Green ambition biggest loser in deregulation game

EU decisionmakers prioritise bolstering industries over supporting and protecting people and climate

New legislation announced today by the European Commission is set to destroy due diligence and environmental rules whilst bolstering polluting industries through unconditional subsidy packages, Friends of the Earth Europe said today.

The EU Commission unveiled a package of legislative measures, stressing a so-called emergency to help EU industries to reduce their carbon footprint and create a competitive playing field for Europe. With an emphasis on deregulation and unconditional subsidies, the proposals signify a policy U-turn by crushing the EU’s Green deal package.
 
Rather than ensuring that “every person, community, and business can benefit from the clean transition” and human rights are protected from corporate harm, the EU seems to prioritise subsidising industries that choose pay-outs to their shareholders over green investments.

Kim Claes, corporate capture campaigner said on the Clean Industrial Deal:

“The Clean Industrial Deal clearly prioritises corporate interests over climate action and public welfare. The notion that industry needs more capital to decarbonise is deceptive—loosening state aid rules and using public funds to ‘de-risk’ private investment will not drive the needed transition. Instead of pouring public money into corporate coffers, policymakers must impose strict environmental and social conditions on funding, redirect investments toward truly clean industries, and end all subsidies for fossil fuels and polluting practices.”

Alban Grosdidier, corporate accountability campaigner said on the Omnibus:

“With the Omnibus, the Commission is introducing a massive deregulation package. In doing so, it is butchering human rights protections, as well as environmental and climate action; and justifying it with fantasy arguments. By removing the obligation to implement climate transition plans, companies are getting a free pass on real climate action and will use the plans as a greenwashing exercise.”

On climate action, the Clean Industrial Deal doesn’t measure up to Europe’s need to sharply reduce climate emissions but relies on unproven or misleading solutions such as fossil-based hydrogen and carbon capture and storage (CCS). This lack of vision, also seen in the Affordable Energy Action Plan, risks funnelling public money into LNG export infrastructure abroad, locking Europe into even longer-term fossil fuel contracts, and simply swapping dependence on Putin for dependence on Trump—rather than breaking away from fossil fuels.

Cristina Pricop, anti-fossil gas campaigner said:

“The Clean Industrial Deal talks a big game about decarbonisation but in reality, just props up fossil gas. Giving away subsidies to corporations for more gas will deepen the climate crisis, weaken Europe’s credibility, and prolong global fossil dependence. When in a hole, the first rule is to stop digging—but the EU seems determined to grab a bigger shovel. It’s time to set a date and phase out gas.”