Authors: Beatriz Oste Bazilio and Gabriela Oste Bazilio
The European Green Deal is a plan of the European Union that aims to make the bloc's economies more sustainable. For this, countries will turn climate and environmental challenges into opportunities to be more resource efficient and add competitiveness. According to the European Commission, the pillars of the plan include: eliminate greenhouse gas emissions by 2050, dissociate economic growth from the exploitation of resources and under no circumstances leave countries and their populations behind in the progression of their actions.
To achieve the goals proposed by the plan, the European Union will make available € 1 trillion over the next decade, according to The Guardian (2020). A part of the money for this would be made available by the European Union itself., a part by national governments and the remaining amount should come from the private sector., since the proposal of the agreement is that companies are encouraged to make green investments[1] through a loan guarantee from the European Investment Bank.
In this process, a large number of European companies will be affected by the structural changes necessary for EU countries to achieve the goals set by the Green Deal, such as changing energy and transport patterns. Segundo o Center for Sustainability and Excellence, small and medium entrepreneurs may have to comply with stricter sustainability criteria, it is essential to change the business model so that they continue to exist in this new economic format.
No second semester of 2020, the business leaders of more than 30 Global companies released a statement in support of the European Green Deal, recognizing its value as a sustainable growth strategy. Companies, including Nestlé and Unilever, are committed to reducing their carbon footprint and adopting new models of work and production.
It is concluded that the agreement is ambitious for proposing to fully reduce carbon emissions in the European bloc without impacting economic growth while improving the quality of life of the population, needing to overhaul most major aspects of the economy. still, is a great opportunity for Europe to lead the global transition to a new sustainable era.
Bibliographic references
HARVEY, Fiona; RANKIN, Jennifer. What is the European Green Deal and will it really cost €1tn?. The Guardian, 2020. Available in: <https://www.theguardian.com/world/2020/mar/09/what-is-the-european-green-deal-and-will-it-really-cost-1tn>. Access in: 16 out. 2020.
A European Green Deal: striving to be the first climate-neutral continent. European Commission. Available in: <https://ec.europa.eu/info/strategy/priorities-2019-2024/european-green-deal_en>. Access in: 16 out. 2020.
DUŠEK, Mirek. Business leaders embrace Europe’s new green reality for investment and growth. World Economic Forum, 2020. Available in: <https://www.weforum.org/agenda/2020/09/business-leaders-embrace-europe-s-new-green-reality-for-investment-and-growth/>. Access in: 16 out. 2020.
ASKEW, Katy. Nestle, Unilever, Royal DSM back economic “reset” under UE Green Deal. Food Navigator. Available in: <https://www.foodnavigator.com/Article/2020/09/16/Nestle-Unilever-Royal-DSM-back-economic-reset-under-EU-Green-Deal#>. Access in: 16 out. 2020.
How will Green Deal affect corporations in EU?. Center for Sustainability and Excellence, 2020. Available in: <https://cse-net.org/how-will-green-deal-affect-corporations-in-eu/>. Access in: 16 out. 2020.
What are green investments?. Netinbag. Available in: <https://www.netinbag.com/pt/finance/what-are-green-investments.html>. Access in: 17 out. 2020.
[1] green investments: are financial ventures, made through shares or investment funds, in environmentally responsible companies in order to promote a green economy and maximize profitability for investors.
