Geopolitical turbulence, rapid technological change, and the accelerating climate crisis are putting Europe's future under strain. In response, the European Environment Agency (EEA) has published a report arguing that investing in sustainability is not a brake on growth but a way to make the continent more resilient and competitive over the long term.
The report, titled Competitive by nature: Europe's long-term competitiveness through the lens of sustainability, released on 13 October, urges a shift away from short-term productivity based on resource depletion and environmental degradation. Instead, it calls for a holistic approach that treats nature restoration and social capital as essential to economic stability.
Here are the six 'no-regret' options the EEA identifies, which could strengthen the economy while safeguarding the planet.
1. Investing in climate adaptation and resilience
Europe is warming faster than any other continent, with floods, heatwaves, droughts, and wildfires becoming more frequent and severe. The EEA argues that adapting to this new reality is no longer just an environmental necessity but an economic one. This includes investing in nature-based solutions, such as restoring wetlands and floodplains or adding green spaces to cities, which can absorb floodwater and cool urban areas.
2. Using resources more efficiently
Europe relies heavily on imported raw materials and energy, and recent supply shocks have exposed the risks. Disruptions to shipping through the Strait of Hormuz, triggered by the war on Iran, have put pressure on fuel supplies, accelerating the shift to homegrown renewable energy. However, wind turbines, solar panels, and batteries depend on critical minerals, and the necessary grid infrastructure still needs to be built.
Circularity—repairing, reusing, and recycling products—can reduce demand for primary materials and energy, preserve the value embedded in products and infrastructure, and limit exposure to volatile commodity and energy markets, the EEA says. But there are trade-offs: keeping old buildings and infrastructure in use is good for circularity, yet it can lock in assets that are inefficient or vulnerable to climate impacts.
3. Leveraging next-generation technology
Artificial intelligence can help Europe use resources more wisely, the EEA says. Digital tools can track materials through supply chains, manage variable renewable energy on the power grid, and monitor environmental damage in real time. Building these capabilities at home also reduces reliance on technology developed elsewhere.
The EU is already using such tools to strengthen accountability: its Digital Product Passport launched in July and will first be required for batteries from February 2027. Consumers will be able to scan a QR code to access information on a product's material origins, environmental performance, and repairability. However, the energy- and water-hungry data centres needed to fuel AI are a growing concern in their own right. The EU has recently unveiled data centre sustainability labels, though hard limits have been delayed to 2027.
The EEA also encourages the development of next-generation biotechnology—making materials and fuels from plants and other biological sources rather than oil and gas. While this can cut fossil fuel use, it comes with its own footprint: growing biomass takes land and water and can put nature under strain.
4. Investing in skills and education
Spreading and developing these new technologies is key to building a low-carbon economy that sacrifices neither wages nor the environment. A recent EEA analysis found that clean energy is creating jobs across the EU, but there are major bottlenecks in workforce availability and training. The report urges investment in skills, education, and lifelong learning to create a resilient workforce capable of adapting to a rapidly changing world. Ensuring these skills are spread across different demographics would foster social cohesion and fairness.
5. Building public trust
In several EU countries, climate policy has become politically divisive, with fierce debate over costs, farming rules, and red tape. Ensuring the green transition leaves no one behind would help build public trust and support. Without it, even well-designed policies risk being watered down, delayed, or scrapped.
The EEA argues that clear, predictable regulation and effective institutions are integral to this. Companies are more likely to invest in clean technologies if they can rely on stable rules, and the public is more likely to back the transition if it trusts those rules are applied fairly.
6. Leading on sustainable standard-setting
The EU's single market has the power to shape global rules on everything from chemicals to carbon emissions. The EEA says it should continue playing an active role in setting environmental and social standards, including through international institutions. Cooperating with other countries through democratic forums like the UN's COP can help create common rules, diversify trade relationships, and make supply chains more resilient.
But the system is under strain. Nearly 200 nations pledged to transition away from fossil fuels at COP28 in 2023, yet a new agreement on fossil fuels is considered unlikely at COP31 in Türkiye next month. Meanwhile, fossil fuel-reliant nations are pushing to delay the UN climate science panel's next major report until after the global climate summit, with the IPCC meeting this week to try to resolve the deadlock.
The EEA's report comes at a time when Europe is also grappling with broader strategic challenges, including warnings from NATO's chief about the sustainability of the alliance model without greater European action. The agency's six steps offer a roadmap for building a more resilient and competitive Europe, one that does not sacrifice the natural systems on which all economic activity ultimately depends.
