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5 March 2025

The European Green Deal & Its Implications for Businesses

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“Sustainability in Action” series

By P. Batziaki

The European Green Deal is reshaping the business landscape by setting ambitious sustainability targets that impact industries across the EU. As the region aims to achieve climate-neutrality by 2050, new regulations are pushing companies toward greater resource efficiency, lower emissions, and circular economy practices.

One of the most significant aspects of the Green Deal is its focus on circularity. The EU’s Circular Economy Action Plan mandates that businesses design products for durability, repairability, and recyclability. Industries such as textiles, electronics, and packaging are facing stricter eco-design requirements to reduce waste. Companies must also comply with extended producer responsibility (EPR) schemes, ensuring that materials stay in use for as long as possible.

Another critical regulation is the Carbon Border Adjustment Mechanism (CBAM), which introduces tariffs on imports based on their carbon footprint. This measure ensures that EU-based companies remain competitive while promoting lower emissions in global supply chains. Businesses in carbon-intensive sectors, such as manufacturing and energy, must track and report their emissions, investing in cleaner technologies to remain compliant.

Sustainable finance is another pillar of the Green Deal. The EU Taxonomy regulation defines what qualifies as an environmentally sustainable investment, influencing access to funding. Companies that align with these criteria will benefit from green financing opportunities, while those that do not may face difficulties attracting investors.

Navigating these changes requires businesses to rethink their strategies. Embracing circular business models, investing in energy-efficient technologies, and ensuring compliance with upcoming regulations will be essential for long-term success. Companies that proactively adapt will not only meet legal requirements but also gain a competitive edge in a sustainability-driven market.

Next Steps & How We Can Help:

The European Green Deal is setting the stage for a more sustainable business landscape. With strict regulations on emissions, circular economy mandates, and sustainable finance requirements, companies must rethink their operations to remain compliant.

However, understanding these policies and integrating them into business models can be complex. This is where sustainability consultancies like ours step in. We help businesses conduct regulatory risk assessments, implement circular business models, and align with sustainability frameworks to unlock green financing opportunities. Whether it’s adapting to eco-design requirements or meeting carbon reporting obligations, our team ensures a seamless transition towards compliance and competitiveness.

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