Do European Commission ambitions signal a new, more sustainable direction of travel for the EU and globally?

By Paul Davies and Michael Green

On 27 May 2020, the European Commission (the Commission) announced a €750 billion stimulus fund aimed at helping the economies of the EU member states recover from the shock sustained as a result of the COVID-19 pandemic. Through this fund, officially titled Next Generation EU, the Commission hopes to “build back better”, through channels that contribute to a greener, more sustainable and resilient society. When combined with the proposed €1.1 trillion EU budget for the next seven years, the Commission’s wider recovery plan comes to a total of €1.85 trillion.

The plan follows the Commission’s Green Deal, which was announced in December 2019. The Green Deal was proposed as a framework of legislation from which the bloc could achieve its goal of net-zero greenhouse gas emissions by 2050. To decarbonise the economy, the Green Deal envisages government spending and public initiatives worth €100 billion per year, according to the Commission’s European Green Deal Investment Plan. Discussions surrounding the Green Deal had gained traction prior to the COVID-19 pandemic, as well as considerations on how best to tackle the social and economic issues raised by the transition to a carbon-free economy.

The Action Plan is part of the European Green Deal promoting actions to boost the efficient use of resources by moving to a cleaner and more competitive Europe.

By Paul A. Davies, Michael D. Green and Federica Rizzo

On 11 March 2020, the European Commission published its Communication to the European Parliament, the Council, the European Economic and Social Committee, and the Committee of the Regions laying down the details of a new “Circular Economy Action Plan For a Cleaner and more Competitive Europe”.

The first Circular Economy Action Plan, which entered into force in 2018, led to the adoption and implementation of measures regulating the entire lifecycle of products, from production and consumption to waste management and the creation of a market for secondary raw materials.