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A closer look at just transition policies
EU

The European Green Deal

Region
Europe and Central Asia
Country
EU
Originator/Owner
Government Ministries And Agencies Supranational Level
Coordinating/Lead actor
European Commission
Policy type
Strategies Plans Frameworks Roadmaps Blueprints
Policy areas
Active labour market policies, Enterprise policies, Industrial and sectoral policies, Macroeconomic and growth policies, Rights, Skills development, Social dialogue and tripartism, Social protection
Environmental focus
Climate change
Target groups
Employers, Micro, small and medium-sized enterprises (MSMEs), Other, Workers
Sectoral focus
Agriculture, Chemical industry, Energy, Forestry and Land use, Infrastructure, construction and related sectors, Maritime and transport, Private services sector, Public services, utilities and health
Crosscutting themes
Circular economy, Digital economy, Employment/job creation, Finance (public/private), Green economy, Plastic pollution
Date of Adoption
11 Dec 2019
Timeframe
01 Jul 2021 - 2050
01 Jul 2021
Just Transition Fund (JTF) Regulation
06 Feb 2024
Political agreementthe between the European Parliament and the Council on the Net-Zero Industry Act.
2026
Social Climate Fund
2028
Introduction of a new Emissions Trading System (ETS2)
2030
Reduce greenhouse gas emissions by at least 55%
Dec 2032
End of the Social Climate Fund
2050
Climate neutrality
The European Green Deal
English, PDF

The European Green Deal is the European Union’s roadmap to becoming the first climate‑neutral continent by 2050, while ensuring that the transition is fair, inclusive, and socially balanced.

It combines climate ambition with industrial transformation, social protection, regional cohesion, and job creation, positioning sustainability as a driver of economic resilience and decent work. At the centre of the Green Deal is the European Climate Law, which legally commits the EU to becoming climate-neutral by 2050 and establishes an interim target of reducing greenhouse gas emissions by at least 55% by 2030 compared to 1990 levels. The European Commission has also proposed a 90% emissions reduction target for 2040.

The Green Deal frames climate action not only as an environmental imperative, but also as a social and economic transformation. It seeks to modernize the EU economy while ensuring that workers, enterprises, and regions affected by the transition receive targeted support. The approach recognizes that decarbonization policies can create uneven impacts across territories and sectors, particularly in coal regions, carbon-intensive industries, transport, housing, and agriculture.

A core principle of the Green Deal is to “leave no one behind.” The strategy integrates measures to protect vulnerable households, support workers through reskilling and upskilling, promote quality job creation, address energy poverty, and strengthen territorial cohesion. The transition is framed as an opportunity to create sustainable industries, enhance competitiveness, improve working and living conditions, and expand access to clean and affordable energy and mobility.

The Green Deal is also embedded within the European Union’s broader commitment to implement the United Nations 2030 Agenda for Sustainable Development and advance integrated economic, social, and environmental policymaking.

Key insights
Climate neutrality and decarbonization are pursued alongside social inclusion, regional cohesion, and economic resilience

The Green Deal recognizes that climate policies must avoid disproportionate impacts on workers, vulnerable households, communities, and carbon-intensive regions.

  • Just transition measures are integrated across energy, industry, transport, housing, agriculture, and regional development policies.
  • Dedicated EU financing mechanisms support economic diversification, social protection, reskilling, and job creation in affected territories.
  • Social dialogue and stakeholder engagement are considered essential governance tools for managing the transition fairly and effectively.

Sectoral dimensions of a just and fair transition:
Energy and coal regions: the Green Deal supports coal, peat, oil shale, and carbon-intensive regions through the Just Transition Mechanism and Territorial Just Transition Plans. Measures include economic diversification, investment in renewable energy, retraining and upskilling programmes, sustainable transport infrastructure, and support for workers and communities affected by fossil fuel phase-outs.

Industry and circular economy: the Green Deal promotes industrial decarbonization while supporting competitiveness and employment in sectors such as steel, cement, chemicals, and manufacturing. Circular economy measures encourage new employment opportunities in recycling, repair, sustainable manufacturing, and resource efficiency. The Green Deal Industrial Plan and Net-Zero Industry Act aim to strengthen European industrial capacity and quality green jobs.

Housing and energy poverty: the Green Deal addresses energy poverty through renovation programmes, energy efficiency measures, clean heating systems, and targeted support for vulnerable households. The Social Climate Fund supports low-income households and micro-enterprises facing rising energy and transport costs linked to the transition.

Transport and mobility: the transition to sustainable mobility is accompanied by measures to improve affordable public transport, clean mobility infrastructure, and support for workers and communities affected by transport decarbonization. The Social Climate Fund also supports vulnerable groups facing transport poverty.

Agriculture and rural areas: the Green Deal promotes sustainable agriculture and biodiversity protection while recognizing the need to safeguard farmers’ livelihoods and support rural communities during the transition to more sustainable production systems. Structured dialogue processes have been established to support engagement with agricultural stakeholders.

Expected Outcomes
The Green Deal is designed not only to reduce emissions, but to reshape Europe’s economy into one that is sustainable, competitive, socially inclusive, and resilient, making climate action a driver of long-term prosperity and fairness
Implementation
The European Green Deal is implemented through legally binding targets, financing instruments, regulatory reforms, industrial strategies, and territorial planning mechanisms
Climate Law
The European Climate Law legally binds the EU to climate neutrality by 2050 and establishes the 2030 emissions reduction target of at least 55%, with a proposed 2040 target of 90%.

Just Transition Mechanism
The Just Transition Mechanism is a central instrument for ensuring a fair transition. It mobilizes targeted support for the regions, industries, workers, and communities most affected by decarbonization through three pillars:
The mechanism supports reskilling, job creation, economic diversification, energy-efficient housing, clean energy access, and sustainable infrastructure investments. Territorial Just Transition Plans guide implementation at regional level.

Social Climate Fund
The Social Climate Fund supports vulnerable households, transport users, and micro-enterprises affected by rising energy and transport costs linked to the green transition. It finances measures such as building renovation, clean heating, and access to sustainable mobility.

Climate resilience, disaster response, and solidarity mechanisms
The European Green Deal is complemented by EU solidarity and emergency-response instruments that help Member States respond to climate-related disasters and strengthen resilience to environmental risks. These mechanisms, such as the EU Solidarity Fund (EUSF) and the EU Civil Protection Mechanism (UCPM), support recovery efforts, territorial cohesion, and protection of affected communities in the context of increasing climate impacts.

Carbon pricing and industrial transformation
Implementation includes the expansion of the EU Emissions Trading System (ETS), the Carbon Border Adjustment Mechanism (CBAM), and industrial decarbonization measures under the Green Deal Industrial Plan, Net-Zero Industry Act, and Critical Raw Materials Act.

Circular economy and sustainable production
The Green Deal advances sustainable product standards, recycling reforms, resource efficiency, and pollution reduction measures to support the transition towards a circular economy.

Stakeholder engagement and territorial governance
Implementation relies on Territorial Just Transition Plans, sectoral consultations, agricultural dialogue processes, and regional governance arrangements that involve national authorities, local actors, social partners, and civil society.
01 Dec 2019 - Ongoing: the European Green Deal recognizes social dialogue as a central governance mechanism for managing the transition. The promotion of social dialogue is anchored in the Treaty on the Functioning of the European Union and is reflected in the implementation of Green Deal policies across sectors and territories
01 Dec 2019 - Ongoing
Structured and ongoing EU-level social dialogue framework | Actors: EU institutions, employers’ and workers’ organizations, sectoral social partners, regional and national authorities | Social partners are involved through EU cross-sectoral and sectoral social dialogue structures, consultations linked to industrial and labour market transitions, and participation in the design and implementation of Territorial Just Transition Plans. It recognizes the role of collective bargaining, consultations, and tripartite cooperation in facilitating a just transition.
Other stakeholders
Multi-stakeholder engagement and participatory governance mechanisms

Actors: Regional and local authorities, civil society organizations, youth organizations, environmental groups, academia, financial institutions, farmers’ organizations, community representatives, and industry stakeholders.

The implementation of the European Green Deal relies on broad stakeholder engagement processes at EU, national, regional, and local levels. Participatory governance mechanisms support the design and implementation of climate, energy, industrial, agricultural, and regional development policies linked to the transition.

These mechanisms include Territorial Just Transition Plans, the Strategic Dialogue on the Future of EU Agriculture, Clean Transition Dialogues with industrial ecosystems, regional consultation processes, and public participation in climate and environmental policymaking.

Stakeholder engagement supports territorial planning, identification of local transition needs, investment prioritization, social acceptance of transition measures, and the development of region-specific pathways for economic diversification, sustainable development, and climate resilience.