Navigating the Future: The Urgency of the European Green Deal in a Shifting Political Landscape

Shifting Political Landscape in the EU Elections

As the dust begins to settle following the EU elections, it is evident that the political landscape has veered towards the right. However, there remains a beacon of hope that we can build upon the significant progress made over the past few years. Voters are increasingly seeking stability and certainty in these tumultuous times. As business leaders, we stand firm in our commitment to support the enhancement and implementation of an improved Green Deal, which is crucial for maintaining Europe’s competitiveness and resilience on the global stage. It is imperative for European decision-makers to seize this opportunity rather than allow it to dissipate.

The European Green Deal: A Bold Strategy

The European Green Deal (EGD), adopted in 2020, represents Europe’s ambitious new growth strategy toward a more sustainable economy, garnering cross-societal support. Yet, after enduring numerous crises—from a global pandemic to geopolitical tensions and rising inflation—concerns among Europeans regarding the cost of living, security, and social inequality have intensified. The pressing question is: how do we reconcile these concerns while confronting the urgent challenges posed by climate change and assemble a robust response?

As progressive businesses, we are dedicated to supporting this transformative journey. We recognize that it will require significant effort, but we are prepared to take meaningful action, provided we have the assurance that EU policymakers will steadfastly commit to advancing the sustainability agenda.

Citizens Demand Tangible Results

Our aim is to turn the objectives of the Green Deal into reality, presenting concrete proposals to enhance European resilience, competitiveness, and prosperity. We propose complementing and revitalizing the Green Deal by introducing four additional frameworks:

• New Industry Deal: Acknowledges the EU’s industrial base and supports the transformation of our production model.
• New Economic Deal: Creates the assets necessary for Europe’s future.
• New Social Deal: Engages citizens in an inclusive and equitable transition.
• New Political Deal: Embodies the EU’s core values of liberal democracy, accountability, and long-term vision.

Achieving the ambitious goals set for 2030 while strategically planning for 2040 necessitates a multifaceted approach encompassing industry, governance, social frameworks, and economic diligence. The direction established by the EGD thus far has fortified Europe’s resilience against shocks and remains essential for maintaining its competitiveness. However, its ultimate success hinges on striking the right balance between addressing immediate needs and executing long-term plans, ensuring consistency across key initiatives. It is evident from recent election outcomes that citizens expect to see concrete results soon to maintain their trust in these efforts. This is absolutely vital.

Elevating Collective Aspirations

Recent months have shown that Europeans are in search of a sense of ownership and a positive narrative that elevates collective aspirations. This requires the implementation of concrete tools and mechanisms that translate vision into action in the daily lives of citizens. A critical area for improvement lies within the single market. Overcoming national fragmentation is crucial for fostering a cohesive and efficient economy. Within this single market, energy plays a pivotal role.

At Iberdrola, we advocate for the EU to adopt an ambitious stance toward market integration and the renewable-based electrification of final energy consumption. We also endorse the establishment of a common energy taxation system, the expansion of grids and interconnections, increased storage capacity, and the implementation of stable regulations.

Transitioning to energy-efficient and decarbonized buildings can significantly reduce overall energy requirements while minimizing the costs associated with shifting towards renewable energy sources, ultimately encouraging investment in modernized grid infrastructure and enhancing security.

Value Chain Approach: A Collaborative Effort

Equally important is the adoption of a value chain approach and the cultivation of partnerships across various sectors. For instance, in the context of retrofitting buildings, a holistic planning approach is essential to integrate economic, social, health, and well-being benefits alongside energy savings. The push for energy-efficient and decarbonized buildings not only lowers overall energy needs but also reduces the costs associated with transitioning to renewable energy sources, fostering investment in updated grid infrastructure and strengthening security.

Moreover, there exists substantial potential for the use of more sustainable construction materials, the development of circular products, and the deployment of smart solutions. Effective value chain integration is key to cultivating sustainable markets throughout Europe.

The Unstoppable Green Transition

The bottom line is clear—sustainability is not merely beneficial for the environment; it is also foundational for economic prosperity and global competitiveness. The International Energy Agency (IEA) presents compelling evidence supporting this perspective. For every job lost in the fossil fuel sector, two new green jobs emerge. Furthermore, a third of the GDP growth across Europe can be attributed to clean energy initiatives. These statistics highlight the economic viability and urgent necessity of the green transition.

With competitive sustainability as our guiding principle, Europe can channel investments into the necessary cross-border infrastructures, facilitate the circulation of sustainable products and services, and tap into the innovative capabilities of European companies. This represents a win-win-win scenario for our economy, our climate, and our people alike.

The green transition is not just an option; it is an inevitability. However, the manner in which we collectively navigate this transition is what truly matters. By enhancing European market integration, ensuring policy consistency, investing in infrastructure, and fostering cross-sectoral partnerships within supply chains, we can forge a resilient and competitive economy. This must be the foremost priority for the next cohort of European institutions.

The potential rewards—economic growth, job creation, and a healthier planet—are immense. The vision of the Green Deal, aiming for a sustainable and prosperous Europe, is well within our grasp.

Gonzalo Sáenz de Miera, Global Director of Climate Change and Alliances at Iberdrola, and Fleming Voetmann, Vice President of External Relations and Sustainability at Velux, serve as Co-chairs of the Corporate Leaders Group Europe.

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