Is the European Green Deal at a Crossroads?

October 28, 2024

On October 11th, the Institute for European Studies hosted an engaging discussion led by Agata Kotkowska, former visiting research fellow at UC Berkeley and current Deputy Head of Unit at the European Commission’s Directorate General for Environment. Her talk, titled 'Is the European Green Deal at a Crossroads?', delved into the resilience of the European Green Deal (EGD) amidst mounting political challenges. The discussion focused on the EGD’s ability to maintain momentum toward climate neutrality while addressing urgent economic concerns. Approximately 30 attendees participated in the event.

The discussion opened by addressing whether the EGD can survive amidst growing political and economic pressures. Kotkowska emphasized that, beyond its climate goals, the Green Deal must ensure the clean economy is accessible to all European Union (EU) citizens. However, she highlighted that energy insecurity, particularly in the wake of the Ukraine crisis, has left a lasting impact on the EU's climate agenda. She also pointed out that emerging voices and shifting priorities within the European Parliament could potentially reshape the direction of the Deal.

A significant portion of the conversation focused on navigating the tension between the EU’s long-term climate objectives and immediate economic challenges, including persistently high energy prices, which threaten the EU’s global competitiveness. Kotkowska referenced grassroots opposition to the Deal, notably the farmer protests in 2024, which led to the withdrawal of a proposed pesticide reduction law by the Commission. Additionally, administrative hurdles, such as the EU’s lengthy process for approving environmentally friendly alternatives to fertilizers, further complicate the Deal’s implementation. Small and medium-sized enterprises (SMEs), in particular, have voiced concerns about the costs and red tape, or excessive bureaucracy, involved. Kotkowska also stressed the need to balance industrial competitiveness and climate goals, highlighting the Draghi Report's proposals for a joint decarbonization and competitiveness plan, which suggests specific measures to lower energy costs and support cleantech industries.

The event concluded with a lively Q&A session: attendees raised questions focused on the resistance to the Green Deal, especially in relation to energy transition, the potential for hydrogen and nuclear energy development, and the challenge of reducing red tape. Kotkowska noted the Commission’s target to cut administrative burdens for SMEs by 25%, which would help address some of the regulatory challenges associated with the Deal’s implementation.