Europe’s climate pathway: Why leadership and competitiveness must advance together

Ilias Grampas of the European Bureau for Conservation and Development and the Secretariat of the MEP Group on ‘Climate Change, Biodiversity and Sustainable Development’, examines Europe’s climate pathway, emphasising the need for leadership and competitiveness to progress together

Building on the ambition and consistency of the European Green Deal, the Climate Law, the “Fit for 55” package, and the Clean Industrial Deal, the European Union (EU) shows that climate ambition and economic competitiveness are not only compatible, but mutually reinforcing.

At its core, the Green Deal, launched in 2019, provides a strategic roadmap to transform the EU into a modern, resource-efficient, and competitive economy. It positions climate action not only as an environmental imperative but also as an industrial and geopolitical imperative, advancing a clean transition for people, the planet, and socio-economic prosperity.

The Clean Industrial Deal presented in February 2025, further complements this approach, ensuring that Europe’s sustainability and competitiveness go hand-in-hand, moreover that the transition to a climate-neutral economy is underpinned by resilient, competitive, and strategically autonomous industries. This transition can only work if the people who need to enforce it are involved; therefore, it is key for the EU to lead rather than follow, turning the climate challenge into engine for sustainable growth, technological innovation, and high-quality jobs.

Europe’s climate pathway explored

A significant milestone in this journey occurred on 29th July 2021, when the EU Climate Law entered into force.

This key new legislation transformed political commitments into enforceable obligations, setting two key targets: a reduction of at least 55% in greenhouse gas emissions by 2030 compared to 1990 levels, and achieving climate neutrality by 2050. By doing so, it established the framework for aligning EU policies across all sectors, from energy and transport to agriculture, industry, and finance. It provided the legal certainty necessary for businesses, investors, and citizens to adapt and plan for a net-zero future.

Building on this foundation, the EU also approved the “Fit for 55” package, a comprehensive suite of legislative reforms designed to deliver on the 2030 target. It includes the revision of the EU Emissions Trading System (ETS), the creation of a new ETS for buildings and road transport, the Carbon Border Adjustment Mechanism (CBAM), increased targets for renewable energy and energy efficiency, the phase-out of internal combustion engine cars by 2035, and enhanced carbon sink requirements for land use and forestry. This package is not a single policy, but a structural transformation of the EU’s climate architecture, ensuring that every major sector contributes to emissions reduction in a fair, efficient, and economically viable way.

Why leadership and competitiveness must advance together

Such developments demonstrate that the European Parliament acts towards the fight against climate change, especially given the risks of inaction and the great potential of transition. Climate change is not an abstract future scenario; it is a lived reality affecting people at the global level. Therefore, the EU must act out of necessity to protect its economies, livelihoods, infrastructure, and vulnerable ecosystems.

Towards this direction, the MEP Group on ‘Climate Change, Biodiversity and Sustainable Development’ brings together Members of the European Parliament (MEPs) from all political groups and Parliamentary Committees, to find sustainable solutions to some of the most significant challenges of our time. For over 30 years, it has been a vital forum fostering dialogue among policy-makers, stakeholders, and relevant experts on environmental issues to achieve balanced, science-based policies that encompass the economic, social, and environmental pillars of sustainable development.

As scientists have long warned that a global temperature increase of 2°C above pre-industrial levels marks a critical tipping point, climate impacts are already starting to become increasingly severe, nonlinear, and potentially irreversible. More frequent and intense heatwaves accelerated sea-level rise, large-scale biodiversity loss, and disruptions to food and water systems are all likely to intensify.

At 2°C, many ecosystems, such as coral reefs, alpine environments, and parts of the Arctic, face significant risks of collapse. This scientific reality underscores why the EU and the international community strive to limit global warming to 1.5°C, the safer boundary identified by the IPCC.

Achieving climate neutrality by 2050

All in all, the EU’s targets of reducing emissions by 55% by 2030 and achieving climate neutrality by 2050 reflect the level of ambition required to keep the EU aligned with the Paris Agreement and to safeguard the continent’s environmental, economic, and social stability. These targets also provide clarity for long-term investments and innovation, giving Europe a competitive advantage in the global race toward clean technologies.

Through the vision and continuity of the European Green Deal, the Climate Law, the Fit for 55 package, and the Clean Industrial Deal, the EU is demonstrating that climate leadership and economic competitiveness can and need to go hand-in-hand. The challenge before us is immense, but so is the opportunity – to build a greener, fairer, and more sustainable Europe for generations to come.