The EU has initiated an economy-wide transition to climate neutrality by 2050. While many important on-the-ground developments have accelerated compared to last year’s assessment, the current pace of the transition is still not fast enough. Investments are lagging, underscoring the need for targeted policy adjustments to provide certainty for businesses and citizens alike. Speeding up the shift to a clean economy is also fundamental to Europe’s long-term competitiveness and security. Deepening geopolitical tensions present a challenging backdrop for this endeavour but also strengthen the case for more decisive action.
The European Commission has tabled the Clean Industrial Deal in response to these challenges, integrating policy priorities around competitiveness and decarbonisation. Together with the shaping of the EU’s next long-term budget (2028-2034), it provides a specific window of opportunity to align EU policy with long-term priorities. This report by The European Climate Neutrality Observatory highlights where the EU is on track and where additional efforts are needed to create the enabling conditions for a prosperous, climate neutral future.
Access the report here
