Europe’s ambitious climate agenda is facing a critical juncture as the continent grapples with the economic implications of its net-zero pursuit. While the goal of achieving carbon neutrality remains a steadfast commitment, the path ahead is fraught with challenges, particularly as the financial burden of meeting emissions targets becomes increasingly burdensome for many European economies. The European Union (EU) is poised to convene in Brussels, where a pivotal debate will unfold regarding the pace and extent of the green transition. At the heart of this discussion lies the European Commission’s proposal to slash emissions by a staggering 90% by 2040, relative to 1990 levels. However, the road to this target is laden with obstacles, as leaders grapple with the delicate balance between environmental stewardship and economic sustainability. The summit’s outcome will likely steer away from setting a specific numerical goal, instead emphasizing the creation of ‘enabling conditions’ to safeguard businesses and consumers from the financial strain that could potentially trigger a public backlash. This strategic shift underscores the recognition that the transition to a greener economy must be managed with care, ensuring that the economic burden is distributed equitably while fostering a sense of collective responsibility for the climate crisis.