The European Green Deal (EGD) marked the commitment of the European Union (EU) to a carbon-free, socially inclusive economic system. Even if conceived as an essentially domestic growth strategy, the EGD is inspiring EU diplomacy, as economic cooperation will be needed to realize the EGD’s ambitious vision. This profile aims to investigate and reflect on the potential implications of the EGD for the countries in the EU’s Southern Neighbourhood, especially in the energy sector, agriculture and food system, trade in raw materials, climate action, and circular economy. We expect the EGD to result in an increased investment in renewable energy, a reduction in emissions, green diplomacy, and funding opportunities for green projects and green infrastructures. The EGD brings with it attractive opportunities for a better cooperation on climate action and opportunities for job creation, green growth, and sustainable development. We believe that the EGD has the potential to be a win–win deal for the EU and its Southern Neighbours, with the EU goal to supply green inputs and of creating a market for green products.