Artificial Intelligence (AI) can be deployed for a wide range of applications to promote the goals of the European Green Deal. However, adverse environmental impacts of AI could jeopardise the attainment of these goals. The report describes environmental potential, clarifies characteristics and causes of environmental risks, and outlines initiatives and best practices for environmental policies. It illustrates the need for regulatory action to align design and deployment of AI with the goals of the European Green Dealandconcludes with specific recommendations. This document was provided by the Policy Department for Economic, Scientific and Quality of Life Policies at the request of the Special Committee on Artificial Intelligence in a Digital Age (AIDA).