Europe has always been a pioneer from the earliest days of the innovation race. Its regulation for the tech industry and online platforms are among the strongest on the planet, offering broad consumer protection. But besides safeguarding its citizens, the European Union’s approach also encourages competition and sets high standards that are replicated worldwide.
The 2024 UN Climate Change Conference brought climate finance to the fore of the global sustainability conversation. As Europe continues to play a leading role in shaping climate policy, we’re going to unpack what the EU is doing to drive sustainability and explore Chiara Cassina’s experience at COP29 as an example of how these efforts play out on the global stage.
The EU’s innovation landscape
How does this have anything to do with climate change? Well, the European Commission recently released a glowing report on the region-wide growth of innovation. The numbers show that companies in the EU are developing cutting-edge advancements in products, processes and green technologies faster than ever before.
At the same time, policies like the European Green Deal initiative provide a basis to align corporate interests with widespread climate action. By working to disconnect resource use from economic performance, the EU is set to achieve net-zero greenhouse gas (GHG) emissions before 2050. Meanwhile, the more recent European Climate Law, adopted in 2021, reaffirms member states’ collective commitment to reducing emissions and carbon neutrality.
The result of this two-pronged approach? A vibrant, highly dynamic business ecosystem that puts sustainability first. Enabling policies stimulate business growth while strict environmental guidelines protect European ecosystems and supply chains in the long run. As a result, the EU is able to build strong, resilient economies while mitigating the spread and effects of climate change.
Innovate or renew? Understanding sustainability in the EU
However, some critics argue that such extensive measures do more to hinder growth than enable it. The most quoted reasons for this skepticism are that tougher regulations limit their exploration of emerging growth opportunities and stagnate their competitiveness on the global stage. These legislations could also lead to job losses, as companies may eventually decide to set up shop outside the EU to boost their bottom line.
Is there any weight to these concerns? The data speaks for itself. In Spain, for example, climate action is a big deal. After adopting EU-defined national energy and climate plans (NECPs) for the 2021-2030 period, subsequent assessments show the country keeps smashing through every key metric, according to a European Commission report.
However, the Commission’s findings also point to some interesting economic effects from these decarbonization efforts. The Spanish GDP dipped in 2008, at the start of implementing the NECPs, before stabilizing as new initiatives took hold.
Similar scenarios play out in several other surveys, like the 2023 study into the intensity of environmental regulation vis-à-vis the rate of economic growth. Researchers found that while regulation may initially suppress economic efficiency, consistent implementation will promote rapid, sustainable growth across the region.
COP29 UN Climate Exchange Conference: Zeroing in on climate finance
Sustainable growth in the EU was the focus of the 2024 UN Climate Change Conference (COP29) held in Baku, the capital of Azerbaijan. The conference has become one of the premier annual forums for top professionals in the sustainability world. Of course, IE University made the list, and Dual Degree in Business Administration & International Relations student Chiara Cassina represented our institution at this pivotal event.
Azerbaijan was the perfect setting for the 29th edition of this conference. Small but mighty, it has cemented its place as a sustainability leader in the region over the last decade through a range of green initiatives.
Between November 11th and 22nd, thousands of industry experts congregated in the beautiful Eastern European nation to discuss climate finance and other incisive topics like water, renewable energy and the progress of implementing the NECPs in different EU member states. For Chiara, it was an opportunity to learn and try her hand at driving climate action alongside peers from over 200 countries.
Living COP29 firsthand
“It was [unofficially] dubbed as the ‘Climate Finance COP’ due to its focus on setting a New Collective Quantified Goal (NCQG) for climate finance, aimed at increasing financial support to the most vulnerable countries,” she explains. Chiara has cultivated her passion for climate action throughout her studies at IE University, but especially in the last two years. Ultimately, her interest paved the way for her to attend COP29.
Chiara already has extensive research credentials under her belt. From studying SDG implementation in the Middle East to analyzing the impact of leadership on environmental frameworks in African countries like Kenya—she is slowly becoming a global climate policy pro. After diving into documents from past sessions and consulting with past attendees from IE University, she felt confident setting off to the biggest stage of her career so far.
“Attending COP29 has really influenced my perspective on climate action and policymaking, and has deepened my understanding of the complexities behind negotiations to achieve urgent goals.”
Her days at COP29 UN Climate Change Conference started out with meetings and attending sessions she found interesting, such as the UNDC panel on advancing gender equality and human rights through climate finance. After lunch, Chiara would typically join her Adaptation Working Group to discuss negotiation tactics, before tackling up to two or three negotiations by the day’s end.
But it wasn’t all work and no play in Azerbaijan’s historic capital: Chiara had plenty of time to make new friends, network with sector leaders and explore Baku’s unique charm.
What is Europe doing about climate change?
After coming back home, Chiara identified several key takeaways and trends from COP29:
- The diversity of perspectives from different participating countries, and the resulting challenges.
- There is a growing need to balance support for developing countries with commitments from their developed counterparts.
- The role of the private sector in driving climate actions, with countries like the US and Japan seeing the value of public-private partnership while others, such as India and more Like-Minded Developing Countries (LMDCs), prioritized public financing.
- A collective shift towards more inclusive adaptation strategies for climate change, including incorporating indigenous knowledge systems, traditional practices and local communities.
These kinds of regional trends are likely to influence the EU’s climate change policy going forward. Already, we can see the shifting priorities reflected in ongoing, EU-based green initiatives such as:
- National energy and climate plans (NECPs), highlighted above.
- The energy union, tasked with reducing the region’s dependence on energy imports to fight climate change and lower prices for EU consumers.
- Setting the New Collective Quantified Goal on climate finance.
- Proposing new, wide-ranging policies for tackling climate change in the region.
Join the green revolution at IE University
We’re proud of students like Chiara and their success in raising our profile as an innovative sustainability champion. As a transversal value, sustainability at IE University is embedded in all our programs. That means, no matter what you study, you will develop a thorough understanding of the subject and how you can play your part in climate action as an individual.
That said, we also offer several sustainability-focused programs that will prepare you to lead in the green revolution. Are you ready to create a new future for yourself and the world?
Unlock your potential as a sustainability leader in any field, gaining valuable skills for a new, greener world.