Welcome to the EU Monthly, NEO’s sustainability and ESG news round up from Brussels.
Here are the highlights for March 2024:
- No nature restoration for EU: Despite expectations, the European Council failed to adopt a long-awaited nature restoration law in March. Proposed by the European Commission in 2022, the law was meant to restore and protect natural ecosystems and biodiversity. Both the EU Council and Parliament had agreed upon the text, leading to expectations that the law would be approved. However, the proposed law faced opposition from countries including Belgium, Finland, Hungary and others. Critics of the law said that it would burden the economy and exacerbate food security and agriculture issues in the EU. (Read more: ESG Today)
- European defense ambitions pose dilemma: Concerns over complications of the EU tapping into European Investment Bank (EIB) funds are increasing as Europe toys with the idea of developing an independent defense industry. The EIB’s main focus is on environmental projects, and many ESG investors are prohibited from contributing to military-related investments. Investors now worry that tapping EIB funds would harm the bank’s reputation and increase borrowing costs. (Read more: Bloomberg)
- New directive for green crime: A greater number of environmental offences can now be considered crimes under a new directive adopted by the EU Council in March. To strengthen environmental protection, the number of acts recognised as crime has increased from 9 to 20 and includes timber trafficking and illegal recycling of certain components. Member states can tailor the law by expanding its jurisdiction to other countries or by making the penalty more strict. (Read more: Europa.eu)
- EU responds to farmers’ protests: In an attempt to quell widespread farmers’ protests, agriculture ministers of EU member-states approved a proposal by the EU Commission to relieve bureaucracy around subsidies and to address supply chain imbalances and unfair practices. However, protests continue throughout the EU. Farmers began protesting earlier this year over red tape, increasing fertilizer costs, cheap imports and low margins. (Read more: Euronews)