How to Fix Greenwashing Risks in the EU’s Next Long-Term Budget

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T&E and partner NGOs have published guidance on the Performance Regulation — a key law shaping how climate and environmental spending will be tracked in the next EU budget.

The ‘technical reference document’ was developed together with WWF, CEE Bankwatch Network, ClientEarth, CAN Europe, HEAL and the European Environmental Bureau, and is endorsed by 13 additional European think tanks and civil society organisations.

The proposed Performance Regulation introduces, for the first time, a single framework to track climate and environmental spending across the entire EU budget. More than €1 trillion is at stake. Applying these rules horizontally is a positive step that could simplify the budget architecture and strengthen transparency and accountability.

However, the current proposal could open the door to greenwashing. Without stronger safeguards, large amounts of EU spending risk being labelled as climate or environmental action without delivering real benefits.

Our joint briefing identifies the most problematic elements in Annex I, which defines how climate and environmental spending is tracked across EU programmes. Fixing these rules is essential to ensure that the EU budget genuinely supports the bloc’s climate and environmental objectives.

To support negotiations in the European Parliament and the Council, the NGOs have produced a detailed document proposing revisions to more than 100 interventions listed in Annex I. These corrections aim to:

• Reduce the risk of greenwashing in EU spending;

• Strengthen the credibility of the EU’s climate tracking framework;

• Ensure the next EU budget delivers positive environmental impact.

As negotiations on the next MFF intensify, fixing the flaws in Annex I will be essential to increase the EU budget’s impact. This is key for Europe to achieve its energy security and climate goals.

Download the briefing.

Download the technical reference document.

Article from T&E.