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The 2030 Climate Target - How more climate action boosts the economy
Climate change and environmental degradation are existential threats to Europe and the world. Additionally, the Corona pandemic offers an opportunity to finally improve climate protection and still achieve an economic upswing. Therefore, Europe needs a new growth strategy if it wants the transition to a modern, resource-efficient and competitive economy to succeed.

It has been a year since the European Commission presented its proposal of the European Climate Law. The EU-27 governments and the European Parliament are in the process of agreeing on the final form of the legislation. The Commission proposed a 55% net reduction in emissions by 2030. The Council is also supporting it. But the EU Parliament is calling for -60%, without counting sinks.

As the European Commission has based its policy decision on an impact assessment which did not include a 60% GHG emission reduction target, the Green Group in the European Parliament has commissioned a study which analyses the economic impacts of increased climate action of 60% compared to 55% in the EU27 using a macroeconomic model. The report which was conducted by the Camebridge Econometrics answers the key questions of this debate. Is an increase to 60% GHG reduction target possible? What could be key policy elements? What would be the economic and employment effects of meeting this target?

With Unnada Chewpeecha, Bas Eickhout and Terhi Lehtonen we want to give an insight.
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