Introduction of EU Green Deal

21/12/2023    40

The European Green Deal-EGD, hereinafter referred to as “EU Green Deal” is a comprehensive and long-term program of the European Union (EU) to respond to all global climate emergency from now to 2050. This document was published on December 12, 2019 by European Commission and approved via voting by European Council in January 15, 2020.

  • Nature

In nature, EU Green Deal is a policy package shaping EU’s strategy to reach net zero greenhouse gas emissions (climate neutrality)and become a resource-efficient economy by 2050.

The full text of EGD states major goals to be achieved and EU’s strategic directions on climate issues without directly setting specific green standards nor conditions.

To implement the EGD, the EU has been developing various specific strategies, programs, action plans, policies, and legislation (hereinafter referred to as green policies) in almost all economic sectors. These green policies set many new and/or upgraded green standards, conditions and/or requirements, then directly or indirectly affecting various groups of economic actors in related sectors.

  • Goals

EU Green Deal aims at 04 general goals:

- Becoming “climate-neutral bloc” by 2050

- Protecting lives of humans, animals and plants by reducing pollution.

- Supporting European businesses to be the world’s leading party in terms of technology usage and manufacture of clean products.

- Ensure fair and long-term transition journey (no bodies are left behind).

Benefits of Green Deal to European citizens:

According to European Commission, EU Green Deal will enhance the well being and health for people and future generations in EU, specifically:

- Fresh air, clean water, healthy soil with biodiversity

- Renovation of buildings on energy efficiency

- Healthy food at affordable price

- More public means of transport

- Cleaner energy and technological innovation

- More durable products that can be repaired and recycled

Jobs and skill training suitable for the future during transition time

Resilient and globally competitive economic industries

Source: Online session for EU Green Deal by European Committee (EC) at following link:https://commission.europa.eu/strategy-and-policy/priorities-2019-2024/european-green-deal_en

  • Scope

Since every single economic activities contribute to and/or have impacts on climate change or environment degradation, EU Green Deal is designed to cover all aspects of economy in EU, and aspects of inter-industry policies in order to get resonance results in reaching the ultimate goal of being climate neutrality in 2050.

In other words, all industries, economic aspects of EU will be impacted by policies of EU Green Deal at different levels. However, due to substantial impact on environment and climate change, some economic sectors including agriculture, industry, services, energy, finance, transport and construction.

  • Subjects of application

As an internal policy package of the EU, the EGD theoretically only applies to EU actors and activities within the EU market/territory (including goods, services, economic activities) circulating/occurring in the EU.

However, in some specific cases, EGD’s policies may also apply to actors/activities outside the EU, specifically:

- Policies, regulations which are mandatory applied to goods circulated, traded, used, consumed, discharged and/or releasing emissions within the EU: Since the subjects of this solution include some types of goods imported from outside   (third countries) to the EU market which are used, consumed here, overseas manufacturers, exporters supplying goods, services to the EU will also have to comply with relevant policies;

Policies, regulations are directly applied to goods, services imported from outside to EU: Compared to above cases, this group is less popular, is used by the EU in some situations to boost intensive and thorough implementation of the EU’s climate and environment goals. In these cases, the EU importers and respective overseas manufacturers, exporters of relevant products will be the actors complying these measures.

So, despite being an the EU’s internal document, in some specific policies, implementing solutions, EGD will be applied to goods, services imported from outside to the EU as well as relevant overseas manufacturers and exporters.

Given that, European Green Deal is supposed to directly or indirectly affect many trade flows of goods and services from all over the world to the EU which has the world’s second biggest import turnover (only after United States). Because the EU is Vietnam's key export market, the implementation of the European Green Deal will also have considerable impacts on a substantial part of Vietnam's exports.

Source: Report "EU Green Deal and Vietnam's Exports - The case of the agricultural, food and textile industries" – Center for WTO and International Trade