Spain • 🌿 Progressive

Brussels Retreats on Green Policy as Europe Burns: Industry and the Far Right Are Rewriting the Climate Agenda

Brussels Retreats on Green Policy as Europe Burns: Industry and the Far Right Are Rewriting the Climate Agenda

The Von der Leyen Commission has reversed its combustion-engine ban target for 2035 and proposed an overhaul of the EU Emissions Trading System in July, bowing…

Wildfires that consumed parts of France and Belgium this summer, a deadly heatwave, and abnormally warm Mediterranean waters have not been enough to hold Brussels to its climate commitments. Under Ursula von der Leyen's second term, the European Commission is rolling back green ambitions under pressure from industry, large member states, and the European People's Party — with concrete consequences for workers, consumers and the most heat-exposed communities. --- THE CONTEXT --- The EPP, the largest group in the European Parliament, has built working majorities by drawing on both pro-European coalitions and the far right, whose declared obsession this legislative term is dismantling the green agenda alongside curbing immigration. The Draghi report warned that excess regulation was damaging European competitiveness against rival powers. --- THE FACTS --- In December, the automotive lobby secured a major victory when the Commission reversed its plan to ban combustion-engine cars by 2035, instead proposing to allow a limited number of CO₂-emitting vehicles to keep being produced. This July — one month ago — the Commission proposed a reform of the Emissions Trading System, the mechanism that forces large polluting industries to purchase permits for their CO₂ output. Italy, Poland and the Czech Republic want it dismantled. Germany and Italy, governed by Friedrich Merz and Giorgia Meloni respectively, have pushed relentlessly for flexible climate targets to ease the burden on their industries, particularly carmakers. The war in Ukraine, rising energy costs and the closure of the Strait of Hormuz following Donald Trump's offensive against Iran have raised manufacturing costs, a fact the industrial bloc uses to justify regulatory relief. U.S. tariffs and fierce Chinese competition add further pressure on European producers. --- THE POSITIONS --- Spain and Denmark, joined by other capitals, argue that decarbonisation is the only genuine path to competitiveness and oppose Von der Leyen's pivot. That position is generating visible tensions inside the European Council. Italy, Poland and the Czech Republic back dismantling the ETS. The far right in Strasbourg supports the rollback. No response from the major industrial lobbies to the July ETS proposal has been published. --- WHAT REMAINS UNKNOWN --- The final text of the ETS reform and its exact conditions have not been published. The specific protections, if any, for workers in affected industries are not detailed in the source. The formal positions of all member states on the July proposal remain unknown. --- UNANSWERED QUESTIONS --- • What transition protections, if any, are being considered for workers in the automotive and heavy-industry sectors? • How many member states formally support the July ETS reform and under what conditions? • Which communities in southern Europe face the greatest health and economic exposure if emission limits are loosened? • To what degree does the Hormuz closure represent a genuine structural constraint rather than a short-term justification for delay? --- EPM ANALYSIS --- The clearest losers in this pivot are people already living with extreme heat, unaffordable energy and lost jobs in industries that were promised a managed transition. The immediate winners are large manufacturers and the governments shielding them. The decisive variable is whether Spain, Denmark and their allies can impose binding conditions inside the Council — or whether the industrial bloc and the far right lock in a permanent retreat. 📌 📌 EPM Take: In EPM's view, this is not a technical recalibration — it is a political decision with foreseeable human costs. Our earlier coverage documented vulnerable populations in southern Europe already bearing the weight of institutional neglect. Loosening emission rules without a structured transition plan compounds that neglect. The argument that competitiveness requires rolling back climate protections while Europe is literally on fire is a contradiction Brussels has not honestly addressed, and voters deserve a clearer accounting.
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