Insights
Sustainability becomes a Regulatory Requirement for Companies: EU Increases Pressure on Industries with a Uniform Climate Law
December 18, 2023
It has been decades since scientists first warned us about rising carbon emissions and its potential effects. After its initial announcement to the world, global warming quickly became a center of interest in the political realm. On the contrary, many people were skeptical and considered the claims to be exaggerated; they remained reluctant to take precautionary actions. Thus, taking vital steps towards sustainability and emission reduction protocols was delayed. In light of current environmental events and concrete evidence, sustainability is now a mega trend. Countries around the world provide unanimous support towards the preservation, care, and safety of the planet.
Naturally, international parliaments have varying levels of devotion when it comes to sustainability practices. These inconsistent contributions to sustainability efforts result in ineffective struggles with the rising carbon emissions. However, recent unification efforts towards climate change bring hope. Many countries now follow joint sustainability protocols.
The European Green Deal and Paris Agreement
The Paris Agreement is the first true carbon emissions reduction effort worldwide. It was signed by 194 countries on December 12th, 2015, at the UN Climate Chance Conference (COP21). The legally binding international treaty entered into force on November 4th, 2016. It represents the first international agreement that entered into force in less than a year after it was signed.
The Paris agreement aims to keep global warming levels under 2C compared to the pre-industrialization period. Maintaining a global temperature increase of around 1.5C is vital. The results are collected and reviewed every five years for each contributing party; a consistent reduction in emissions is expected each time.
Governments around the world now intervene with precautionary measures that withstand and alleviate the effects of increasing CO2 emissions. In fact, for the first time in history, in line with the Paris Agreement, the EU announced a uniform climate law, known as the European Green Deal.
The European Green Deal requires an onerous 50% reduction in carbon emissions by 2030; this is known as the 2030 agenda. The 2030 agenda plans to achieve a carbon-neutral society by 2050. By their predictions, Europe is expected to achieve net-zero carbon by 2050. This scenario can only be achieved if the 2030 expectations are fulfilled. This goal reveals the importance of the 2030 agenda. Many organizations have already started to take ambitious actions towards their sustainability goals.
Effected Industries and the Possible Regulatory Outcomes
It would not be an exaggerated claim to state that the European Green Deal and The Paris Agreement affect all industries. However, not all industries are affected in the same ways; some are affected more dramatically due to the nature of the industries. These industries require more efforts to overcome the challenges brought on by required sustainability transformation efforts. This is where we need to address actions that the European Court of Justice could take in case of any failure for a country or organization to comply with the agreements.
The Court of Justice of the European Union is the authority responsible to inspect sustainability measure compliance of countries around the world. Any failure to follow the European Green Deal may result in an infringement action where countries would be required to present the current status of their environmental standards. Failure to comply with the EU Law may result in fines. The severity of these fines depends on the country’s GDP (Gross Domestic Product) and solvency, as well as the level and duration of the breach. The main goal of purpose of the European Court of Justice’s regulatory actions is to encourage other countries to strengthen their environmental standards.
Adastra’s analytics solutions can facilitate your decarbonization efforts and bring you the opportunity to modernize your organization. Modernization makes it easier for companies to follow the steps of the 2030 agenda to eventually become a carbon-neutral company by 2050. To eliminate aforementioned risks, global nations can strengthen their environmental standards and provide reports of auditable and scientifically-proven carbon emission levels to the authorities of the European Union. Contact Adastra and find out how our experts can contribute to your sustainability journey.
