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4.4. The EU GSP [Generalised Scheme of Preferences] is undergoing a review since the current Regulation expires on 31 December 2023. (...) Targeted improvements aim to better respond to the evolving needs of developing countries and reinforce the scheme's social and environmental impact. (...)

4.5. To support developing countries' integration into the world economy, poverty reduction and sustainable development, the EU views Aid for Trade (AfT) as a crucial tool. EU and Member States' AfT is based on the 2017 joint AfT Strategy, with five overarching priorities: (...) (iii) stronger focus on social and environmental sustainability and inclusive economic growth; (...)

4.6. (...) Following the integration of the European Green Deal, EU AfT [Aid for Trade] targeting climate change adaptation or mitigation has been steadily growing over the decade, tripling in real terms between 2011 and 2020, with almost half of EU AfT addressing climate change by 2020. EU AfT addressing environmental issues more than doubled over the same period.

4.7. EU AfT [Aid for Trade] is a tool to deliver on the Global Gateway. Launched in December 2021 it is a new strategy to mobilize investments totalling EUR 300 billion over the period 2021-27. (...) In line with the EU's geopolitical objectives and commitment to the 2030 Agenda, the Global Gateway strategy aims to boost smart, clean and secure investments in digital, energy and transport, (...)

5.1. In late 2019, the European Commission tabled an agenda to become the world's first climate neutral continent by 2050. The European Green Deal, which is based on that target, is a comprehensive plan to make the EU's economy and society ready for a climate neutral future.

5.2. The European Green Deal seeks to transform the EU into a modern, resource-efficient and competitive economy where there are no net emissions of greenhouse gases by 2050, economic growth is decoupled from resource use, and no one is left behind in what will be a just transition.

5.3. The European Green Deal provides a comprehensive set of actions to reach these goals, in the form of strategies, regulations, standards in the areas of climate, energy, transport, agriculture, industry, environment and oceans, finance and regional development, research and innovation (see below in section 5.1.1 an overview of the actions).

5.4. The EU is aware that if it wants to pursue global challenges such as combating climate change, biodiversity loss, pollution, or promoting more sustainable production and consumption, it needs to increase cooperation with third countries. In the cases where the European Green Deal policies have an external dimension, the EU is engaging with its partners. The EU makes sure that its external assistance actively promotes effective and ambitious climate and environment action and integration. The EU designs its climate and environmental policies in line with the WTO rules and provides a full transparency on EU climate- and environmental measures to the EU trading partners bilaterally, including in the context of trade agreements, and in the WTO. The EU has made numerous presentations on the policies with potential trade impacts in the WTO Committee on Trade and Environment, and other committees, and will continue this engagement in the future. The objective of this has been early engagement with partners to understand any potential concerns and see how they could be addressed in the policy design as well as to avoid any adverse implications or impacts for international trade in goods affected by EU legislation, while at the same time improving the understanding of the applicable rules on the EU market. The EU intends to further pursue dialogue and cooperation regarding the implementation of the EU's autonomous sustainability instruments.

5.5. The adoption of the Climate Law on 9 July 2021 sets a legally binding target for the EU to reach net zero greenhouse gas emissions by 2050 as well as to reduce net greenhouse gas emissions by at least 55% by 2030 compared to 1990 levels. This allowed the EU to adopt and submit to the United Nations Framework Convention on Climate Change (UNFCCC) in December 2020 an updated and significantly enhanced Nationally Determined Contribution in line with the Paris Agreement, confirming Europe's commitment to lead in global climate action.

5.6. On 14 July 2021, the Commission proposed a package [21] of climate, energy and transport legislation, the "Fit for 55" package, to accomplish this transformational change across the EU's economy and society – matched by commitment to a socially fair transition, which leaves no one behind.
[21] This policy package is based on a comprehensive set of impact assessments and includes:
• application of emissions trading to new sectors (shipping, transport and buildings) and a strengthening of the existing EU Emissions Trading System (EU ETS);
• a Social Climate Fund, to ensure that the green transition leaves no-one behind
• updating Member State emissions reduction targets (Effort Sharing Regulation) in line with the 2030 climate target plan;
• increased targets for renewable energy and for energy efficiency;
• a faster roll-out of low emission transport modes (including through an obligation that all new cars and vans sold in the EU from 1 January 2035 need to be zero-emission vehicles) and the infrastructure and fuels to support them;
• an alignment of taxation policies with the European Green Deal objectives;
• measures to better prevent carbon leakage in the form of a carbon border adjustment mechanism (CBAM);
• and tools to preserve and grow natural carbon sinks, with the aim of a climate-neutral land and agriculture sector by 2035 (Land Use, Land-Use Change and Forestry Regulation).