What is the European Green Deal?

Launched by the European Commission in December 2019, the European Green Deal aims to set the EU on the path to a green transition and ultimately achieve climate neutrality by 2050.

The European Green Deal is a package of policy initiatives ranging from climate, environment, energy, transportation, industry, agriculture, to sustainable finance. Its goal is to transform the EU into a prosperous, modern and competitive economy, ensuring that all relevant policy contribute to the ultimate goal to become climate-neutral.

What Initiatives Does the Green Deal Include?

——Fit for 55

The Fit for 55 package aims to make the goal of the Green Deal into law, signifying a reduction of at least 55% net greenhouse gas emissions by 2030. The package comprises a set of legislative proposals and amendments to existing EU legislation, designed to help the EU cut net greenhouse gas emissions and achieve climate neutrality.

—— Circular Economy Action Plan

On March 11, 2020, the European Commission published the “A New Circular Economy Action Plan for a Cleaner and More Competitive Europe”, which serves as a pivotal element of the European Green Deal, closely intertwined with the European Industrial Strategy.

The Action Plan outlines 35 key action points, with the sustainable product policy framework as its central feature, encompassing product design, production processes, and initiatives empowering consumers and public buyers. The focal measures will target critical product value chains such as electronics and ICT, batteries and vehicles, packaging, plastics, textiles, construction and buildings, as well as food, water and nutrients. Revisions to waste policy are also anticipated. Specifically, the Action Plan comprises four main areas:

• Circularity in Sustainable Product Lifecycle
• Empowering Consumers
• Targeting Key Industries
• Reducing Waste

Circularity in the Development and Production of Sustainable Products

This aspect is designed to ensure that products are more durable and easier to repair, empowering consumers to make more sustainable choices.

Ecodesign

Since 2009, the Ecodesign Directive has laid down energy efficiency requirements covering various products (e.g. computers, refrigerators, water pumps). On 27 May 2024, the Council adopted new ecodesign requirements for sustainable products.

The new legislations aim to:

²  Set environmental sustainability requirements for almost all goods placed on the EU market

²  Create digital product passports that provide information on the environmental sustainability of products

²  Prohibit the destruction of certain unsold consumer goods (textiles and footwear)

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Right to Repair

The EU wants to ensure that consumers can seek repair rather than replacement if a product is damaged or defective. New common legislations were proposed in March 2023 to offset premature disposal of repairable goods.

On May 30, 2024, the Council adopted the Right to Repair (R2R) Directive. Its main contents include:

² Consumers have the right to ask manufacturers to repair products that are technically repairable under EU law (such as washing machines, vacuum cleaners or mobile phones).

² Free European repair information sheet

² An online service platform that connects consumers and maintenance personnel

² Seller’s liability period is extended for 12 months after product repair

The new legislation will also reduce waste and promote more sustainable business modes by  incentivizing producers and consumers to extend the life cycle of their products.

Circularity of the production process

The Industrial Emissions Directive is the EU’s main legislation to address industrial pollution.

The EU recently updated the directive to support industry in its efforts to achieve the EU’s zero pollution target by 2050, in particular by supporting circular economy technologies and investments. In November 2023, the EU Council and the European Parliament reached a provisional agreement on the revision of the Directive in tripartite talks. The new legislation were adopted by the Council in April 2024.

Empower consumers

The EU wants to prevent companies from making misleading claims about the environmental benefits of their products and services.

On 20 February 2024, the Council adopted a directive aimed at strengthening consumers’ right to green transition. Eu consumers will:

²  Access to reliable information to make the right green choices, including early phase-out

² Better protection against unfair green claims

² Better understand the repairability of a product before buying

The directive also introduces a uniform label containing information on commercial durability guarantees provided by the manufacturer.

Target key industries

The action plan focuses on specific areas that consume the most resources and have high recycling potential.

Charger

Electrical and electronic equipment is one of the fastest growing waste streams in the EU. Therefore, the Circular Economy Action Plan proposes measures to improve the durability and recycling efficiency of electrical and electronic equipment. In November 2022, the EU adopted the Universal Charger Directive, which will make USB Type-C charging ports mandatory for a range of electronic devices (mobile phones, video game consoles, wireless keyboards, laptops, etc.).

Mobile phones and tablet computer

The new EU legislations will enable consumers to buy mobile phones and tablet computers that are more energy efficient, durable and easier to repair on the EU market because:

² Ecodesign legislations set minimum requirements for battery durability, availability of spare parts, and operating system upgrades

² Energy labeling legislations mandate the display of information on energy efficiency and battery life, as well as repairability scores

Eu agencies are updating legislations on waste electrical and electronic equipment, including a range of products such as computers, refrigerators and photovoltaic panels.

Battery and waste battery

In 2023, the EU adopted a legislation on batteries that aims to create a circular economy for the industry by targeting all stages of the battery life cycle, from design to waste disposal. This move is significant, especially in light of the development of electric vehicles.

Packaging

In November 2022, the Coucil proposed amendments to the packaging and packaging waste legislations. The Commission reached an interim agreement with the European Parliament in March 2024.

Some of the key measures of the proposal include:

² Packaging waste reduction targets at Member State level

² Limit excessive packaging

² Supports reuse and supplement systems

² Mandatory deposit return for plastic bottles and aluminium cans

Plastics

Since 2018, the European Circular Economy Plastics Strategy aims to improve the recyclability of plastic packaging and provides a strong response to microplastics.

² Make recycling and waste reduction mandatory for key products

² A new policy framework on biobased, biodegradable and compostable plastics to clarify where these plastics can bring real environmental benefits

² Take steps to tackle unintentional release of microplastics into the environment to reduce plastic waste

Textiles

The Commission’s EU Strategy for Sustainable and Circular Textiles aims to make textiles more durable, repairable, reusable and recyclable by 2030.

In July 2023, the Commission proposed:

² Hold producers accountable for the entire life cycle of textile products by extending producer responsibility

² Accelerate the development of the textile separate collection, sorting, reuse and recycling sector, as Member States have to establish a separate collection system for household textiles before 1 January 2025

² Solve the problem of illegal export of textile waste

The Council is examining the proposal under the ordinary legislative procedure.

Sustainable product ecodesign legislations and waste transport legislations are also expected to help set sustainability requirements for textile products and limit the export of textile waste.

Construction products

In December 2023, the Council and Parliament reached a provisional agreement on the amendments to the construction products legislation proposed by the Commission. The new legislations introduce new requirements to ensure that construction products are designed and produced to be more durable, easily repaired, recyclable and easier to remanufacture.

The manufacturer must:

² Provide environmental information about the product lifecycle

² Design and manufacture products in a way that facilitates reuse, remanufacturing and recycling

² Recyclable materials are preferred

² Provide instructions on how to use and service the product

Reducing waste

The EU is working on a series of measures to further strengthen and better implement EU waste laws.

Waste reduction targets

The waste framework directive, in force since July 2020, sets out rules for member states to:

² By 2025, increase the reuse and recycling rate of municipal waste by 55%

² Ensure the separate collection of textiles for re-use, preparation for re-use and recycling by 1 January 2025.

² Ensure the separate collection of biowaste for re-use, preparation for re-use and recycling at source by 31 December 2023

² Achieve specific recycling targets for packaging materials by 2025 and 2030

A toxic-free environment

Since 2020, the EU chemicals strategy for sustainability aims to help ensure chemicals are safe for both human health and the environment.

² On 24 October 2022, under the circular economy action plan, the EU adopted a revision of the regulation on persistent organic pollutants (PoPs), harmful chemicals that may be found in waste from consumer products (e.g. waterproof textiles, plastics, and electronic equipment).

The new rules aim to reduce concentration limit values for the presence of PoPs in waste, which is crucial to the circular economy, where waste will be increasingly used as a secondary raw material.

² In June 2023, the Council adopted its negotiating position on the revision of the classification, labelling and packaging of chemicals regulation proposed by the Commission. The measures proposed include specific rules for refillable chemical products which will help reduce packaging waste.

Secondary raw materials

The Council adopted the critical raw materials act, which aims to strengthen all stages of the European critical raw materials value chain including by improving circularity and recycling.

The EU Council and Parliament reached a provisional agreement on the act in November 2023.The new rules set an objective of at least 25% of the EU’s annual critical raw materials consumption coming from domestic recycling

Waste shipments

The Council and the European Parliament’s negotiators reached a provisional political agreement to update the regulation on shipments of waste in November 2023. The rules were formally adopted by the Council in March 2024. It is to better regulate trade in waste within the EU and with non-EU countries.

² To ensure that waste exports do not harm the environment and human health

² To tackle illegal shipments

The regulation aims to reduce shipments of problematic waste to outside the EU, update shipment procedures to reflect the objectives of the circular economy, and to improve enforcement. It promotes the resource utilization of waste within the EU.

Summary

The EU has proposed a series of policy measures, such as the new battery law, eco-design regulations, right to repair (R2R), universal charger directive, etc., to promote the sustainable use of products, aiming to embark on the road of green transformation and achieve the climate neutrality goal in 2050. The EU’s green economy policies are closely related to manufacturing companies. Relevant companies that have import needs from the EU should pay attention to the EU’s policy dynamics in a timely manner and make adjustments.