🧃The EU’s Climate Balancing Act

Welcome to The Strawman, the daily climate newsletter that's trying to juggle sustainability and economic growth better than the EU. Spoiler: we're dropping the ball less often.

Loosening the Green Screws

The European Commission insists that the Green Deal is here to stay, but it’s making some big concessions to struggling industries. Facing complaints about high energy prices and regulatory overload, Brussels is rolling back key sustainability rules. Reporting requirements for businesses are being slashed, carbon border taxes are being scaled back, and companies will get more time to comply with climate regulations. The EU hopes these changes will make businesses more competitive without completely derailing its climate agenda.

Big Business Gets a Free Pass

Companies that once had to report their environmental impact in meticulous detail are now getting a much easier ride. Smaller businesses—comprising most of those affected—will no longer have to follow the strict corporate sustainability reporting rules. Meanwhile, many importers will be exempt from paying the carbon border tax, a policy designed to prevent businesses from outsourcing emissions-heavy production to countries with weaker regulations. While businesses welcome the changes, climate advocates argue that loosening these rules could undermine transparency and accountability. If fewer companies are required to track and disclose their emissions, who’s left to keep them in check?

Bracing for the Trump Effect

Europe’s shift in climate policy isn’t happening in a vacuum. With Donald Trump’s return to power in the U.S., the global climate landscape is shifting. His administration has already scrapped hundreds of billions in tax incentives for green tech, raising concerns that a lack of U.S. cooperation could weaken global efforts. While the EU insists it won’t be deterred, the reality is that Trump’s rollback of climate policies puts more pressure on Europe to sustain its ambitious goals alone. And with economic competitiveness now taking centre stage, there’s a real risk that green policies will keep getting watered down in the name of short-term growth.

The Takeaway

The EU’s climate strategy is now a high-wire act—trying to keep green policies in place while loosening the burden on industries. But as extreme weather intensifies and emissions reductions lag, the question remains: Can the bloc have it both ways, or is it watering down its ambitions just when the world needs them most?