Europe faces mounting climate and environmental risks that threaten its long-term competitiveness, with strategic decisions now critical to securing prosperity by 2040, according to a new report by the European Environment Agency.
The EEA’s *Competitive by nature* report, published on Oct. 13, identifies six “no-regret” options to bolster sustainable competitiveness, including scaling up circular economy approaches, investing in climate adaptation and resilient infrastructure, and strengthening capabilities in AI and next-generation biotechnology. It also emphasizes the need for social cohesion, lifelong learning, and an active EU role in global sustainability standard-setting .
The report argues that traditional competitiveness metrics—such as productivity and economic growth—must be balanced with the preservation of natural and social capital to avoid long-term resilience losses. Sustainability, it states, cannot be achieved without innovation and economic dynamism. The EEA’s analysis frames these choices as essential to navigating geopolitical shifts, technological disruption, and escalating environmental pressures .
