Europe is at a crossroads, facing many challenges like customs disputes, the ongoing war in Ukraine, and pressing environmental issues. The big question now is: how important should sustainable practices be in production, agriculture, and preserving natural resources?
Since 2019, the European Union has pushed for its industries to become more efficient and climate-friendly by 2050 through the Green Deal. However, this initiative is under threat from increasing pushback, particularly from the conservative European People’s Party and extreme right factions in the EU parliament. As a result, important decisions are being delayed or diluted.
One significant aspect of the Green Deal is the requirement for companies to report their environmental impact. Previously, businesses with over 250 employees had to submit detailed reports, which included about 50,000 companies in the EU. Now, it seems only the largest corporations will need to comply, leaving small and medium enterprises off the hook. Critics argue that this reduces transparency, making it harder for investors and the public to track environmentally responsible practices.
The European Central Bank has expressed concern over these changes, noting that fewer companies reporting could distort regulatory balance and affect financial stability due to the data gap. Climate change, they warn, can significantly impact price stability. Cutting reporting mandates could jeopardize essential data, as up to 80% of current reporters might drop out under the new guidelines.
Moreover, the Supply Chain Law, designed to tackle human rights and environmental abuses, has also been weakened. Originally, it enforced standards across risky industries like textiles and mining. Now, only multinational companies with over 5,000 employees and substantial turnover must comply, and victims of supply chain abuses lose the right to sue. Corporations no longer need to outline their climate strategies, diminishing accountability.
Another setback involves a recent agreement on deforestation. The EU planned to ensure that products like soy and beef could only be sold if they didn’t contribute to forest destruction. Unfortunately, implementation has been pushed back to the end of 2026, and fewer companies will need to prove compliance—a significant issue, considering Europe’s consumption is linked to around 10% of global deforestation.
In agriculture, where a substantial portion of the EU budget goes, rules for sustainable practices are being relaxed. Stricter pesticide regulations are being delayed, and environmental checks may only occur once a year. Small farms will now receive subsidies even if they don’t meet environmental standards, which raises questions about future sustainability in farming.
The push against combustion engines is also facing challenges. The EU had aimed to stop the production of new petrol and diesel cars by 2035, but this initiative may now be reconsidered, especially under pressure from the German automotive industry. Examining this decision could delay its implementation, potentially benefiting traditional car manufacturers in the short term.
Finally, the EU’s climate goals are weakening, with the Scientific Advisory Board recommending a substantial reduction of emissions by 90% to 95% by 2040. However, new rules allow some leeway for countries to count financed emission reductions abroad as part of their contribution, undermining accountability. Further adjustments are possible, and the start of CO2 charges for transport and buildings has been postponed.
As Europe navigates these changes, the focus on sustainability seems to be fading. This shift raises concerns not only for the environment but also for future generations, who will inherit the consequences of today’s decisions.
For more information on the EU’s changing environmental policies, you can visit [Deutsche Welle](https://www.dw.com).
