European Green Deal: What it means for your business — Part 2

5 min readFeb 3, 2020

Last week I shared part 1 of an analysis of the European Green Deal and what it means for businesses in and outside of Europe. In part 2, we will examine the remaining pillars of the EGD and which actionable steps you can already take to prepare your business for a sustainable future.

Photo by Appolinary Kalashnikova on Unsplash

Missed part 1? Read it here.

The EU has already started to transform the economy with the aim of climate neutrality. If there are still companies or investors out there, who do not believe in the idea of a carbon-neutral Europe or that it’s merely political posturing, think again. And it shouldn’t come as a surprise. Between 1990 and 2018, the EU already reduced greenhouse gas emissions by 23%, while the economy grew by 61%.

The European Green Deal is a serious road map to accelerate policy change and the next step to shaping the world to avoid a climate disaster.

The various elements of the European Green Deal

So, getting back to where we left off, here are the three remaining, but not less important, pillars of the proposed European Green Deal.

6. Farm to fork

The EU is known for its intensive agricultural sector. Many countries and governments are already scrutinizing their agricultural industries under pressure from the EU and the Paris Agreement, and local concerns over the climate crisis. Under the European Green Deal, this will be taken a step further, and the impact on the use of pesticides, antibiotics, and fertilizers will be significant.

This particular pillar is for all stakeholders, meaning that the committee won’t just look at how food is farmed and waste management. Health issues, as a result of low-quality diets, such as obesity, will be addressed accordingly. It will be made easier for people to make healthy and sustainable choices.

Take action: The focus will be shifted to performance-based policies, such as rewarding farmers and fishermen to improve their climate and environmental targets. Retail sectors will need to rethink the storage, transportations, and packaging of food. Food fraud (such as intentionally mislabelling products) will be heavily doubled down on. Imported food that does not comply with environmental standards is not allowed on EU markets.

7. Transport and mobility

Last year, the European Union agreed on a new standard of allowed CO2 emissions for the automotive industry. This will again be on the firing line. The EU will encourage the purchase of electric vehicles and the deployment of 1 million by charging points by 2025. In the aviation and shipping industries and heavy road transport, biofuels and hydrogen will be promoted and rewarded.

Take action: 75% of current road transport shall have to be transferred to rail and/or inland waterways. The price of fossil-fuels will reflect the impact these have on the environment. This means that you have to gear up to make a shift in how, when, and to where you ship products, or it may cost you.

8. Clean, affordable energy

Probably one of the most important pillars of the European Green Deal. Around 75% of the European Union’s greenhouse gas emissions come from energy production and use. The sector must be decarbonized to be in line with the EDG policies. Coal will largely disappear from the energy mix. Instead, renewable energy sources will have an essential role, such as offshore wind production.

The cost of renewables will be rapidly decreased in combination with improved support policies. This will result in a reduced impact on households’ energy bills concerning renewable energy.

It’s time to deliver practical action and unlock the reality of a new, sustainable future for Europe and the world.

Take action: The EDG will be the most fundamental shift in energy policy over the last 20 years. Businesses in the sector should not underestimate the disruption it will bring. The effect on trade may be huge, as Europe will need less imported gas and oil, especially from Russia (the largest single EU energy supplier in the last few years).

What next?

The EU Green Deal will significantly impact corporate investments, and this decade of delivery is the only chance to review them. Your stakeholders will be onto you if you do not (most already are). If your company does not adapt to the new standard of doing business, even with the EDG being a distant dream still, you may gamble on the chance to become irrelevant in the future.

In summary, think about your own business and take the following actions based on what we’ve explored:

Calculate your carbon footprint for all investments and your supply chain.
Be transparent. Take your reporting and take it to the next level for all your stakeholders, including investors, employees, and customers.
Start with small upgrades first, and work your way up from there.
Embrace innovation and find new ways of scaling your impact.
Make an impact outside your own line of business.
Set ambitious but realistic targets. Do more than just the necessary.
Rethink your supply chain. Where can you reduce the negative impact you have on the environment, and where can you make an actual positive impact?
Seek advice where you need it and prepare for more than rigorous policy changes.

Time for action

It’s time to deliver practical action and unlock the reality of a new, sustainable future for Europe and the world. Together we can share technology, capital, and talent, and businesses especially have to lead this shift to get quick results. It is an opportunity for corporations to develop market-leading strategies for sustainability.

The clock is ticking.

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