectives;
- EU’s methane strategy: presented in Oct 2020, this Strategy comprises measures to cut methane emissions in the energy, agriculture, and waste sectors.
- Industry
Industrial production is the sector identified as a big emission source, thus, implementation of EGD’s objectives needs to mobilize thorough and active engagement, transformation of all EU’s industrial areas.
Until now, the EU has had many strong policies, actions in this sector, including:
- European industrial strategy: presented on 10 Mar 2020, updated on 11 May 2021, this Strategy includes 03 main contents: (i) Ensure the EU’s resilience; (ii) Enhance strategic autonomy ability; (iii) Boost twin transitions; on 01 Jan 2023, this strategy was supplemented with the Industrial Plan under EGD;
- Establishment of Alliances (public-private combined model) to boost green transition objectives in specific agriculture sectors, for example, European Battery Alliance, European Raw Materials Alliance, European Clean Hydrogen Alliance, Circular Plastics Alliance, etc.
- Transport
In transport sector, green policies aim to set up an efficient, safe, and environmentally friendly transport system in the EU.
02 EU’s noticeable programs in this sector are:
- Sustainable and Smart Mobility Strategy:
This Strategy sets out an action plan including 82 initiatives for achieving the target of 90% reduction in transport-related greenhouse gas emissions by 2050.
These initiatives focus on (i) reducing the dependence on fossil fuels (through the use of zero/low-emission vehicles, use of renewable fuels); (ii) boosting the use of sustainable transport vehicles (through prioritizing rail and public transport for travel), transporting goods by railway, inland waterways and short sea shipping; (iii) increasing the responsibility of polluters and users of polluting sources (carbon pricing mechanisms, infrastructure fees, etc.)
- Connecting Europe Express
- Finance
To achieve the goals set by the European Green Deal, the EU has been taking specific actions to mobilize financial sources for implementation of green policies, programmes in related aspects, sectors.
With the ambitious objective of mobilizing at least €1 trillion in sustainable investments over the next decade, the EU has been implementing a number of green financial programmes (most of which only for organizations and individuals within the EU, however, some areas are open for green activities outside the EU), for example:
- NextGenerationEU green bonds;
- Recovery and Resilience Facility;
- Just Transition Mechanism;
- Green transition reform support.
To implement European Green Deal, research and innovation plays a vital role in searching, accelerating transition methods, developing de-risking solutions in this area, the EU has some below noticeable programmes:
- Horizon Europe: the EU’s research and innovation for period of 2021-2027 includes a series of cooperation initiatives in boosting research, innovation in the EU;
- Green research and innovation rules: Comprises principles to be complied in the review, assessment of the EU’s new legislation, policies to ensure that they create favorable conditions for research and innovation activities for green transition in relevant areas.
Source: Report "EU Green Deal and Vietnam's Exports - The case of the agricultural, food and textile industries" – Center for WTO and International Trade