The European Green Deal isn’t coping with a turbulent world. What must change?

(Energy Post, 11 Mar 2024) The European Green Deal was not designed to cope with the extraordinary series of overlapping crises the world has been facing. Though the EU has ultimately been reinforced through crises, that may not continue, explain Marc-Antoine Eyl-Mazzega and Diana-Paula Gherasim at IFRI who summarise their study “How Can the Green Deal Adapt to a Brutal World?” Costs are rising and investment is not keeping pace.

Dependence on China and the burst of investment in the US is eroding Europe’s competitiveness. Europe is still heavily dependent on hydrocarbon imports, and not replacing them with clean energy fast enough. Some of the region’s decarbonisation progress is down to industries shrinking. The author’s study has identified ten key points that need to be addressedto adjust the Green Deal to the new realities.

Recognising the risks: systemic, large, existential

The European Green Deal has not been planned for the current extraordinarily deteriorated internal and external environment. Russia’s war in Ukraine, higher interest rates, inflation, strained public finances, weakened value chains, and lack of crucial skills pose unprecedented challenges.

Additionally, insufficient global decarbonisation efforts and a global economic and technological confrontation, notably via the weaponisation of interdependencies and trade distortions, as well as the multiplication of malign actions, are profound game changers that require a strategic rethink and readjustments.

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Energy Post, 11 Mar 2024: The European Green Deal isn’t coping with a turbulent world. What must change?