European Green Deal, adopted in 2020, is a set of broad EU policy initiatives. Its main and comprehensive objective is to make the European Union the first "climate neutral" continent by 2050. The main commitments include reducing greenhouse gas emissions by at least 55 % by 2030 compared to 1990 levels. This package of measures is transforming several sectors of the European economy.

1. Impacts on business and industry

The Green Deal dramatically changes the legislative environment for businesses.

Financial and regulatory changes:

• Extension of the Emissions Trading System (ETS): The system is expanding to new sectors, namely buildings and road transport, meaning that industry and large operators also have to pay for CO₂ emissions.
• Carbon tax (CBAM): The Carbon Price Mechanism introduces a carbon tax on imports into the EU. This applies to products such as steel and cement that have not previously borne the full carbon price when imported. The CBAM is intended to accelerate carbon neutrality in manufacturing and will be fully operational from 2026.
• Companies are also facing new product standards that include ecodesign, requirements for recyclability of products a zero emissions in carsDemands for fairness in supply chains are also widespread.

Opportunities and support:

• Despite the burden, new opportunities arise because the market for green technologies and services is growing.
• The EU plans massive funding for innovation and clean infrastructure – the investment package is worth approximately 1 trillion euros by 2030These funds support projects in the areas of renewables, electrification, batteries and energy savings.
• Companies that switch to sustainable practices (such as electric vehicle production, batteries, green energy, or circular processes) gain competitive advantage and access to subsidies.
• However, for small and medium-sized enterprises (which make up 99% of all businesses in the EU), the legislation means higher administrative burdenThat is why Europe is preparing specialized advice and simplifications (such as SME support programs and strategies) to ease their burden and harness the potential of their innovations in the Green Deal.

2. Deep agricultural reform

The Green Deal brings a deep reform of the agricultural sector through a key strategy "Farm to Fork".

Ambitious goals for 2030:

• Reduce pesticide use by 50%.
• Reduce nutrient loss (nitrates) by 50 % and fertilizer consumption by 20 %.
• Reduce sales of antibiotics for livestock by 50 %.
• To achieve that 25 % of agricultural land was cultivated organically.

New rules for subsidies:

• Environmental standards are changing: farmers will have to implement more environmentally friendly farming practices, such as crop rotation, biobelts and more precise input dosing. At the same time, they must meet strict conditions to receive subsidies.
• The new Common Agricultural Policy (CAP) for 2023-2027 bases these objectives directly into national plans.
• The reformed CAP funds must be at least 25 % allocated to environmental regimes (organic farming) and at least 35 % for measures related to climate, biodiversity and animal welfare. For example, new rules (so-called eco-regimes) require that part of the land under management remains with high biodiversity.

Although these demands pose challenges for farmers, such as lower yields on some land or the need to invest in more environmentally friendly methods, the EU promises compensation mechanisms (subsidies, technical assistance and transition planning tools). In the long term, the Green Deal is expected to lead to more sustainable agriculture, a better position for organic products and increased energy and water efficiency of farms.

3. Transport transformation

The transport sector is also undergoing transformation with the aim of make transportation cheaper and decarbonize of people and goods. The aim is for transport to contribute to reducing emissions by almost 90 % by 2050.

Key measures and standards:

• Zero-emission cars: The most important step is the gradual transition of the car fleet to electricity. From 2035, all new passenger cars and vans EU registered emission-free.
• Infrastructure: Legislation (Alternative Fuels Regulation – AFIR) supports the development of charging infrastructure, requiring electric charging stations to be every 60 km on the main road network.
• Clean fuels: The ReFuelEU Aviation and FuelEU Maritime regulations determine the share of sustainable biofuels in aviation and maritime transport.
• Other forms of transport: The rail network (TEN-T) is being modernised and sustainable urban mobility is being promoted, for example through the 100 climate-neutral cities by 2030 programme.

Transport and logistics companies must invest in electric vehicles and alternative fuels and comply with newer emissions standards. At the same time, new markets are emerging, such as green marine fuels, train systems and smart mobility, which are getting a chance to grow.

4. Legislation and implementation

To achieve these goals, the EU has adopted a number of new laws and directives that member states must transpose.

Key legislative instruments:

• European Climate Law (Regulation 2021/1119): It sets a binding target of reducing emissions by 55 % by 2030 and climate neutrality by 2050.
• Fit for 55 package (7/2021): It contains dozens of proposals, including a revision of the Emissions Trading System (ETS), a new ETS for transport/buildings, an amendment to the Energy Efficiency and Renewable Energy Directives, tightened emission standards for cars and trucks, and amendments to energy and carbon tax rules.
• Carbon Bid Mechanism (CBAM, Regulation 2023/956).
• Alternative Fuels Regulation (AFIR), which requires the construction of charging and refueling infrastructure.
• Other revised regulations concern packaging, waste, air pollution, chemicals and biodiversity.

Supporting initiatives and implementation: Besides Fit for 55, CBAM a Farm to Fork Among the most important initiatives are Circular Economy Plan, Biodiversity strategy for 2030 a Social Climate FundThe Social Climate Fund serves to mitigate the impacts of the transition on vulnerable households and regions.

Each member state has developed its own National Energy and Climate Plan or CAP Strategic Plan, which must be in line with the green commitments and requirements of the Green Deal. The European Commission oversees implementation and regularly assesses progress (Progress Reports), adjusting targets if necessary. Although the EU covers clean policies more broadly and deeply than ever before, current practice confirms that there is still room for alignment of all sectoral measures with the ambitions of the 55 %.

Overall, the Green Deal is a comprehensive package of measures that is transforming the European economy, with the transformation supported by strong innovation financing (a €1 trillion investment plan by 2030) and a promise "just transition" – that is, support for the most affected regions and sectors. JRi