Transformation of the EU economy alone will be insufficient to halt climate change. The challenge is to extend this process to third countries and for Central and Eastern Europe to seize the opportunity to reposition itself in the supply chain. Green transformation will allow industrial production to take over and increase market shares.
This publication is a synthesis of three reports produced by the WiseEuropa Institute on the European Union’s trade policy in view of proposed changes to EU climate law.
The underlying motive behind our analysis was to see the links between the different areas of EU policy and to highlight some of the inevitable tensions and contradictions that arise due to the divergence between the objectives pursued in different areas. On the one hand, the EU is obliged by the Treaties to pursue a trade policy characterised by the promotion and implemen¬tation of free trade. On the other hand, the EU should aim to protect the competitiveness of European industry and ensure favourable conditions for its development. In the context of the pursuit of climate policy, this entails the costs associated with the green transition. Without the introduction of appropriate tools and measures to level the competitive playing field between EU and non-EU producers, not only cost competitiveness but also climate policy objectives will be jeopardised if a global increase in emissions is associated with relocation outside the EU.
