The European Green Deal signifies a deep transformation of the European Economic Model. To that end, it is necessary to promote a new concept of clean and circular economy where startups play a fundamental role.
The European Union is committed decisively and with a single voice to policies on the environment and sustainability that allow a long-term inclusive ecological transition, covering each sector of the economy.
Europe is pursuing a change in the comprehensive economic model, and for this, member states are required to develop new growth strategies that encompass all the basic components of the economic structure.
The European Commission, through its President, Ursula von der Leyen, has presented an inclusive program to address current problems and challenges related to climate and the environment, known as the European Green Deal.
In March 2020, the Commission promoted an action plan aimed at developing transformation in the industrial strategy for companies, leading to changes in environmental and digitization issues that help achieve the objectives of the Green Deal.
The European Green Deal is Europe’s response to these new challenges. It aims to transform the European Union into a society with a more competitive economy where net zero greenhouse gas emissions are expected to be achieved by 2050.
European Green Deal Supports Funding for European Startups
The European Horizon 2020 program is the most extensive and innovative research platform with a budget of €80 billion available for seven years (2014-2020). This program is an ideal instrument for transferring ideas and projects to the business market, especially for startups and small companies.
Within the Horizon 2020 program, the EIC Accelerator has been developed. It is a tool created to support and connect innovative entrepreneurs and small companies with the business community, aiming to develop new high-risk projects. Selected companies receive professional assistance and guidance to ensure their business ideas are developed with a guarantee of success. The acceleration services facilitate the creation of professional networks, increasing business opportunities and improving the development of business plans in a more efficient and reliable way.
Another initiative promoted by the European Union is the creation of StartUp Europe. Its purpose is to increase and strengthen networking opportunities, accelerating the development of startups based on technology and the environment.
The application of this European policy requires support from member states to launch and promote effective policies at local, regional, and national levels. This includes creating easy and agile processes for startup development, facilitating expansion across EU countries, and increasing access to financing.
Today, European startups have more agile and straightforward elements to develop and seek business opportunities within the European framework. Startups have the ability to adapt to market situations and seek long-term solutions for new lines of business in a flexible and agile manner.
The COVID-19 pandemic has encouraged teleworking, prompting companies to develop new ways to boost infrastructure based on new technological tools that help establish new companies in the European market.
Startups now face a new European reality where work dynamics and professional relationships are more transparent. There is an increase in companies that are more open, inclusive, well-adjusted, and social. Additionally, the use of clean energy, resource management, social inclusion policies, and gender equality are increasingly present in European startups.
Investors are attracted to the European market, focusing their equity investments on companies that pursue development in areas with positive environmental or social impact, such as renewable energy.
Jean-Marc Ollagnier, CEO of Accenture in Europe, emphasized during the virtual World Economic Forum 2021: “The way in which European companies manage the digital transformation and the sustainable transition will determine how quickly they recover from the crisis and how they will be positioned for sustained growth in the world after the pandemic.”
Status Quo Is Not an Option
The European Green Deal signifies a deep transformation of the European Economic Model. Startups play a fundamental role in promoting a new concept of a clean and circular economy.
An overwhelming majority of Europeans consider the protection of the environment important (95%). Almost 8 in 10 Europeans (77%) believe that protecting the environment can boost economic growth.
To achieve this, European startups must promote an economic globalization that is more open, inclusive, balanced, and beneficial for all, ensuring they achieve their positioning and meet the objectives pursued.
