EUROPEAN COMMISSION

Brussels, 30.1.2019

COM(2019) 22 final

ANNEXES

to the

Reflection paper

Towards a sustainable Europe by 2030

ANNEX I The Juncker Commission's contribution to the Sustainable Development Goals

The 2030 Agenda for Sustainable Development that the United Nations adopted on 25 September 2015 sets out a global framework for achieving sustainable development by 2030. It includes an ambitious set of 17 Sustainable Development Goals (SDGs) and 169 associated targets, for countries and stakeholders to take forward.

The EU was instrumental in shaping the United Nations 2030 Agenda for Sustainable Development and, together with its Member States, has committed to being a frontrunner also in its implementation, both within the EU and by supporting implementation efforts in other countries, in particular those most in need, through its external policies.

Key aspects of sustainable development feature in all of the Juncker Commission’s 10 priorities: jobs, growth and investment (priority 1); a digital single market (priority 2); making energy more secure, affordable and sustainable (priority 3); a deeper and fairer internal market (priority 4); a deeper and fairer economic and monetary union (priority 5); open and fair trade (priority 6); justice and fundamental rights (priority 7); migration (priority 8); a stronger global actor (priority 9); a union of democratic change (priority 10).

Since the start of its mandate in November 2014, the Juncker Commission has mainstreamed sustainable development into key crosscutting agendas as well as sectoral policies and initiatives, using its better regulation tools. All Commission impact assessments preceding legislative proposals include the analysis of social, environmental and economic impacts with the view to duly consider and factor in sustainable development considerations. Furthermore, all recent EU trade agreements include a chapter on sustainable development with the view to promote sustainable growth and development and decent work for all.

The Juncker Commission has planted a number of most important seeds for the next generation policies for sustainable European future – from the European Pillar of Social Rights, the European Consensus on Development, the global strategy on foreign and security policy to the values-based trade for all strategy, strategic engagement for gender equality and a European Education Area; from the circular economy package, the mobility and clean energy packages to the blue growth strategy; from the ‘Investment Plan for Europe’ and the sustainable finance action plan to the urban agenda for the EU and nature action plan, to name a few. The Commission has also proposed to strengthen the link between EU funding and the rule of law, assess all EU co-funded research and innovation activities for their environmental and social impacts, as well as to adopt a more ambitious climate expenditure target for the future EU budget. Most recently, the Commission presented the European strategic long-term vision for a prosperous, modern, competitive and climate neutral economy by 2050, which paves the way for a structural shift of the European economy, driving growth and employment while reaching climate neutrality. This will require breakthrough solutions and investment in research and innovation.

This document provides an overview of the contributions of the Juncker Commission to the United Nations 2030 Agenda for Sustainable Development, first outlining the main policy highlights and then providing a list of different actions that have been taken on each of the SDGs.

While the focus of this Annex is on the initiatives of the Juncker Commission, it goes without saying that many other EU policies, which were already in place before this Commission took office, have been contributing to the achievement of the SDGs. The Charter of Fundamental Rights of the EU, the EU biodiversity strategy to 2020, the clean air package, the continued implementation of the corporate social responsibility strategy, the European health insurance card, the rules on the sustainable use of pesticides and the EU rules on tobacco products are only a few examples.

Policy Highlights

The European Pillar of Social Rights

The European Pillar of Social Rights of November 2017 sets out 20 principles directly aimed at promoting upward convergence towards better working and living conditions in Europe. It helps to tackle poverty in all its dimensions and to ensure fair, adequate and sustainable welfare systems. It supports equal opportunities and access to the labour market including gender equality and fair working conditions, and promotes social inclusion and protection. It is accompanied by a Social Scoreboard, which together with other tools contributes to its monitoring.  

Implementing the principles and rights set out in the European Pillar of Social Rights will also make an essential contribution to a sustainable Europe, by providing active support to secure employment and fair wages that provide for a decent standard of living, and by helping to equip people with 21st century skills, giving them access to high-quality jobs and countering the impact of demographic ageing on the labour market and social protection systems. While supporting competitiveness and innovation, the European Pillar of Social Rights will promote social fairness, equal opportunities, social dialogue and access to good quality care services, including affordable quality healthcare for all, child and long-term care, housing assistance and other essential services.

EU action for gender equality

In 2015, the Commission adopted a strategic engagement for gender equality 2016-2019. This is the framework for the Commission's continuing work to promote gender equality and women's empowerment. The European Pillar of Social Rights confirmed the EU’s commitment to equality of treatment and opportunities between men and women in all areas. In 2017, the Commission put forward a comprehensive work-life balance package of legislative and policy measures, encouraging more female labour market participation.

The EU’s gender action plan 2016-2020 is the EU’s framework for promoting gender equality and women and girls’ empowerment in our external relations with third countries, as well as in international fora and agendas. The EU puts its gender action plan into practice through the revised European neighbourhood policy and its development policy.

The EU youth strategy

In May 2018, the Commission presented ideas on 'Engaging, Connecting and Empowering young people’ for a new EU youth strategy, which was endorsed by the Council in November 2018. The new framework for cooperation on youth 2019-2027, aims to bring the EU closer to young people and to help address issues of concern to them. The new EU youth strategy aims to encourage young people's participation in civic and democratic life (engage); to connect young people across the EU and beyond to promote volunteering, opportunities to learn abroad, solidarity and intercultural understanding (connect); and to support youth empowerment through boosting innovation in, as well as the quality and recognition of youth work (empower). The instruments proposed to reach the strategy’s goals include a renewed youth dialogue, the use of national activities planners, as well as a Council work plan for youth for 2019-2020.

The Commission also helps European Member States to boost youth employment. Each year, more than 3.5 million young people registered in the youth guarantee receive an offer of employment, continued education, traineeship or apprenticeship.

Linking EU funding and respect for the rule of law

The Commission's proposal for the next multiannual European budget for the period 2021-2027 is a budget guided by the principles of prosperity, sustainability, solidarity and security.

The proposal includes a new mechanism to strengthen the link between EU funding and the rule of law. Generalised deficiencies in the rule of law in a Member State have serious consequences for sound financial management and effective EU funding. This is not a sanction mechanism: this is a budgetary tool, which allows protecting the EU budget and ensuring sound financial management, while promoting the rule of law.

The Investment Plan for Europe / Juncker Plan

After the global economic and financial crisis, the EU was suffering from low levels of investment. The ‘Investment Plan for Europe’, the so-called ‘Juncker Plan’, aims to remove obstacles to investment, provide visibility and technical assistance to investment projects, and make smarter use of financial resources.

In July 2018, the Juncker Plan European Fund for Strategic Investments reached its initial target of EUR 315 billion investment and by December 2018 it has mobilised EUR 371 billion in additional investment across the EU since 2015. It has already supported more than 750,000 jobs. The figure is set to rise to 1.4 million jobs by 2020. More than 850,000 small and medium-sized businesses (SMEs) are benefiting from improved access to financing. At least 40% of European Fund for Strategic Investments financing under the infrastructure and innovation window supports project components that contribute to climate action in line with the Paris Agreement on climate action.

Horizon 2020 – the EU’s research and innovation programme

‘Horizon 2020’ is the largest programme in the world promoting cooperation in science, technology & innovation in the EU and beyond.

Almost EUR 77 billion of funding is available over seven years (2014 to 2020) for ‘Horizon 2020’ - the current Framework programme for research and innovation - in addition to the private and national public investment that this money will attract. More than 60% of this budget is invested in sustainable development. An even larger budget is proposed for its successor programme ‘Horizon Europe’.

‘Horizon 2020’ aims to help to achieve smart, sustainable and inclusive economic growth. The goal is to ensure that the EU produces world-class science and technology, which benefit the economy, the society and the environment alike, removes barriers to innovation and makes it easier for the public and private sectors to work together in delivering solutions to the big challenges facing our society.

Financing sustainable growth

As our planet increasingly faces the unpredictable consequences of climate change and resource depletion, urgent action is needed to adapt to a more sustainable model. Around EUR 180 billion of additional investments a year are, according to estimates, needed to achieve the EU's 2030 targets agreed in Paris, including a 40% cut in greenhouse gas emissions.

This is why, in March 2018, the Commission adopted a sustainable finance action plan to boost the role of finance in promoting a well-performing economy that delivers on environmental and social goals as well. By doing so, the EU is allowing the financial sector to throw its full weight behind achieving the SDGs.

SustainableFinanceEU

Circular economy action plan

In a circular economy the value of products, materials and resources is maintained in the economy for as long as possible, and the generation of waste minimised (e.g. food waste, plastics, marine litter). The wider benefits of a circular economy include the creation of new competitive advantages and the lowering of the need for scarce resources, energy consumption and carbon dioxide emission levels.

The actions delivered by the Commission since the adoption of the circular economy action plan in 2015 support a circular economy in each step of the value chain. With its circular economy package, the EU is giving a clear signal to economic operators and society on the way forward. Action at EU level can drive investments, create a level playing field, and remove obstacles in the single market.

A clean planet for all - the long-term vision for a prosperous, modern, competitive and climate neutral economy by 2050

The long-term vision for a prosperous, modern, competitive and climate neutral economy by 2050, adopted by the Commission in November 2018, shows how Europe can lead the way to climate neutrality by modernising the energy system, investing into realistic technological solutions, empowering citizens, and aligning action in key areas such as industrial policy, finance, circular economy, and research – while ensuring social fairness and support for a just transition. In full consistency with the SDGs, it also outlines a number of strategic building blocks for the transition to a climate-neutral EU.

The purpose of the long term vision is to set the direction of travel of EU climate policy and open a thorough debate as to how the EU should prepare itself towards a 2050 horizon with the aim to submit by 2020 an ambitious EU long-term strategy to the UN Framework Convention on Climate Change by 2020.

Paris Agreement on climate action – Clean energy for all Europeans package

Europe was instrumental in concluding the first-ever universal, legally binding climate agreement in Paris, which sets out a global action plan to tackle climate change. The EU has agreed to cut at least 40% in greenhouse gas emissions by 2030 compared with 1990.

It led the way for the clean energy for all Europeans package, spurring the clean energy transition and the modernisation of the energy system to allow the achievement of the Paris goals.

The clean energy transition and the fight against climate change will significantly transform the way we produce and consume energy. It will affect the various sectors and regions differently. Carbon-intensive business models such as coal mining stand to become less economical and ultimately will be phased out.

The Commission therefore launched dedicated initiatives to address the social and economic challenges faced by the citizens in coal regions. They support the development of transition strategies, concrete projects for structural diversification and technology transition. Support actions for 41 regions with coal mining activities across 12 Member States aims turning transition into opportunities boosting innovation, investment and new skills.

Europe on the Move

Following the low-emission mobility strategy, the Commission has adopted three ‘Europe on the Move’ mobility packages respectively in 2017 and 2018. ‘Europe on the Move’ is a wide-ranging set of initiatives that will make traffic safer; encourage smart road charging; reduce CO2 emissions, air pollution and congestion; cut red-tape for business; fight illicit employment and ensure proper conditions and rest times for workers. The long-term benefits of these measures will extend far beyond the transport sector by promoting growth and job creation, strengthening social fairness, widening consumer’s choices and firmly putting Europe on the path towards zero emission.

The last ‘Europe on the Move’ package sets out a positive agenda and aims to allow all Europeans to benefit from safer traffic, less polluting vehicles and more advanced technological solutions, while supporting the competitiveness of the EU industry. To this end, the initiatives included an integrated policy for the future of road safety with measures for vehicles and infrastructure safety; the first ever CO2 standards for heavy-duty vehicles; a strategic action plan for the development and manufacturing of batteries in Europe and a forward-looking strategy on connected and automated mobility.

EU plastics strategy

Healthy oceans are fundamental to our existence. They are an essential source of food and income for around 40% of the global population. Our climate, water and oxygen are all ultimately provided and regulated by the sea.

The EU’s international ocean governance agenda established an overarching framework for strengthening international ocean governance to ensure oceans are safe, secure, clean, legally and sustainably used. One of the actions included in the ocean governance agenda was the fight against marine litter

In May 2018, the Commission proposed new EU-wide rules to target the 10 single-use plastic products most often found on Europe's beaches and seas, as well as lost and abandoned fishing gear. Together these constitute 70% of all marine litter items.

Other initiatives in relation to plastics include measures to prevent littering; making the plastics economy circular; tackling sea-based sources of marine litter; and ensuring we better understand and monitor marine litter.

EU action plan for nature, people and the economy

The birds and habitats laws are the EU nature protection flagships. They establish the largest coordinated network of biodiversity-rich protected areas in the world (‘Natura 2000’) which contribute to the EU economy through water purification, carbon storage, pollination or tourism (‘ecosystem services’) corresponding to between 1.7 and 2.5 % of EU GDP.

In April 2017, the Commission adopted an ‘Action plan for nature, people and the economy’ to ensure the laws’ full implementation on the ground and thereby improve the protection of nature for the benefits of EU citizens and the economy.

The action plan foresees 15 main actions to be carried out by 2019 along four key priorities: improving knowledge and guidance to ensure better coherence with socio-economic activities; completing the network and ensuring it is effectively managed; strengthening investments in ‘Natura 2000’ and ensuring increased funding; engaging citizens, stakeholders and local communities.

The urban agenda for the EU

Cities in Europe are at the heart of many of today's economic, environmental and social challenges. More than 70% of EU citizens live in urban areas and about 85% of the EU’s GDP is generated in cities.

The urban agenda for the EU launched in May 2016 is pivotal in ensuring that urban areas act as catalysts for innovative sustainable solutions promoting the transition to low-carbon and resilient societies. The urban agenda is a joint effort of the Commission, Member States and European cities, to better ensure the consideration of the impact of policies in urban areas. It also aims to strengthen the resilience of urban settings by preventing disasters and climate related risks.

The urban agenda for the EU is reinforced by Commission initiatives that promote long-term energy and climate action at local level such as the Covenant of Mayors. Based on this European initiative, the Global Covenant of Mayors for climate and energy was established in 2016 gathering 10.28% of the global population in an alliance supporting action to combat climate change and move to a low emission society.

Skills agenda for Europe

With the new skills agenda for Europe, Europe invests in people so that they can face the future with confidence. By delivering on the 10 actions of the skills agenda, the Commission is helping to equip people with the right skills to keep on top of changes in society and in the labour market. Europe is also making skills more visible and comparable and gathering intelligence on skills needs in occupations and sectors across Europe. The Commission has also supported European countries to step up their assistance to adults who struggle with basic skills. Initiatives have been launched to prepare people for the digital revolution and the future of work. Finally, the Commission has created the European vocational skills week to raise awareness of the many opportunities that vocational education and training offers. Since 2016, these successful annual campaigns have helped millions of young people and adults discover that vocational education and training is a first or equal choice.

A sustainable EU bioeconomy to strengthen the connection between economy, society and the environment

We live in a world of limited resources. Global challenges like climate change, land and ecosystem degradation, coupled with a growing population force us to seek new ways of producing and consuming our biological resources that respect the ecological boundaries of our planet. With a turnover value of EUR 2.3 trillion and accounting for 8.2% of the EU's workforce, the bioeconomy is a key component of the EU economy.

The updated bioeconomy strategy will launch 14 actions paving the way to a more innovative, resource efficient and competitive society reconciling food security with the sustainable use of biotic renewable resources, while ensuring environmental protection. It will strengthen the bio-based sectors and develop new technologies to turn biowaste into value, provide benefits to rural communities and ensure that the bioeconomy operates within the ecological boundaries.

The EU cohesion policy

The EU cohesion policy is the EU’s main investment policy, whose core mission is to achieve economic, social and territorial cohesion by reducing disparities between the levels of development of the various regions. It is one of the most transversal and cross-cutting policies, which contributes to most, if not all 17 SDGs.

In addition, key cross-cutting principles and objectives, such as sustainable development, elimination of inequalities, promotion of equality between men and women, integration of gender perspective, as well as combatting discrimination are mainstreamed at all stages of implementation of the policy. Priority granted to the partnership principle makes sure that national and subnational actors are engaged and take ownership on delivering EU priorities through co-financed projects.

European Education Area

The EU is seeking to establish a European Education Area by 2025, where “learning, studying and doing research is not hampered by borders. A continent, where spending time in another Member State – to study, to learn, or to work – has become the standard and where, in addition to one's mother tongue, speaking two other languages has become the norm. A continent in which people have a strong sense of their identity as Europeans, of Europe's cultural heritage and its diversity.”

In line with the first principle of the European Pillar of Social Rights, the aim is to make innovative, inclusive and lifelong learning accessible to all. First concrete actions include developing European universities; making qualifications obtained in upper secondary and tertiary education, as well as learning periods abroad automatically recognised across Member States; improving language learning; promoting quality early childhood education and care; supporting the acquisition of key competences; and strengthening digital learning.

The EU platform on food losses and food waste

In the EU, an estimated 20% of the total food produced is lost or wasted, while 43 million people cannot afford a quality meal every second day. Households generate more than half of the total food waste in the EU with 70% of food waste arising at household, food service and retail.

There is not one single cause with one solution because the food chain is a complex and dynamic system. Tackling food waste means working together with all key players from public and private sectors in order to better identify, measure, understand and find solutions to deal with food waste.

Established in 2016, the EU platform on food losses and food waste brings together international organisations, Member States and stakeholders to define good practice and catalyse progress in food waste prevention. With the support of the platform, the Commission adopted EU guidelines to facilitate food donation (2017) and is running a 3-year EU pilot project to promote their implementation on the ground. In 2018, EU guidelines were adopted to valorise the use of food, which is safe but no longer marketable for human consumption, as a resource for animal feed. The Commission is also actively examining ways to improve the use and understanding of ‘use by’ and ‘best before’ dates in the supply chain and by consumers, in order to reduce the associated food waste.

European Consensus on Development

In 2017, the EU and its Member States adopted the European Consensus on Development. It is a joint vision for development policy. The Consensus reflects the new framework of external action and updates the vision of development policy to address the United Nations 2030 Agenda and the SDGs. It also promotes coordinated implementation of the Paris Agreement on climate action and of the decent work agenda.

The European Consensus on Development is structured around the '5 Ps' framing the United Nations 2030 Agenda for Sustainable Development: people, planet, prosperity, peace and partnership. Eradicating poverty remains the primary objective. It integrates the economic, social and environmental dimensions of sustainable development. The Consensus strengthens the crucial link between external policies such as humanitarian, development and trade policies and policies to sustain peace and security, and to deal with migration, environment and climate change.

Towards a new 'Africa - Europe Alliance'

The EU is Africa’s first partner in trade, investment and development. The EU accounted for 36% of Africa’s trade in goods in 2017, EU’s investment stocks represent 40% of foreign direct investments in Africa worth EUR 291 billion in 2016, and in 2016 alone Africa received 55% of its official development assistance, amounting to EUR 23 billion, from the EU and its Member States.

In order to take this partnership to the next level the Commission launched a new  'Africa – Europe Alliance for Sustainable Investment and Jobs' in September 2018.

The alliance sets out key strands of action for the EU and its African partners to attract private investors, improve the business environment, support education and skills and boost trade.

The alliance complements the longstanding political partnership, proposing a paradigm shift beyond a donor-recipient approach towards an alliance of equals. It builds on the joint commitment to boost investment, job creation and trade, made at the 5th African Union – European Union summit of 2017.

“Africa needs true and fair partnership. And we, Europeans, need this partnership just as much.”

Jean-Claude Juncker,
European Commission President
State of the Union, 2018

The EU global strategy on foreign and security policy

The global strategy on foreign and security policy sets out a vision for the EU’s engagement in the world. The SDGs are a cross-cutting dimension of all the work to implement the strategy.

The EU is helping to build peaceful and inclusive societies. In the current context of shrinking civic and democratic space, the EU has reaffirmed its unconditional support for democracy, human rights and good governance worldwide.

This commitment takes various forms including political and policy dialogue and financial support through the European Instrument for Democracy and Human Rights. The EU action plan on human rights and democracy (2015-2019) provides a framework for policies with third countries. Over the years, the EU has established human rights dialogues with an increasing number of third countries in order to enhance cooperation on human rights and improve the human rights situation in third countries, including access to justice.

Furthermore, the EU is supporting programmes to strengthen transparent and accountable institutions, including parliaments, judiciaries and law enforcement bodies, and national human rights institutions. The EU is also working towards strengthening resilience in partner countries as a means to address fragile situations and is supporting conflict prevention and peacebuilding initiatives including by improving partners’ governance of the security sector to help prevent crises and foster human security.

Trade for all: Towards a more responsible trade and investment policy

Today's economic system, global and digital at its core, is based on international value chains, with goods and services increasingly traded across borders.

The Commission recognises the need for the EU's trade and investment policy to address the challenges of our time and to facilitate the exchange of ideas, skills and innovation. The Commission also recognises that an effective trade policy should be coherent with sustainable development and broader foreign policies, as well as external objectives of EU internal policies, so that they mutually reinforce each other. The Commission emphasises that trade shall ensure a level-playing field while promoting core principles like human rights, decent work, sustainable development around the world or high quality regulation and public services at home.

With the values-based “Trade for all strategy: Towards a more responsible trade and investment policy”, the Commission shows that EU trade policy is for all, that trade policy must deliver growth, jobs and innovation but it must also be consistent with the principles of the European model. That it must, in short, be responsible. 

The next multiannual European budget – a tool to integrate sustainability

The Commission's proposal for the next multiannual European budget for 2021-2027 is a budget guided by the principles of prosperity, sustainability, solidarity and security. Sustainable development is at the very core of the proposals. It is a crosscutting priority, not just one heading or a single programme. Sustainability is promoted through and mainstreamed into numerous programmes and spending instruments. Some examples from the Commission’s proposals for the next multiannual European budget:

·A major restructuring of the EU’s external action instruments to provide more coherence between instruments, to exploit economies of scale and synergies between programmes and to simplify processes. This will make the EU better equipped to pursue its goals and project its objectives, policies and values and interests globally. The proposed new Neighbourhood, Development and International Cooperation Instrument with a budget of almost EUR 90 billion is aligned with the United Nations 2030 Agenda and its SDGs. With the new European Peace Facility, worth EUR 10.5 billion, the EU will also seek to enhance its ability to prevent conflicts, build peace and strengthen international security.

·Breakthrough solutions to support the transition to sustainable development will require unprecedented investment in Research and Innovation through ‘Horizon Europe’, the largest ever EU research and innovation programme with a proposed budget of EUR 100 billion.

·A more ambitious goal for climate mainstreaming across all EU programmes, with a target of 25% of EU expenditure contributing to climate, including clean energy transition objectives. This target is raised to 35% of the overall budget of the proposed research and innovation framework programme ‘Horizon Europe’, which is conceived and designed in line with the SDGs.

·A reformed cohesion policy with more than EUR 370 billion - the highest budget of all EU policies and initiatives for 2021-2027 - that will leverage significant additional national and private investments. The focus of the proposal is on sustainable growth, the transition towards a low carbon and circular economy, the environment and resource efficiency, and social inclusion. The reformed cohesion policy will enable the EU to deliver on the targets of the Paris Agreement on climate action and will help localise SDGs since its delivery is done in close cooperation with regions and local authorities. Investing in people will be a key priority with the future European Social Fund (ESF+) that helps implement the European Pillar of Social Rights, with a proposed budget of EUR101 billion.

·A proposal to catalyse key strategic investments through a new, fully integrated investment fund, InvestEU, which will be key to Europe’s future prosperity and its leadership on the SDGs. With a contribution from the EU budget of EUR 15.2 billion, InvestEU is expected to mobilise more than EUR 650 billion of additional investment across Europe.

·A simplified, modernised common agricultural policy with a total budget of EUR 365 billion to ensure access to safe, high quality, affordable, nutritious and diverse food for the EU’s 500 million consumers. The new common agricultural policy will place a greater emphasis on the environment and climate. All farmers receiving area and animal-based payments will have to comply with a range of requirements related to climate change, water, soil, biodiversity and landscapes, as well as to public health, plant and animal health and welfare.

·Strengthened environmental LIFE programme, with a budget of EUR 5.5 billion for projects supporting environment and climate action, including a new window dedicated to support for clean energy transition .

·It is proposed to double the budget for the future Erasmus Programme to EUR 30 billion, to enable more European citizens to study, train, volunteer and gain professional experience abroad.

·The Connecting Europe Facility programme for the period 2021-2027 aims to develop smart, sustainable, inclusive, safe and secure infrastructure in the transport, energy and digital sectors with a proposed budget of EUR 42.3 billion. Synergies between the three sectors will be promoted and investment streamlining with coherent eligibility criteria and visibility on the pipeline. At least 60% of financing from the Connecting Europe Facility programme will contribute to climate action.

·The digital transformation is an important enabler for the transition to a low-carbon, circular economy and a society needed to achieve the SDGs. The proposed Digital Europe Programme with a budget of EUR 9.2 billion will work to this end, for instance by supporting the provision of large scale capacities in high-performance computing and artificial intelligence, which will offer new opportunities for sustainable development, including for reducing CO2. 

·A simplified and more targeted European Maritime and Fisheries Fund with a total budget of EUR 6.14 billion to support the common fisheries policy, the EU's maritime policy and international commitments in the field of ocean governance, especially in the context of the United Nations 2030 Agenda for Sustainable Development.

Main SDG related initiatives of the Juncker Commission

SDG 1: No Poverty

·European Pillar of Social Rights, social scoreboard

·Strengthened European semester of economic and social policy coordination

·Recommendation on long-term unemployment

·Recommendation on access to social protection for all

·EU framework for national Roma integration strategies

· European accessibility act

·Action plan to tackle the gender pay gap

·Strategic approach to resilience in the EU's external action

·European Consensus on Development

·Action plan on the Sendai framework for disaster risk reduction 2015-2030

·Revised European neighbourhood policy & EU enlargement strategy, Western Balkan strategy

·Trade for all strategy

·Updated aid for trade strategy

SDG2: Zero Hunger

·Common agriculture policy

·Common fisheries policy

·Circular economy action plan

·Multi-stakeholder platform on food loss and food waste

·Rules for organic farming

·FOOD 2030 initiative to develop a coherent research and innovation agenda for sustainable food and nutrition systems

·A sustainable bioeconomy for Europe: strengthening the connection between economy, society and the environment

·European Consensus on Development

·Revised European neighbourhood policy & EU enlargement strategy, Western Balkan strategy

·Task Force for Rural Africa

·Trade for all strategy

SDG3: Good Health and Well-Being

·European Pillar of Social Rights, social scoreboard

·State of health in the EU- reporting cycle

·Digital transformation of health and care: bringing better health and care to more citizens in better and effective ways

·One health action plan against antimicrobial resistance

·Updates to the carcinogens and mutagens rules

·EU cooperation on vaccine-preventable diseases

·Steering group on health promotion, disease prevention and management of non-communicable diseases

·New rules on medical devices

·Enforcement of EU air pollution standards and measures to help national, regional and local actors fight air pollution

·A clean planet for all – the long-term vision for a prosperous, modern, competitive and climate neutral economy by 2050

·Strategic action plan on road safety

·European Consensus on Development

·Research partnership with Africa against HIV/AIDS, tuberculosis and other infectious diseases

·Revised European neighbourhood policy & EU enlargement strategy, Western Balkan strategy

·Trade for all strategy

SDG 4: Quality Education

·European Pillar of Social Rights, social scoreboard

·European Education Area by 2025

·Renewed EU agenda for higher education

·New skills agenda for Europe

·Youth strategy  2019–2027

·Digital education action plan

·Recommendations on high quality early childhood education and care systems; on the automatic mutual recognition of diplomas and learning periods abroad; on improving the teaching and learning of languages; on a European framework for quality and effective apprenticeships; on key competences for lifelong learning; and on upskilling pathways, new opportunities for adults

·Strengthened European semester of economic and social policy coordination

·EU action on education in emergencies and protracted crises

·European Consensus on Development

·Revised European neighbourhood policy & EU enlargement strategy, Western Balkan strategy

·A new ‘Africa – EU alliance’

SDG 5: Gender Equality

· Strategic engagement for gender equality 2016-2019

·Work-life balance package

·Action plan to tackle the gender pay gap

·European Pillar of Social Rights, social scoreboard

·Strengthened European semester of economic and social policy coordination

·'Women in Transport'

·Action plan for gender equality and women’s empowerment in external relations

·European Consensus on Development

·Global alliance: spotlight initiative (EU-UN) to eliminate violence against women and girls

·Revised European neighbourhood policy & EU enlargement strategy, Western Balkan strategy

·Trade for all strategy

SDG 6: Clean Water and Sanitation

·Proposal on revised drinking water rules

·Proposal on minimum requirements for water reuse

·European Consensus on Development

·Revised European neighbourhood policy & EU enlargement strategy, Western Balkan strategy

·Global strategy for the EU’s foreign and security policy

SDG 7: Affordable and Clean Energy

·Energy union strategy

·‘Europe on the Move’ packages

·Clean energy for all Europeans package

·A clean planet for all - the long-term vision for a prosperous, modern, competitive and climate neutral economy by 2050

·The 2030 energy and climate framework

·Horizon 2020 large scale initiative on digital transformation in the energy sector through Internet of Things

·Strategic energy technology plan

·European battery alliance

·Mission Innovation

·Support for coal regions in transition

·Energy poverty observatory

·Clean energy for EU islands initiative

·Cohesion policy

·Sustainable finance action plan

·Low emission strategy

·European Consensus on Development

·Energise Africa strategy

·European and Global Covenant of Mayors for climate and energy

·Revised European neighbourhood policy & EU enlargement strategy, Western Balkan strategy

·Global strategy for the EU’s foreign and security policy

SDG 8: Decent Work and Economic Growth

·Investment Plan for Europe / “Juncker Plan”

·European Pillar of Social Rights, social scoreboard

·Strengthened European semester of economic and social policy coordination

·Renewed EU industrial policy strategy

·Renewed agenda for research and innovation and the ‘Horizon 2020’ programme

·Cohesion policy

·Rules for transparent and predictable working conditions

·Update of rules on posting of workers

·Proposal for setting up a European Labour Authority

·Updates to the carcinogens and mutagens rules

·Recommendation on access to social protection for all

·Recommendation on long-term unemployment

·A clean planet for all – the long-term vision for a prosperous, modern, competitive and climate neutral economy by 2050

·Circular economy action plan

·External investment plan, including the European Fund for Sustainable Development

·European Consensus on Development

·Revised European neighbourhood policy & EU enlargement strategy, Western Balkan strategy

·Trade for all strategy

·Updated aid for trade strategy

·Global strategy for the EU’s foreign and security policy

·A new ‘Africa – EU alliance’

SDG 9: Industry, Innovation and Infrastructure

·Renewed EU industrial policy strategy and the Critical raw materials list

·High level roundtable ‘Industry 2030’

·Circular economy action plan

·A clean planet for all – The long term vision for a prosperous, modern, competitive and climate neutral economy by 2050

·Renewed agenda for research and innovation and the ‘Horizon 2020’ Programme, including a large focus area on Digitising European Industry

·Cohesion policy

·Digital single market strategy

·Sustainable finance action plan

·Clean energy for all Europeans package

·Energy poverty observatory

·Implementation of the corporate social responsibility strategy

·‘Europe on the Move’ packages

· 'Women in Transport'

·Connecting Europe Facility

·European Processor initiative

·Low emission mobility strategy

·External investment plan

·European Consensus on Development

·Revised European neighbourhood policy & EU enlargement strategy, Western Balkan strategy

·Trade for all strategy

·A new ‘Africa – EU alliance’

SDG 10: Reduced Inequalities

·European Pillar of Social Rights, social scoreboard

·Strengthened European semester of economic and social policy coordination

·European accessibility act

·Recommendation on access to social protection for all

·Work-life balance package

·Rules for transparent and predictable working conditions across the EU

·Cohesion policy

·EU framework for national Roma integration strategies

·European agenda on migration

·EU action plan on human rights and democracy 2015-2019

·European Consensus on Development

·Revised European neighbourhood policy & EU enlargement strategy, Western Balkan strategy

·Trade for all strategy

·Global strategy for the EU’s foreign and security policy

SDG 11: Sustainable Cities and Communities

·Urban agenda for the EU

·Strategy for low emission mobility

·European Pillar of Social Rights, social scoreboard

·Renewed agenda for research and innovation and the ‘Horizon 2020’ programme, including large scale initiative on digital transformation within Smart Cities and Communities

·Joint communication on resilience

·Cohesion policy

·A clean planet for all – the longterm vision for a prosperous, modern, competitive and climate neutral economy by 2050

·Circular economy action plan

·European and Global Covenant of Mayors for climate and energy

·Strengthened EU disaster management (rescEU) and revised EU civil protection mechanism

·Action plan on the Sendai action plan for disaster risk reduction 2015-2030

·European Consensus on Development

·Revised European neighbourhood policy & EU enlargement strategy, Western Balkan strategy

·EU cities fair and ethical trade award

SDG 12: Responsible Consumption and Production

·Circular economy action plan, including a monitoring framework and the European circular economy stakeholder platform

·A clean planet for all – the long-term vision for a prosperous, modern, competitive and climate neutral economy by 2050

·Multi-stakeholder platform on food loss and food waste

·New EU rules on waste, including action on food loss and food waste

·EU plastics strategy

·Large Scale initiatives under Horizon 2020 on digital and sustainable transformation of the AgriFood Sector

·A sustainable bioeconomy for Europe: strengthening the connection between economy, society and the environment

·Eco-design and energy labelling working plan

·European agenda for a collaborative economy

·Implementation of the corporate social responsibility strategy

·Rules on conflict minerals

·European Consensus on Development

·Revised European neighbourhood policy & EU enlargement strategy, Western Balkan strategy

·Trade for all strategy

SDG 13: Climate Action

·Entry into force Paris Agreement on climate action

·A clean planet for all – the long-term vision for a prosperous, modern, competitive and climate neutral economy by 2050

·The 2030 energy and climate framework

·Renewed EU emission trading system

·Clean energy for all Europeans package

·‘Europe on the Move’ packages

·Low emission mobility strategy

·Circular economy action plan

·Ocean governance agenda

·Critical raw materials list

·European and Global Covenant of Mayors for climate and energy

·Strengthened EU disaster management (rescEU) and revised EU civil protection mechanism

· Action plan on the Sendai framework for disaster risk reduction 2015–2030  

·European Consensus on Development

·Revised European neighbourhood policy & EU enlargement strategy, Western Balkan strategy

·Trade for all strategy

·Global strategy for the EU’s foreign and security policy

SDG 14: Life below Water

·EU plastics strategy

·International ocean governance agenda

·EU blue growth strategy

·New rules for the sustainable management of external fishing fleets

·Proposal for the revision of the EU fisheries control system

·Fight against illegal, unreported and unregulated fishing

·A clean planet for all – the long-term vision for a prosperous, modern, competitive and climate neutral economy by 2050

·European Consensus on Development

·Revised European neighbourhood policy & EU enlargement strategy, Western Balkan strategy

·Trade for all strategy

·Global strategy for the EU’s foreign and security policy 

SDG 15: Life on Land

·Action plan for nature, people and the economy

·EU pollinators initiative

·New rules on invasive alien species

·New rules for organic farming

·EU action plan against wildlife trafficking

·A clean planet for all – the long-term vision for a prosperous, modern, competitive and climate neutral economy by 2050

·European Consensus on Development

·Revised European neighbourhood policy & EU enlargement strategy, Western Balkan strategy

·Trade for all strategy

SDG 16: Peace, Justice and Strong Institutions

·Global strategy for the EU’s foreign and security policy

·European Consensus on Development

·Trade for all strategy

·Revised European neighbourhood policy & EU enlargement strategy, Western Balkan strategy

·A new ‘Africa – EU alliance’

·The European agenda on security

·Action plan to protect public places

·Measures to tackle illegal content online

·EU action plan on human rights and democracy

·Implementation of the corporate social responsibility strategy

·European public prosecutor’s office

·Rules on anti-money laundering and counter terrorist financing

·Rules on tax transparency and anti-tax avoidance measures

·Strengthened rules on procedural rights of suspects and accused persons

·Revised firearm rules

·Measures for securing free and fair European elections

·Action plan against disinformation

·Strengthened European semester of economic and social policy coordination

·A clean planet for all – the long-term vision for a prosperous, modern, competitive and climate neutral economy by 2050

SDG 17: Partnerships for the Goals

·EU better regulation agenda

·Multi-stakeholder platform on the implementation of the SDGs in the EU

·Initiative on ‘Next steps for a sustainable European future’

·Yearly monitoring report on EU progress towards the SDGs

·European Pillar of Social Rights

·EU health policy platform

·The European solidarity corps

·A new start for social dialogue

·Collect more spend better initiative

·Sustainable finance action plan

·European external investment plan and its European Fund for Sustainable Development

·Critical raw materials list

·A clean planet for all – the long-term vision for a prosperous, modern, competitive and climate neutral economy by 2050

·International urban cooperation

·Smart financing for smart buildings initiative

·Strengthened European semester of economic and social policy coordination

·European Consensus on Development

·Revised European neighbourhood policy & EU enlargement strategy, Western Balkan strategy

·Trade for all strategy

·Updated aid for trade strategy

·Global strategy for the EU’s foreign and security policy

ANNEX II The EU’s performance on the Sustainable Development Goals (SGDs)

The EU is one of the best places to live in the world and the EU Member States are already leading the implementation of the Sustainable Development Goals (SDGs). Yet, no single country in the world has reached all agreed objectives and closer assessment of the EU’s performance on the SDGs shows that also in the EU we need continued efforts on all fronts.

The 17 SDGs of the United Nations 2030 Agenda for Sustainable Development are strongly interlinked and designed to be indivisible, which is why their mainstreaming into the actions of all actors is essential for their successful delivery on the ground. It is important to create better synergies and coherence between policies, and develop an enabling regulatory, financial and behavioural environment for turning them into reality.

Putting our production, distribution and consumption patterns on to a sustainable path, addressing climate change and strengthening our actions to protect our oceans, ecosystems and biodiversity must be a priority as the planet’s natural systems that support life on earth are increasingly being pushed to the edge. The fight against poverty, social exclusion, inequalities and gender disparities has to be stepped up to guarantee prosperity and well-being for all, ensure social and political stability and maintain the support for the European project. Promoting and nurturing the rule of law, democracy and fundamental rights as well as strong rules-based multilateralism and trade must continue.

This document provides an insight to the EU's performance on the SDGs. For each of the Goals, an overview is given of where the EU stands today, what the development trends are and how the EU compares in the global context. A snapshot is provided of how the EU is expected to progress until 2030 and what will drive and what may hinder the transition towards a sustainable Europe. Sustainable development must be a joint endeavour with all members of the society on board. This in mind, also several real-life examples are presented with a view to showcasing good practices from different actors at different levels.

In worldwide comparison, seven EU-27 Member States are among the top 10 in the global SDG Index ranking and all EU-27 Member States are in the top 50 out of 156 countries assessed 1 . In the past five years, the EU as a whole has made progress towards almost all SDGs. Most progress has been made on SDG 3 – Ensure healthy lives and promote well-being for all at all ages, and on SDG 4 – Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all, which are both also among the top three of the highest-ranking SDGs for the EU-27 Member States in the global ranking. On average, in the global ranking the EU-27 Member States score the highest on SDG 1 – End poverty in all its form everywhere. The EU has, however, moved away from SDG 10 – Reduce inequality within and among countries, with notable differences between the Member States. It is important to note that making progress does not necessarily imply that the current status of the relevant Goal is satisfactory for the EU. For example, notable progress has been achieved towards SDG 12 – Ensure sustainable consumption and production patterns, but this is also the SDG where in the global ranking the EU-27 Member States have the second lowest average score with much work still to be done. On average, in the global ranking EU-27 Member States score the lowest on SDG 14 – Conserve and sustainably use the oceans, seas and marine resources for sustainable development.

Overview of progress towards the SDGs in an EU context 2

ANNEX III Summary of the Contribution of the SDG Multi-Stakeholder Platform to the Reflection Paper “Towards a sustainable Europe by 2030”

Letter by the members of the platform

Brussels, 11 October 2018

To the present and future leaders of the European Commission and other EU Institutions,

To all players having a strong stake in people’s sustainable living, and in the environmental, social, economic and governance developments of Europe,

To the people and voters in Europe,

Through this new Platform and with our Report, we want to send a vibrant signal to the leaders, actors and people within and outside the European Union: time has come – more than ever – to develop and implement a visionary and ambitious Strategy for a Sustainable Europe 2030.

It is important to note that none of the members of the Platform is expected to endorse every recommendation or view entailed in this Report and each has the right to take a different view on the issues covered.

However, within a short period of time, we have strived to build upon and respect our diverse backgrounds and opinions, with the aim of pulling in the same direction for a better, sustainable Europe.

Through strong common values, structural policy improvements and innovative action proposals, we ground our recommendations in the experience and efforts of thousands of men and women in the public sector, civil society and private sector. They have a common ambition to transform the Sustainable Development Goals into practical solutions for the well-being of citizens and the protection of our environment for present and future generations.

Our report highlights different perspectives and addresses some challenging trade-offs between the environmental, economic, social and governance dimensions of sustainable development, some of which we have been able to negotiate, others which need more clarification and consensus-building.

We are confident that the trust and engagement of people and leaders in a continuous transformation of Europe will bear fruit. It requires a fair and equitable culture of dialogue and partnership on all levels, in which each partner can become, and trust the others to be, co-designers of a Europe that cares and works for all. It also involves an overarching strategy for a Sustainable Europe to guide all European policies and programmes that will accelerate our individual and collective endowments in order to yield sustainable security, prosperity and dignity for all.

We are proud of the work achieved so far, while at the same time we feel the urgency to do much more. So, might the sustainability dialogue and collaboration within this Platform - both between the stakeholders and with the EU institutions – rapidly improve and grow.

Executive Summary “Europe moving towards a sustainable future” -
Contribution of the SDG Multi-Stakeholder Platform to the Reflection Paper “Towards a sustainable Europe by 2030” October 2018

The Multi-Stakeholder Platform on the implementation of the Sustainable Development Goals in the European Union – the "EU SDG multi-stakeholder platform" – was established in May 2017 to support and advise the European Commission and all stakeholders involved on the implementation of the SDGs at EU level.

Through strong common values we, as representatives of the public sector, civil society and private sector, worked diligently to make well considered recommendations on how to transform the Sustainable Development Goals into practical solutions for the wellbeing of our present and future generations in the EU and beyond. Our recommendations aim to inspire and guide the Commission’s Reflection paper "Towards a Sustainable Europe by 2030".

Given the ambitious agenda and the universal and indivisible nature of the Sustainable Development Goals, there is no single recipe for which to advocate. Achieving the Goals requires a comprehensive review, the identification of areas where changes are needed, and the development of coherent policies which produce lasting social, economic, governance and environmental co-benefits, recognising and acting on interlinkages between all goals and targets. Our recommendations provide an ambitious and consensus-based contribution to this goal.

As priority actions, we recommend that the EU develops and implements an overarching visionary and transformative Sustainable Europe 2030 strategy, guiding all EU policies and programmes. To be effective, such a strategy should include both interim and long-term targets and lay out Europe's vision for a sustainable Europe beyond the 2030 Agenda.

When implementing the 2030 Agenda, the European Commission and all other stakeholders need to respect key principles, to fulfil existing commitments under international agreements, to commit to a transformation of our social and economic model, to prioritise and fast-track actions for the poorest and most marginalised in society (“leave no one behind”), to recognise planetary boundaries, to respect human rights and the rule of law, and ensure policy coherence for sustainable development.

We also make some cross-cutting recommendations. We advise the EU to reinvent its governance system to ensure a coherent approach to sustainable development. The Commission President, assisted by a dedicated project team, should be in charge of the 2030 Agenda, ensure effective coordination and report on its implementation during the annual State of the European Union speech. We also will need action of regions, cities, citizens, communities, businesses and civil society in its diversity to implement the SDGs and the Paris Agreement. The EU should advocate a territorial approach for the delivery of the SDGs and allow a two-way dialogue where European and national strategies associate regional and local authorities as well as civil society and professional organisations in a multi-level and multi-stakeholders governance approach. We also offer to assess the merits of this Platform - both its composition and mission - and to discuss how in the future it can best contribute to our proposal for an inclusive, participatory and transparent Sustainable Europe 2030 Strategy. Finally, additional efforts should be deployed to ensure policy coherence for sustainable development, meaning that all EU policies should contribute to sustainable development within or outside Europe.

We also have some specific recommendations on how to strengthen the EU's existing toolbox. The Better Regulation agenda could become more powerful by fully integrating sustainable development objectives and principles in the policy-making process. EU policy-makers should better use and further improve the Impact Assessment Guidelines to mainstream sustainable development. A Sustainable Europe coordination cycle should be set up, with EU Sustainable Development Action Plans, Member State and European Commission Sustainable Development Reports and recommendations. The European Semester process should be guided by the Sustainable Europe 2030 Strategy and include a sustainability check. EU public finances, including the Multi-annual Financial Framework, should be fully sustainable and the definition of environmental, social and governance risks embedded within financial regulations. Sustainable fiscal reforms should be carried out at Member State level, corporate tax avoidance and fiscal dumping addressed and the Addis Ababa Action Agenda fully implemented. To inform future decision makers, the EU should further develop an integrated and participatory monitoring, accountability and review framework, including a comprehensive EU SDG indicator set and qualitative analysis.

We also make sectoral specific recommendations. Sustainability should be reflected in a coherent way across all EU policies and initiatives. For the scope of this paper, however, we identified five EU policy areas with a vital role in achieving the SDGs:

(1)    Sustainable Consumption and Production should be further promoted, incentivised and regulated while paying particular attention to global supply chains. We also need legal, policy and financing measures that should drive this transition. The EU's footprint needs to be reduced, a Resource Management Convention introduced and consumption based indicators developed. Sustainability should be part of the European Industry Strategy 2030.

(2)    The EU should invest in research and innovation, people and human talents, employability and social inclusion. The European Pillar of Social Rights should be fully implemented. The social and solidarity economy should be promoted; investment in health and well-being scaled up and sustainability should become an interdisciplinary science. Quality education should be guaranteed, support to children and young people prioritised and a regulatory framework to ensure safe pathways for asylum seekers and migrants introduced, while strengthening integration and inclusion policy.

(3)    Climate and energy policy. The EU should align its climate and energy targets with the agreed objective of limiting global temperature increase to 1.5 degrees compared to pre-industrial levels, while increasing resilience. Fossil fuels should be progressively phased out; investments in energy efficiency and clean energy increase; the uptake of nature based solutions promoted. Traffic congestion should decrease, sustainable infrastructure and comprehensive mobility plans should be encouraged. The EU should also support developing countries in adaptation and resilience to climate change.

(4)    Food, farming and land-use including Common Agricultural Policy. The EU should ensure that all EU investment into agriculture is aligned with the EU's Treaty to ensure a high level of human health protection, food security, as well as the protection and improvement of the quality of the environment. Public income support should support food production, the provision of public goods and ecosystem services, while also ensuring a fair standard of living for the agricultural community, and enabling the transition to sustainable agriculture and food systems. Investments and research into environmentally friendly and economically viable practices should be prioritised and global value chains made sustainable.

(5)    Cohesion policy is a major EU investment tool to support the implementation of the Sustainable Development Goals. It should strengthen the localisation of the Goals by directly supporting subnational governments, support the Urban Agenda of the EU, further promote social objectives and better encourage investments towards greener, more sustainable infrastructure, including in rural areas.

To address the urgency of action, we strongly encourage the Commission to follow up on our recommendations in a swift and timely manner so that Europe can fully and rapidly embrace the opportunity that sustainable development represents to our societies. The implementation of our requirements will require an inclusive and participatory approach and we fully commit our support. Our ultimate objective is to ensure that sustainable development becomes a permanent feature of European policy-making.

The full contribution of the SDG Multi-Stakeholder Platform to the Reflection Paper “Towards a sustainable Europe by 2030” is available at https://ec.europa.eu/info/sites/info/files/sdg_multi-stakeholder_platform_input_to_reflection_paper_sustainable_europe2.pdf  

(1)

 In this paragraph the global ranking is based on “ The 2018 SDG Index and Dashboards Report ” produced by the Sustainable Development Solutions Network (SDSN) and the Bertelsmann Stiftung; whereas the trends in EU are based on the 2018 Edition of the Eurostat report “ Sustainable development in the European Union – Monitoring report on progress towards the SDGs in an EU context – 2018 Edition ”

(2)

 Eurostat (2018), “Sustainable development in the European Union – Monitoring report on progress towards the SDGs in an EU context – 2018 Edition”

EUROPEAN COMMISSION

Brussels, 30.1.2019

COM(2019) 22 final

Reflection Paper

Towards a Sustainable Europe by 2030

Towards a Sustainable Europe by 2030

Contents

Foreword by FVP Timmermans and VP Katainen    

1    Sustainable development to better people’s livelihood: Europe’s competitive advantages    

2    EU and global challenges to tackle    

3    Moving towards a sustainable Europe by 2030    

3.1    Policy foundations for a sustainable future    

3.1.1    From linear to circular economy    

3.1.2    Sustainability from farm to fork    

3.1.3    Future-proof energy, buildings and mobility    

3.1.4    Ensuring a socially fair transition    

3.2    Horizontal enablers for the sustainability transition    

3.2.1    Education, science, technology, research, innovation and digitisation    

3.2.2    Finance, pricing, taxation and competition    

3.2.3    Responsible business conduct, corporate social responsibility and new business models    ………………………………………………………………………………………………………………………………….

3.2.4    Open and rules-based trade    

3.2.5    Governance and ensuring policy coherence at all levels    

4    The EU as a global trail blazer in sustainable development    

5    Scenarios for the future    

Foreword by FVP Timmermans and VP Katainen

We Europeans can be proud of our track-record. Through integration and close cooperation, we have created unprecedented wealth, high social standards and great opportunities for our citizens. We have anchored our common principles and values of democracy, human rights, and the rule of law in our Treaties, and built a European Union, whole and free. 

This success is due to the fact that Europeans set the bar high. Our strong democratic culture spurs on fierce debates, and rightfully so. For this is no time to sit back in complacency and let history unfold. There is a continuous need to improve living standards for all Europeans, to better protect, defend and empower citizens, and to bolster people’s security from various threats, whether they come from terrorism or from climate change. 

The world is in a flux and we are in the midst of the fourth industrial revolution. Everything is changing for everyone. Pretending otherwise is an abdication of common sense. The question is whether we are a victim of change, or whether we will embrace and guide it. Europeans are facing pressing challenges such as environmental degradation and climate change, demographic transition, migration, inequality, and pressure on public finances. Citizens are worried about their future, and that of their children. We are running up an ecological debt that affects everything. Future generations will have to pay back this debt with heavy interest if we don’t step up our action. 

It is the duty of the European Union to serve Europeans, not the other way around. The European Union must help people pursue their aspirations and address their concerns urgently and effectively. It starts by diagnosing the situation and facing up to the reality and undeniability of the facts. These facts however, should not instil us worry and fear, but inspire us to act instead. 

Many of these concerns have to do with challenges that go beyond borders and threaten jobs, our prosperity, our living standards, our freedom, and our health. No one state or nation can effectively deal with these challenges alone. We need the scale of the European Union, which – when unified and determined – is a global force to be reckoned with. However, ultimately even a European scale will not be enough; we need an agenda that has a global impact, and that agenda is best captured by the 17 Sustainable Development Goals (SDGs) 193 states signed up to, including the European Union and its Member States. These SDGs plot out a route on how to overcome the challenges we face, and to improve our habitat, our economy and our lives.

Sustainable development is a complex issue, but a simple concept: it is about making sure that our economic growth allows us to maintain a model that produces fair outcomes for all of humanity; and about ensuring that humans don't consume more resources than the Earth has to offer. That means we need to modernise our economy to embrace sustainable consumption and production patterns, to correct the imbalances in our food system, and to put our mobility, the way we produce and use energy, and design our buildings onto a sustainable path. To do this we also need to gear all our science, our financing, taxation, and our governance towards the achievement of the SDGs.

This is not a left or right issue, it is a right or wrong issue. Fortunately, the European Union has a good starting point because of its strong competitive advantages. Europe has developed some of the world's highest environmental standards, put in place ambitious climate policies, and championed the Paris Climate Agreement. Through its external policies and open, rules-based trade agenda, the European Union has also shared sustainable solutions with third countries.

The European Union was founded on the premise that “world peace cannot be safeguarded without the making of creative efforts proportionate to the dangers which threaten it” as Robert Schuman put it so eloquently almost 70 years ago. Today we may add to “world peace” the words “our people’s well-being and survival”.

The sustainability agenda is a positive agenda, it is about making people’s lives better. Europe has all that it takes to tackle the greatest of challenges. We can do this, together. What we need is everyone’s engagement and the political will to follow through. While others are retreating, Europe must now move forward, improve its competitiveness, invest in sustainable growth and lead the way for the rest of the world.

It is not enough to have a vision, we also need to agree on a concrete way to get there. This Reflection Paper is our contribution to that debate.

We couldn’t have completed it without the invaluable input of European stakeholders. Civil society, the private sector and academia are part of this debate. The High Level Multi-stakeholder Platform on the SDGs, established by the European Commission in 2017, has been a very positive exercise for bringing together cross-cutting ideas.

The questions raised in this paper are intended to inform a debate among citizens, stakeholders, governments and institutions in the months ahead, with a view to inspiring the debate on the future of Europe, the preparation of the European Union’s Strategic Agenda 2019-2024, and the priority-setting of the next European Commission.

1Sustainable development to better people’s livelihood: Europe’s competitive advantages

In September 2015, at the United Nations General Assembly, countries around the world signed up to the 2030 Agenda for Sustainable Development (United Nations 2030 Agenda) and its 17 Sustainable Development Goals (SDGs), agreeing on a concrete "to-do list for people and planet" 1 . World leaders committed to end poverty, protect the planet and ensure that all people enjoy peace and prosperity. The SDGs, together with the Paris Agreement on Climate Change, are the roadmap to a better world and the global framework for international cooperation on sustainable development and its economic, social, environmental and governance dimensions. The EU was one of the leading forces behind the United Nations 2030 Agenda and has fully committed itself to its implementation.

Sustainable development – the development that meets the needs of present generations without compromising the ability of future generations to meet their needs – is deeply rooted in the European project. European integration and EU policies have helped to overcome post-war poverty and famine, and have created a space of liberty and democracy where European citizens could reach unprecedented levels of prosperity and well-being.

The EU has continuously strived for more inclusive societies built on democracy and the rule of law as reflected in Article 2 of the Treaty on the European Union. 2 The EU's social and health standards are among the most ambitious in the world and Europe is the continent with the highest life expectancy. Our social market economy has generated prosperity and provided security thanks to strong welfare systems. Considerable investments in research and innovation have driven new technologies and production models allowing for a more sustainable use of resources and the take-up of digital solutions. Healthy budgets and modern economies are key; progress made towards sound fiscal policies and structural reforms have reduced debt levels and stimulated job creation. The employment rate of people aged 20-64 rose to 73.5% in the third quarter of 2018, the highest level ever reached in the EU. This has had a positive impact on productivity and growth in Europe. While economic, social and territorial disparities between EU Member States and regions persist, 3 the EU’s cohesion policy has helped all to grow and to reduce these divergences across the continent (upward convergence). Furthermore, the EU has set some of the highest social and environmental standards, has put in place some of the most ambitious policies to protect human health, and has become the global champion in the fight against climate change. The EU Member States have achieved remarkable progress in many areas of the United Nations 2030 Agenda, and as a result, the EU is one of the best places in the world to live in, if not the best.

However, nothing is ever complete or permanently settled. Our democracy, our economy and our natural environment all need continuous efforts to consolidate our achievements, to fully overcome the negative impact from the economic and financial crisis, to decouple the improvement of our health, welfare and well-being from environmental degradation, to overcome social inequalities, and to address challenges that go beyond borders.

We are in the midst of the fourth industrial revolution and the changes will affect everyone. The question is whether we are going to be able to lead and guide the response according to our values and our interests. The EU and its Member States have significant competitive advantages allowing us to take the lead and modernise our economies, secure our natural environment and improve the health and well-being of all Europeans. To do so, will require us to embrace the SDGs whilst further investing in skills, innovation and emerging technologies, helping to drive the transition of our economy and society on to a sustainable path.

We have to consider how to evolve our production and consumption patterns. We must act now to stop global warming and the loss of ecosystems and biodiversity, which are threatening our well-being, the prospects for sustainable growth, and life itself on this planet. While we have the capacity to do so, we do not have the luxury of time. Inequalities and territorial disparities are still wide spread in spite of progress achieved. Addressing these is important for a fair society, but also for safeguarding and bolstering social cohesion, and securing social and political stability in and between the Member States in the EU.

In addition, a respected and effective rules-based multilateral world order is the best antidote to the law of the jungle in an anarchic world rife with nuclear weapons, extremism, and limited resources. There is a growing dangerous nationalist strain of ‘my country first’ that can lead to strife and conflict. Several countries have started turning their backs on their global commitments to human welfare, security, environmental protection and climate action, upending a rules-based order.

The SDGs are not an objective in themselves, but they serve as our compass and map. They offer the necessary long-term perspective, which transcends the electoral periods and short-term quick-win considerations. They help guide us to uphold robust democracies, build modern and dynamic economies, and contribute to a world with improved living standards, narrowing inequalities and ensuring that no one is left behind, whilst truly respecting the limits of our planet and securing it for future generations.

Since the start of its mandate, the Juncker Commission has worked to mainstream sustainable development in its policies 7 and has already laid the ground for the next generation of sustainable policies: from the European Pillar of Social Rights, the new European Consensus on Development to the values-based Trade for All Strategy, Strategic Engagement for Gender Equality and a European Education Area; from the Circular Economy package, ‘Europe on the Move’ packages and Energy Union to the Blue Growth Strategy and the Bioeconomy Strategy; and from the Investment Plan and Action Plan on Sustainable Finance to the Urban Agenda for the EU and Nature Action Plan, amongst others.

The Juncker Commission has also proposed to make the EU’s finances more sustainable by strengthening the link between EU funding and the rule of law, as well as through a more ambitious target of 25% for climate expenditure in the future EU budget.

Recently the Juncker Commission presented a long-term strategic vision for a prosperous, modern, competitive and climate neutral EU economy by 2050. 8 This vision paves the way for a structural shift of the European economy, driving sustainable growth and employment.

All these strategic policies will need to be fully and unambiguously implemented on the ground. They will also need to be complemented by further action, recognising the fact that all policies are interdependent, while taking into consideration new challenges, and new facts and evidence as they emerge. Social dialogue as well as voluntary measures from the private sector also have an important role to play in this respect.

The EU is exceptionally well-positioned to lead. A political vacuum is opening up as a result of the retreating policies of other world powers. This is an important opportunity for the EU to show leadership and blaze the trail for others to follow.

In May this year EU citizens will elect a new European Parliament. A new Commission is due to take office this fall. The end date of the “Europe 2020 strategy” for smart, sustainable and inclusive growth 9 is approaching fast. We must therefore look ahead to the next five-year policy cycle for Europe and the new Multiannual Financial Framework which runs from 2021 to 2027. The European Council 10  welcomed the intention of the Commission to publish this Reflection Paper, which should pave the way for a comprehensive implementation strategy in 2019. This Reflection Paper launches a debate on further developing the EU’s sustainable development vision and the focus of sectoral policies after 2020, whilst preparing for the long term implementation of the SDGs. 11 The Commission would like to contribute to a truly comprehensive and forward-looking debate on the future of Europe, and sustainable development is inextricably linked with that future.

2EU and global challenges to tackle

Following reform efforts at all levels, the EU's economic fundamentals have picked up after the economic and financial crisis. 12  However, recent forecasts 13 point to the need to increase growth rates, reduce debt rates, and sustain fiscal discipline in order to provide the framework for a robust economy. Unless we take steps to increase economic resilience and cohesion and address structural vulnerabilities, the coming years could lead to a loss of momentum amid large downside risks. Conversely, if we make the necessary structural reforms, we can deliver greater well-being and a stronger future, including through investment in research and innovation, public services, welfare systems and environmental protection. Steps both at EU and Member States’ level are necessary to ensure future-proof fiscal and pension systems, including stable tax revenues in the Single Market.

In addition, there are many challenges that have become increasingly pressing, and threaten our well-being and economic prosperity. All these challenges are complex and strongly interlinked, meaning that addressing one may have positive implications for others.

The most serious sustainability deficit and our greatest challenge is the ecological debt, which we are running up by overusing and depleting our natural resources and thereby threatening our ability to meet the needs of future generations within the limits of our planet. Worldwide, the strains on key resources, from fresh water to fertile land, put human existence in peril. Today humanity uses the equivalent of 1.7 Earths. 14 With the global consumption of material resources increasing fourteen-fold between 1900 and 2015, and projected to more than double between 2015 and 2050, 15 the world is quickly moving towards several tipping points. In addition to the environmental strain, this poses a serious challenge to the EU economy, which is dependent on materials from international markets.

Biodiversity and ecosystems are increasingly threatened by human actions; in just 40 years world vertebrate species populations have declined by 60% on average. 16  Tropical forests are being destroyed at fast rates, with an area approximately the size of Greece lost every year. This is not 'somebody else's problem'. In the EU, only 23% of species and 16% of habitats are in good health. Animal-based food has a particularly high land-use footprint 17 and the growing demand for seafood puts significant pressure on marine ecosystems. 18

Global greenhouse gas emissions continue to rise at an alarming rate, with energy use but also overconsumption of resources and destruction of ecosystems as key drivers. Transport is responsible for 27% of the EU's greenhouse gas emissions, and many urban areas are in breach of agreed EU air pollution limits. Food production is still a significant consumer of water and energy and emitter of pollutants, being responsible for approximately 11.3% of EU greenhouse gas emissions. In the EU fossil fuels continue to benefit from public subsidies of around EUR 55 billion per year, or some 20% of the EU’s fuel import bill, in spite of the EU’s ambitious decarbonisation measures and subsidy phase-out commitments in the G7 and G20. 19  

Overall, the EU has managed to reduce its own emissions, and decouple them from economic growth, thus robustly contributing to the global effort, also taking into account emissions embedded in the EU’s imports and exports. 20 However, both at the EU level and globally more efforts are needed.

If left unaddressed, the devastating impact of climate change and degradation of natural capital will seriously impact the economy, reduce the quality of life all over the planet and increase the intensity and frequency of natural disasters, putting more lives in jeopardy. While turning these negative trends around comes at a cost and requires strong collective effort, the cost of inaction and the associated social fallout would be much higher. 21  

As well as a planetary challenge, the EU’s social welfare model – a cornerstone of the European project – finds itself on shifting ground. Technological, structural, and demographic changes in a globalised world are transforming the nature of work and calling into question our solidarity, eroding the promise that each generation can hope to inherit a better world than the last. This could also increase the threat to the EU’s core values of democracy, rule of law and fundamental rights.

Currently, around 22.5% of the EU population is still at risk of poverty or social exclusion and 6.9% of Europeans still suffer severe material deprivation. In 2017, income inequality in the EU Member States declined for the first time since the financial crisis. However, inequalities in earnings are still too large with a continued concentration of wealth at the top. This has multiple social consequences, leading to differences between well-being and quality of life. EU Member States also face a number of challenges in securing affordable energy for all Europeans, with millions struggling to keep their homes warm. 22  While around 43 million people in the EU cannot afford a regular quality meal every second day, 23 we waste approximately 20% of our food production 24 and more than half of the EU's adult population is overweight, 25 increasing serious health risks. An additional health risk is antimicrobial resistance, which could cause more than 10 million deaths per year in the coming decades. 26  

Today, there is still no full equality between women and men. Notwithstanding the fact that employment rates of women are at historically high levels and more women are present in positions of power than ever before, progress is stagnating or even regressing in other areas. 27 Twelve EU Member States have moved backwards in the past ten years when it comes to the gender balance of time spent on care, domestic work and social activities. Gaps in employment and pay persist. 28  

It is a great achievement that Europe has the highest life expectancy in the world. But a growing number of older people and a shrinking of the working age population brings its own challenges for our socio-economic model. Ageing coupled with longevity and increased likelihood of chronic diseases can have a deep impact on public finances, including on health systems. This will also increase the risk of inequality between generations.

Inequalities and the decline in social mobility pose a risk to our overall economic development 29 and social cohesion. The EU generally fares relatively well with regard to income inequality but less well with regard to equality of opportunity. Inequalities of opportunity can impede parts of the population from social and labour market inclusion, hampering growth prospects. Addressing inequalities is crucial for the public to support the sustainability transition. The rising temptations of isolationism and nationalism may be a sign that too many Europeans do not feel well protected in a world that seems to them increasingly unfair. However, it is clear that alone no Member State is big or strong enough to tackle transnational challenges but united in the EU we can offer protection.

Inequalities at a global scale are reason for deep concern as well. With great differences in population growth and living standards across the world, and with global temperatures continuing to rise and ecosystems disappearing, we will inevitably see an increase in forced displacement and migration across the globe. For example by 2050, it is estimated that hundreds of millions of people will flee their homes as a result of climate change and environmental degradation. 30 This is a clear example of how the many different complex issues are interlinked and interdependent, and why they require a comprehensive response. There is simply no silver bullet or easy solution to any of the big and difficult challenges.

It is a daunting task to modernise our economic model, to address the social issues we face and to continue to nurture and foster a strong rules-based multilateral cooperation. Yet, these are the necessary ingredients to secure social stability, to let our economies thrive, and to improve our health. Our free societies require economic dynamism, continuous investments in key enabling technologies and in education. For a better future for all, we need a reinvented form of sustainable growth, based on the understanding that the natural boundary conditions of the 21st century are very different from those of the previous century. We welcome this challenge.

The SDGs are by definition global goals, applicable to all parts of the world, and we must address them in this way. We must work with an international perspective in mind, leading by example, setting global standards, and enticing countries, industries and people to join this quest. As the world’s largest single market, its largest trader and investor and the largest provider of development assistance, the EU can have a very significant influence on the success of the United Nations 2030 Agenda. The EU has already put in place many of the most modern policies in the world to foster sustainability. We must continue on this path, but the pace must be stepped up to ensure a sustainable Europe by 2030. We cannot afford passing the responsibility to next generations, and our margin of time is becoming ever smaller. The decisions we do or do not take in the next years will determine whether or not we can reverse these trends.

3Moving towards a sustainable Europe by 2030

Sustainable development is about upgrading people’s living standards by giving people real choices, creating an enabling environment, and disseminating knowledge, and better information. This should lead us to a situation where we are “living well within the limits of our planet” 31 through smarter use of resources and a modern economy that serve our health and well-being. 

We should therefore continue on the path that we set ourselves: a transition to a low-carbon, climate-neutral, resource-efficient and biodiverse economy in full compliance with the United Nations 2030 Agenda and the 17 SDGs. This transition needs to be for the benefit of all, leaving no one behind, ensuring equality and inclusiveness. Our economic growth must depend less on non-renewable resources so that we maximize the use of sustainably managed renewable resources and ecosystem services.

The EU has already embarked on this transition. Between 2000 and 2015, employment grew at a faster rate in the environmental sector than in the economy overall. 32  Low-carbon technologies are becoming a major trade commodity, with the EU benefitting from significant positive trade balances. During the period 2012-2015, EU exports of clean energy technologies reached EUR 71 billion, exceeding imports by EUR 11 billion. The EU is already showing that it is possible to grow the economy, and reduce carbon emissions at the same time.

The EU can set the standards for the rest of the world if it takes the lead in the implementation of the SDGs and the transition to a sustainable economy, including through smart investments in innovation and key enabling technologies. The EU would then be the first to reap the benefits of the transition. It would also have the strongest competitive advantage in the global marketplace of tomorrow. This will contribute to building stronger Member States in a stronger Union, helping people pursue their goals in freedom and well-being, and thus fulfilling Europe’s vision.

“Green growth would ‘lift all the boats’”, 33 benefitting producers and consumers alike. It is estimated that achieving the SDGs in the areas of food, agriculture, energy, materials, cities, and health and well-being could open more than EUR 10 trillion of market opportunities. 34 The EU’s ambition to achieve a resource-efficient and climate-neutral economy will demonstrate that a green transition can go hand in hand with increased prosperity. To succeed, the EU and its Member States must lead the way in science, technology, and modern infrastructure. We must also encourage the emergence of new business models, bring down the barriers in the Single Market and take advantage of new technologies such as artificial intelligence. Important horizontal enablers such as research and innovation, finance, pricing and taxation, responsible business conduct, and new business models and education will create the right conditions for sustainability change if they are geared towards an innovative green, inclusive and socially just economic transition.

To get there, we need to continue investing in people and in the different systems that underpin our society. Isolated, piecemeal approaches have proven to be ineffective. We need to formulate strategies that are comprehensive and integrated. For instance, environmental issues cannot be solved with environmental policies alone if economic policies continue to promote fossil fuels, resource inefficiency or unsustainable production and consumption. Similarly, social policies are not sufficient to accompany the fourth industrial revolution and support the labour force affected by the carbon-transition; strong education and training policies as well as research and development will be of crucial importance too to build the necessary resilience in our societies.

Action is needed at all levels. EU institutions, Member States and regions will have to be on board. Cities, municipalities and rural areas should all become drivers of change. Citizens, businesses, social partners and the research and knowledge community will have to team up. The EU and its Member States will have to work together with international partners. If we are to succeed, we must pull in the same direction at all levels.

3.1Policy foundations for a sustainable future

It is therefore of the utmost importance that all actors in the EU prioritise the sustainability transition. They must further develop the cross-cutting policy agendas that have been adopted at the EU level in recent years. Significant parts of EU policies are already geared towards achieving the SDGs, but they still need to be put into practice in an integrated way by the Member States. For example, the costs of not implementing existing EU environmental legislation are broadly estimated at around EUR 50 billion a year in health costs and direct costs to the environment. Achieving full compliance with EU environmental rules would not only bring vast benefits for the environment, and our health but also create jobs. 35   

In the same vein, it is not just about speeding-up and scaling-up of sustainable solutions, but also about building bridges and increasing coherence between different agendas at all levels. Policy coherence is a critical condition to ensure that we can deliver on the SDGs and ensure long-term green and inclusive growth for the EU.

In line with the strong evidence base of the key sustainability challenges and opportunities for the EU, it is important to focus on production and consumption in the areas of materials and products, food, energy, mobility and the built environment, 36 taking into account the social implications of the changes in these areas. This is where sustainability changes are most needed and are potentially most beneficial for the EU economy, society and natural environment, with strong positive global spillover effects. These areas do not operate in isolation but are strongly interlinked and mutually reinforcing. 

3.1.1From linear to circular economy 

Increasing availability and affordability of different materials and products have simplified our lives and contributed to the rise in living standards and the quality of life in the EU. However, our culture of consumption has resulted in excessive resource extraction and growing pressures on natural capital and climate. 37  

We need to make sure that we can continue to grow our economy in a sustainable way and improve the living standards people demand. This will require new designs of materials and products so that we are properly equipped to re-use, repair and recycle more and more. This will in turn not only cut waste, it will also reduce the need for new resources to be extracted at great financial and environmental cost. When a product reaches the end of its life, be it a pair of jeans, a smartphone, food container, or piece of furniture, a true circular economy ensures that most of its material value is preserved, so what was previously considered waste can be used again for making new products.

The transition to a circular economy, including to a circular bioeconomy, is a huge opportunity to create competitive advantages on a sustainable basis. Applying circular economy principles in all sectors and industries will benefit Europe environmentally and socially and in addition have the potential to generate a net economic benefit of EUR 1.8 trillion by 2030 38 , result in over 1 million new jobs across the EU by 2030 39 , and be central to cutting greenhouse gas emissions. 40 Given EU products’ heavy reliance on the resources of other parts of the world, the transition to a circular economy would also help the EU decrease environmental, social and economic pressures globally, and increase the EU’s strategic autonomy.

The EU is the best-placed economy to benefit from the circular transition by making circular products one of its flagship brands, generating competitive advantages. However, to maintain that advantage we will need to step up our efforts. The Circular Economy Action Plan adopted by the Juncker Commission in 2015 sets out measures to guide the EU economy towards a circular path and help the EU to become a world leader in this transition. It includes steps for changing consumption and production patterns, by focusing on the design of products (durability, reparability, re-use and recyclability), waste management (avoidance, material recycling, energy recovery and avoidance of landfilling) and increasing consumer awareness. Almost all elements of the Action Plan have already been delivered but more steps will need to be taken to build a fully circular European economy.

The renewed EU Bioeconomy Strategy presented in 2018 complements the Circular Economy Action Plan, improving and scaling up the sustainable use of renewable resources and allowing renewable raw materials and industrial by-products to be turned into bio-based products, such as fuels, chemicals, composites, furniture and fertilisers.

It is now essential to turn those policies that are in place into reality on the ground, and continue to prioritise new actions at all levels of EU governance. For instance, the ambitious modernisation of EU rules on waste will have to be put in practice by Member States. Life-cycle assessments of products should become a norm and the eco-design framework – created for increasing the efficiency of products to reduce energy and resource consumption – should be broadened as much as possible. The work started on chemicals, the non-toxic environment, eco-labelling and eco-innovation, critical raw materials and fertilisers, needs to be accelerated. Boosting the market for secondary raw materials has to remain a high priority. The successful work on a circular plastics economy will have to remain a key focus area, and additional resource and pollution-intensive industries such as food, textiles, and electronics will also have to be supported and stimulated to become circular. Bio-based sectors have to be scaled up and strengthened while protecting our ecosystems and avoiding overexploitation of natural resources. Moving forward, we should make the circular economy the backbone of EU industrial strategy, enabling circularity in new areas and sectors, empowering consumers to make informed choices and enhancing efforts by the public sector through sustainable public procurement. The time is right, and the groundswell of public support for the EU Plastics Strategy shows there is an increasing understanding for continuing on this path.

3.1.2Sustainability from farm to fork 

The EU's farm sector and rural areas are crucial for the well-being of Europeans. Our agriculture and food industry make the EU one of the world's leading producers of food, guarantor of food security and provider of millions of jobs for Europeans. The EU's farmers are also the first stewards of the natural environment, as they care for the natural resources on 48% of the EU's land, with foresters accounting for a further 40%. The EU's rural areas are hosts to innovative sectors such as bioeconomy. Moreover, our rural areas serve as major bases for recreation and tourism. However, as average temperatures continue to rise and the natural environment is degraded, farmers and foresters are most directly affected.

EU agriculture has made real progress on the climate and environment front, reducing greenhouse gas emissions by 20% and nitrates levels in rivers by 17.7% since 1990. Nevertheless, the identified challenges remain. If we are to modernise our economy, protect our environment and improve the quality of our food, imbalances in our food chain need to be corrected, from agriculture and fishing, to the food and drink industry, transportation, distribution, and consumption.

The SDGs offer the way forward. It is estimated that a global food and agriculture system in line with the SDGs could create new economic value of more than EUR 1.8 trillion by 2030. 43 It could deliver nutritious, affordable food for a growing world population, generate higher incomes, help restore forests, freshwater resources and ecosystems, and be much more resilient to climate risk. 44 Sustainable agricultural and food production practices are expected to create over 200 million full-time jobs globally by 2050. 45  

Here too public demand is evolving. Citizens increasingly value food produced with broader benefits for society, such as organic produce, products with geographical indications, localised food production systems with lower carbon footprints, and innovative low-emission food solutions. Organic farming, with an emphasis on environmental protection and animal welfare, has been steadily increasing in all EU Member States since 2005 and is expected to keep growing. 46  

As the number one exporter and importer of agri-food products in the world, 47 the EU is well-positioned to reap the benefits of this economic opportunity and become a global sustainable food champion. This can be achieved. We need a comprehensive approach entailing a genuine change in the way we produce, transform, consume and distribute food by accelerating the transition to a sustainable food system based on circular economy principles and making innovative, healthy, environment and animal welfare-friendly, safe and nutritious food production one of our key European trademarks.

The Commission has proposed a modernised Common Agricultural Policy (CAP), where Member States’ national plans will have to reflect the strong sustainability principles embedded in the CAP objectives. The Common Fisheries Policy has led to significant progress in improving the sustainability of European fisheries. However, proper implementation of the Common Fisheries Policy, including the sustainable management of all fish stock and the development of sustainable aquaculture remains essential.

In this context, it is important to enforce a more prudent use of antimicrobials so as to lower the risk of further antimicrobial resistance in animals and humans 49 , pursue the EU Action Plan to fight food waste, increase the focus on animal welfare standards, ensure sustainable use of pesticides and turn bio-waste, residues and discards into valuable resources. Creating transparency of value chains and incentivising producers and supermarkets to offer, and consumers to choose sustainable food and healthy diets could be encouraged through appropriate and innovative measures including better education and consumer information to offer real, affordable, healthy choices. Shifting to a more sustainable consumption of animal-based products would in addition bring significant health benefits for consumers and positively affect the natural environment. 50

3.1.3Future-proof energy, buildings and mobility

Clean energy is key to a sustainable future. We need to produce, store and consume energy in a sustainable way to reduce our environmental impact and protect the health of Europeans.

The EU is already one of the most carbon efficient economies in the world. Renewable energy is an integral part of Europe’s energy mix and more than half of the EU’s electricity supply is climate-neutral. Energy efficiency measures, including energy labelling, have reduced energy consumption in recent years. 51 When buying appliances people increasingly choose the energy efficient option. There are nearly 1.5 million jobs in renewable energy and energy efficiency in Europe. 

With the Energy Union, the European Commission has put in place one of most comprehensive global policy frameworks for the energy transition and economic modernisation, bringing together climate, energy, transport, research and other policies. As part of Energy Union regulation, the EU level targets of reaching at least 32% renewable energy of total energy consumption and at least 32.5% energy efficiency in 2030 will allow us to go beyond our commitment under the Paris Climate Agreement to reduce greenhouse gas emissions by at least 40% by 2030, compared to 1990 levels.

Beyond 2030 more is needed to live up to the letter as well as the spirit of the Paris Climate Agreement, exploiting the full economic potential of the energy transition. The EU can significantly decrease its costly dependency on fossil fuels, reduce its fossil fuel import bill of some EUR 260 billion, increase its energy autonomy, and contribute to a fairer energy market. It is essential that we continue the integration of the energy market by building the missing interconnections and facilitating cross-border energy trade. The clean energy transition can also be supported by ocean energy and offshore wind energy. As a leader in this field, the EU should continue enjoying its first-mover advantage.

As buildings are responsible today for around 40% of energy consumption, there is a need to promote improved energy efficiency of buildings through renovation and modernisation. This has already begun. For example, eco-industries linked in particular to the refurbishment of buildings represent more than 3.4 million jobs in Europe. Reducing energy demand in buildings requires increased use of efficient and clean electric heating, but also smarter buildings and appliances and improved materials for insulation, fully in line with the circular economy principles. The Energy Performance of Buildings Directive aims to improve the quality of living, by making our houses better insulated and ventilated and thus better places to live, while decarbonising our building stock by 2050. Such actions will lead to cheaper living costs and thus leave more money in people’s purses. Ways and means, however, must be found to help people make that transition in the first place.

Another main driving force for the transition towards a clean, resource efficient and carbon-neutral future is the mobility sector, from urban mobility to trans-European networks, road transport as well as shipping and aviation. Transport and mobility services employ around 11 million people, and demand for mobility today is high. However, transport today generates air pollution, noise, congestion and road accidents. The sector already represents almost a quarter of Europe's greenhouse gas emissions and its emissions’ footprint is rising. The Action Plan for Low Emission Mobility, presented by the Commission in 2016, and the ‘Europe on the Move’ proposals which followed, foresee numerous measures to increase the sustainability of our transport system. These actions are geared towards reducing greenhouse gas emissions and giving a signal to EU companies to invest in clean transportation. This too will contribute to jobs and growth. We need to prioritise clean and affordable alternatives, with an objective to have only zero emission vehicles on EU roads and make the best use of digital technologies to help reduce fuel consumption. Likewise, the EU’s satellite navigation systems contribute to reducing emissions, for instance in aviation and road transport.

Cities are the vanguard of the shift to sustainable mobility. Through sustainable urban planning, integrating spatial planning and addressing mobility demands and infrastructure, cities have an important role to play. Urban areas should also be assisted in digitisation, automation and other innovative solutions and should pursue active and shared transport, from more walking and cycling to car-sharing services and car-pooling.

Additionally, it is important to look at the design and the end-of-life of vehicles, and at transport infrastructure to make sure that the opportunities of circular economy transition are used to the maximum. Vehicles that have reached the end-of-life still contain many valuable materials. The EU end-of-life vehicles legislative framework requires producers to design and manufacture new vehicles without hazardous substances and in such a way that makes it easy to reuse and recycle the materials of an old vehicle to make new products.

More can and should be done from using recycled content in vehicles and transport infrastructure to reaching more efficient recycling. For example, increasing the collection and recycling rates of electric car batteries in the EU could reduce dependence on imported materials and help to retain the value of recovered materials in the EU economy. Additional incentives, both regulatory and financial, will be important to make the most of the circular economy potential in the transport sector.

3.1.4Ensuring a socially fair transition

Solidarity and prosperity are virtues in themselves and make up the very fabric of our free and democratic societies. The transition to ecologically sustainable economic growth and competitiveness can only be successful if it is inclusive at the same time. Sustainability change is therefore also about promoting social rights and well-being for all and in turn contributing to social cohesion in the Member States and across the EU.

The sustainability transition can have strong positive spill-over effects on social well-being. In addition to providing the foundation for decent jobs, it can have notable health benefits too. It is widely recognised that good health is closely connected to the state of our natural environment. The detrimental effects of air and water pollution are a prime example in this regard. Sustainable food systems can provide high quality nutritious food to all citizens.

Creating synergies and modernising our economy also sometimes entails difficult trade-offs. Whereas in the sustainability transition new jobs will be created, traditional jobs may disappear or be transformed including through digitisation and automation, creating temporary friction in the labour market. With regard to the labour market it is for instance at present unclear what the exact impact of artificial intelligence will be.

Despite the fact that many households are struggling to make ends meet, there is a growing public understanding that we need to change the ways we produce and consume. Nevertheless, not only can these challenges hit the middle and lower-income class relatively harder but the costs to upgrade their houses, their cars or their skills, for example, can pose a higher burden on them as well.

This transition has consequences for those employed in affected businesses and sometimes for entire regions. A fundamental principle to enable the transition is to leave no one behind. We simply cannot succeed with the sustainability transition at the expense of groups of people, communities, sectors or regions. All members of our society will have to receive equal opportunities to contribute to a sustainable European future and benefit from the transition. We must in particular empower women to enter the job market and seek economic independence.

To succeed in putting our society on a sustainable path, we must ensure that our policies help all Europeans make this change, including by equipping them with the necessary skills. The Commission launched, for example, the Coal Regions in Transition initiative, which helps develop strategies and projects for viable social, economic and technological transformation in certain regions in the EU, and which will be extended to carbon intensive regions. Such early initiatives that anticipate transition challenges should be reinforced and multiplied to other sectors where transformation is needed. Automotive and certain food sectors could be an example.

Ensuring a socially inclusive, just and fair transition will also be crucial for the public acceptance of the steps required and for turning the transition into a success for all. This implies a higher and fairer participation in the labour market, while focusing on job quality and working conditions. It also implies the respect for minorities’ rights.

In this context, orderly, legal, and well-managed migration can create opportunities for the European economy, addressing changing demographics, both in countries of origin and in countries of destination of migrants. Integration and full participation in societies – be it cultural, social or economic – of all migrants who are rightfully and legitimately resident in the EU is a common responsibility and is crucial to ensure social cohesion. 52  

The sustainability transition also requires investment in effective and integrated social protection systems, including quality services such as education, training, life-long learning, childcare, out-of-school care, health and long-term care. This is essential to ensure equal opportunities for all and to promote economic and social convergence. Health systems, in particular, need to evolve so that they are easily accessible and affordable to all, including improved access to medicines, more patient-centred, and strongly focussed on health promotion and disease prevention. They should also have more and better planning and forecasting on health workforce and a broader use of cost-effective digital technologies. 53  

Social investment must therefore remain among the top priorities of the EU and its Member States. The Reflection Paper on Social Europe 54 is an important reference point, and explores in detail the options for adapting our social models to the challenges we face. The main framework for the EU in moving ahead is the European Pillar of Social Rights proclaimed by the EU institutions in November 2017. The Pillar’s purpose is to guide a renewed process of improving working and living conditions. It sets out key principles and rights in the employment and social field. Our focus must now be on delivering on the Pillar. Moving forward, we also have to make sure that the Pillar’s implementation will help equip people with the right skills for the right jobs that are geared towards green economic transition.

The sustainability transition must also continue to help Member States and regions grow upwards and towards one another, while avoiding wider regional injustice and inequalities in the EU within and between urban and rural areas.

While 75% of the EU territory is rural, urban areas are home to over two-thirds of the EU's population. They generate up to 85% of EU GDP, account for about 60-80% of energy use, and commonly face challenges such as congestion, a shortage of adequate housing, air pollution, and declining infrastructure. 55  The implementation and development of the Urban Agenda for the EU should remain a priority and synergies with different sustainability policies and other instruments should be intensified.

Rural areas are also the main suppliers of the food, energy and materials we consume, and are therefore critical for the sustainability transition. The bioeconomy is one example where an important contribution can be made to decarbonising our economy while creating rural jobs. Sustainable tourism and food systems are also good examples of economic opportunities in rural areas, involving the protection and enhancement of cultural and natural heritage.

EU measures alone, such as cohesion policy and rural development policies, including the EU Action for Smart Villages, will not be enough, and all actors, including national and regional, will have to do their part to accelerate the sustainability transition and apply the appropriate regulatory and other approaches that strengthen rural areas and safeguard equal living conditions.

3.2Horizontal enablers for the sustainability transition

3.2.1Education, science, technology, research, innovation and digitisation 

Education, science, technology, research and innovation are a prerequisite for achieving a sustainable EU economy meeting the SDGs. 56 We need to continue to raise awareness, broaden our knowledge, and hone our skills. We should invest more in these areas, gearing them towards the SDGs.

Education, training and life-long learning are indispensable to create a sustainability culture. EU leaders have agreed to work towards a European Education Area by 2025 to harness the full potential of education, training and culture as drivers for job creation, economic growth and social fairness. Education is both a virtue in itself, and an invaluable means to achieve sustainable development. Improving equal access to inclusive high-quality education and training at all stages of life, from early childhood through to higher education and adult education, must therefore be a main focus. Educational institutions of all levels should be encouraged to embrace the SDGs as guidance for their activities and supported to become places where skills for sustainability are not only taught, but also actively practiced. Reform and modernisation of education systems from building green schools and green campuses to developing new skills for the digital economy should also be addressed.

Enhancing ICT skills and core digital competences, in line with the EU Digital Education Action Plan, 57 and focussing on artificial intelligence 58 should be among the priorities when moving forward. Harnessing the power of the digital transformation to meet the SDGs is a clear priority. The EU is fully committed to develop capacity and expertise in key digital technologies such as connectivity, the ‘internet of things’, cybersecurity, blockchain or high-performance computing, while simultaneously paying attention to the potential negative externalities of digital infrastructures. 

Artificial intelligence is an area where the EU is lagging behind China and the United States. 59 The EU needs to catch up quickly to reap the economic benefits and at the same time take the lead in shaping the necessary new ethics that should accompany this new technology. This way the EU can help ensure that artificial intelligence is a net benefit to people’s lives and work. By being able to process large amounts of data instantaneously, artificial intelligence has the potential to significantly increase productivity in many areas, such as healthcare, energy, agriculture, education and environmental protection. For instance, in the agricultural sector, researchers currently use artificial intelligence and big data to predict crop yields several months before harvest, thereby potentially helping farmers increase productivity, make informed planting decisions and ultimately enhance food security. 60

Research and innovation have an important role as a catalyst for change. They are a tool for analysing the impacts of change and a means for ensuring that any transition leads to an increase in our well-being. They also allow us to save money. Investing more in innovation and technological development today will in the longer run help us to lower the costs of meeting our long-term policy goals such as those related to our climate and environmental targets. Europe has the brains, the skills, and the innate creativity. Building on the strengths of its rich community of researchers and innovators, the EU is in a strong position to take the lead in developing and deploying breakthrough solutions for green and inclusive growth that will be applicable in the EU as well as globally.

However, to fully exploit this potential EU Member States need to step up their research spending. The EU has agreed that by 2020, 3% of EU Member States' GDP should be invested in research, development and innovation, yet we are still far from reaching this target.

At the EU level, the Framework Programmes for Research and Innovation are a catalyst for sustainable competitiveness, growth and investments. To accelerate the sustainability transition, research and innovation funding needs to be complemented with a strategic approach to investment, allowing innovative solutions to reach the market, as these often require capital intensive and high-risk investments. Instruments such as the European Fund for Strategic Investments have been created to help lower the risks of such investments and thus make them more attractive to private stakeholders. The recently-proposed European Innovation Council can also help in that respect by supporting top-class innovators, start-ups, small companies and researchers to succeed with high-risk innovative projects, scale-up internationally and benefit from intellectual cross-fertilisation.

The EU and its Member States could focus on financing breakthrough and disruptive technologies and innovative companies that have the potential to become EU and global market leaders in the sustainability transition, as well as on the effective and timely up-take of these innovations. Particular attention should be paid to sustainable and innovative farming and food systems, clean technology, human and animal health, ecosystem solutions and resource-efficient products and production methods. Additionally, a supportive regulatory framework to stimulate the effective uptake of innovation for sustainable development is required.

The EU and its Member States would also need to promote stronger links between researchers and business. EU research, development and innovation hubs and incubators are important to support sustainable development, so researchers and businesses can meet, exchange best practises, and spur innovation. While large companies may have the means to develop their research activities in-house, this is often not the case for small- and medium-sized enterprises. Stronger and more direct links with the research community have the potential to bridge this gap.

3.2.2Finance, pricing, taxation and competition

The costs of doing nothing are huge in the medium- and long-term. At the same time, the sustainability transition entails significant investments in the short run and a comprehensive shift in how the financial system works. Achieving the SDGs is estimated to require around EUR 4.5 to 6 trillion globally. 61  Around EUR 180 billion of additional investments are needed to achieve the EU's 2030 targets agreed in Paris, including a 40% cut in greenhouse gas emissions. Public funds need to be better and more intelligently oriented towards the pursuit of the SDGs, but we cannot meet our needs without the private sector shifting to sustainability as well. Mobilising funding to finance transition has to go hand in hand with the phasing-out the funding of projects that are detrimental to a green and inclusive economic growth.

The Investment Plan for Europe aims to mobilise private finance for the public good. Launched in 2015, its financing arm, the European Fund for Strategic Investments, mobilised so far EUR 370 billion in total investment in key areas necessary for the modernisation of the European economy. This includes renewable energy, energy efficiency, research, development and innovation, as well as social infrastructure such as social or affordable housing. For the next budgetary framework from 2021 to 2027, the Commission proposed to double the budgetary resources for the social sector, including for social entrepreneurship, and finance sustainable infrastructures only. The European Investment Bank Group is already today the largest multilateral provider of climate finance worldwide, committing at least 25% of its investments to climate change mitigation and adaptation.

The Commission - based on recommendations from a high-level expert group - also set out a roadmap to boost the role of finance in achieving a well-performing economy that delivers on environmental and social goals. The Action Plan on Sustainable Finance 62 and the legislative proposals that followed will help investors to make informed investment decisions, based on clear criteria of what is a sustainable investment. This should facilitate speeding up and scaling up broader investments in sustainable projects both in the EU and worldwide, as well as incentivise investors to step out of investments that are unsustainable.

Further focus should be given to connecting sustainable finance to the real economy so that the increased demand for sustainable products and services from investors would be matched by an increased supply. Effective pricing of externalities will be key in that regard. Additional efforts should also be made to inform European citizens about the finance system, so they are more aware of the corporate activity they are funding and of how to hold fund managers to account in case their money is not managed sustainably.

To safeguard public authorities' financial capacity to invest in the sustainability transition, action is also needed to achieve sustainable fiscal reform at all levels. We should strengthen the fight against tax evasion and corporate tax avoidance. Transnational cooperation is necessary to deal with the issue of tax havens that undermine the tax base of both the EU and developing countries.

More fundamentally, EU tax systems and pricing should be designed to reflect real costs, address our main social and environmental issues and trigger behavioural change throughout the economy. Sustainable competition depends on prices that reflect the true costs of production and use – internalising externalities. 63  

Regulators, business leaders and civil society need to work together to provide a level playing field in line with the SDGs and to stimulate development that leads sustainable products and services to become the most affordable ones.

This should involve changes in fiscal systems so that Member States reduce taxes on labour and increase them on capital, pollution, under-priced resources and other environmental externalities. 64 The “user pays” and "polluter pays" principles have to be applied to prevent and correct environmental degradation, and to avoid passing the burden to taxpayers. Currently, tax revenues from labour remain eight times higher than the revenues generated by environmental taxes in the EU and over the years only a limited number of EU Member States have decreased their share of labour taxes while increasing their share of environmental taxes.

We also need to ensure that the transition is socially just, that the costs of the transition are equitably split among taxpayers and that everyone pays their fair share. The required shifting of taxes and removal of counterproductive financial incentives such as fossil fuel subsidies can have regressive implications and hit the poor harder. Policy-makers must therefore activate all relevant levers and in addition to, for example, active labour market measures and education and training, ensure that the shift goes hand-in-hand with measures that make fiscal systems and the tax mix more progressive and take into account the most vulnerable groups. 65

When moving forward, harmonised taxation on negative social and environmental externalities in the EU Single Market will also be important to enable the EU to shift towards a more efficient and sustainable economy and ensure a level playing field for businesses. 66   For example, today the EU’s legal framework for energy taxation still contradicts the EU’s environmental and climate change goals, 67 having a detrimental effect on the agreed policy objectives. Moving away from unanimity voting in the Council, in line with the Commission Communication “Towards a more efficient and democratic decision making in EU tax policy” 68 will be a necessary condition for change.

In addition, competition is an important part of the overall policy mix and of the sustainability transition. Competition policy contributes to “economic democracy” and equality. It enables affordable prices, quality and choice, and curbs entrenched economic power not maintained on merits. Evidence 69 shows that competition policy relatively favours poorer households over richer households and leads to a more efficient allocation of resources as well as driving innovation, notably at the technological frontier.

3.2.3Responsible business conduct, corporate social responsibility and new business models 

Businesses have a vital role to play in the sustainability transition. Over the last decades, both on a voluntary basis and spurred on by public authorities, an ever-growing number of companies have made environmental and social responsibility a core part of their corporate missions. More and more companies see the SDGs as an integral part of their competitiveness and growth strategy. They have understood that responsible business can lead to more sustainable profits and growth, new market opportunities, and long-term value for shareholders.

Given the growing complexity and globalisation of supply chains, it is important to promote the application of high sustainability standards also in third countries. Business practices, consumption and production patterns by EU businesses and consumers should not contribute indirectly to human rights violations or environmental degradation elsewhere in the world.

In the last two years, the EU has strengthened the rights of shareholders 71 and investors 72 helping them to understand both the financial and non-financial aspects of companies’ performance and to enable them to better hold companies to account. The EU has also implemented new environmental and social criteria in its public procurement legislation to encourage companies to develop socially responsible products and services. The EU has adopted the Conflict Minerals Regulation 73  to ensure that EU companies import certain minerals and metals only from responsible sources that do not use profits to fund armed conflicts. In this context, the recently adopted Action Plan on Sustainable Finance is relevant too as it connects the finance system with more sustainable projects. 74

However, there is clearly space to do more at all levels. At EU level, working to identify a number of appropriate measures and tangible ways in which more sustainable business conduct can be promoted bring further results and reinforce the EU companies’ competitive edge in this area. We will have to reflect on different forms of additional incentives for businesses to integrate SDGs in their operations, including exploring the potential of emerging technologies and the circular economy. Both in its internal and external action, the EU will need to continue to promote the implementation of internationally agreed guidelines and principles on responsible business conduct such as the UN Guiding Principles on Business and Human Rights. This is also important in order to ensure an international level playing field.

Looking forward, the collaborative economy – where consumers can deal with each other directly – can make an important contribution to sustainable growth and the emergence of more sustainable business models when encouraged and developed in a responsible manner. At present the patchwork of different regulatory responses across the EU, however, creates uncertainty for traditional operators, new services providers, and consumers alike and hampers the growth of the collaborative economy in the EU and the new and innovative services that are associated with it.

Social entrepreneurship – aimed at solving community based problems, – can play an important role as well in addressing sustainability challenges, while fostering inclusive growth and job creation locally, shared prosperity, and social inclusion. Current social enterprises tend to be concentrated in specific niches – in particular in local contexts, – and struggle to scale up in the EU. Financing remains a significant issue, which is why the EU is dedicating more funding to social enterprises. As with the collaborative economy, the complex or missing regulatory framework and local-level restrictions can be an obstacle. In France, for example, a dedicated legal framework, put in place in 2014 recognised the specificities of the sector and gave a new impetus to these enterprises.

3.2.4Open and rules-based trade

Open and rules-based trade is one of the best tools to increase our prosperity and that of our partners, raise our standards of living and the sustainability of our planet and our democracies. If we want to be successful in achieving a sustainable Europe in a sustainable world, it is important to use our multilateral institutions and bilateral and multilateral trade agreements to shape global standards.

Protectionist trends and a 'my country first' approach are prone to induce conflicts. Moreover, they are great obstacles to building a sustainable planet – typically an objective that requires international cooperation. For many reasons it is in the EU’s vital interest to robustly support and sustain the multilateral system.

In the context of the sustainability transition we must work even more actively with like-minded partners to negotiate progressive new rules that take into account the United Nations 2030 Agenda. The latter recognises the key role of the rules-based multilateral trading system, with the World Trade Organization (WTO) at its core, in contributing to the SDGs. The EU’s ongoing constructive efforts to modernise the WTO are therefore essential.

Where current powers are reneging on international trade deals, opportunities arise for the EU. This Union with the most developed internal market in the world and with close to half a billion consumers can step in where others step out, and it has done so. Moreover, it puts trade on a new and more sustainable footing. All new EU trade and investment agreements now include a chapter on sustainable development that upholds and promotes social and environmental standards. The Economic Partnership Agreement signed with Japan in July 2018 is the first agreement to elaborate on the commitments made under the Paris Climate Agreement. In September 2018, the EU and Canada agreed to work on trade and climate change in the framework of the Comprehensive Economic and Trade Agreement (CETA). The EU is negotiating gender-specific provisions in the modernisation of our Association Agreement with Chile.

The Commission proposed 15 points to enhance the implementation and enforcement of the Trade and Sustainable Development chapters in EU trade agreements. 76 The focus is on stronger cooperation with different actors, more effective enforcement, including more assertive use of sustainability chapters in the existing dispute settlement mechanism, and improved communication and transparency.

As part of its efforts to support developing countries, the EU grants unilateral trade preferences under the Generalised Scheme of Preferences. These preferences are conditional on beneficiary countries’ compliance with implementation of core international conventions and agreements concerning human and labour rights, environmental protection and good governance, and hence create an incentive for developing countries to build their economic growth models on sustainable grounds. In case of serious and systematic violations of the principles of these conventions, the Commission can temporarily withdraw these preferences.

3.2.5Governance and ensuring policy coherence at all levels 

True sustainability change for the benefit of all Europeans through achieving the SDGs requires a comprehensive approach. The EU, its Member States and its partners need to take into account the interlinkages between the different sustainability challenges and opportunities, and support coherence between different policy areas, sectors and levels of decision-making.

Respect for the rule of law, democracy and fundamental rights are ‘who we are’. These are the non-negotiable principles and values, as set out in the EU Treaties, and they form the foundations upon which we build. They are also established as an integral part of the United Nations 2030 Agenda and the SDGs. The same applies to the principles of peace, justice and robust institutions for which the EU has always been a strong advocate. These principles and common values are not self-executing and the EU, its Member States, and in fact all Europeans need to uphold, maintain and strengthen them. Social partners have an important contribution to make. This partnership needs to be maintained and strengthened in order to ensure both effective governance and adequate policy coherence.

Beyond these underlying principles, policy coherence across the board is essential, grounded in planning, evidence-based policies, inclusiveness, effectiveness, respect for subsidiarity and proportionality, and measurement and monitoring. Better Regulation and better governance at all levels are vital too in this regard. Thorough impact assessments are necessary for all policy options, and trade-offs between the economic, social and environmental policy objectives need to be minimised and mitigated. Related implementation gaps jeopardising sustainable policy coherence should also be addressed in an effective and structural manner.

The SDGs are designed to be indivisible, and most SDGs cover several policy areas. Therefore, better cooperation across administrations needs to be accompanied by better coherence across different policy areas. Food, energy and water resources management are strongly related. The same applies to transport, air quality and health, for example. A so-called ‘nexus’ approach requires multi-sector projects at all levels that address the interlinkages between the SDGs. The European Commission has been following this approach by adopting an internal working method that breaks through silos between Commissioners and all Commission staff.

Policy coherence does not only apply at the internal level, but also to the impact of internal policies on the external dimension, and vice-versa. We must make sure not to export our ecological footprint or create poverty, inequality and instability in other parts of the world. As Europeans we are patently aware that negative impacts elsewhere will in turn have a boomerang effect on our own economy and society, for example by exacerbating the causes of migration. The EU is committed to policy coherence for development, which ensures that the impact of the EU’s internal policies on developing countries is systematically taken into consideration. Relevant monitoring has been integrated in the overall Commission’s follow-up to the United Nations 2030 Agenda. 77   

Successful policies need to set clear and measurable objectives, so that progress can be tracked, and results made publicly available. An agreement on such targets and a monitoring system could be created as a next step at EU level. The European Council welcomed the intention of the Commission to publish this Reflection Paper to pave the way for a comprehensive implementation strategy of the United Nations 2030 Agenda in 2019, which could incorporate this exercise.

Implementing the SDGs also requires effective cooperation at EU, national, regional and local levels. The recommendations of the Commission’s Communication “The principles of subsidiarity and proportionality: Strengthening their role in the EU's policymaking” that followed the ‘Task Force on Subsidiarity, proportionality and doing less more efficiently’ provide a roadmap for achieving this. 78 The Commission and other EU bodies could in particular facilitate an exchange of best practices among cities and regions, and set out the parameters for a cross-border territorial approach for delivering on the SDGs.

Civil society, the private sector and academia must of course also be part of the conversation and the implementation measures. The High Level Multi-stakeholder Platform on the SDGs, established by the European Commission in 2017, 79 has been a positive exercise for bringing together cross-cutting ideas. The Platform's input has been invaluable to the Commission’s work and it is annexed to this Reflection Paper. The High Level Expert group on Sustainable Finance is another positive example of cross-sector cooperation that was fundamental for preparing the Commission’s Action Plan on Sustainable Finance.

For complex challenges with a wide range of competing interests, multi-stakeholder partnerships could be further promoted to address the interdependence between the different SDGs.

On the other end, the multi-level governance approach requires that EU efforts are well articulated at the global governance level. In implementing the SDGs we have to deal with many challenges that know no borders. A stronger “outward looking” orientation, in close cooperation with EU's partners from all over the world at all levels, is therefore necessary. At the United Nations, the High Level Political Forum plays a key role, notably in keeping track of progress. The EU as a strong advocate for multilateralism can take the lead in ensuring proper reporting on progress towards the SDGs and insisting on rigorous implementation and monitoring by all partners.

4The EU as a global trail blazer in sustainable development

The EU and the United Nations are natural partners in the efforts to shape a safer and better world for all. We do not need more walls, but global rules respected by all. The rules-based system is the best guarantor for the sustainability of our economy and society. Only multilateral diplomacy can lead to solutions to international challenges. The EU Global Strategy for the EU’s Foreign and Security Policy recognises the importance of the SDGs as a cross-cutting priority, and concerted efforts are needed by the EU and its Member States in their dealings with the rest of the world.

With the global resurgence of violent conflicts, particularly so in the last five years, we are again reminded that peace and security in the EU also depend on the EU’s ability to contribute to building and sustaining peace elsewhere in the world. The EU's experience in building peace at home gives it the soft power and credibility as a global actor for sustainable peace and prosperity.

The EU must also continue sharing sustainable solutions to global problems as our policies will have only a limited impact on the planet if others pursue opposing policies. By helping and encouraging others to follow our actions, the EU can push for a level playing field, where all compete under the same conditions. Furthermore, sharing EU solutions abroad leads to more jobs and higher sustainable growth, not only in partner countries, but also within the EU itself.

Ultimately, to be most successful in the green and inclusive economic transition, we have to get our global partners on board too and make the case that a global sustainable development model based on our core values and principles is the best way to achieve shared prosperity and a sustainable world. The EU’s internal work on the SDGs and its external projection are therefore two sides of the same coin. It is in the EU’s interest to play a leading role in the implementation of the United Nations 2030 Agenda also globally through its external action.

The EU and its Member States are the largest donor of development and humanitarian assistance worldwide. The EU is collectively committed to increase its contribution of official development assistance to at least 0.7% of the EU’s gross national income a year. Through cooperation with 150 partner countries across the globe, the EU’s development cooperation is both a means to lift people out of poverty and ensure dignity and equality, but also to create peaceful, just and inclusive societies. The protracted nature of crises calls for the EU to continue its concerted effort to simultaneously address humanitarian needs and combat the root causes of poverty, displacement, fragility and instability.

The new European Consensus on Development explicitly gears EU action towards the implementation of the United Nations 2030 Agenda, with the primary objective of eradicating poverty. One of its key strengths is that it is a joint commitment by the EU and all its Member States to work better together, including through more joint programming and more effective coordination on the ground. This new orientation should further improve with the future EU external financing instrument, expressly designed to support the implementation of the SDGs.

We will continue our active engagement with partner countries through policy dialogues based on the SDGs, accompanied by our financial assistance and development cooperation. The EU's new partnership with the countries of Africa, the Caribbean and the Pacific that will succeed the current Cotonou Agreement should work towards increased prosperity by fulfilling the SDGs. When moving forward, building a strong partnership and cooperation with Africa on an equal footing should be of particular importance of the EU and its Member States. The EU has a strong interest in an African continent that thrives economically and politically, with enhanced opportunities for growth, local employment, new business models and mutual beneficial trade relations with Europe. In parallel, the EU's engagement with more advanced developing countries in a broad range of sectors can have a significant impact on global sustainable development.

Getting the private sector fully on board and boosting sustainable investment also beyond the EU's borders remains a priority. The European External Investment Plan has created a new standard in the use of public funding to leverage private investment for sustainable development in partner countries – starting with Africa and the EU's Neighbourhood. 80 The new Africa-Europe Alliance for Sustainable Investment and Jobs, launched in September 2018 holds great potential for unlocking sustainable investments, with the perspective of creating up to 10 million jobs in Africa in the next five years alone.

As developing countries in particular face difficulties in accessing adequate finance for their needs in sustainable infrastructure and energy efficiency, the global nature of financial markets could offer great potential in supporting all countries on their transition path by bridging local needs with global sources of funding. Aligning sustainable finance initiatives and tools across jurisdictions would ensure compatible markets for sustainable financial assets across borders, achieving economies of scale and avoiding fragmentation. This would bring new major investment opportunities for businesses and the financial sector worldwide.

The EU aims to be at the forefront of coordinating international efforts towards building a financial system that supports sustainable growth globally. To enhance cooperation and exploit synergies, it would be opportune to establish an international network of jurisdictions from both developed and developing countries that are committed to advancing sustainable finance. A coherent international strategy and architecture, leveraging the efforts of institutions such as the World Bank Group, the Organisation for Economic Co-operation and Development, the European Investment Bank, and the European Bank for Reconstruction and Development, would contribute to scaling up sustainable finance and mobilising international investors towards sustainable investments across the globe. New financial technologies and innovative financing solutions offer additional great opportunities to link global investors with sustainable projects.

Climate change and environmental degradation are increasingly one of the biggest threats to peace and security in the world and without decisive action they will become an even greater source of global risk, including forced displacement and migration. The EU needs to lead the way, including in the rigorous implementation of the Paris Climate Agreement and in pursuing international efforts to decarbonise the transport sector. The EU could also initiate binding global agreements in the areas of circular economy, resource use and biodiversity.

Being the first mover in the green and inclusive economic transition, combined with a strong push for international rules, will allow us to set the standards for the world and give us a strong competitive advantage in the global marketplace.

5Scenarios for the future

The EU has fully committed itself to delivering on the United Nations 2030 Agenda and its implementation. With a new five-year policy cycle on the horizon, it is time to agree how we live up to our collective commitment. The EU institutions need to decide on the structures, tools and policies they will deploy to implement and achieve the SDGs, and to help and guide our partners. There are different ideas on how best to achieve this, and each institution, Parliament, Council and the Commission, has its own responsibilities in line with the Treaties and our international commitments.

In October 2018 the European Council welcomed the intention of the Commission to publish a Reflection Paper to pave the way for a comprehensive implementation strategy in 2019.

This Reflection Paper puts forward three different scenarios following the European Council’s guidance to lead the discussion on how the implementation of the SDGs could best be achieved and what would be the most effective division of roles. This reflection is intended to inform a debate among citizens, stakeholders, governments and institutions in the months ahead, with a view to inspire the preparation of the EU Strategic Agenda 2019-2024 and the priority setting of the next President of the European Commission.

All three scenarios rely on a shared premise that there is a broad recognition by EU Member States, businesses and civil society that enhanced commitment is needed if the EU and the world are to secure a sustainable future and achieve the SDGs by 2030 and beyond in the interest of a modern economy, a clean environment, and the well-being of our citizens whilst we secure a habitable planet.

There is also agreement that while sustainability action necessitates a European scale, ultimately we can only truly succeed by a global approach. Furthermore, for the EU to continue to thrive as a prosperous continent, significant parts of the developing world need support to catch up economically and socially. In the same vein, supporting the economic progress of developing countries towards the SDGs also contributes to a broad range of EUs strategic interests, such as reducing irregular migration. The SDGs, as signed by 193 states, offer the best and most modern global and comprehensive framework to base our work on.

The European debate is now on what to do and how to do it. The three scenarios outline different responses but depart from the notion that the EU has great competitive advantages to lead globally and be a successful first mover. These scenarios are neither restrictive nor prescriptive. They aim to offer different ideas and spur debate and thinking. The eventual outcome would likely be a combination of certain elements from each.

Scenario 1: An overarching EU SDG strategy to guide the actions of the EU and its Member States

One step to respond to the challenges we face is to endorse at the highest EU political level the globally agreed SDGs as the overarching strategic policy objectives for the EU and its Member States. Such an approach would be in line with the recommendation of the High Level Multi-stakeholder Platform on the SDGs.

Under this scenario, the United Nations 2030 Agenda and the SDGs would be our compass and map and thus determine the strategic framework for the EU and its Member States.

Strategic action by the EU and the Member States, including regional and local authorities, would be pursued and effectively coordinated. A joint approach at all levels of government would be stimulated, in close cooperation with all stakeholders. This would include a strong component in the EU’s relations with third countries to further international sustainability action.

This also implies the establishment of a 'European process for SDG policy coordination' to regularly assess and monitor progress in implementation, reflecting the cross-cutting nature and inter-connectivity between the SDGs, including in the internal governance of the European Commission.

Scenario 2: Continued mainstreaming of the SDGs in all relevant EU policies by the Commission, but not enforcing Member States’ action

Under this scenario, the SDGs will continue to inspire our political decision-making with regard to the EU’s policy making, and guide the development of the post-EU2020 growth strategy, while not binding EU Member States to achieving collectively the SDG commitments in the EU.

In the European Commission this could mean that a member of the College is granted a broad responsibility for 'sustainability'. This Commissioner could continue working together with other Commissioners in a dedicated project team involving all the Commissioners. To ensure policy coherence, close cooperation with other project teams of Commissioners would have to be sought.

Through its Better Regulation Agenda, the Commission would continue pursuing an inclusive and evidence-based decision-making process. Combined with stronger SDG mainstreaming of the European Semester in line with the post-EU2020 growth strategy, the EU's policy coherence is reinforced and it is ensured that the EU moves closer to the SDGs.

However, this approach would leave more freedom to Member States, and regional and local authorities as to whether and how they adjust their work to delivering in a consistent manner on the SDGs.

Scenario 3: Putting enhanced focus on external action while consolidating current sustainability ambition at EU level

External action would be prioritised in the context of the SDGs. As the EU is already a frontrunner in many aspects related to the SDGs, enhanced focus could be placed on helping the rest of the world catch up, while pursuing improvements at EU level.

Our social market economy has become an EU trademark, and has allowed the economies of the EU Member States to generate wealth and broad-based prosperity thanks to strong social welfare systems. The EU has some of the world's highest environmental standards already, and our businesses are ahead of the curve compared to global competitors. The EU is also seen as a stronghold for freedom and democracy, with stable institutions based on the rule of law and a vibrant civil society. The EU could therefore decide to promote more strongly its current environmental, social and governance standards through multilateral negotiations and trade agreements.

The EU could also further intensify its collaboration with key international organisations and forums, such as the United Nations, including the International Labour Organisation, the World Trade Organisation, and the G20 as well as the supervisory bodies of multilateral environmental agreements, to advance the EU’s values-based external policy agenda.

The EU's stance in support of multilateralism – with the United Nations at its core – and transparent and reliable international relations would continue to be prioritised.

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In-depth analysis in support of the Commission Communication COM(2018) 773 A Clean Planet for all A European long-term strategic vision for a prosperous, modern, competitive and climate neutral economy.

Production of meat has one of the largest land requirement per calorie. The shift and reduction in meat consumption will free additional land.

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 The energy efficiency of refrigerators has increased significantly over the last 10 years (the same is true for washing machines, dishwashers, televisions, for example). This also means people are buying more efficient products. Top ten based on GFK data. Available at: topten.eu  

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 COM(2016) 377.

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Up to 9.6% of Europe’s GDP was devoted to health care in 2017, thus pursuing efficiency in health spending and tackling wasteful spending is increasingly important.

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COM(2017) 206, Reflection Paper on the Social Dimension of Europe, 26 April 2017.

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United Nations, Sustainable Development Goals, Goal 11: Make cities inclusive, safe,resilient and sustainable. Available at: https://www.un.org/sustainabledevelopment/cities/

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The Role of Science, Technology and Innovation Policies to Foster the Implementation of the Sustainable Development Goals Report of the Expert Group “Follow-up to Rio+20, notably the SDGs”.

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COM(2018) 22 final.

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In November 2018, the European Commission launched AI Watch in order to monitoring AI-related developments in the EU and worldwide and provide necessary analytical basis for further action.

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European Commission “USA-China-EU plans for AI: where do we stand?” January 2018. Available at: https://ec.europa.eu/growth/tools-databases/dem/monitor/sites/default/files/DTM_AI%20USA-China-EU%20plans%20for%20AI%20v5.pdf . 

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Jiaxuan You, Xiaocheng li, melvin low, David B. Lobell, Stefano Ermon, "Sustainability and Artificial Intelligence Lab, Combining Remote Sensing Data and Machine Learning to Predict Crop Yield". Available at: http://sustain.stanford.edu/crop-yield-analysis

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The United Nations Conference on Trade and Development. Available at: http://www.eurasia.undp.org/content/rbec/en/home/blog/2017/7/12/What-kind-of-blender-do-we-need-to-finance-the-SDGs-.html

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 The Action Plan on Sustainable Finance. Available at: https://ec.europa.eu/info/publications/180524-proposal-sustainable-finance_en .

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Business and Sustainable Development Commission, "Better Business Better World, The report of the Business & Sustainable Development Commission", January 2017.

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Business and Sustainable Development Commission, "Better Business Better World, The report of the Business & Sustainable Development Commission", January 2017. 

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Tax Policies in the European Union: 2018 Survey. Available at:

https://ec.europa.eu/taxation_customs/business/company-tax/tax-good-governance/european-semester/tax-policies-european-union-survey_en . In December 2018, the Commission launched a study looking at megatrends (climate change, digitalization, population aging etc.) and their impact on EU economies, particularly the sustainability of EU tax systems.

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COM(2019) 8 final.

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 COM(2019) 8 final.

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COM(2019) 8 final.

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 Dierx, Adriaan, Ilzkovitz, Pataracchia, Ratto, Thum-Thysen and Varga (2017), “Does EU competition policy support inclusive growth?”, Journal of Competition Law & Economics, Vol. 13, No. 2; OECD Factsheet on how competition policy affects macro-economic outcomes (October 2014); Fabienne Ilzkovitz and Adriaan Dierx, “Ex-post economic evaluation of competition policy enforcement: A review of the literature”, DG Competition, June 2015.

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  http://ec.europa.eu/competition/state_aid/scoreboard/index_en.html

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Directive (EU) 2017/828 of the European Parliament and of the Council of 17 May 2017 amending Directive

2007/36/EC as regards the encouragement of long-term shareholder engagement (Text with EEA relevance)

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Directive 2014/95/EU of the European Parliament and of the Council of 22 October 2014 amending Directive 2013/34/EU as regards disclosure of non-financial and diversity information by certain large undertakings and groups (Text with EEA relevance).

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The Conflict Minerals Regulation (EU) 2017/821.

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  https://ec.europa.eu/info/publications/180524-proposal-sustainable-finance_en#investment . A more comprehensive picture of recent EU progress on CSR/RBC and Business and Human Rights will be presented in early 2019 in the context of EU Industry Days.

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Cameroon, Côte d'Ivoire, Ghana, and the SADC EPA countries Botswana, Lesotho, Mozambique, Namibia, South Africa and Swaziland.

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 Non-paper of the Commission services. Available at:  http://trade.ec.europa.eu/doclib/docs/2018/february/tradoc_156618.pdf . 

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Progress is outlined in the 2019 EU report on policy coherence for development, published together with this Reflection Paper: European Commission Staff Working Document (2019)20.

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 COM(2018) 703 final. Available at: https://ec.europa.eu/info/sites/info/files/communication-principles-subsidiarity-proportionality-strengthening-role-policymaking_en.pdf and https://ec.europa.eu/commission/priorities/democratic-change/better-regulation/task-force-subsidiarity-proportionality-and-doing-less-more-efficiently_en.

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Available at: https://ec.europa.eu/info/strategy/international-strategies/global-topics/sustainable-development-goals/multi-stakeholder-platform-sdgs_en .  

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 With over EUR 37 billion leveraged since its inception in September 2017, it is well on track to leverage the 2020 objective of EUR 44 billion of investments for sustainable development by 2020.