Green or Brown Future for the World: Geopolitical Dimensions of the EU Green Deal

Abstract

Rising energy prices, ongoing negative impacts of the pandemic, and dependence on Russian natural gas have created a harsh political conjuncture for the European Union (EU) to implement the EU Green Deal’s regulations, including the strengthened Emission Trading System proposal, which was rejected by the EU Parliament on June 8. While CEOs of the carbon-intensive industries demanded the adaptation of a slow approach in phasing out the free carbon allowances by waiting for the establishment of an effective Carbon Border Adjustment Mechanism (CBAM), some members of the EU Parliament, including Muhammed Chahim, the reporter of CBAM proposal, argues that watering down the proposed ETS and CBAM regimes would not be compatible with the overall emission targets of the EU Green Deal. The internal debates about the Fit for 55 Package, however, make it difficult to understand the geopolitical implications of the EU Green Deal on a global scale. At the dawn of the climate change-related disasters, the EU Green Deal has great potential in the transition to a more democratic and clean international order by changing the competitive nature of international relations and spreading a collaborative economic model.