5 facts about the EU's goal of climate neutrality

Every day, we are seeing the growing impact of climate change. Fighting it is imperative for the future of Europe and of the world.

In 2019, EU leaders endorsed the objective of achieving a climate-neutral EU by 2050. This followed the commitments made by the EU and its member states on signing the Paris Agreement in 2015.

What does climate neutrality mean and how will the EU achieve this goal while promoting the wellbeing of its citizens? Here are five facts you need to know about the EU’s climate ambitions.

Climate neutrality is about emitting less and absorbing more

When we talk about fighting climate change, we always refer to cutting greenhouse gas emissions. But it’s not just about that.

Becoming ‘climate neutral’ means reducing greenhouse gas emissions as much as possible, but it also means compensating for any remaining emissions. This is how a net-zero emissions balance can be achieved.

A net-zero emissions balance is achieved when the amount of greenhouse gas released into the atmosphere is neutralised. This can be done by carbon sequestration, i.e. by removing carbon from the atmosphere, or through offsetting measures, which typically involve supporting climate-oriented projects.

Emitting less

All economic sectors can and must contribute to reducing greenhouse gas emissions. For example, industry needs to continue to modernise and pollute less. The aviation and maritime sectors, which are among the fastest-growing sources of greenhouse gas emissions, should become more energy efficient and shift towards alternative, greener fuels.

To reduce emissions from energy-intensive industries, the EU has set up an emissions trading system. The EU ETS is a market for carbon permits establishing the amount of emissions which power stations, industrial plants and airlines can release into the atmosphere. Permit levels are gradually reduced to cut the emissions of the participating industries.

We, as consumers, can also reduce our environmental footprint through our behaviour and choices.

Absorbing more

Despite reductions, some emissions will be unavoidable. So how can the remaining emissions be neutralised?

The oceans and soil both absorb carbon dioxide from the atmosphere, but forests represent the most effective way to make a difference.

Natural ecosystems which have the ability to absorb more carbon than they emit are called ‘carbon sinks’. Actions to protect oceans, soil and forests are vital for absorbing emissions.

The Green Deal is new, but EU climate action is not

In December 2019, the European Commission announced the European Green Deal as the strategy through which to achieve EU climate neutrality by 2050. EU leaders welcomed this Commission initiative, endorsing the 2050 objective of a climate-neutral EU.

The goal is that while tackling the existential threat of climate change, the EU will pursue economic growth in ways which create better jobs and enhance people’s well-being.

The Green Deal includes measures such as:

investing in environmentally-friendly technologies
supporting innovation
helping the development of cleaner forms of transport
decarbonising the energy sector
ensuring buildings become more energy efficient
working internationally to improve standards around the world

Crucially, the EU Climate Law, as part of the Green Deal, will enshrine the 2050 objective in EU legislation.

Yet, while the Green Deal sets out a comprehensive roadmap for transformative policies aimed at achieving climate neutrality, climate action has long been on the EU’s agenda.

Cutting greenhouse gas emissions

In 2008, EU leaders agreed that by 2020 the EU would cut its greenhouse gas emissions by 20% from the 1990 level. This goal was achieved three years ahead of schedule. In 2014, leaders endorsed the objective of cutting greenhouse gas emissions by at least 40% by 2030. In December 2020, the European Council agreed to step up the EU's ambition. EU leaders endorsed a binding EU target of a net domestic reduction of at least 55% in greenhouse gas emissions by 2030 compared to 1990.

Funding climate action

The EU demonstrated its resolve to fight climate change by using 20% of its overall budget between 2014 and 2020 to fund actions which contribute to mitigating and adapting to climate change. And it aims to be even more ambitious following the agreement by EU leaders in July 2020 to raise this figure to at least 30% of the EU budget for 2021-2027 and the recovery plan funding.⁽^Source⁾

Supporting global efforts

The EU and its member states are the largest provider of public climate finance worldwide. Their total contributions, amounting to €21.9 billion in 2019, were successfully channelled into climate change mitigation and adaptation initiatives in developing countries.

It’s not only about environmental policy - it's about every aspect of our lives

What is truly new about the EU’s climate-neutrality goal and the Green Deal is that they require action from all sectors of the economy and integrate climate and environmental considerations across all EU policy areas. This is known as climate mainstreaming. The energy sector in particular is one which requires substantial transformation.

Energy production and use is currently responsible for 75% of EU greenhouse gas emissions. It is a part of every aspect of our lives, from our walls and windows and our electrical appliances to the way we travel and methods of production.

Shifting towards a greener economy is a major element of the transition to a net-zero emissions society, and it requires action on all fronts. For example:

our buildings should be renovated to make them more energy efficient
the ways we travel – by road, air and sea – need to become drastically more environmentally friendly
our food production, which too often relies on pesticides and fertilisers that are damaging for air, soil, water and wildlife, needs to become more environmentally friendly
our carbon sinks, such as forests, are declining and the trend should be reversed, including by managing forests in a more sustainable way
investments should increasingly help sustainable and climate-friendly projects to develop
the way we produce goods must adapt to a circular-economy model where, for example, textiles, construction materials and electronics are recycled or re-used in order to decrease the use of primary raw materials

It is vital that EU citizens and stakeholders play a role and have a say in making the transition to climate neutrality a reality. This is why the EU Green Deal includes a European Climate Pact. The pact aims to foster engagement and co-operation between individuals, communities, and organisations, which will encourage people to commit to concrete actions to reduce their own greenhouse gas emissions.

A greener Europe is an inclusive Europe

Achieving climate neutrality by 2050 will be more challenging for some member states and regions than for others. For instance, some are more reliant on fossil fuels or have carbon-intensive industries which employ significant numbers of people. The EU has introduced a ‘Just Transition Mechanism’ to provide support for regions which will require greater investment to achieve the goals.

The mechanism targets three areas:

People and communities most vulnerable to the transition: facilitate employment opportunities and offer reskilling while improving energy-efficient housing and fighting energy poverty.

Companies and sectors in carbon-intensive industries: help make the transition to low-carbon technology attractive to investment and provide loans and financial support, while also investing in research and innovation and in the creation of new firms.

Member states or regions which have a high dependence on fossil fuels: invest in new green jobs, sustainable public transport, renewable energy, digital connectivity and clean energy infrastructure.

EU climate ambitions shape global action

The EU has more than 450 million inhabitants. But climate change affects every single one of the 7.5 billion people living on our planet. And it makes no distinction based on borders. This is why the EU is determined to use its position to lead global action on climate.

By becoming climate neutral, the EU will be the first continent to reach a net-zero emissions balance. Our ambitious goals will be a model for others.

The EU has worked together with global partners to encourage and strengthen international engagement on climate. It has been key in negotiating and upholding the landmark international agreements on the environment – the UN Climate Convention, the Kyoto Protocol and the Paris Agreement – and it continues to support the goals and aspirations represented by those agreements.

But EU actions are about more than just setting an example. The EU works with countries on a bilateral basis, for example by including climate clauses when negotiating trade deals. The EU shares expertise and urges its partners to take bold action against global warming. The EU finances developing countries’ efforts to tackle climate change and respond to its impacts.

For the EU economy, it is important that the climate-neutrality objective is achieved in a way that preserves the EU’s competitiveness. This includes developing effective measures to shield it from the competitive disadvantage compared to other countries which do not have such ambitious climate policies.

For this purpose, the Commission intends to propose a WTO-compatible carbon border adjustment mechanism as part of the European Green Deal, which, when submitted, will be discussed by EU member states within the Council.