For tackling climate change, Europe must undergo a deep-rooted, structural transformation. Delivering on Europe’s climate targets requires action in almost all EU policy areas and has immediate impact on labour markets, companies, and citizens, making the speed and ambition of climate action increasingly politically contested. To maintain broad societal support, the transformation must hence be implemented in a socially fair manner, be effective in reducing emissions and environmental harm, and keep Europe internationally competitive. In light of ongoing demographic shifts and the unequal social implications of the transformation, the modernization of European social protection and welfare systems will be crucial for realizing a just transition. Against the backdrop of changing international dynamics and economic paradigms, a new European green industrial policy will be key to transform Europe’s economy while strengthening its existing industrial base and creating new high-quality jobs. To inform policy making in this area, our experts provide concrete proposals on how the EU can implement the Green Deal, increase citizen’s trust in the European project, and maintain economic and social cohesion within and across member states.