Five years in, the European Green Deal remains the EU’s flagship project aiming to decarbonise the economy and spur economic growth. Regrettably, the EU is in a completely different financial and geopolitical position compared to 2019 while its track record on climate and energy is far from convincing. We already see clear signals that the current framework is neither generating “green growth” nor putting the continent on a fast-track towards net zero.

Spiralling fiscal costs, a scarcity of vital energy and natural resources, and increasing societal strain, all risk derailing the clean energy transition. The EU needs to keep its decarbonisation drive towards carbon neutrality in the upcoming mandate, but be prepared to adjust its policy priorities in order to achieve its monumental climate and environmental goals.

Is decarbonisation becoming a structural challenge for European energy security and price stability? What kind of policy pivot do we need to ensure that the Green Deal makes a successful business case for European enterprises and industry? How can the European institutions guarantee that the drive toward sustainability doesn’t become financially and societally unsustainable?

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