EU Updates - October
3 Key Takeaways from the 2020 State of the Union Speech
The first State of the Union Speech of Commission President Ursula Von der Leyen at the European Union Parliament, on 16th September, was wide-ranging in its calls for action. Here are the three key takeaways on sustainability:
The Green Deal is the blueprint of Europe’s Transformation
To move forward and reach carbon neutrality by 2050, von der Leyen expressed her support to raise the cut of greenhouse gas emissions from the current 40 percent to 55 percent by 2030. “I recognize that this increase is too much for some and not enough for others but our impact assessment clearly chooses that our economies and industries can do it and they want it” she said.
CircularITY IS WHAT EUROPE WILL ASPIRE TO IMPLEMENT
“Our current level of consumption of raw material, energy, water, food and land use is not sustainable” von der Leyen said, expressing her desire to make the European Union a leader in the circular economy. For this reason, the Commission will have a 360 degree approach, tackling everything from “hazardous chemicals to deforestation to pollution”.
Sustainable finance is key to Europe’s recovery
30 percent of the EU’s €750 billion recovery fund “NextGenerationEU” will be financed through green bonds. The bonds will be based on the EU’s taxonomy legislation, which defines what projects and industries can be considered sustainable. But what investment qualifies? The EU is still working on developing standards for instruments bearing that label, with a Commission proposal open for public consultation until 2nd October.
Furthermore, the Commission president added that 37 percent of the bloc’s recovery fund will be spent on projects that directly contribute to Green Deal objectives.
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