EU Parliament Wraps Up Term with Sweeping Green Legislation Ahead of Elections

In its final plenary session before the June elections, the EU Parliament has approved several pivotal pieces of legislation, marking a significant push in its environmental and social governance efforts. Key measures include the Net Zero Investment Act (NZIA), akin to the US Inflation Reduction Act, aimed at boosting EU competitiveness in technologies essential for achieving net zero emissions, such as battery storage and carbon capture.

Additionally, the parliament has taken a strong stance against forced labor by mandating investigations into companies implicated in these practices, with penalties including the removal of their products from the EU market. In a significant move, the EU has also decided to withdraw from the Energy Treaty Charter, liberating member states from the threat of litigation by fossil fuel investors over climate actions.

Further amendments were made to the Common Agricultural Policy, providing relief to small farm owners from fines and offering exemptions during extreme weather events. The Corporate Sustainability Reporting Directive (CSRD) has also been updated, delaying sector-specific and non-EU reporting for two years.

These legislative actions solidify the EU’s commitment to the Green Deal, introduced in 2020, which continues to be a central theme as the elections approach. The Green Deal’s future, however, remains uncertain with potential shifts in the political landscape, highlighted by the contrasting views of right-wing politician Nicola Procaccini and Green commissioner hopeful Bas Eickhout.