Clear policies: the key to unlocking the green transition

Innovation uptake is vital to make the green transition happen. Parallel to that, a clear vision set by lawmakers is equally essential. “Policy certainty is the key to enabling the green transition. There is a lot of uncertainty about meeting climate goals in Europe and the world. Operating in this environment is challenging. We need clear objectives on the horizon,” says Julia Bognar.

As the head of land use and climate at the Institute for European Environmental Policy (IEEP), she is well aware of the dynamics of this space. Given her past in academia—having worked on research projects in Canada and the US—she is confident she can bring a unique perspective to regulatory discussions.

Although rewarded by her career in academia, Bognar felt the urgency to give her contribution to the policy-making process. "In academia, you're often far removed from the actual implementation of policies," she says. "I wanted to be more involved in finding creative solutions and contributing to the policy-making process."

The role of agriculture

As the newly appointed Commission starts its mandate, different pieces of legislation are coming together. Last week, the Vision for Agriculture and Food came out. It presents a roadmap through 2040, promising better conditions for farmers, fairer supply chains, and a rethinking of sustainability policies.

Overall, Bognar emphasizes the need for a comprehensive approach to rehaul agriculture that addresses emissions reductions, carbon removals, and financing. "We need ambitious emissions reduction targets, but we also need to be realistic about the potential of nature-based removals," the policy researcher says. "Separate targets for technology-based removals, which are currently highly uncertain, should also be considered." In a previous study, the IEEP underlined the need for incentives for farmers.

Financing is another critical aspect. "Currently, less than 3% of climate financing goes to the agri-food sector," Julia points out. "This needs to change. We need large-scale investments and innovative financing mechanisms to incentivize sustainable practices."

Farmers involvement

No change in agricultural practices can occur without greater farmer involvement. Their participation, even in research initiatives, cannot be underestimated. To this extent, the IEEP has previously advocated for farmers' empowerment and engagement to build better coordination across the entire food value chain.

"We need to move away from top-down mandates and create more opportunities for farmers to provide direct feedback and be involved in the decision-making process," she adds. "Vertical coordination across supply chains and horizontal cooperation between farmers are also essential."

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European environmental policy coherence

As many pieces of legislation come together, coherence is needed. “Much of the Commission’s efforts now are to ensure all these regulations work in tandem, involving the different directorates in the process. This helps to ensure that changes in one policy area do not undermine objectives in another,” the IEEP member explains.

This overall switch towards general policy coherence happening at the top European institutions’ levels should resonate nationally. “The next step would be to translate this approach at the member states level, ensuring policies are equally applied across the 27 countries,” Bognar stresses.

Furthermore, given each member state's different capacities, the Commission needs to provide further guidance so as not to align national policies and not leave anyone behind.

Stay the course

By releasing the Competitiveness Compass a few weeks ago, the Commission outlined the guiding principles for its mandate, including ‘unprecedented’ simplification efforts. This plan has drawn criticism from environmental organizations for its perceived lack of focus on environmental goals.

“If simplification is rolling back, it creates an environment of uncertainty for businesses. This way, you suddenly change the objectives you set and the requirements they need to comply with. If simplification means streamlining, I totally agree with the intention,” she underlines. To this extent, Bognar mentions simplifying the reporting required for Nature Restoration and National Energy and Climate Plans (NECPs).

The EU’s grand goal of reaching climate neutrality by 2050 has been reaffirmed in these weeks. While challenges remain, Bognar is optimistic about the EU's ability to achieve its ambitious goals. "With continued commitment to policy certainty, stakeholder engagement, and innovative solutions, the EU can lead the way in demonstrating how to transition to a more sustainable and climate-resilient society," she concludes.

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