At the beginning of 2024, farmers across Europe began protesting against new policies and proposals to reduce the tax allowances they receive for diesel, the levels of nitrogen oxide and methane they are allowed to produce, and against the rising costs of fertilizer and other bureaucratic barriers to their businesses. Despite agriculture accounting for approximately 10 per cent of global greenhouse gas (GHG) emissions, on the face of it, the individual European farmer's contribution is limited. While the farmers’ protests have brought significant attention to the economic pressures faced by the agricultural sector, they have also highlighted the complex challenge of balancing environmental policy goals with the economic sustainability of farming in the EU. The European Commission and national governments have been tasked with addressing these challenges in a manner that ensures the just transition towards more environmentally friendly agricultural practices without compromising the financial stability of those who work the land . However, the mishandling of farming policies has led to protests and blockades, supported by political groups such as the Dutch Farmers’ Party, and a risk of escalation to a full-scale green backlash.

In other sectors, European climate policies have been integrated progressively, as is the case for the electricity industry under the EU Emissions Trading System (EU-ETS). The EU-ETS has effectively reduced emissions by setting a cap on the total amount of greenhouse gases that can be emitted by installations covered by the system. The cap is reduced over time, so that total emissions fall. The gradual reduction has incentivized the electricity sector to invest in sustainable practices and technologies, in line with a smooth transition towards a low-carbon economy. This gradual approach aligns with environmental goals without sacrificing sectoral competitiveness. By providing a clear and predictable regulatory framework, the EU-ETS has enabled power companies to plan and invest accordingly. Investments in renewable energy sources and improvements in energy efficiency across Europe have been supported by these clear, long-term signals.