Make the European Green Deal Real – Combining Climate Neutrality and Economic Recovery

Organisation:
Deutsches Institut für Wirtschaftsforschung (DIW Berlin)
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The European Green Deal (EGD), a package of measures “to put Europe on a pathway to a sustainable future, while leaving no one behind”, can combine climate neutrality with a sustainable economic recovery of Europe coming out of the Corona pandemic crisis. However, this requires a tightening of climate targets for 2030 already, and the development of an ambitious climate policy pathway, replacing the current “business as usual”. In particular, the recovery programs must target energy efficiency and innovations for sustainable technologies, such as renewable energies, storage, and other flexibility options.

This study analyzes selected areas of the European Green Deal critically, focusing on the core objective of achieving climate neutrality. The study uses energy system modeling to describe an ambitious approach to achieve climate neutrality in the spirit of the Paris climate agreement (called “Paris”- scenario) aiming for carbon neutrality by 2040. Particular focus is placed on justice and solidarity between stakeholders that are affected differently.

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