BRUSSELS — On Greenland’s southern tip, surrounded by snowy peaks and deep
fjords, lies Kvanefjeld — a mining project that shows the giant, barren island
is more than just a coveted military base.
Beneath the icy ground sits a major deposit of neodymium and praseodymium, rare
earth elements used to make magnets that are essential to build wind turbines,
electric vehicles and high-tech military equipment.
If developed, Greenland, a semi-autonomous part of Denmark, would become the
first European territory to produce these key strategic metals. Energy
Transition Minerals, an Australia-based, China-backed mining company, is ready
to break ground.
But neither Copenhagen, Brussels nor the Greenlandic government have mobilized
their state power to make the project happen. In 2009, Denmark handed
Greenland’s inhabitants control of their natural resources; 12 years later the
Greenlandic government blocked the mine because the rare earths are mixed with
radioactive uranium.
Since then the project has been in limbo, bogged down in legal disputes.
“Kvanefjeld illustrates how political and regulatory uncertainty — combined with
geopolitics and high capital requirements — makes even strategically important
projects hard to move from potential to production,” Jeppe Kofod, Denmark’s
former foreign minister and now a strategic adviser to Energy Transition
Minerals, told POLITICO.
Kvanefjeld’s woes are emblematic of Greenland’s broader problems. Despite having
enough of some rare earth elements to supply as much as 25 percent of the
world’s needs — not to mention oil and gas reserves nearly as great as those of
the United States, and lots of other potential clean energy metals including
copper, graphite and nickel — these resources are almost entirely undeveloped.
Just two small mines, extracting gold and a niche mineral called feldspar used
in glassmaking and ceramics, are up and running in Greenland. And until very
recently, neither Denmark nor the European Union showed much interest in
changing the situation.
But that was before 2023, when the EU signed a memorandum of understanding with
the Greenland government to cooperate on mining projects. The EU Critical Raw
Materials Act, proposed the same year, is an attempt to catch up by building new
mines both in and out of the bloc that singles out Greenland’s potential. Last
month, the European Commission committed to contribute financing to Greenland’s
Malmbjerg molybdenum mine in a bid to shore up a supply of the metal for the
EU’s defense sector.
But with United States President Donald Trump threatening to take Greenland by
force, and less likely to offer the island’s inhabitants veto power over mining
projects, Europe may be too late to the party.
“The EU has for many years had a limited strategic engagement in Greenland’s
critical raw materials, meaning that Europe today risks having arrived late,
just as the United States and China have intensified their interest,” Kofod
said.
In a world shaped by Trump’s increasingly belligerent foreign policy and China’s
hyperactive development of clean technology and mineral supply chains, Europe’s
neglect of Greenland’s natural wealth is looking increasingly like a strategic
blunder.
With Donald Trump threatening to take Greenland by force, and less likely to
offer the island’s inhabitants veto power over mining projects, Europe may be
too late to the party. | Jim Watson/AFP via Getty Images
A HOSTILE LAND
That’s not to say building mines in Greenland, with its mile-deep permanent ice
sheet, would be easy.
“Of all the places in the world where you could extract critical raw materials,
[Greenland] is very remote and not very easily accessible,” said Ditte Brasso
Sørensen, senior analyst on EU climate and industrial policy at Think Tank
Europa, pointing to the territory’s “very difficult environmental
circumstances.”
The tiny population — fewer than 60,000 — and a lack of infrastructure also make
it hard to build mines. “This is a logistical question,” said Eldur Olafsson,
CEO of Amaroq, a gold mining company running one of the two operating mines in
Greenland and also exploring rare earths and copper extraction opportunities.
“How do you build mines? Obviously, with capital, equipment, but also people.
[And] you need to build the whole infrastructure around those people because
they cannot only be Greenlandic,” he said.
Greenland also has strict environmental policies — including a landmark 2021
uranium mining ban — which restrict resource extraction because of its impact on
nature and the environment. The current government, voted in last year,
has not shown any signs of changing its stance on the uranium ban, according to
Per Kalvig, professor emeritus at the Geological Survey of Denmark and
Greenland, a Danish government research organization.
Uranium is routinely found with rare earths, meaning the ban could frustrate
Greenland’s huge potential as a rare earths producer.
It’s a similar story with fossil fuels. Despite a 2007 U.S. assessment that the
equivalent of over 30 billion barrels in oil and natural gas lies beneath the
surface of Greenland and its territorial waters — almost equal to U.S. reserves
— 30 years of oil exploration efforts by a group including Chevron,
Italy’s ENI and Shell came to nothing.
In 2021 the then-leftist government in Greenland banned further oil exploration
on environmental grounds.
Danish geologist Flemming Christiansen, who was deputy director
of the Geological Survey of Denmark and Greenland until 2020, said the failure
had nothing to do with Greenland’s actual potential as an oil producer.
Instead, he said, a collapse in oil prices in 2014 along with the high cost
of drilling in the Arctic made the venture unprofitable. Popular opposition only
complicated matters, he said.
THE CLIMATE CHANGE EFFECT
From the skies above Greenland Christiansen sees firsthand the dramatic effects
of climate change: stretches of clear water as rising temperatures thaw the ice
sheets that for centuries have made exploring the territory a cold, costly and
hazardous business.
“If I fly over the waters in west Greenland I can see the changes,” he said.
“There’s open water for much longer periods in west Greenland, in Baffin Bay and
in east Greenland.”
Climate change is opening up this frozen land.
Climate change is opening up this frozen land. | Odd Andersen/AFP via Getty
Images
Greenland contains the largest body of ice outside Antarctica, but that ice is
melting at an alarming rate. One recent study suggests the ice sheet could cease
to exist by the end of the century, raising sea levels by as much as seven
meters. Losing a permanent ice cap that is several hundred meters deep, though,
“gradually improves the business case of resource extraction, both for … fossil
fuels and also critical raw materials,” said Jakob Dreyer, a researcher at the
University of Copenhagen.
But exploiting Greenland’s resources doesn’t hinge on catastrophic levels of
global warming. Even without advanced climate change, Kalvig, of the Geological
Survey of Denmark and Greenland, argues Greenland’s coast doesn’t differ much
from that of Norway, where oil has been found and numerous excavation projects
operate.
“You can’t penetrate quite as far inland as you can [in Norway], but once access
is established, many places are navigable year-round,” Kalvig said. “So, in that
sense, it’s not more difficult to operate mines in Greenland than it is in many
parts of Norway, Canada or elsewhere — or Russia for that matter. And this has
been done before, in years when conditions allowed.”
A European Commission spokesperson said the EU was now working with Greenland’s
government to develop its resources, adding that Greenland’s “democratically
elected authorities have long favored partnerships with the EU to develop
projects beneficial to both sides.”
But the spokesperson stressed: “The fate of Greenland’s raw mineral resources is
up to the Greenlandic people and their representatives.”
The U.S. may be less magnanimous. Washington’s recent military operation in
Venezuela showed that Trump is serious about building an empire on natural
resources, and is prepared to use force and break international norms in pursuit
of that goal. Greenland, with its vast oil and rare earths deposits, may fit
neatly into his vision.
Where the Greenlandic people fit in is less clear.
Tag - Water
Venture capitalist Finn Murphy believes world leaders could soon resort to
deflecting sunlight into space if the Earth gets unbearably hot.
That’s why he’s invested more than $1 million in Stardust Solutions, a leading
solar geoengineering firm that’s developing a system to reduce warming by
enveloping the globe in reflective particles.
Murphy isn’t rooting for climate catastrophe. But with global temperatures
soaring and the political will to limit climate change waning, Stardust “can be
worth tens of billions of dollars,” he said.
“It would be definitely better if we lost all our money and this wasn’t
necessary,” said Murphy, the 33-year-old founder of Nebular, a New York
investment fund named for a vast cloud of space dust and gas.
Murphy is among a new wave of investors who are putting millions of dollars into
emerging companies that aim to limit the amount of sunlight reaching the Earth —
while also potentially destabilizing weather patterns, food supplies and global
politics. He has a degree in mathematics and mechanical engineering and views
global warming not just as a human and political tragedy, but as a technical
challenge with profitable solutions.
Solar geoengineering investors are generally young, pragmatic and imaginative —
and willing to lean into the adventurous side of venture capitalism. They often
shrug off the concerns of scientists who argue it’s inherently risky to fund the
development of potentially dangerous technologies through wealthy investors who
could only profit if the planet-cooling systems are deployed.
“If the technology works and the outcomes are positive without really
catastrophic downstream impacts, these are trillion-dollar market
opportunities,” said Evan Caron, a co-founder of the energy-focused venture firm
Montauk Capital. “So it’s a no-brainer for an investor to take a shot at some of
these.”
More than 50 financial firms, wealthy individuals and government agencies have
collectively provided more than $115.8 million to nine startups whose technology
could be used to limit sunlight, according to interviews with VCs, tech company
founders and analysts, as well as private investment data analyzed by POLITICO’s
E&E News.
That pool of funders includes Silicon Valley’s Sequoia Capital, one of the
world’s largest venture capital firms, and four other investment groups that
have more than $1 billion of assets under management.
Of the total amount invested in the geoengineering sector, $75 million went to
Stardust, or nearly 65 percent. The U.S.-Israeli startup is developing
reflective particles and the means to spray and monitor them in the
stratosphere, some 11 miles above the planet’s surface.
At least three other climate-intervention companies have also raked in at least
$5 million.
The cash infusion is a bet on planet-cooling technologies that many political
leaders, investors and environmentalists still consider taboo. In addition to
having unknown side effects, solar geoengineering could expose the planet to
what scientists call “termination shock,” a scenario in which global
temperatures soar if the cooling technologies fail or are suddenly abandoned.
Still, the funding surge for geoengineering companies pales in comparison to the
billions of dollars being put toward artificial intelligence. OpenAI, the maker
of ChatGPT, has raised $62.5 billion in 2025 alone, according to investment data
compiled by PitchBook.
The investment pool for solar geoengineering startups is relatively shallow in
part because governments haven’t determined how they would regulate the
technology — something Stardust is lobbying to change.
As a result, the emerging sector is seen as too speculative for most venture
capital firms, according to Kim Zou, the CEO of Sightline Climate, a market
intelligence firm. VCs mostly work on behalf of wealthy individuals, as well as
pension funds, university endowments and other institutional investors.
“It’s still quite a niche set of investors that are even thinking about or
looking at the geoengineering space,” Zou said. “The climate tech and energy
tech investors we speak to still don’t really see there being an investable
opportunity there, primarily because there’s no commercial market for it today.”
AEROSOLS IN THE STRATOSPHERE
Stardust and its investors are banking on signing contracts with one or more
governments that could deploy its solar geoengineering system as soon as the end
of the decade. Those investors include Lowercarbon Capital, a climate-focused
firm co-founded by billionaire VC Chris Sacca, and Exor, the holding company of
an Italian industrial dynasty and perhaps the most mainstream investment group
to back a sunlight reflection startup.
Even Stardust’s supporters acknowledge that the company is far from a sure bet.
“It’s unique in that there is not currently demand for this solution,” said
Murphy, whose firm is also supporting out-there startups seeking to build robots
and data centers in space. “You have to go and create the product in order to
potentially facilitate the demand.”
Lowercarbon partner Ryan Orbuch said the firm would see a return on its Stardust
investment only “in the context of an actual customer who can actually back many
years of stable, safe deployment.”
Exor, another Stardust investor, didn’t respond to a request for comment.
Other startups are trying to develop commercial markets for solar
geoengineering. Make Sunsets, a company funded by billionaire VC Tim Draper,
releases sulfate-filled weather balloons that pop when they reach the
stratosphere. It sells cooling credits to individuals and corporations based on
the theory that the sulfates can reliably reduce warming.
There are questions, however, about the science and economics underpinning the
credit system of Make Sunsets, according to the investment bank Jeffries.
“A cooling credit market is unlikely to be viable,” the bank said in a May 2024
note to clients.
That’s because the temperature reductions produced by sulfate aerosols vary by
altitude, location and season, the note explained. And the warming impacts of
carbon dioxide emissions last decades — much longer than any cooling that would
be created from a balloon’s worth of sulfate.
Make Sunsets didn’t respond to a request for comment. The company has previously
attracted the attention of regulators in the U.S. and Mexico, who have claimed
it began operating without the necessary government approvals.
Draper Associates says on its website that it’s “shaping a future where the
impossible becomes everyday reality.” The firm has previously backed successful
consumer tech firms like Tesla, Skype and Hotmail.
“It is getting hotter in the Summer everywhere,” Tim Draper said in an email.
“We should be encouraging every solution. I love this team, and the science
works.”
THE NEXT FRONTIER
One startup is pursuing space-based solar geoengineering. EarthGuard is
attempting to build a series of large sunlight deflectors that would be
positioned between the sun and the planet, some 932,000 miles from the Earth.
The company did not respond to emailed questions.
Other space companies are considering geoengineering as a side project. That
includes Gama, a French startup that’s designing massive solar sails that could
be used for deep space travel or as a planetary sunshade, and Ethos Space, a Los
Angeles company with plans to industrialize the moon.
Both companies are part of an informal research network established by the
Planetary Sunshade Foundation, a nonprofit advocating for the development of a
trillion-dollar parasol for the globe. The network mainly brings together
collaborators on the sidelines of space industry conferences, according to Gama
CEO Andrew Nutter.
“We’re willing to contribute something if we realize it’s genuinely necessary
and it’s a better solution than other solutions” to the climate challenge,
Nutter said of the space shade concept. “But our business model does not depend
on it. If you have dollar signs hanging next to something, that can bias your
decisions on what’s best for the planet.”
Nutter said Gama has raised about $5 million since he co-founded the company in
2020. Its investors include Possible Ventures, a German VC firm that’s also
financing a nuclear fusion startup and says on its website that the firm is
“relentlessly optimistic — choosing to focus on the possibilities rather than
obsess over the risks.” Possible Ventures did not respond to a request for
comment.
Sequoia-backed Reflect Orbital is another space startup that’s exploring solar
geoengineering as a potential moneymaker. The company based near Los Angeles is
developing a network of satellite mirrors that would direct sunlight down to the
Earth at night for lighting industrial sites or, eventually, producing solar
energy. Its space mirrors, if oriented differently, could also be used for
limiting the amount of sun rays that reach the planet.
“It’s not so much a technological limitation as much as what has the highest,
best impact. It’s more of a business decision,” said Ally Stone, Reflect
Orbital’s chief strategy officer. “It’s a matter of looking at each satellite as
an opportunity and whether, when it’s over a specific geography, that makes more
sense to reflect sunlight towards or away from the Earth.”
Reflect Orbital has raised nearly $28.7 million from investors including Lux
Capital, a firm that touts its efforts to “turn sci-fi into sci-fact” and has
invested in the autonomous defense systems companies Anduril and Saildrone.”
Sequoia and Lux didn’t respond to requests for comment.
The startup hopes to send its first satellite into space next summer, according
to Stone.
SpaceX CEO Elon Musk, whose aerospace company already has an estimated fleet of
more than 8,800 internet satellites in orbit, has also suggested using the
circling network to limit sunlight.
“A large solar-powered AI satellite constellation would be able to prevent
global warming by making tiny adjustments in how much solar energy reached
Earth,” Musk wrote on X last month. Neither he nor SpaceX responded to an
emailed request for comment.
DON’T CALL IT GEOENGINEERING
Other sunlight-reflecting startups are entering the market — even if they’d
rather not be seen as solar geoengineering companies.
Arctic Reflections is a two-year-old company that wants to reduce global warming
by increasing Arctic sea ice, which doesn’t absorb as much heat as open water.
The Dutch startup hasn’t yet pursued outside investors.
“We see this not necessarily as geo-engineering, but rather as climate
adaptation,” CEO Fonger Ypma said in an email. “Just like in reforestation
projects, people help nature in growing trees, our idea is that we would help
nature in growing ice.”
The main funder of Arctic Reflections is the British government’s independent
Advanced Research and Invention Agency. In May, ARIA awarded $4.41 million to
the company — more than four times what it had raised to that point.
Another startup backed by ARIA is Voltitude, which is developing micro balloons
to monitor geoengineering from the stratosphere. The U.K.-based company didn’t
respond to a request for comment.
Altogether, the British agency is supporting 22 geoengineering projects, only a
handful of which involve startups.
“ARIA is only funding fundamental research through this programme, and has not
taken an equity stake in any geoengineering companies,” said Mark Symes, a
program director at the agency. It also requires that all research it supports
“must be published, including those that rule out approaches by showing they are
unsafe or unworkable.”
Sunscreen is a new startup that is trying to limit sunlight in localized areas.
It was founded earlier this year by Stanford University graduate student Solomon
Kim.
“We are pioneering the use of targeted, precision interventions to mitigate the
destructive impacts of heatwave on critical United States infrastructure,” Kim
said in an email. But he was emphatic that “we are not geoengineering” since the
cooling impacts it’s pursuing are not large scale.
Kim declined to say how much had been raised by Sunscreen and from what sources.
As climate change and its impacts continue to worsen, Zou of Sightline Climate
expects more investors to consider solar geoengineering startups, including
deep-pocketed firms and corporations interested in the technology. Without their
help, the startups might not be able to develop their planet-cooling systems.
“People are feeling like, well wait a second, our backs are kind of starting to
get against the wall. Time is ticking, we’re not really making a ton of
progress” on decarbonization, she said.
“So I do think there’s a lot more questions getting asked right now in the
climate tech and venture community around understanding it,” Zou said of solar
geoengineering. “Some of these companies and startups and venture deals are also
starting to bring more light into the space.”
Karl Mathiesen contributed reporting.
BRUSSELS — Current plans to tackle global warming will only save 3 percent of
Europe’s Alpine glaciers from disappearing this century, with most melting away
within the next two decades, a new study has found.
The ice fields of Central Europe are vanishing faster than anywhere else on
Earth,according to research led by Switzerland’s ETH Zurich. Overall, the
scientists found that 79 percent of the world’s glaciers will not survive this
century unless countries step up efforts to curb climate change.
“The Alps as we know them nowadays will completely change by the end of the
century,” Lander Van Tricht, the study’s lead author, told POLITICO.
“The landscape will be completely different. Many ski resorts will not have
access to glaciers anymore … the ones we keep are so high and so steep that they
are not accessible anymore. So the economy will be confronted with these
changes,” he said.
“And even the small glaciers provide water downstream” for vegetation and
villages, he added. “This will also change.”
Their study, published Monday in the journal Nature Climate Change, is the first
to calculate the number of glaciers remaining by the year 2100 under different
warming scenarios. Previous studies have focused on size or ice mass, the
factors determining future sea-level rise and water scarcity, as glaciers hold
70 percent of the world’s freshwater.
The researchers hope their findings, including a database showing the projected
survival rate of each of the world’s 211,000 glaciers, will help assess climate
impacts on local economies and ecosystems.
“Even the smallest glacier in a remote valley in the Alps, even if it’s not
important for sea-level rise or water resources, can have a huge importance for
tourism, for example,” said Van Tricht. “Every individual glacier can matter.”
The researchers found that 97 percent of Central European glaciers will go
extinct this century if global warming hits 2.7 degrees Celsius above
pre-industrial levels — the temperature rise expected under governments’ current
climate policies.
That means only 110 of the region’s roughly 3,200 glaciers would survive to see
the next century. Those are located in the Alps, as the region’s other mountain
range, the Iberian Peninsula’s Pyrenees, is set to lose its remaining 15
glaciers by the mid-2030s.
If the world manages to limit global warming to 1.5C or 2C, in line with the
Paris Agreement, the Alps would lose 87 percent or 92 percent of glaciers,
respectively. At warming of 4C, a level the world was heading toward before the
2015 climate accord was signed, 99 percent of Alpine glaciers would disappear
this century, with just 20 surviving the year 2100.
In all scenarios, however, the majority of Central European glaciers melt away
in the coming two decades. The scientists write that for this region, “peak
extinction” — the year when most glaciers are expected to disappear — is
“projected to occur soon after 2025.”
Glaciers located in high latitudes — such as in Iceland and Russian Arctic — or
holding vast amounts of ice have the best survival chances, Van Tricht said.
Alpine glaciers “are in general very small” and “very sensitive” to climatic
changes like warmer springs, he said. The biggest ice fields, such as the Rhône
glacier, will survive 2.7C of warming but not 4C, he added.
The second-worst affected region is Western Canada and the United States, home
to the Rocky Mountains, where 96 percent of the nearly 18,000 glaciers are
expected to disappear this century under 2.7C of warming.
Overall, the study projects a dramatic disappearance of glaciers around the
globe: At 2.7C of warming, 79 percent of glaciers worldwide would go extinct by
the end of the century, rising to 91 percent at 4C. The melt-off is expected to
continue after 2100, the researchers add.
Drastic cuts in planet-warming emissions could save tens of thousands of
individual glaciers, however, with the extinction rate slowing to 55 percent at
1.5C and 63 percent at 2C.
The rate of disappearance shocked even the scientists, Van Tricht said. Around
mid-century, when glacier loss reaches its peak, “we lose at a global scale
2,000 to 4,000 glaciers a year,” depending on the level of warming. “Which means
that if you look at the Alps today, all the glaciers we have there, you lose
that number in just one single year at the global scale.”
LONDON — The U.K. has imposed new sanctions on senior commanders of the Rapid
Support Forces (RSF) amid escalating atrocities in Sudan.
The move aims at key figures accused of mass killings, sexual violence and
targeted attacks on civilians in El Fasher, including Abdul Rahim Hamdan Dagalo,
the RSF’s deputy leader and brother of commander Mohamed “Hemedti” Dagalo.
Three other senior RSF officers will also now face asset freezes and travel bans
to the U.K.
Foreign Secretary Yvette Cooper said the sanctions sent a message that
atrocities “cannot and will not go unpunished.”
While the U.K. has targeted other RSF figures before, the paramilitary group’s
recent sharing of footage of their own alleged crimes has made it easier to
establish the basis for sanctions.
The penalties announced Friday coincide with a fresh £21 million aid package
intended to provide food, clean water, healthcare and protection for tens of
thousands caught in what the U.K. government has termed the world’s worst
humanitarian crisis. The administration in London has been under pressure from
lawmakers to do more to stop the bloodshed.
The U.K.’s action follows the U.S. decision this week to sanction a network it
says is recruiting former Colombian soldiers to fight in Sudan’s civil war,
while the European Union has also targeted RSF leadership for alleged crimes in
Darfur.
Sudan has been locked in a civil war for two and a half years, with the Sudanese
Armed Forces pitted against the Rapid Support Forces paramilitary group, which
international institutions have accused the United Arab Emirates of backing.
Since becoming foreign secretary, Cooper has sought to place particular emphasis
on the conflict in Sudan and has discussed it with her U.S. counterpart Marco
Rubio on several occasions.
Donald Trump signaled a new interest in ending the violence in Sudan after
meeting Saudi Crown Prince Mohammed Bin Salman in November, but it’s not yet
clear if that will be sustained.
BRUSSELS — The European Commission has proposed rolling back several EU
environmental laws including industrial emissions reporting requirements,
confirming previous reporting by POLITICO.
It’s the latest in a series of proposed deregulation plans — known as omnibus
bills — as Commission President Ursula von der Leyen tries to make good on a
promise to EU leaders to dramatically reduce administrative burden for
companies.
The bill’s aim is to make it easier for businesses to comply with EU laws on
waste management, emissions, and resource use, with the Commission stressing the
benefits to small and medium-sized enterprises (SMEs) which make up 99 percent
of all EU businesses. The Commission insisted the rollbacks would not have a
negative impact on the environment.
“We all agree that we need to protect our environmental standards, but we also
at the same time need to do it more efficiently,” said Environment Commissioner
Jessika Roswall during a press conference on Wednesday.
“This is a complex exercise,” said Executive Vice President Teresa Ribera during
a press conference on Wednesday. “It is not easy for anyone to try to identify
how we can respond to this demand to simplify while responding to this other
demand to keep these [environmental] standards high.”
Like previous omnibus packages, the environmental omnibus was released without
an impact assessment. The Commission found that “without considering other
alternative options, an impact assessment is not deemed necessary.” This comes
right after the Ombudswoman found the Commission at fault for
“maladministration” for the first omnibus.
The Commission claims “the proposed amendments will not affect environmental
standards” — a claim that’s already under attack from environmental groups.
MORE REPORTING CUTS
The Commission wants to exempt livestock and aquaculture operators from
reporting on water, energy and materials use under the industrial emissions
reporting legislation.
EU countries, competent authorities and operators would also be given more time
to comply with some of the new or revised provisions in the updated Industrial
Emissions Directive while being given further “clarity on when these provisions
apply.”
The Commission is also proposing “significant simplification” for environmental
management systems (EMS) — which lay out goals and performance measures related
to environmental impacts of an industrial site — under the industrial and
livestock rearing emissions directive.
These would be completed by industrial plants at the level of a company and not
at the level of every installation, as it currently stands.
There would also be fewer compliance obligations under EU waste laws.
The Commission wants to remove the Substances of Concern in Products (SCIP)
database, for example, claiming that it “has not been effective in informing
recyclers about the presence of hazardous substances in products and has imposed
substantial administrative costs.”
Producers selling goods in another EU country will also not have to appoint an
authorized representative in both countries to comply with extended producer
responsibility (EPR). The Commission calls it a “stepping stone to more profound
simplification,” also reducing reporting requirements to just once per year.
The Commission will not be changing the Nature Restoration Regulation — which
has been a key question in discussions between EU commissioners — but it will
intensify its support to EU countries and regional authorities in preparing
their draft National Restoration Plans.
The Commission will stress-test the Birds and Habitats Directives in 2026
“taking into account climate change, food security, and other developments and
present a series of guidelines to facilitate implementation,” it said.
CRITIQUES ROLL IN
Some industry groups, like the Computer & Communications Industry
Association, have welcomed the changes, calling it a “a common-sense fix.”
German center-right MEP Pieter Liese also welcomed the omnibus package, saying,
“[W]e need to streamline environmental laws precisely because we want to
preserve them. Bureaucracy and paperwork are not environmental protection.”
But environmental groups opposed the rollbacks.
“The Von der Leyen Commission is dismantling decades of hard-won nature
protections, putting air, water, and public health at risk in the name of
competitiveness,” WWF said in a statement.
The estimated savings “come with no impact assessment and focus only on reduced
compliance costs, ignoring the far larger price of pollution, ecosystem decline,
and climate-related disasters,” it added.
The Industrial Emissions Directive, which entered into force last year and is
already being transposed by member countries, was “already much weaker than what
the European Commission had originally proposed” during the last revision,
pointed out ClientEarth lawyer Selin Esen.
“The Birds and Habitats Directives are the backbone of nature protection in
Europe,” said BirdLife Europe’s Sofie Ruysschaert. “Undermining them now would
not only wipe out decades of hard-won progress but also push the EU toward a
future where ecosystems and the communities that rely on them are left
dangerously exposed.”
BRUSSELS — More than 80 percent of Europe’s companies will be freed from
environmental-reporting obligations after EU institutions reached a deal on a
proposal to cut green rules on Monday.
The deal is a major legislative victory for European Commission President Ursula
von der Leyen in her push cut red tape for business, one of the defining
missions of her second term in office.
However, that victory came at a political cost: The file pushed the coalition
that got her re-elected to the brink of collapse and led her own political
family, the center-right European People’s Party (EPP), to team up with the far
right to get the deal over the line.
The new law, the first of many so-called omnibus simplification bills,
will massively reduce the scope of corporate sustainability disclosure rules
introduced in the last political term. The aim of the red tape cuts is to boost
the competitiveness of European businesses and drive economic growth.
The deal concludes a year of intense
negotiations between EU decision-makers, investors, businesses and
civil society, who argued over how much to reduce reporting obligations for
companies on the environmental impacts of their business and supply chains — all
while the effects of climate change in Europe were getting worse.
“This is an important step towards our common goal to create a more favourable
business environment to help our companies grow and innovate,” said Marie
Bjerre, Danish minister for European affairs. Denmark, which holds the
presidency of the Council of the EU until the end of the year, led the
negotiations on behalf of EU governments.
Marie Bjerre, Den|mark’s Minister for European affairs, who said the agreement
was an important step for a more favourable business environment. | Philipp von
Ditfurth/picture alliance via Getty Images
Proposed by the Commission last February, the omnibus is designed to address
businesses’ concerns that the paperwork needed to comply with EU laws is costly
and unfair. Many companies have been blaming Europe’s overzealous green
lawmaking and the restrictions it places on doing business in the region for low
economic growth and job losses, preventing them from competing with U.S. and
Chinese rivals.
But Green and civil society groups — and some businesses too
— argued this backtracking would put environmental and human health at risk.
That disagreement reverberated through Brussels, disturbing the balance of power
in Parliament as the EPP broke the so-called cordon sanitaire — an unwritten
rule that forbids mainstream parties from collaborating with the far right — to
pass major cuts to green rules. It set a precedent for future lawmaking in
Europe as the bloc grapples with the at-times conflicting priorities of boosting
economic growth and advancing on its green transition.
The word “omnibus” has since become a mainstay of the Brussels bubble vernacular
with the Commission putting forward at least 10 more simplification bills on
topics like data protection, finance, chemical use, agriculture and defense.
LESS PAPERWORK
The deal struck by negotiators from the European Parliament, EU Council and the
Commission includes changes to two key pieces of legislation in the EU’s arsenal
of green rules: The Corporate Sustainability Reporting Directive (CSRD) and the
Corporate Sustainability Due Diligence Directive (CSDDD).
The rules originally required businesses large and small to collect and
publish data on their greenhouse gas emissions, how much water they use, the
impact of rising temperatures on working conditions, chemical leakages and
whether their suppliers — which are often spread across the globe — respect
human rights and labor laws.
Now the reporting rules will only apply to companies with more than 1,000
employees and €450 million in net turnover, while only the largest companies —
with 5,000 employees and at least €1.5 billion in net turnover — are covered by
supply chain due diligence obligations.
They also don’t have to adopt transition plans, with details on how they intend
to adapt their business model to reach targets for reducing greenhouse gas
emissions.
Importantly the decision-makers got rid of an EU-level legal framework that
allowed civilians to hold businesses accountable for the impact of their supply
chains on human rights or local ecosystems.
MEPs have another say on whether the deal goes through or not, with a final vote
on the file slated for Dec. 16. It means that lawmakers have a chance to reject
what the co-legislators have agreed to if they consider it to be too far from
their original position.
BRUSSELS — Japan has rebuffed the EU’s offer to join its plan to use frozen
Russian state assets to fund Ukraine — dashing the bloc’s hopes of securing
global support for the initiative.
During a meeting of G7 finance ministers on Monday, Tokyo poured cold water on a
request by Brussels to copy its plans to send Ukraine the cash value of Russian
sovereign assets held in Belgian bank Euroclear.
Japan signaled it is unable to use around $30 billion worth of Russian frozen
assets held on its soil to issue a loan to Ukraine, two EU diplomats briefed on
the discussions told POLITICO.
The European Commission wants EU capitals to strike a deal on using up to €210
billion in sanctioned cash before a leaders’ summit on Dec. 18. Belgium,
however, is resisting over fears it will be on the hook to repay the full amount
if Russia claws back the money.
One of its demands is that other G7 countries beyond the EU issue a loan to
Ukraine using the Russian frozen assets that they hold domestically.
Belgian Prime Minister Bart De Wever has insisted that greater participation by
G7 allies will reduce the risk of Russia retaliating solely against Belgium.
However, the U.S. and Japan have refused to join Brussels’ scheme — leaving the
EU to bear the brunt of Ukraine’s future financing needs alone.
During the meeting, the U.S. said it will cut support to Ukraine after
disbursing the last installments of a G7-wide loan that was negotiated by the
Biden administration in 2024, an EU diplomat said.
The war-battered country faces a budget shortfall of €71.7 billion next year and
will have to start cutting public spending from April unless fresh money
arrives.
“We will continue to work together to develop a wide range of financing options
to support Ukraine, including potentially using the full value of the Russian
Sovereign Assets, immobilized in our jurisdictions until reparations are paid
for by Russia,” finance ministers from G7 countries wrote in their joint
statement after the meeting.
But in a note of caution they added that “our action will remain consistent with
our respective legal frameworks.”
Japanese Finance Minister Satsuki Katayama has ruled out using the Russian
assets due to legal concerns, said an EU diplomat who was briefed on the
meeting.
However, several officials said Japan’s stance was linked to U.S. opposition to
using the Russian assets for Ukraine, arguing Tokyo doesn’t want to flout its
crucial ally. Like the EU diplomats, they were allowed to remain anonymous to
discuss sensitive matters.
U.S. President Donald Trump has signaled he intends to use the Russian assets to
bring President Vladimir Putin to the negotiating table.
Instead of sending the money to Kyiv, Washington has suggested handing part of
the assets back to Russia and using the remainder to finance U.S. investments in
Ukraine.
But European Commission President Ursula von der Leyen continued to support the
idea of using the Russian assets to help Ukraine during a meeting on Monday with
the country’s president, Volodymyr Zelenskyy.
“Our Reparations Loan proposal is complex but at its core, it increases the cost
of war for Russia,” von der Leyen wrote in a statement after the meeting, in
which she was joined by British Prime Minister Keir Starmer, French President
Emmanuel Macron and German Chancellor Friedrich Merz.
“So the longer Putin wages his war, spills blood, takes lives, and destroys
Ukrainian infrastructure — the higher the costs for Russia will be.”
In a boost for von der Leyen, the U.K. and Canada have signaled openness to
handing over the Russian state assets held on their soil to Ukraine — provided
the EU’s plan comes to fruition.
This issue is expected to take center stage during a meeting on Friday between
Starmer and De Wever.
BRUSSELS — The European Commission has unveiled a new plan to end the dominance
of planet-heating fossil fuels in Europe’s economy — and replace them with
trees.
The so-called Bioeconomy Strategy, released Thursday, aims to replace fossil
fuels in products like plastics, building materials, chemicals and fibers with
organic materials that regrow, such as trees and crops.
“The bioeconomy holds enormous opportunities for our society, economy and
industry, for our farmers and foresters and small businesses and for our
ecosystem,” EU environment chief Jessika Roswall said on Thursday, in front of a
staged backdrop of bio-based products, including a bathtub made of wood
composite and clothing from the H&M “Conscious” range.
At the center of the strategy is carbon, the fundamental building block of a
wide range of manufactured products, not just energy. Almost all plastic, for
example, is made from carbon, and currently most of that carbon comes from oil
and natural gas.
But fossil fuels have two major drawbacks: they pollute the atmosphere with
planet-warming CO2, and they are mostly imported from outside the EU,
compromising the bloc’s strategic autonomy.
The bioeconomy strategy aims to address both drawbacks by using locally produced
or recycled carbon-rich biomass rather than imported fossil fuels. It proposes
doing this by setting targets in relevant legislation, such as the EU’s
packaging waste laws, helping bioeconomy startups access finance, harmonizing
the regulatory regime and encouraging new biomass supply.
The 23-page strategy is light on legislative or funding promises, mostly
piggybacking on existing laws and funds. Still, it was hailed by industries that
stand to gain from a bigger market for biological materials.
“The forest industry welcomes the Commission’s growth-oriented approach for
bioeconomy,” said Viveka Beckeman, director general of the Swedish Forest
Industries Federation, stressing the need to “boost the use of biomass as a
strategic resource that benefits not only green transition and our joint climate
goals but the overall economic security.”
HOW RENEWABLE IS IT?
But environmentalists worry Brussels may be getting too chainsaw-happy.
Trees don’t grow back at the drop of a hat and pressure on natural ecosystems is
already unsustainably high. Scientific reports show that the amount of carbon
stored in the EU’s forests and soils is decreasing, the bloc’s natural habitats
are in poor condition and biodiversity is being lost at unprecedented rates.
Protecting the bloc’s forests has also fallen out of fashion among EU lawmakers.
The EU’s landmark anti-deforestation law is currently facing a second, year-long
delay after a vote in the European Parliament this week. In October, the
Parliament also voted to scrap a law to monitor the health of Europe’s forests
to reduce paperwork.
Environmentalists warn the bloc may simply not have enough biomass to meet the
increasing demand.
“Instead of setting a strategy that confronts Europe’s excessive demand for
resources, the Commission clings to the illusion that we can simply replace our
current consumption with bio-based inputs, overlooking the serious and immediate
harm this will inflict on people and nature,” said Eva Bille, the European
Environmental Bureau’s (EEB) circular economy head, in a statement.
TOO WOOD TO BE TRUE
Environmental groups want the Commission to prioritize the use of its biological
resources in long-lasting products — like construction — rather than lower-value
or short-lived uses, like single-use packaging or fuel.
A first leak of the proposal, obtained by POLITICO, gave environmental groups
hope. It celebrated new opportunities for sustainable bio-based materials while
also warning that the “sources of primary biomass must be sustainable and the
pressure on ecosystems must be considerably reduced” — to ensure those
opportunities are taken up in the longer term.
It also said the Commission would work on “disincentivising inefficient biomass
combustion” and substituting it with other types of renewable energy.
That rankled industry lobbies. Craig Winneker, communications director of
ethanol lobby ePURE, complained that the document’s language “continues an
unfortunate tradition in some quarters of the Commission of completely ignoring
how sustainable biofuels are produced in Europe,” arguing that the energy is
“actually a co-product along with food, feed, and biogenic CO2.”
Now, those lines pledging to reduce environmental pressures and to
disincentivize inefficient biomass combustion are gone.
“Bioenergy continues to play a role in energy security, particularly where it
uses residues, does not increase water and air pollution, and complements other
renewables,” the final text reads.
“This is a crucial omission, given that the EU’s unsustainable production and
consumption are already massively overshooting ecological boundaries and putting
people, nature and businesses at risk,” said the EEB.
Delara Burkhardt, a member of the European Parliament with the center-left
Socialists and Democrats, said it was “good that the strategy recognizes the
need to source biomass sustainably,” but added the proposal did not address
sufficiency.
“Simply replacing fossil materials with bio-based ones at today’s levels of
consumption risks increasing pressure on ecosystems. That shifts problems rather
than solving them. We need to reduce overall resource use, not just switch
inputs,” she said.
Roswall declined to comment on the previous draft at Thursday’s press
conference.
“I think that we need to increase the resources that we have, and that is what
this strategy is trying to do,” she said.
At New York Climate Week in September, opinion leaders voiced concern that
high-profile events often gloss over the deep inequalities exposed by climate
change, especially how poorer populations suffer disproportionately and struggle
to access mitigation or adaptation resources. The message was clear: climate
policies should better reflect social justice concerns, ensuring they are
inclusive and do not unintentionally favor those already privileged.
We believe access to food sits at the heart of this call for inclusion, because
everything starts with food: it is a fundamental human right and a foundation
for health, education and opportunity. It is also a lever for climate, economic
and social resilience.
> We believe access to food sits at the heart of this call for inclusion,
> because everything starts with food
This makes the global conversation around food systems transformation more
urgent than ever. Food systems are under unprecedented strain. Without urgent,
coordinated action, billions of people face heightened risks of malnutrition,
displacement and social unrest.
Delivering systemic transformation requires coordinated cross-sector action, not
fragmented solutions. Food systems are deeply interconnected, and isolated
interventions cannot solve systemic problems. The Food and Agriculture
Organization’s recent Transforming Food and Agriculture Through a Systems
Approach report calls for systems thinking and collaboration across the value
chain to address overlapping food, health and environmental challenges.
Now, with COP30 on the horizon, unified and equitable solutions are needed to
benefit entire value chains and communities. This is where a systems approach
becomes essential.
A systems approach to transforming food and agriculture
Food systems transformation must serve both people and planet. We must ensure
everyone has access to safe, nutritious food while protecting human rights and
supporting a just transition.
At Tetra Pak, we support food and beverage companies throughout the journey of
food production, from processing raw ingredients like milk and fruit to
packaging and distribution. This end-to-end perspective gives us a unique view
into the interconnected challenges within the food system, and how an integrated
approach can help manufacturers reduce food loss and waste, improve energy and
water efficiency, and deliver food where it is needed most.
Meaningful reductions to emissions require expanding the use of renewable and
carbon-free energy sources. As outlined in our Food Systems 2040 whitepaper,1
the integration of low-carbon fuels like biofuels and green hydrogen, alongside
electrification supported by advanced energy storage technologies, will be
critical to driving the transition in factories, farms and food production and
processing facilities.
Digitalization also plays a key role. Through advanced automation and
data-driven insights, solutions like Tetra Pak® PlantMaster enable food and
beverage companies to run fully automated plants with a single point of control
for their production, helping them improve operational efficiency, minimize
production downtime and reduce their environmental footprint.
The “hidden middle”: A critical gap in food systems policy
Today, much of the focus on transforming food systems is placed on farming and
on promoting healthy diets. Both are important, but they risk overlooking the
many and varied processes that get food from the farmer to the end consumer. In
2015 Dr Thomas Reardon coined the term the “hidden middle” to describe this
midstream segment of global agricultural value chains.2
This hidden middle includes processing, logistics, storage, packaging and
handling, and it is pivotal. It accounts for approximately 22 percent of
food-based emissions and between 40-60 percent of the total costs and value
added in food systems.3 Yet despite its huge economic value, it receives only
2.5 to 4 percent of climate finance.4
Policymakers need to recognize the full journey from farm to fork as a lynchpin
priority. Strategic enablers such as packaging that protects perishable food and
extends shelf life, along with climate-resilient processing technologies, can
maximize yield and minimize loss and waste across the value chain. In addition,
they demonstrate how sustainability and competitiveness can go hand in hand.
Alongside this, climate and development finance must be redirected to increase
investment in the hidden middle, with a particular focus on small and
medium-sized enterprises, which make up most of the sector.
Collaboration in action
Investment is just the start. Change depends on collaboration between
stakeholders across the value chain: farmers, food manufacturers, brands,
retailers, governments, financiers and civil society.
In practice, a systems approach means joining up actors and incentives at every
stage.5 The dairy sector provides a perfect example of the possibilities of
connecting. We work with our customers and with development partners to
establish dairy hubs in countries around the world. These hubs connect
smallholder farmers with local processors, providing chilling infrastructure,
veterinary support, training and reliable routes to market.6 This helps drive
higher milk quality, more stable incomes and safer nutrition for local
communities.
Our strategic partnership with UNIDO* is a powerful example of this
collaboration in action. Together, we are scaling Dairy Hub projects in Kenya,
building on the success of earlier initiatives with our customer Githunguri
Dairy. UNIDO plays a key role in securing donor funding and aligning
public-private efforts to expand local dairy production and improve livelihoods.
This model demonstrates how collaborations can unlock changes in food systems.
COP30 and beyond
Strategic investment can strengthen local supply chains, extend social
protections and open economic opportunity, particularly in vulnerable regions.
Lasting progress will require a systems approach, with policymakers helping to
mitigate transition costs and backing sustainable business models that build
resilience across global food systems for generations to come.
As COP30 approaches, we urge policymakers to consider food systems as part of
all decision-making, to prevent unintended trade-offs between climate and
nutrition goals. We also recommend that COP30 negotiators ensure the Global Goal
on Adaptation include priorities indicators that enable countries to collect,
monitor and report data on the adoption of climate-resilient technologies and
practices by food processors. This would reinforce the importance of the hidden
middle and help unlock targeted adaptation finance across the food value chain.
When every actor plays their part, from policymakers to producers, and from
farmers to financiers, the whole system moves forward. Only then can food
systems be truly equitable, resilient and sustainable, protecting what matters
most: food, people and the planet.
* UNIDO (United Nations Industrial Development Organization)
Disclaimer
POLITICAL ADVERTISEMENT
* The sponsor is Tetra Pak
* The ultimate controlling entity is Brands2Life Ltd
* The advertisement is linked to policy advocacy regarding food systems and
climate policy
More information here.
https://www.politico.eu/7449678-2