Systematization and Classification of the European Union’s policy Instruments for the Implementation of the Green Deal4,5

Abstract

In 2019, the new European Commission (EC) presented its vision for climate and environmental transformation in Europe and beyond in its communication on the Green Deal. The Green Deal covers all sectors of the economy, elaborates a new concept for economic growth with climate goals at its centre, and implies a review of current EU climate and climate-related policies. An analysis of the instruments for the Green Deal’s implementation and internationalization and their classification and systematization shows a wider picture of the whole complex of available and suggested new policy tools. It also clarifies the role of each of the initiatives and assesses more precisely their importance and potential for influencing the global climate agenda and relations with the Russian Federation. The analysis further reveals the balance of costs and benefits for the sectors and actors involved. The purpose of this study is to systematize the complex of the Green Deal’s implementation instruments and assess the balance of various measures in the EU’s menu of policy options. The EU’s influence on the global agenda and the interests of other countries, including Russia, is not limited to the introduction of the carbon border adjustment mechanism (CBAM), which was widely covered and analyzed as a never before applied trade and climate policy tool with potential to influence global competition. Upcoming new rules to enter the European market, including through sustainable product requirements, could affect the interests of other countries even more. This influence will also be amplified by the regulatory frameworks and rules on emerging markets, such as for climate-neutral technologies and energy sources. Analysis of the initiatives suggests that the measures may be quite burdensome, especially for citizens, while the system of redistribution and compensation is not yet sufficiently developed in terms of financing and administration. Some initiatives significantly increase the transaction and administrative costs for all market participants (exporters, importers, European companies, and consumers) with fairly limited emissions reductions on a global scale. Despite these drawbacks, the Green Deal remains the most comprehensive, elaborate, detailed and ambitious initiative aimed at reaching the net-zero target. Other actors have their own reasoning for tougher climate policy, but the influence and pressure of the Deal increases the ambition of their goals and encourages them to consider the implementation of various policy options, including strict carbon regulation. Therefore, the new EU policy could become a model to identify the best solutions and practices, as well as a catalyst for global climate transition.