Research Article
Decarbonization Practices: Impact on EU Economy and Beyond
Kiran Bhatta*
Issue:
Volume 10, Issue 6, December 2025
Pages:
163-168
Received:
4 August 2025
Accepted:
14 November 2025
Published:
17 December 2025
DOI:
10.11648/j.ijeee.20251006.11
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Abstract: The pursuit of economic growth has resulted in a negative impact on ecology. The global development models have often overlooked environmental sustainability. The European Union (EU), however, is trying to write a different story through its Green Deal Initiative, which aims for carbon neutrality by 2050 and a legally binding 55% reduction in greenhouse gas emissions by 2030 (compared to 1990 levels). The research paper tries to explore the challenges in the path of decarbonization as well as analyze present carbon taxation practices and improvements to achieve the carbon neutrality mission. Similarly, the government can be a great contributor to addressing global warming and climate change. This study explores the impact as well as implications of the EU’s environmental legislation, transition challenges, and strategic lessons for emerging economies. It analyses how instruments such as the Carbon Border Adjustment Mechanism (CBAM), EU Taxonomy, in line with global agreements like the Paris Agreement, explore trade and environmental dynamics. The comparative policy analysis and evaluation of ecological effectiveness and economic scalability, the paper sheds light on both enabling and constraining factors in the transition. The findings offer actionable insights for emerging economies seeking to align economic development with climate commitments and provide recommendations to improve existing green policies and technologies for a more inclusive and sustainable global economy. Policy and technological advancement are the Mitigation tools to deal with the threats posed by climate change. Similarly, Strategic pathways of decarbonization through renewable and circular practices offer dual benefits: environmental gains and trade resilience. However, structural shifts and sectoral vulnerability persist.
Abstract: The pursuit of economic growth has resulted in a negative impact on ecology. The global development models have often overlooked environmental sustainability. The European Union (EU), however, is trying to write a different story through its Green Deal Initiative, which aims for carbon neutrality by 2050 and a legally binding 55% reduction in green...
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