European Green Deal

• The European Green deal, approved in 2020 was aimed at combating the challenges caused due to Climate change and environmental degradation by ensuring zero net emissions of greenhouse gases by 2050.

Environmental damage cost estimation

Why is this cost estimation required? The green deal transition will place a demand for other raw materials, and the production of the same may also cause environmental impacts, though this has not been fully analyzed. This was the primary reason that led to environmental damage cost estimation. You can view the highlights of the assessment done based on existing data though researchers have acknowledged that there are uncertainties concerning their calculation.

• Many automotive industries are considering the transition to low-carbon release.

• The electric-vehicle batteries will replace the current usage of fuels soon.

• Considering the increase in raw material usage, the total annual damage cost is estimated to be €38.9 billion.

• Among the total costs Nickel contributes 24.9% and the other major contributions are iron & aluminum with 14% & 13.9% respectively.

• The largest share will be borne by China with 21% of the total cost (€8.2 billion) and substantial costs are carried by USA (€4.5 billion) & India (€3.9 billion).

Reference https://environment.ec.europa.eu/news/estimating-environmental-damage-key-resources-required-eu-low-carbon-transition-2022-10-05_en