The Impact Of Green Deal On The Value Chain

The European Green Deal (EU GD) is one of the noteworthy initiatives which is under implementation for achieving the goal of combating climate change in line with the Paris Agreement. The relevant EU regulatory framework includes measures that require green transformation and compliance along the value chain in the countries which have trade relationships with the EU. In this regard, EU GD process is important with its effect on competition and trade while serving also to achieve the goal of sustainable development. This article evaluates different components which have impacts on the value chain in the context of relevant Acquis Communautaire. The holistic structure of EU GD is elaborated by taking into account its components which deepened in all relevant sectors and reinforced by financial, technological and social measures. The Carbon Border Adjustment Mechanism which is under the EU GD, plays a critical role throughout the value chain. It also has a transformative effect on the production and supply chain processes. Reducing dependency on raw materials which is strategic for the green transformation and ensuring resource diversification are the other critical areas to focus. As trade rules being to take shape in line with environmental measures, how companies comply with environmental, social, and governance (ESG) principles and sustainability reporting are becoming important areas of development. This gives a significant impetus to sustainability financing efforts. Another area is the focus more on R&D and innovation processes which will realize the technology dimension of the green transformation.