How Big a Deal Is Europe’s ‘Green Deal’?: QuickTake

The greenest part of the world is getting even more ambitious about fighting climate change. The European Union is laying out a “Green Deal” to drive a sweeping economic transformation of the 28-nation bloc, which is home to more than 500 million people. It includes new rules for companies, financial markets and consumers, along with a pledge to make Europe the first “carbon neutral” continent by 2050. EU leaders say it should spur the U.S. and China to up their game. The plan already has plenty of critics, including countries that will struggle to afford the shift.

The European Commission, the EU’s executive arm, is laying out plans that will affect everything from energy production to transport, farming and the design of cities. It involves retooling every industry, particularly carbon-intensive ones such as steel and cement. Airlines are already pushing back. The plan strengthens industrial strategy to promote certain technologies, such as an initiative to kick-start battery production and compete with Asian suppliers. It also aims to embed environmental goals into standards for banks, money managers and insurers, directing trillions of euros into sustainable investment.