BlogpostThe European Green Deal represents one of the most ambitious climate and economic transformation programs ever attempted. Launched in December 2019, this comprehensive growth strategy aims to reshape how the European Union produces energy, manufactures goods, grows food, and moves people and products across the continent.
At its core, the European Green Deal aims to make the EU a climate neutral continent by 2050. But this isn’t just about reducing emissions. It’s a fundamental rethinking of how 27 member states can achieve economic growth while protecting fragile natural resources and ensuring a sustainable future for future generations.
Quick overview of the EU Green Deal
The European Green Deal is the EU’s comprehensive growth and climate strategy, adopted in December 2019 under European Commission President Ursula von der Leyen. Think of it as a roadmap that touches virtually every aspect of the EU economy, from the power sector to food systems, from buildings to transport.
The core objective is straightforward but enormously challenging: make the European Union the first climate neutral continent by 2050. To get there, the EU has set an intermediate legally binding target of reducing greenhouse gas emissions by at least 55% by 2030 compared to 1990 levels. This target was formalized through the European Climate Law, which entered into force in July 2021.
The Green Deal covers an extensive range of economic sectors:
- Energy production and distribution
- Transport and mobility
- Buildings and construction
- Industry and manufacturing
- Agriculture and food production
- Biodiversity and ecosystem protection
- Finance and investment
- Social fairness and regional support
Implementation is already well underway through several flagship packages. The Fit for 55 package (2021) revises most major EU climate and energy laws. REPowerEU (2022) accelerates the shift away from fossil fuels in response to geopolitical events. NextGenerationEU (2020) provides massive recovery funding with strong climate conditions attached.
This isn’t abstract policy. It affects energy bills, the cars you can buy, how buildings are renovated, what food is available, and where jobs are created or lost across the EU.
Origins and political context
The European Green Deal was formally presented by the European Commission on 11 December 2019, just eleven days after Ursula von der Leyen took office as Commission President. She described it as the EU’s “new growth strategy”—a deliberate framing that positions climate action not as an economic burden but as an opportunity for competitive advantage.
This wasn’t created in a vacuum. The EU had already established itself as a global leader on climate policy through earlier initiatives:
- The 2020 climate and energy package (20-20-20 targets)
- The 2030 climate and energy framework
- The EU’s central role in negotiating and ratifying the 2015 Paris Agreement
What changed in 2018-2019 was the political pressure. Mass climate mobilizations swept across Europe, most notably the Fridays for Future movement and youth climate strikes inspired by Greta Thunberg. These demonstrations put climate change at the top of the political agenda in ways that scientific reports alone had not achieved.
The European Parliament declared a climate emergency in November 2019. The European Council endorsed the Green Deal in December 2019, though not without tensions. Coal-dependent countries, particularly Poland, expressed reservations about the pace and cost of the transition, securing commitments for financial support and some flexibility in implementation timelines.
Core goals and legal architecture
The headline goal of the European Green Deal is climate neutrality—net-zero greenhouse gas emissions—in the EU by 2050. This would make Europe the first climate neutral continent, setting a precedent for other major economies to follow.
The 2030 intermediate target is legally binding: at least 55% reduction in emissions compared to 1990 levels. This was codified through the European Climate Law (Regulation (EU) 2021/1119), which entered into force in July 2021. The Commission has since proposed an even more ambitious 90% reduction target by 2040.
The European Climate Law does more than set targets. It establishes a governance framework requiring:
- All new EU policies to be consistent with the climate neutrality pathway
- Regular progress assessments by the Commission
- National adaptation planning
- Independent scientific advice through the European Scientific Advisory Board on Climate Change
Implementation relies heavily on National Energy and Climate Plans (NECPs). Each EU member states must submit and regularly update these plans, detailing how they will contribute to EU-wide targets. By 2023, member states had updated their plans to align with the 2030 goals.
The Green Deal’s scope extends beyond carbon reduction. It frames parallel goals on:
| Goal Area | Description |
|---|---|
| Zero pollution | Reducing air, water, and soil contamination |
| Circular economy | Minimizing waste and maximizing resource reuse |
| Biodiversity protection | Restoring degraded ecosystems |
| Just transition | Supporting workers and regions most affected by the shift |
Main policy pillars of the EU Green Deal
The Green Deal isn’t a single piece of legislation. It’s implemented through interlinked policy areas, each with its own set of directives, regulations, and funding mechanisms.
The main pillars include:
- Climate action and emissions trading – Carbon pricing through the EU ETS and new mechanisms
- Clean energy transition – Renewables, efficiency, and energy security
- Circular and sustainable industry – Resource efficiency and clean manufacturing
- Buildings and renovation – Improving energy performance of structures
- Sustainable mobility – Decarbonizing transport
- Food and agriculture – The Farm to Fork Strategy
- Biodiversity – Protecting and restoring nature
- Zero pollution – Addressing air, water, and chemical contamination
The Fit for 55 legislative package, proposed in July 2021 and largely adopted by 2023, revises most major climate and energy laws to align them with the 55% by 2030 target. This represents the most significant overhaul of EU environmental law in decades.
Each pillar combines multiple policy tools:
- Binding regulations
- Financial support and incentives
- Innovation and research funding
- Social measures for affected communities
These are backed by both EU-level and national funding, creating a comprehensive framework for the green transition.
Climate action and carbon pricing
Carbon pricing sits at the heart of EU climate policy, using market mechanisms to make pollution costly and clean alternatives economically attractive.
The EU Emissions Trading System
The EU Emissions Trading System has operated since 2005, making it the world’s first and largest carbon market. It covers around 10,000 installations in the power sector and energy intensive industries, as well as aviation within the EU market.
Under the Green Deal, the ETS has been significantly tightened. The Fit for 55 reforms adopted in 2023 accelerate the reduction of the emissions cap and phase out free allowances to certain sectors. Since its inception, the ETS has generated over €200 billion in revenue, much of which flows to green and social funds in member states.
ETS2 for buildings and transport
A major expansion creates ETS2, a separate emissions trading system covering road transport and buildings—sectors that were previously outside the main ETS. This is set to start in 2027, with a possible delay to 2028 if energy prices spike above certain thresholds.
ETS2 adds sectors responsible for approximately 50% of remaining EU greenhouse gas emissions to carbon pricing, significantly expanding the system’s reach.
Effort Sharing Regulation
Not all emissions fall under the ETS. The Effort Sharing Regulation sets binding national targets for sectors like buildings, road transport, small industry, agriculture, and waste. Each member state has specific reduction targets based on GDP per capita, ensuring both ambition and fairness.
Carbon Border Adjustment Mechanism
The Carbon Border Adjustment Mechanism addresses a critical problem: if EU producers face carbon costs but third countries’ imports don’t, there’s an incentive to move production abroad (carbon leakage).
CBAM imposes carbon tariffs on imports from high-polluting countries. The transitional phase began in October 2023, with full implementation from 2026. It covers:
- Steel and iron
- Cement
- Aluminium
- Fertilizers
- Electricity
- Hydrogen
Importers must purchase CBAM certificates corresponding to the carbon price that would have been paid if the goods were produced under EU carbon pricing rules. This levels the playing field while incentivizing global greener production.
Just Transition and social fairness mechanisms
The shift away from fossil fuels creates winners and losers. Regions dependent on coal, lignite, peat, or carbon-intensive industries face particular challenges. The Just Transition Mechanism was created for 2021-2027 to address these disparities.
The Just Transition Fund is the first pillar, with around €19 billion (current prices) in EU funding. Combined with national co-financing and leveraged private investment, this mobilizes over €50-60 billion in total investments for affected regions.
Typical projects funded include:
- Reskilling workers from coal mining to renewable energy jobs
- Clean energy infrastructure in disadvantaged areas
- Building renovations to tackle energy poverty
- Economic diversification in fossil fuel-dependent regions
- Support for small businesses transitioning to sustainable practices
A concrete example: Poland’s Silesia region, historically dependent on coal mining, receives substantial Just Transition funding for worker retraining and economic diversification. Executive Vice-President Frans Timmermans pledged a total package worth at least €100 billion combining the Fund, InvestEU leverage, and public credit facilities.
The Social Climate Fund, agreed in 2023 and starting in 2026, provides additional support. It uses part of ETS2 revenues to help vulnerable households and small businesses affected by higher fuel and heating costs from the expanded carbon pricing.
Clean energy and REPowerEU
Over 75% of EU greenhouse gas emissions come from energy production and use. Decarbonizing the energy system is therefore central to achieving climate neutrality.
Renewable energy expansion
The revised Renewable Energy Directive (RED III) sets a binding EU target of at least 42.5% renewable energy in final consumption by 2030, with an aspirational goal of 45%. This represents a dramatic increase from current levels.
The EU Strategy on Offshore Renewable Energy (2020) sets indicative goals of:
- At least 60 GW of offshore wind by 2030
- 300 GW by 2050
Energy efficiency
The updated Energy Efficiency Directive establishes a 2030 target of at least 11.7% additional energy savings compared to previous projections. This “efficiency first” principle recognizes that the cleanest energy is energy not used at all.
Hydrogen strategy
The EU Hydrogen Strategy (2020) positions renewable hydrogen as a key enabler for hard-to-decarbonize sectors. Updated targets under REPowerEU call for:
- 10 million tonnes of domestic renewable hydrogen production by 2030
- 10 million tonnes of hydrogen imports by 2030
REPowerEU response
REPowerEU (May 2022) emerged as the response to the 2021-2023 energy crisis and Russia’s invasion of Ukraine. Its primary goal: end dependence on Russian fossil fuels before 2030.
Key measures include:
- Accelerated permitting for renewable energy sources projects
- Diversified energy supplies through LNG terminals and new pipelines
- 40% of REPowerEU funds allocated to affordable, secure energy
- Rapid solar and wind deployment
- EV charging stations every 60 km along major routes
REPowerEU has already slashed fossil fuel imports significantly, demonstrating that crisis can accelerate the green transition when political will exists.
Infrastructure, grids and energy security
Physical infrastructure must evolve to support a renewable-dominated power sector based largely on variable sources like wind and solar.
The Trans-European Networks for Energy (TEN-E) Regulation guides investments in cross-border electricity and gas infrastructure. The updated regulation now focuses on:
- Smart grids and digitalization
- Renewables integration
- Reduced fossil fuel lock-in
- Hydrogen infrastructure
The Connecting Europe Facility for Energy supports key interconnectors, storage projects, and—in the near term—LNG terminals reoriented for security of supply.
The electricity system itself requires transformation:
| Infrastructure Need | Purpose |
|---|---|
| Smart meters | Real-time monitoring and demand management |
| Grid-scale storage | Balancing variable renewable generation |
| Demand response | Adjusting consumption to match supply |
| Enhanced interconnectors | Cross-border balancing and resilience |
These upgrades enable the EU to handle high shares of renewables while maintaining reliability and security—particularly important given recent geopolitical disruptions.
Sustainable industry and circular economy
Industry accounts for roughly 20% of EU emissions and a major share of resource use and waste. The Green Deal therefore includes comprehensive strategies for industrial transformation.
Circular Economy Action Plan
The Circular Economy Action Plan (2020) serves as the main roadmap for making products more durable, repairable, and recyclable while reducing waste across value chains. This shifts from a linear “take-make-dispose” model to a resource efficient circular approach.
Key elements include:
- Sustainable packaging requirements
- Right to repair for electronics and appliances
- Extended producer responsibility
- Restrictions on single-use plastics
- Mandatory recycled content in certain products
Sustainable products regulation
The proposed Ecodesign for Sustainable Products Regulation (ESPR) sets product-specific requirements on durability, recyclability, and energy use. It covers:
- Textiles
- Furniture
- Electronics
- Batteries
- Construction materials
- Packaging
Industrial competitiveness
The updated EU Industrial Strategy and the 2023 Green Deal Industrial Plan address concerns that the green transition might undermine European manufacturing competitiveness.
These strategies seek to strengthen Europe’s clean-tech manufacturing in:
- Batteries
- Solar panels
- Heat pumps
- Electrolysers for hydrogen
- Electric vehicles
The Critical Raw Materials Act targets domestic extraction, processing, and recycling of materials essential for clean technologies—responding to supply chain vulnerabilities where China dominates in areas like rare earth processing.
The EU Batteries Regulation (adopted 2023) exemplifies the sustainable industry approach, requiring:
- Carbon footprint declarations
- Minimum recycled content
- Supply chain due diligence
- Collection and recycling targets
Waste, resource use and trade in materials
The EU aims to reduce waste generation significantly by 2030 through prevention, reuse, and improved recycling.
Planned or ongoing revisions target:
| Waste Stream | Key Measures |
|---|---|
| Municipal waste | Enhanced separate collection, recycling targets |
| Packaging waste | Reuse targets, recycled content requirements |
| Electronic waste | Extended producer responsibility, repairability |
| Textile waste | Separate collection, recycled fiber targets |
Proposals to tighten rules on waste shipments limit exports of certain waste streams outside the EU. This prevents environmental dumping and ensures that EU waste processing capacity grows rather than exporting problems to third countries.
Buildings and renovation
Buildings account for about 40% of EU energy consumption and 36% of energy-related CO₂ emissions. Most existing buildings are considered energy-inefficient, built before modern performance standards.
The Renovation Wave
The Renovation Wave strategy (launched October 2020) aims to at least double the annual renovation rate by 2030. The potential impact is substantial:
- Renovating 35 million buildings by 2030
- Creating up to 160,000 additional green jobs
- Reducing energy bills for millions of households
- Cutting emissions from the building stock
Energy Performance of Buildings Directive
The revised Energy Performance of Buildings Directive (EPBD) introduces:
- Minimum energy performance standards for existing buildings
- Zero-emission building requirements for new constructions
- Renovation targets for public buildings
- Improved energy performance certificates
- Phase-out of fossil fuel heating in new buildings
Tackling energy poverty
A critical dimension is energy poverty—households unable to afford adequate heating or cooling. The Renovation Wave prioritizes:
- Social housing renovations
- Support for low-income households
- Use of cohesion funds and Social Climate Fund resources
- Combined approaches addressing both efficiency and fuel costs
Improved energy efficiency can reduce energy bills by 20-30% for renovated homes, providing direct economic benefits alongside environmental gains.
Digitalisation and smart buildings
Digital tools complement physical renovations. Smart meters enable real-time energy monitoring and demand response. Building automation optimizes heating, cooling, and lighting based on occupancy and conditions.
Digital building passports provide standardized data on energy performance, making renovation planning more efficient and enabling buildings to participate in smart energy systems through rooftop solar, storage, and flexible demand.
Sustainable mobility and transport
Transport is responsible for around a quarter of EU greenhouse gas emissions and has been slower to decarbonize compared to other sectors. While power sector emissions have declined significantly, transport emissions remained relatively flat until recently.
Strategic vision
The Sustainable and Smart Mobility Strategy (December 2020) sets a vision to reduce transport emissions by 90% by 2050 compared to 1990 levels. This requires transformation across all transport modes.
Zero-emission vehicles
Stricter CO₂ performance standards adopted as part of Fit for 55 effectively require all new cars and vans registered from 2035 to be zero emission vehicles at the tailpipe. This represents a de facto phase-out of internal combustion engine vehicles for new sales.
Charging infrastructure
The Alternative Fuels Infrastructure Regulation (AFIR) sets binding targets by 2030:
| Infrastructure Type | Requirement |
|---|---|
| EV fast charging | Every 60 km along TEN-T core network |
| EV charging capacity | 1.3 kW per battery electric vehicle registered |
| Hydrogen refueling | Every 200 km along TEN-T core network |
Aviation and maritime
Aviation and shipping—harder to electrify—face new sustainable fuel requirements:
- ReFuelEU Aviation requires progressive increases in sustainable aviation fuels from 2025 onwards
- FuelEU Maritime mandates gradual reductions in greenhouse gas intensity of marine fuels from 2025
These regulations address emissions from sectors that often escape national climate policies due to their international nature.
Urban mobility and public transport
Cities receive support to develop Sustainable Urban Mobility Plans (SUMPs), promoting walking, cycling, and high-quality public transport.
Practical measures include:
- Low-emission zones in city centers
- Zero-emission bus fleets
- Tram and metro expansion
- Bike-sharing systems
- Smart traffic management
The link between clean mobility, better air quality, and improved quality of life makes sustainable mobility one of the most visible aspects of the Green Deal for urban residents.
Food systems, agriculture and the Farm to Fork Strategy
The Farm to Fork Strategy, published in May 2020, is the Green Deal’s roadmap for a fair, healthy, and environmentally-friendly food system. It addresses the entire food chain from production to consumption and waste.
Key 2030 targets
| Target Area | Goal |
|---|---|
| Pesticide use and risk | 50% reduction |
| Antimicrobials in farming | 50% reduction in sales |
| Organic farming | 25% of EU agricultural land |
| Nutrient losses | 50% reduction |
| Fertilizer use | 20% reduction |
| Food waste | 50% reduction |
Implementation measures
Beyond targets, the Fork Strategy includes measures to:
- Improve animal welfare standards
- Develop sustainable packaging for food products
- Create clearer sustainability labeling
- Support shorter supply chains
- Promote healthier diets
Farm to Fork is closely linked to the Common Agricultural Policy (CAP) 2023-2027, which includes eco-schemes providing payments for environmentally beneficial practices and stronger environmental conditionality for receiving subsidies.
Impacts on farmers and rural communities
The Green Deal’s agricultural dimension has generated significant controversy. The 2024 farmers’ protests in several EU countries highlighted tensions around:
- Input costs for environmentally compliant farming
- Administrative burden of new environmental rules
- Competition from non-EU imports not subject to equivalent standards
- Concerns about viability of small and medium farms
Farmers’ organizations have expressed concerns that environmental ambitions may threaten agricultural competitiveness and rural livelihoods.
The Green Deal aims to support rural areas through CAP funding, just transition tools, and opportunities for diversification. This includes:
- Payments for ecosystem services
- Support for renewable energy production on farms
- Investment in local communities and short supply chains
- Organic farming conversion support
Balancing environmental goals with farmer livelihoods remains one of the most politically sensitive aspects of Green Deal implementation.
Biodiversity, ecosystems and zero pollution
The environmental degradation of natural systems threatens both ecological stability and economic productivity. The Green Deal addresses this through complementary strategies on biodiversity and pollution.
EU Biodiversity Strategy for 2030
The EU Biodiversity Strategy (May 2020) aims to protect at least 30% of EU land and sea by 2030, with 10% under strict protection. It prioritizes old-growth forests and other irreplaceable habitats.
Additional goals include:
- Planting 3 billion trees by 2030
- Restoring 25,000 km of free-flowing rivers
- Halving pesticide use and risk
Nature Restoration Law
The Nature Restoration Law, adopted in June 2024 after contentious negotiations, mandates restoration of degraded ecosystems. This responds to evidence that over 80% of EU habitats are in poor condition.
The law sets targets to rehabilitate:
- Peatlands and wetlands
- Rivers and floodplains
- Urban green spaces
- Marine ecosystems
- Agricultural ecosystems
Zero Pollution Action Plan
The Zero Pollution Action Plan (May 2021) addresses eliminating pollution across air, water, and soil. Key 2030 targets include:
- Reducing premature deaths from air pollution
- Cutting plastic litter at sea
- Reducing nutrient losses to water bodies
- Reducing chemical risks to ecosystems and human health
The Chemicals Strategy for Sustainability focuses particularly on harmful substances including PFAS (so-called “forever chemicals”), microplastics, and endocrine disruptors.
Nature-based solutions and economic value of ecosystems
Ecosystem restoration isn’t only about conservation. Restoring forests, wetlands, and rivers provides measurable economic benefits:
- Carbon sequestration and storage
- Reduced flood risk
- Water purification
- Pollination services
- Tourism and recreation
The Natura 2000 network of protected areas already delivers ecosystem services worth hundreds of billions of euros annually. The Biodiversity Strategy builds on this foundation, treating sustainable resource management as both an environmental and economic imperative.
Financing the EU Green Deal
Ambition requires money. The European Green Deal Investment Plan (also called the Sustainable Europe Investment Plan) announced in 2020 aims to mobilize at least €1 trillion in sustainable investment between 2021 and 2030.
Main funding sources
| Source | Contribution |
|---|---|
| EU budget | Multi-annual framework climate spending |
| National co-financing | Member state contributions |
| EU ETS revenues | Carbon market proceeds |
| Private investment | Leveraged through InvestEU |
| Recovery funds | NextGenerationEU climate component |
European Investment Bank
The European Investment Bank has positioned itself as the “EU climate bank,” committing to:
- Align at least 50% of lending with climate and environmental objectives
- Phase out support for unabated fossil fuels
- Mobilize €1 trillion in climate investment over 2021-2030
NextGenerationEU
The €750 billion NextGenerationEU recovery instrument (2020) requires that at least 30% of spending contributes to climate objectives. With €275 billion in clean investments and 42% of funds dedicated to climate action, this represents the largest green stimulus in history.
The Recovery and Resilience Facility, the main component, requires member states to submit national plans demonstrating how they’ll use funds for green and digital transitions.
Sustainable finance regulations and EU Taxonomy
Finance sector regulations ensure that private investment flows toward Green Deal objectives and prevent greenwashing.
The EU Taxonomy Regulation (in force since 2020) creates a classification system defining which economic activities qualify as environmentally sustainable finance. This provides clarity for investors, banks, and companies.
Related frameworks include:
- Sustainable Finance Disclosure Regulation (SFDR) – requires financial institutions to disclose sustainability impacts
- Corporate Sustainability Reporting Directive (CSRD) – expands sustainability reporting requirements for companies
These tools guide private sectors toward activities aligned with climate goals while enabling civil society and investors to hold companies accountable for their claims.
Challenges, criticisms and evolving debates
The European Green Deal faces substantial criticisms from multiple directions.
Economic concerns
Critics raise concerns about:
- Potential job losses in high-emission sectors
- Higher energy and food prices during transition
- Regulatory burdens for small and medium enterprises
- Risks of deindustrialisation if competitors don’t face similar costs
- Investment requirements straining public finances
The 2021-2023 global energy crisis intensified debates about transition pace, with some arguing for slowing implementation while others saw it as vindication of the need to reduce fossil fuel dependency.
International tensions
CBAM implementation has generated friction with trading partners including China, India, and the US, who view it as potential protectionism disguised as environmental policy.
Resource dependencies
The clean energy transition creates new dependencies on critical raw materials for batteries and renewable technologies:
- Lithium
- Cobalt
- Nickel
- Rare earth elements
China dominates processing of many of these materials (90% of rare earths), creating supply chain vulnerabilities that the Critical Raw Materials Act attempts to address.
Implementation gaps
The gap between EU-level ambition and member state implementation remains significant. Challenges include:
- Retrofitting 80% of EU buildings by 2050 (costing trillions)
- Grid bottlenecks delaying renewables deployment
- Enforcement disparities across 27 member states
- Capacity constraints in permitting and skilled labor
The Green Deal continues to evolve through ongoing negotiations in the European Council and European Parliament, with elements delayed, softened, or strengthened based on political compromise.
Social acceptance and political future of the Green Deal
Public support for climate action remains generally strong across the EU, but translating this into acceptance of specific policies proves more challenging.
Elections to the European Parliament (particularly 2024) and shifts in national governments influence implementation pace and ambition. Some political parties have campaigned on rolling back specific Green Deal measures, while others push for greater ambition.
The European Climate Pact serves as a citizen engagement tool, building support through local communities initiatives and spreading grassroots climate action. But civil society involvement varies significantly across member states.
Looking ahead, several scenarios are plausible:
- Consolidation – Existing laws fully implemented, modest adjustments
- Acceleration – Tighter targets, new measures for remaining gaps
- Partial rollback – Weakening of certain requirements under economic or political pressure
The most likely path involves elements of all three, with implementation continuing while political debates reshape priorities in specific sectors.
What’s clear is that the Green Deal is not a single decision but a long-term project likely to shape EU policy and the EU economy well beyond 2030. The foundations laid through 2024 will influence European competitiveness, environmental quality, and climate leadership for decades.
Key takeaways
The European Green Deal represents the EU’s most comprehensive attempt to fight climate change while maintaining economic growth and a competitive economy:
- 2050 climate neutrality is the headline goal, with 55% emissions reduction by 2030 legally binding through the European Climate Law
- Multiple policy pillars address energy, transport, buildings, industry, agriculture, biodiversity, and pollution
- Carbon pricing expansion through the EU ETS and new ETS2 makes emissions costly across the economy
- Massive financing through NextGenerationEU, the Just Transition Fund, and private investment mobilization supports the transition
- International tools like CBAM extend EU climate policy influence to trade relationships
- Implementation challenges remain significant, from infrastructure to social acceptance to political uncertainty
Whether you’re a business navigating new regulations, a citizen wondering how policies affect your future ready economy, or an observer of global climate policy, understanding the Green Deal’s scope and mechanisms is essential for the years ahead.
The transition to a climate neutral Europe will be neither simple nor painless. But the framework is now in place for the most ambitious climate transformation any major economy has attempted.