FAQ about the Green Deal

What is the European Green Deal?

The European Green Deal consists of policy initiatives by the European Commission with the goal to make Europe climate neutral by 2050. Green technologies, such as hydrogen and fuel cells, boost the economy, establishing sustainable industries and manufacturing while reducing emissions. 

How will it be financed?

The corona virus pandemic has increased fears that green ambitions may be diluted as the economy has slowed down. As a response, the Commission proposed a €1.8 trillion (US$2.1trillion) budget. This includes a €750 billion recovery package alongside its €1.05 trillion seven-year budget for 2021 to 2027. The recovery package had a distinctly green tinge, though it was watered-down by the time of approval by EU leaders. Besides the EU funds, it is estimated up to €1 trillion of private sector investment will be needed to make the Green Deal a reality.

What impact will it have on Europe’s energy mix?

With the 2050 target, the Green Deal proposes reducing the GHG emissions by 55% by 2030 (#55by2030). Europe was setting course for only 40% reduction. This is a significant increase and will place a heavy reliance on the transformation of the power sector. The EU will need to push for huge growth in renewable energies and an accelerated exit from coal.

The swift shift to renewables raises a flexibility challenge. Power storage technologies – such as hydrogen – need to be developed to full commercial scale and with improved economies of scale. Battery-based energy storage needs to extend to six or even eight hours storage time.

The number of viable sector coupling technologies will have to increase. So far, the policy focus has been on expanding wind and solar power. However, other renewable sources, such as sustainable biomass, need to be stronger included into the power mix.

European Green Deal: where are the opportunities?

– The Energy Transition makes room for new products & services.

– The changing energy landscape opens up opportunities for SME.

– The competitive advantages of established businesses are shaken by the changes.

– New technologies present new opportunities.