EU's Rollback of Environment Policy Gains Momentum Amid Shift in Priorities

The European Union's momentum on the environment policy has dramatically shifted under the new European Commission's agenda, with policymakers dealing severe blows to the once-prominent European Green Deal. Since the end of 2023, when opinion polls suggested a significant rightward shift before the 2024 parliamentary elections, the EU has watered down sustainable finance rules, delayed a law to stop deforestation, and given carmakers extra time to meet pollution targets. Environmental NGOs have sounded the alarm, warning of a funding freeze that undermines democracy and a global slump in efforts to cut pollution.

Key Takeaways:

• The European Commission has dealt several critical blows to the European Green Deal since the end of 2023, including watering down sustainable finance rules and delaying a law to stop deforestation.
• In the first six months of the new European Commission mandate, the EU delayed a law to stop deforestation by one year, gave carmakers two extra years to meet pollution targets, and downgraded the protection status of the wolf.
• The environmental NGOs have found themselves in the crosshairs of a funding freeze that undermines democracy and warns of a radical change in political priorities.
• The Commission's agenda of simplification has radically lightened the regulatory load on people and businesses, with a target to reduce administrative burdens by 25% for all companies and by 35% for small- and medium-sized enterprises.
• The European People's party (EPP) has led the push to cut red tape, with its shift in tone increasingly leading it to side with far-right forces.
• The cancellation of the anti-greenwashing law came after EPP and far-right lawmakers separately wrote to the European Commission to withdraw the bill, with the EPP celebrating the bill's withdrawal as a "win for European companies."
• The Commission has promised more simplification measures and plans to green industry, with the Clean Industrial Deal aimed at driving the energy transition in the EU forward.
• Campaigners have argued that the scale of the cuts in the first omnibus proposal in February shows that the simplification argument is "basically bollocks," with a 80% reduction in the number of companies in its scope and a 90% exclusion of businesses from the carbon border adjustment mechanism.

Statistics:

• In the first six months of the new European Commission mandate, the EU delayed a law to stop deforestation in supply chains by one year.
• A proposal to postpone corporate sustainability reporting requirements was watered down, with a 2-year delay and an 80% reduction in the number of companies in its scope.
• 90% of businesses will be excluded from the carbon border adjustment mechanism due to a reduction in scope.
• The European Commission has promised to reduce administrative burdens by 25% for all companies and by 35% for small- and medium-sized enterprises.
• The EPP has led the push to cut red tape, with its shift in tone increasingly leading it to side with far-right forces.

Sources:

• Photograph: Jaap Arriens/NurPhoto/REX/Shutterstock
• Greenpeace EU's agricultural policy director, Marco Contiero
• Friends of the Earth Europe's campaigner, Paul de Clerck
• BusinessEurope's director general, Markus Breyer
• European Commission's president, Ursula von der Leyen
• European People's party (EPP)
• The Commission's press releases and reports on the simplification agenda