Picture of multiple EU flags beside each other

3 key points to the European Green Deal

Published on February 19, 2020 in Fleet Management by Pilar Cervigón |  1 minute read


The deal includes fifty actions which affect several industries as well as cross-cutting provisions.

This past December, the European Commission released the “European Green Deal”, which contains a proposal of measures to tackle climate change and become the first climate-neutral continent by 2050.

 

Reflecting commitment to legislation

The European Commission wants to confirm its commitment to climate-neutrality in a “European Climate Law” by March 2020, which will impact all industries, as well as an Action Plan to increase the EU’s greenhouse gas reduction targets to 50% for 2030 by Summer 2020. This will modify relevant “climate-related policy instruments,” including the Emissions Trading System. Furthermore, they also plan on putting a spin on the Energy Taxation Directive, and making it more environmentally-oriented.

 

One of the issues is the existing discrepancies between countries to commit to these promises. If differences in legislation persist, the Commission will also propose a carbon border-adjust mechanism for some industries.

 

Transforming the EU’s economy

The European Commission is aiming to facilitate a transition towards a green economy by adopting an EU industrial strategy in March 2020, as well as a new Circular Economy Action Plan, in order to stimulate the creation of climate neutral and circular products in the EU market. This should also encourage consumers and public administration to choose them over more harmful goods.

 

The Commission will also explore how digital technologies and AI can help this transition by ensuring this sector works sustainably and follows the same direction towards circular products. Legal requirements to improve the market for secondary materials, such as raw materials for vehicles and batteries, will be considered. The Commission will work with the European Battery Alliance in order to propose legislation in 2020 aimed at facilitating a “safe, circular, and sustainable battery value chain.”

 

Pursuing green finance

The Action Plan also compiles specific actions on the role the financial sector in funding the green transition. One quarter of the EU’s total budget will be used to fund this transition, including the Just Transition Mechanism for regions/sectors disproportionately impacted by the shift. The European Investment Bank will aim to double up their funding for sustainable projects by 2025. A Sustainable Finance Investment Plan will be issued as well as an updated sustainable finance strategy in 2020. The Commission will review the Non-Financial Reporting Directive in order for companies to reveal how companies are dealing with these challenges.

 

How does the Green Deal affect mobility?

The Commission hopes to reduce greenhouse gas emissions caused by transport by 90% by 2050 through changing legislation on CO2 performance standards for cars by 2021. They also aim to boost the use of sustainable and alternative transport fuels by increasing the number of public recharging/refuelling stations up to 1 million by 2025. A new strategy for sustainable and smart mobility is expected to be adopted in 2020 in order to provide more “affordable, accessible, healthier, and cleaner” means of transport.


If you liked this post, let us know!


Disclaimer

Geotab's blog posts are intended to provide information and encourage discussion on topics of interest to the telematics community at large. Geotab is not providing technical, professional or legal advice through these blog posts. While every effort has been made to ensure the information in this blog post is timely and accurate, errors and omissions may occur, and the information presented here may become out-of-date with the passage of time.

Get industry tips and insights

Sign up for monthly news and tips from our award-winning fleet management blog. You can unsubscribe at any time.

Republish this article for free

Other posts you might like

Geotab Connect illustration image

Geotab 2024 discussion recap: A Data-Driven Journey in Fleet Maintenance

This session at Geotab Connect 2024 highlighted best practices to use data for an effective fleet care plan.

March 11, 2024

Two women in a business meeting sitting in front of charts and a laptop

Empowering Success: Unleashing the Domino Effect of Connected Women

Insights from Women in Fleet Leadership at Geotab Connect

February 16, 2024

Construction worker looking over at something

Routes to riches – Geotab Routing and Optimization drives operational efficiency and cost management

Geotab's Routing and Optimization software blends economic intelligence with operational strategy, reshaping fleet management for improved cost and resource efficiency.

February 15, 2024

Person standing behind a container with signal illustration

How asset tracking drives risk management and lower insurance costs

Learn how asset trackers improve risk management and reduce insurance costs in transportation and logistics, featuring expert insights from Marsh, a leader in insurance and risk advice.

February 15, 2024