PERSPECTIVE3-5 min to read

What is the EU Green Deal and how might it impact business?

We look at how the EU Green Deal, a plan to be carbon neutral by 2050, will impact businesses.

16/10/2020
carbon-emissions-EU-Green_deal

Authors

Catherine Macaulay
Impact Investment Lead

The EU Green Deal is a policy framework and package that aims to transform the European economy with the overarching goal of achieving climate neutrality by 2050 and increasing ambition in existing emissions reduction targets.

Announced in 2019, this multi-year project will create new and revamp existing policies, including the EU’s first ever Climate Law. It is ambitious, far-reaching and will impact almost all sectors of the economy.

In addition, the plan focuses on policies and strategies to ensure the supply of clean and affordable energy, establish a circular economy, eliminate pollution, safeguard biodiversity, and create sustainable food and transport systems.

A combination of financial and real economy (the real economy refers to the production and flow of goods and services within an economy) policies have been proposed to achieve this climate ambition. We have highlighted key elements below, though there is a much longer list (~50) of associated policies and initiatives.

EU-Green-Deal-01

What are the investment implications?

We think that the Green Deal will have major structural implications for the EU economy in the coming decades, impacting everything from the way we produce and use power, to how we travel, heat our homes, and even how we eat.

This will provide significant opportunities for industries and companies that are well placed to take advantage of the transition.

We believe that the major policy areas highlighted in the Green Deal can be mapped to four key investment themes. Understanding how these policies can affect industries and companies will be key to investors’ analysis and decision-making.

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Authors

Catherine Macaulay
Impact Investment Lead

Topics

Perspective
Sustainability
ESG
Environmental
Global
2020
Public Policy

Cazenove Capital is a trading name of Schroders (C.I.) Ltd which is licensed under the Banking Supervision (Bailiwick of Guernsey) Law 2020 and the Protection of Investors (Bailiwick of Guernsey) Law 2020, as amended in the conduct of banking and investment business. Registered address at Regency Court, Glategny Esplanade, St. Peter Port, Guernsey GY1 3UF, (No.24546) . Schroders (C.I.) Limited, Jersey Branch is regulated by the Jersey Financial Services Commission in the conduct of investment business. Registered address at 40 Esplanade, St. Helier, Jersey JE2 3QB, (No.31076).

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