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October, 2025

Prof. Phoebe Koundouri

Prof. Phoebe Koundouri

President World Council of Environmental and Natural Resource Economists Associations
Chair SDSN Global Climate Hub
Director AE4RIA

Toward a Holistic Climate Transition: Lessons from Europe

 

Introduction 

Europe’s commitment to climate neutrality by 2050 is among the most ambitious globally. Yet, achieving net-zero emissions requires more than transforming the energy system. It calls for systemic integration across food systems, land use, water management, and biodiversity conservation. For the first time, the UN SDSN Global Climate Hub team has used mathematical modelling to simulate 35 European countries’ National Energy and Climate Plans (NECPs), highlighting both progress and persistent gaps. In the recently launched report, the team uses detailed models that link energy, water, agriculture, and climate to analyse the energy-water-food-land use system as a whole, at the European scale. Only by adopting a nexus-based approach can Europe ensure a just, feasible, and resilient transition. 


Challenges  

Europe’s climate transition still suffers from siloed strategies. Most NECPs prioritize decarbonization in energy and transport but underplay agriculture, land, and water. Agriculture, for instance, remains narrowly focused on efficiency measures, overlooking agroecological practices and dietary shifts that could reduce emissions and restore ecosystems. 

Water stress is another blind spot. Southern Europe faces severe irrigation deficits, yet most NECPs lack enforceable, sector-specific water-use targets. Without integration of River Basin Management Plans and the Flood Risk Management Plans, trade-offs, such as allocating water for bioenergy versus food, remain unresolved. 

Land is equally contested. Expanding renewable infrastructure (solar and wind) requires space, raising conflicts with agriculture and conservation. Poorly planned expansions risk displacing farmland and forests, undermining biodiversity goals. These fragmented approaches reduce the coherence and long-term viability of Europe’s climate neutrality pathways. 


Opportunities and Solutions 

Despite these challenges, Europe has vast opportunities to lead globally by embracing innovation and holistic planning. Our modeling shows that under full implementation of national commitments, emissions fall significantly across all sectors, renewable energy replaces fossil fuels, and food-land systems align better with sustainability goals. 

Key solutions include: 

• Agroecology and circular practices: Integrating crop–livestock systems, adopting agroforestry, and promoting healthier diets can reduce emissions while boosting resilience. 

• Smart land use: Agrivoltaics, brownfield solar, and agro-pastoral wind can expand renewables without harming food production or biodiversity. 

• Water-smart planning: Embedding enforceable consumption targets within agricultural and energy policies can prevent scarcity and protect ecosystems. 

• Industrial roadmaps: Targeted decarbonization plans for steel, cement, and chemicals are essential, combining electrification, renewables, and circular economy measures. 

• Cross-border collaboration: Interconnected grids and shared renewables can balance disparities in energy capacity across Member States. 


Innovation, Equity, and Governance 

Technology alone will not deliver climate neutrality. Equity must be at the core. Lower-income Member States require financial and technical support to deploy clean infrastructure and meet stringent targets without disproportionate strain. Innovation ecosystems, linking entrepreneurs, researchers, and policymakers, are vital to accelerate deployment and commercialization of breakthrough technologies. 

Equally critical is participatory governance. Citizens, businesses, and local communities must co-design solutions, ensuring ownership and social acceptance. Digital twins, AI-driven tools, and immersive stakeholder engagement can make the transition tangible, bridging the gap between abstract models and lived realities. 


Conclusion 

Europe’s pursuit of climate neutrality can serve as a global benchmark. It demonstrates that decarbonization cannot succeed in isolation but must be embedded within a broader sustainability vision, one that connects energy, food, water, and ecosystems. By embracing integrated planning, circular economy principles, and inclusive governance, Europe can move from fragmented policies to holistic pathways. This will not only ensure climate neutrality but also safeguard biodiversity, secure water and food systems, and inspire global action toward a regenerative future. 

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