The European Commission is considering directional changes in the Green Orderwhich may affect the climate and economical policy of the European Union. According to the Politico report, the fresh strategy paper, called the ‘competitiveness compass’, can change the priorities of the Union by shifting the emphasis from pro-climate measures to supporting industrial competitiveness. This is simply a signal that the EU, in consequence to global economical challenges, can reduce the bureaucratic rigours of environmental policy.
The disclosed draft of the paper assumes "unprecedented simplification", peculiarly in the context of regulations on sustainable finance and reporting of businesses. The European Commission announced that the first step in this strategy would be to introduce a fresh deregulation law as early as February 2025. In the opinion of many experts, these changes may mean Green Deal mitigation, which creates controversy in political circles.
According to unofficial information, this is due to concerns about the decline in the competitiveness of the Union industry, especially in the face of intensive subsidies on green energy in the USA and China. Ursula von der Leyen, president of the European Commission, stresses that the aim of the change is to make a Europe where "clean technologies will be developed and implemented to the benefit of manufacture and citizens".
High energy costs and climate policy
Prime Minister Donald Tusk and the leaders of the European People's organization (EPP) call for a review of EU climate regulations, arguing that excessive energy costs arise from adopted legislation. Tusk points out that many of these regulations have not yet entered into force and are already affecting rising energy prices. His position is supported by leaders of countries specified as the Czech Republic and Romania.
Czech Prime Minister Petr Fiala Criticizes the planned CO2 charge to enter into force in 2027. He claims that new loads will hit householdswhich are already facing advanced energy costs. akin voices are heard in Romania, where the Energy Minister, Sebastian Burduja, warns against the negative effects of Green Deal on the national economy.
Will the climate give way to competitiveness?
Unofficial information shows that the European Commission may postpone the implementation of certain provisions of Green Deal, specified as sustainable reporting by companies or a CO2 border tax. Interestingly, the Green Deal's pace of implementation is besides joined by centre-left countries specified as France. It shows that the problem goes beyond conventional political divisions.
EU priorities in the fresh strategy
In its strategy paper, the Commission notes that the transition towards a zero-emission economy should be "Technology neutral". This means that certain technologies, specified as heat pumps, are not favoured for a more flexible approach. These changes aim to defend manufacture from excessive costs associated with climate change.
In her speech at the planet economical Forum in Davos, Ursula von der Leyen stressed that cutting red tape is 1 of the key elements of the fresh strategy. However, the Commission ensures that climate objectives stay important, although their implementation can be more pragmatic.
Experts indicate that the fresh economical policy of the EU is simply a consequence to increasing global competition and the effects of the energy crisis. Cutting red tape is simply a step towards expanding the innovation and efficiency of European industry. But the question remains: Won't these changes weaken long-term climate action?
What about the Green Deal?
The fresh economical doctrine of the EU produces mixed responses. On the 1 hand, deregulation can benefit businesses and improve Europe's competitiveness. On the another hand, there is simply a hazard that Climate objectives will go further, which may hold the implementation of the commitments of the Green Order.
Commission decisions in the coming months will show whether the Union will decide to compromise between climate protection and manufacture support. In this context 2025 could be crucial for the future of European climate policy.
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Green Deal has been announced. European Commission makes major changes
