European Union New Green Deal

In 2019, the European Commission launched the European Green Deal. The aim of the deal is to achieve economic growth while ensuring a reduction in greenhouse gas emissions while minimising the use of resources.

The objectives of the European Green Deal are:

• no net emissions of greenhouse gases by 2050

• economic growth decoupled from resource use

• no person and no place left behind

The benefits of the European Green Deal:

Focus areas:

Effect on exporters:

• Higher standards for social and environmental sustainability in production and processing of goods and services

• Increased demand for information on production and processing practices (traceability)

• Increased costs of transitioning to new models of sustainable production in the short-term

• The EGD is preparing exporters of goods for a sustainable global market in the long-term

EU Strategy for Sustainable Textiles:

• Demand to apply circular economy principles to the production, products, consumption, waste management and secondary raw materials relevant to the textiles industry.

• Demand for recycled content in textiles (in the short term, likely to be mostly recycled polyester, as this is the most available), including designing less complex material combinations to make textiles more recyclable.

• Implementation of extended producer responsibility in promoting sustainable textiles and in the treatment of textile waste.

• A growing secondary material market in Europe that is focused on reuse, repair and return. In theory, this means there will be greater availability of quality second-hand textiles products and materials and less consumption of new products, which may translate to decreasing demand for newly produced textiles from outside of Europe;

What opportunities does the EU Green Deal offers?

• Buyers in Europe will be responsible for ensuring that products entering the EU market comply with Green Deal principles. These buyers will be willing to help SMEs transition to more sustainable processing and production of goods.

• SMEs could also benefit from the EU’s increasing efforts for international cooperation on research and innovation.

• The EU and government of Pakistan may be setting up a support programmes, especially directed at SMEs, to transition to compliance with new EU Green Deal regulations.

• Mainstreaming sustainability in the industrial processes will not only give our SMEs the opportunity to conduct business with Europe but could also give a competitive advantage in other international markets.