MEPs have approved the ‘Green Deal’ with 482 votes in favour, 136 against and 95 abstentions. The Green Deal aims to achieve climate-neutrality by 2050.

The European Green Deal's Investment Plan (or the Sustainable Europe Investment Plan) is aimed at mobilising public investment and private funds through EU financial instruments, notably the InvestEU scheme, which could lead to €1tr of investments.

The President of the European Commission, Ursula von der Leyen, said: “People are at the core of the European Green Deal, our vision to make Europe climate-neutral by 2050. The transformation ahead of us is unprecedented. And it will only work if it is just - and if it works for all. We will support our people and our regions that need to make bigger efforts in this transformation, to make sure that we leave no one behind. The Green Deal comes with important investment needs, which we will turn into investment opportunities. The plan that we present today, to mobilise at least €1tr, will show the direction and unleash a green investment wave.”

Despite the overwhelming vote, the parliament also asked the EU to adopt an enhanced emission-reduction target for 2030 and a new ‘intermediate’ target for 2040.

Part of the Deal is the Just Transition Mechanism (JTM), a tool to ensure that the transition towards a climate-neutral economy is fair to members, providing targeted support of least €100bn over the period 2021-2027 in the most affected regions, to alleviate the socio-economic impact of the transition. A provision whereby member countries can decide their own energy mix has been incorporated to help countries such as Poland that faces significant transition from coal.

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