The European People's Party (EPP) has called for scrapping renewable energy targets and suspending supply chain reporting rules to boost the struggling EU economy.
This vision was voiced by EPP leaders at a summit in Berlin on January 18-19, Euroactiv reports.
In their joint document, the group, which includes members such as European Commission President Ursula von der Leyen, likely next German Chancellor Friedrich Merz, Greek Prime Minister Kyrios Mitsotakis and his Finnish counterpart Petteri Orpo, proposes to return to progressive policies before the 2019 “green wave.”
This would mean suspending the EU corporate sustainability reporting rules for at least 2 years. They require companies to track, report and address issues such as child labor in their supply chains, the introduction of the EU Green Finance Taxonomy and a new CO2 import duty.
The EU's CO2 import duty, the CBAM, is meant to hit potential importers of dirty steel and cement, but has been criticized for being too bureaucratic. The mechanism is currently at the data collection stage, and the duties themselves will take effect in 2026.
EPP leaders believe that these laws should be limited to large companies with more than 1,000 employees to eliminate indirect impacts on small and medium-sized companies. They also want to reduce reporting obligations for large companies by at least 50%.
While the EPP says it wants to adhere to the EU's climate goals and support the CO2 pricing mechanism known as the ETS, it intends to abolish another established mechanism, the renewable energy targets.
The group of leaders also opposes a separate target for the share of renewable energy. They believe that member states should decide for themselves which technologies they want to use to achieve their climate goals.
The publication notes that this position is a rapid change of direction for von der Leyen, who on December 1 clearly instructed her energy commissioner to propose such a target. According to the author of the article, this is also a victory for pro-nuclear countries in their long struggle with countries that support renewable energy.
“The EPP is, at least implicitly, siding with France and its allies who oppose the 2040 renewable energy target,” the article says.
According to a report by the European Central Bank, the EU may face a lack of funds for its climate goals as early as 2027.
