The European Green Deal, hailed as the EU’s flagship policy to address climate change and environmental degradation, has raised significant concerns within various sectors of the European economy. While the Green Deal aims to achieve net-zero carbon emissions by 2050 and serve as a strategic response to the COVID-19 pandemic, criticisms and challenges have surfaced from diverse quarters.
One of the key sectors feeling the impact is the paper and board industry, which has witnessed a decline in production and grapples with the implications of rapid changes under the Green Deal. The recent report highlighting a 12.8% decrease in production in 2023, even more pronounced than during the Covid-19 crisis, underlines the pressing need for a reevaluation of the Green Deal’s approach.
Moreover, concerns extend beyond the paper industry to include consumer groups like the European Consumer Association, which emphasizes the importance of aligning consumer policy with the Green Deal implementation for optimal outcomes. Additionally, the Green Deal’s failure to acknowledge the necessity of coherence across various EU policies, such as agriculture, health, environment, and trade, has drawn attention from critical voices.
The pace of change enforced by the Green Deal has been likened to an industrial revolution, raising alarms about its significant impacts on GDP, investment, employment, competitiveness, public finances, and monetary stability. The looming risk of negative short-term impacts resulting from decreased consumption and production has further fueled the debate surrounding the Green Deal’s feasibility and potential consequences.
Opposition to the Green Deal has emerged at different levels, with instances of societal push-back against environmental policies at the local and national levels. Criticism from heads of government and large-scale societal resistance underscores the complexity of navigating the implementation of the Green Deal amidst a climate of conflicting perspectives and interests.
In the midst of these challenges, the European paper industry stands as an example of the complexities and potential drawbacks of the rapid transition envisioned by the Green Deal. The industry acknowledges the shared aims of the Green Deal but emphasizes the need for caution and a well-considered transition from the current to the new era. Concerns about potential collateral damage, including the loss of manufacturing capacity and skills, heightened dependence on imports, and increased costs due to transitioning to more sustainable operations, add weight to the overall debate.
As the European Green Deal remains a contentious issue, the need for a balanced and pragmatic approach has gained prominence. The call for an undogmatic and realistic approach that prioritizes citizen-centric policies resonates with the concerns expressed by various stakeholders impacted by the Green Deal.
Amidst the ongoing debates and critique, the European Green Deal remains a central component of the EU’s climate goals and recovery strategy from the COVID-19 pandemic. The EU emphasizes the comprehensive nature of the Green Deal, spanning climate, energy, transport, industry, agriculture, and sustainable finance, tailored to align with the goal of reducing net greenhouse gas emissions. In the face of diverging opinions and concerns, the European Green Deal stands as a pivotal element in shaping the EU’s approach to sustainability and climate action.
Market Capital Research 