Delivering on the European Green Deal A Private Sector Perspective 2025

Conclusion Since the launch of the European Green Deal in 2019, Europe has made notable progress on its climate targets, with strong private sector engagement and leadership in target-setting and decarbonization pathways. To achieve both climate neutrality and economic prosperity, however, Europe must become a leader in emerging clean industries. Though Europe’s leadership has raised the bottom line for sustainability reporting in the global economic marketplace, its regulatory complexities and compliance burdens present major challenges to the region’s business environment. Europe faces fragmentation that limits innovation and R&D investment compared to the US and China. Its reliance on imported renewable technologies is risky, echoing the region’s previous dependence on imported natural gas. Although competitive in hydrogen and carbon capture, Europe must boost R&D expenditure and simplify its regulatory processes to stay ahead globally. Slow permitting and delayed funding are still hindering the scaling-up of the technologies needed to reach net zero. Discussions with executives and advisers this year highlighted that agreeing on interim targets could help guide the private sector, especially by guiding financing towards investing in net-zero technologies like carbon capture and storage. Energy efficiency is vital and remains a key driver for reducing emissions; but further gains become challenging as companies become increasingly energy efficient. Europe should set clear goals and strategies to stimulate demand for sustainable products, leverage procurement policies, simplify reporting and align with international standards. Focusing on these priorities will not only enable Europe to deliver on its climate commitments, but will strengthen the economic fundamentals that will support higher productivity, growth and continued prosperity for people across the continent. Delivering on the European Green Deal: A Private Sector Perspective 30