In December 2019, the European Commission presented the "European Green Deal'' to meet the challenges of climate change. The Commission's strategic concept contains specific targets and a cross-sectoral action plan for the future direction of a sustainable, competitive European economy. The draft legislation and strategies that have been adopted since then already indicate that the Green Deal will fundamentally change the European economy. The overall goal of the Green Deal is to gradually reduce greenhouse gas emissions, such as carbon dioxide (CO2), to reach climate neutrality by 2050.
To reaffirm its commitment, at the End of June 2021, as part of the implementation of the Green Deal, the EU Parliament and Council adopted the European Climate Law. The European Climate Law commits the EU to achieving climate neutrality by 2050 and to reducing its net greenhouse gas emissions by at least 55 percent by 2030 compared with 1990. The European Commission's "Fit for 55"-package presented on July 14, 2021 sets out the instruments the EU will use to achieve the new climate target for 2030. In twelve legislative proposals, the EU determines how our economy and society is fundamentally transformed for a fair, green and prosperous future.
Climate neutrality requires, on the one hand, the reduction of all greenhouse gases currently emitted and, on the other hand, the compensation of unavoidable emissions through natural storage, e.g. in forests.
To achieve the goal of climate neutrality, extensive investments are required, which the European Commission has specified in the ''Investment Plan for a Sustainable Europe''. The plan aims to generate investments of at least 1 trillion euros over the next ten years. This requires interaction between the EU budget, member states and private actors.
In order to increase the incentives for investment, the Commission plans to privilege investments under financial and tax law.
A uniform framework for the classification of environmentally sustainable activities is also to be created, and the pursuit of long-term ecological goals is to be more strongly integrated into the corporate governance framework of companies.
