In December 2019, European Commission President Ursula von der Leyen launched the European Green Deal, a transformative initiative that reaffirmed the EU’s commitment to sustainability by setting the ambitious goal of making Europe the first climate-neutral continent by 2050. Five years on, this flagship project of the first von der Leyen Commission has seen significant achievements but also faced growing challenges.
Unforeseen events, like the Covid-19 pandemic and the full-scale invasion of Ukraine, diverted the Commission’s focus and resources over the past five years. Meanwhile, the increasing politicisation of sustainability policies and a stronger emphasis on competitiveness have introduced new priorities, potentially reshaping the EU’s environmental ambitions under the next mandate.
While the new Commission has yet to present its work programme for 2025, early indications point to a potential renewed focus on sustainability policies, with a particular focus on maintaining Europe’s leadership in climate action by advancing European green industries’ global competitiveness.
Where are we now?
The Green Deal originally comprised around fifty key actions, addressing all sectors from energy to waste, mobility, food, biodiversity, and more. Despite the growing politicisation of climate and environmental issues, which watered down the initial ambitions during negotiations, the Green Deal succeeded in delivering several of its promises, with more than 90 legislative procedures completed or adopted.
One of the most notable and successful building blocks of the Green Deal was the Circular Economy Action Plan (CEAP), which has led to numerous legislative proposals such as the Directive on Empowering Consumers for the Green Transition, the Green Claims Directive, the new Packaging and Packaging Waste Regulation, and the revision of the Waste Framework Directive. The PPWR, in particular, represents the latest legislative success of the Plan, with the Council officially adopting the Regulation on Monday December 16, marking the end of the two year-long legislative process.
Looking ahead
While the Green Deal has driven significant progress in the sustainability goals of the Union, it has also introduced additional administrative requirements for EU businesses. Responding to these concerns and to the increasing demand for competitiveness outlined in the Draghi report, Ursula von der Leyen outlined the Clean Industrial Deal (CID) in July 2024.
The CID aims to channel substantial investments into infrastructure and energy-intensive sectors, supporting their transition to cleaner and more sustainable practices while strengthening Europe’s industrial leadership.
As part of this plan, the Commission announced the publication of a new Circular Economy Act (CEA), designed to deepen efforts to decarbonise the European economy and promote a more sustainable approach to production and consumption. Among its key measures, the CEA will establish a single market for waste and include a revision of the Waste Framework Directive (WFD).
Following the Budapest Declaration in mid-November 2024, von der Leyen also committed to reducing the administrative burden on businesses stemming from the Green Deal’s legislative framework. Through the creation of an Omnibus Simplification Package, the Commission seeks to streamline administrative processes and reporting requirements under the Taxonomy Regulation, the Corporate Sustainability Reporting Directive (CSRD), and the Corporate Sustainability Due Diligence Directive (CSDDD). This package is expected to be presented on February 26, 2025.
However, the current uneven implementation of the CSRD and CSDDD across Member States could have adverse effects, potentially leading to greater uncertainties and inconsistencies for companies operating within the EU. The Simplification Package coincides with the first wave of CSRD reports, expected in 2025, for which companies have already been preparing. While no changes are anticipated for the first and second waves of reporting, it will be essential, particularly for small and medium-sized enterprises, to clarify how the package will impact the European Sustainability Reporting Standards (ESRS) and, consequently, future sustainability reports.
Conclusion
Over the past five years, the Green Deal has been a cornerstone of EU sustainability policy, proving that ambitious climate goals are achievable even amidst significant political and economic challenges.
Looking ahead, the Commission’s dual objective of reducing administrative red-tapes and boosting competitiveness, as highlighted in the Draghi Report, will likely test the new Cabinet’s climate ambitions.
Despite these challenges, von der Leyen has clearly reaffirmed her commitment to maintaining the goals set out in the European Green Deal and implementing the existing legal framework for 2030. The next years will undoubtedly test the Commission’s ability to balance economic growth with its ambitious climate and sustainability objectives and define the next phase of Europe’s path towards a greener and more competitive future.
Sybila Galera Hauer – EU Sustainability Consultant, Brussels
