View from the Brussels/Whitehall

Welcome to a blog by Edward Simpson, FLA Director of Government Affairs & Stakeholder Engagement, which considers developments from across The Channel and closer to home on an alternate monthly basis. 

9 November 2023

Rishi Sunak’s announcement in September to scale back in the short-term on the Government’s green commitments came as no great surprise to many. It was seen by some as playing to the wider electorate whom the pollsters would tell us are more concerned with the cost of living than investing in greener homes or vehicles. In reality, the UK’s Net Zero targets, for example the zero emissions vehicle (ZEV) mandate targets for the proportion of cars and vans to be electric, remain unchanged.

Elsewhere in Europe similar statements are being made. Last week, the German Finance Minister Christian Lindner from the liberal Free Democratic Party, challenged his (coalition) Government’s pledge to phase out coal by 2030 rather than 2038. His argument was that cutting back on Germany’s CO2 emissions would not prevent other EU Member States adding to theirs under the EU’s Emissions Trading Scheme. In September, the German Government postponed the introduction of energy efficient measures for new buildings. Last Spring, Belgian PM, Alexandre de Croo echoed French President Emmanuel Macron’s call for a regulatory pause on new environmental initiatives so as not to burden business and lose public support for the environment. Realpolitik is beginning to bite.

Early stage planning is underway for the EU’s multi-annual financial framework (MFF) (2028-2035). Member States have signalled that their priorities include support for Ukraine, more funding for third countries to push back on migration into the EU and increased spending towards natural disasters and humanitarian aid. Whilst the EU’s Green Deal is embedded across its policy framework and green investment remains a core part of the MFF, a green cash injection is unlikely.