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The EU election results in early June marked the end of what has been the Union’s “Greenest” parliament. The elections, driven by concerns over climate policies, rising living costs, and immigration, saw a surge in far-right populist support. Consequently, the Green parties lost 18 seats, moving from the fourth to the sixth position. Despite this shift, centrist liberal and socialist parties are anticipated to retain a majority in the parliament.
What does this mean for green policies and legislation?
The political shift to the right could complicate the passage of new legislation aimed at addressing security challenges, the impacts of climate change, or competition from China and the United States. Nevertheless, a Reuters analysis suggests that most existing policies and legislation will remain intact, and the core EU climate change goals will not be reversed, given that the main parties supporting these policies still hold a majority.
The new EU parliament might attempt to weaken certain green measures, shifting political focus towards security and industry. The most significant challenge will likely be securing funding for the green transition in an environment of sluggish economic growth and inflation.
Specific changes to forthcoming green legislation from the new European Parliament may include:
- Potential Weakening of Existing Measures: The new Parliament may try to dilute, but not abolish, some existing green measures, particularly those deemed excessively burdensome to industries.
- Revision of Climate Change Targets: While the EU’s primary climate change targets are unlikely to be overturned, there may be efforts to revise certain targets or timelines to make them more feasible.
- Funding the Green Transition: Securing funding for the green transition may present a greater challenge, especially during economic downturns and inflation. Innovative approaches may be necessary to finance green projects.
- New Legislation and Policies: Despite potential difficulties, the new Parliament is expected to propose and approve new legislation related to green development, renewable energy, and biodiversity protection, which are already in the pipeline.
The precise direction of these changes will depend on negotiations among political groups and the priorities set by the new Members of the European Parliament. Additionally, significant legislation already passed, such as the CSRD (2022/2464) and CS3D, is expected to be implemented from early 2025. Companies should prepare for their application as their impact will be crucial to their operations and sustainability.
Nikos Avlonas
Founder & President of Center for Sustainability (CSE)
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