Brussels Briefing: Is the EU’s commitment to the green agenda floundering?

Through the freezing fog and driving rain, the sun is beginning to emerge and spring seems to be on the horizon. People in Brussels are beginning to look forward too to what could be coming in June. Some more daylight and perhaps even some sunshine are of course possible, but so too is a big change in the composition of the European Parliament and Commission. Across Europe, there has been an increase in right-wing parties taking power both from the centre and more extreme end of the spectrum which looks set to also have an impact on the results of the European elections which take place from the 6 to 9 June 2024.

These EU elections will directly influence the make-up of the next European Parliament as well as influencing who will be appointed to run the European Commission as the president and commissioners. In these last months of this mandate for the EU institutions, few new topics seem to be arriving on the agenda but that doesn’t mean that those that are already being discussed are going to be forgotten. 

CSDDD passes, but should we worry about the future of the green agenda?  

The Corporate Sustainability Due Diligence Directive (affectionately known as the CSDDD or CS3D, and not to be confused with the Corporate Sustainability Reporting Directive or CSRD) has surfaced recently as another initiative that has faced additional scrutiny and less support from EU member states than hoped. While being watered down, it is nonetheless an achievement that a version of the Directive was agreed on 15 March by representatives of the EU’s member states.

• Read more: ‘Groundbreaking’ EU stakeholder governance directive risks being watered down, warn campaigners

The CSDDD sets out the need for large companies to report on the impact their actions have on areas such as human rights and the environment. It covers not just the company directly but also the impact caused through its value chains by partners and suppliers. It therefore has the potential to have a significant impact on social and environmental impact within the EU and globally. 

The directive is the result of years of negotiation and a legislative process involving member states and stakeholders, but this has not been enough to prevent the withdrawal of some support for the directive from some member states. 

The ‘green’ agenda will be one of the key areas to watch in the coming months and especially in the European elections

This backsliding is adding to fears that a potential ‘pause’ or reduction in the ambition of the targets and implementation of the European Green Deal may be imminent. The ‘green’ agenda will be one of the key areas to watch in the coming months and especially in the European elections. This is not only the case within the EU but of course can be seen to be a key topic of contention in other places such as the UK too ahead of its upcoming general election. 

• Read more: The Editor’s Post: Battle lines drawn for EU Green Deal

Next steps in the development of social economy national strategies

This milestone achievement of a Council Recommendation on the social economy, which happened in October (see my column last year), has not been forgotten. This – the council’s first ever recommendation on the social economy – is a political commitment by the EU’s member states to improve the legal, regulatory and fiscal frameworks in which social economy organisations operate, including social enterprises.

The most recent development on the implementation of this recommendation is the decision that the next round of the Commission’s mutual learning workshops for public officials should focus on developing and implementing national strategies to support the social economy.

While not a big or flashy news announcement, these workshops are critical for seeing the recommendation translated into action. The time to develop these social economy strategies under the Social Economy Action Plan is already ticking, with the two years allotted for this activity announced in November 2023 already a quarter of the way done. 

• Read more: Brussels unveils ‘once in a decade’ Social Economy Action Plan to rave reviews

Of course, for these workshops to have an impact, member states need to send public officials to them. This recommendation and these workshops are a key opportunity for national intermediary organisations to work together with public officials. Get in touch with the decision makers (politicians or civil servants) and representative networks (many listed among the Euclid Network’s membership) in your country to find out who’ll be attending and how they intend to involve you in the process going forward.

What will Hungary’s EU presidency bring?

While the EU elections are now well and truly around the corner, it is worth remembering that just over the horizon is the Hungarian Presidency of the Council of the EU, which will start in the second half of 2024 from July until December. While the two preceding countries that have led this rotating presidency – Spain and Belgium – have been characterised by a high degree of enthusiasm for Europe and the social economy, we will have to wait with bated breath to see if this momentum continues into the latter half of 2024. 

If not, social enterprises across Europe will have to hope that the Polish Presidency at the beginning of 2025 can restore the European focus that has benefited the social economy over the past years. 

• Toby Gazeley is the Brussels-based policy lead at Euclid Network.

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