Alcohol has been enjoyed in societies for thousands of years, playing a role in
celebrations and gatherings across the world. While misuse continues to cause
harm, it’s encouraging to see that, according to World Health Organization data,
trends are moving in the right direction. Consumers are better informed and
increasingly aware of the benefits of moderation.
While Diageo is only relatively young — founded in 1997 — our roots run deep.
Many of our brands date back centuries, some as far back as the 1600s. From
iconic names such as Guinness and Johnnie Walker to modern innovations like
Tanqueray 0.0, we are proud to continue that legacy by building and sustaining
exceptional brands that resonate across generations and geographies. We want to
be one of the best performing, most trusted and respected consumer products
companies in the world — grounded in a strong sense of responsibility.
That means being transparent about the challenges, proactive in promoting
responsible drinking, and collaborative in shaping the future of alcohol policy.
We are proud of the progress made, but we know there is more to do. Lasting
change requires a whole-of-society approach, bringing together governments,
health experts, civil society and the private sector.
We believe a more balanced, evidence-based dialogue is crucial; one that
recognizes both the risks of harmful drinking and the opportunities to drive
positive change. Our brands are woven into cultural and social traditions around
the world, and the industry contributes significantly to employment, local
economies and public revenues. Recognizing this broader context is essential to
shaping effective, proportionate and collaborative alcohol policies.
Public-private collaboration brings together the strengths of different sectors,
and these partnerships help scale impactful programs.
> We believe a more balanced, evidence-based dialogue is crucial; one that
> recognizes both the risks of harmful drinking and the opportunities to drive
> positive change.
Across markets, consumers are increasingly choosing to drink more mindfully.
Moderation is a long-term trend — whether it’s choosing a non-alcoholic
alternative, enjoying fewer drinks of higher quality, or exploring the choice
ready-to-drink formats offer, people are drinking better, not more, something
Diageo has long advocated. Moderation is not a limitation; it’s a mindset. One
of the ways we’re leading in this space is through our expanding non-alcoholic
portfolio, including the acquisition of Ritual Beverage Company in the US and
our investment in Guinness 0.0. This growing diversity of options empowers
individuals to choose what’s right for them, in the moment. Moderation is about
choice, and spirits can also offer creative ways to moderate, such as mixing
alcoholic and non-alcoholic ingredients to craft serves like the ‘lo-groni’, or
opting for a smaller measure in your gin and tonic.
Governments are increasingly taking proportionate approaches to alcohol
regulation, recognizing the value of collaboration and evidence-based policy.
There’s growing interest in public-private partnerships and regulatory
rationality, working together to achieve our shared goal to reduce the harmful
use of alcohol. In the UK, underage drinking is at its lowest since records
began, thanks in part to initiatives like Challenge 25, a successful
public-private collaboration that demonstrates the impact of collective,
targeted action.
> Moderation is not a limitation; it’s a mindset.
Diageo has long championed responsible drinking through campaigns and programs
that are measurable and scalable. Like our responsible drinking campaign, The
Magic of Moderate Drinking, which is rolled out across Europe, and our programs
such as Sober vs Drink Driving, and Wrong Side of the Road, which are designed
to shift behaviors, not just raise awareness. In Ireland, we brought this
commitment to life at the All Together Now music, art, food and wellness
festival with the launch of the TO.0UCAN pub in 2024, the country’s first-ever
non-alcoholic bar at a music festival. Serving Guinness 0.0 on draught, it
reimagined the traditional Irish pub experience, offering a fresh and inclusive
way for festival-goers to enjoy the full energy and atmosphere of the event
without alcohol.
Another example comes from our initiative Smashed. This theatre-based education
program, developed by Collingwood Learning and delivered by a network of
non-government organizations, educates young people and helps them understand
the dangers of underage drinking, while equipping them with the knowledge and
confidence to resist peer pressure. Diageo sponsors and enables Smashed to reach
millions of young people, teachers and parents across the globe, while ensuring
that no alcohol brands of any kind are mentioned. In 2008, we launched DRINKiQ,
a first-of-its-kind platform to help people understand and be informed about
alcohol, its effects, and how to enjoy it responsibly. Today, DRINKiQ is a
dynamic, mobile-first platform, localized in over 40 markets. It remains a
cornerstone of our strategy.
> Diageo has long championed responsible drinking through campaigns and programs
> that are measurable and scalable.
In the UK, our partnership with the Men’s Sheds Association supports older men’s
wellbeing through DRINKiQ. Most recently, this collaboration expanded with
Mission: Shoulder to Shoulder, a nationwide initiative where Shedders are
building 100 buddy benches to spark over 200,000 conversations annually. The
campaign promotes moderation and connection among older men, a cohort most
likely to drink at increasing or higher risk levels. Across all our
partnerships, we focus on the right message, in the right place, at the right
time. They also reflect our belief that reducing harmful drinking requires
collective action.
Our message is simple: Diageo is ready to be a proactive partner. Let’s build on
the progress made and stay focused on the shared goal: reducing harm. With
evidence-based policies, strong partnerships and public engagement, we can
foster a drinking culture that is balanced, responsible and sustainable.
Together, we can make real progress — for individuals, communities and society
as a whole.
Tag - Public-private partnerships
The question isn’t whether globalization will continue, but who will lead it and
on what terms, says BMW’s Frank Niederländer.
With geopolitical tensions and uncertainty in the world market on the rise, the
EU has an opportunity to shape the global trade agenda — if it gets out of its
own way.
“Europe had the ambition to lead with the Green Deal, setting the pace for the
global economy,” says Niederländer, BMW Group Vice President, Government Affairs
Europe. “But while we focused on regulation, others moved ahead prioritizing
speed, investment and outcomes.”
> We need to envision growth as an imperative again.
>
> Frank Niederländer, BMW Group vice president, government affairs Europe
Europe’s auto industry has a sterling reputation globally for manufacturing
high-quality vehicles, and the EU has a goal of zero emissions for all cars by
2035. But China’s drive for innovation has helped it lead the world market for
electric cars. Only one of the world’s top 15 battery electric vehicles is made
in the EU.
“The share of EVs sold still depends heavily on national regulatory conditions.
This fragmentation in the single market remains one of the greatest challenges
to the uptake of electric vehicles. Political alignment, investment scale and
the ability to react with speed is essential,” says Niederländer.
POLITICO Studio sat down with Niederländer to discuss what shifts need to happen
to create a climate-neutral, competitive Europe.
POLITICO Studio: What is BMW’s outlook on international trade in this era of
geopolitical tension?
Frank Niederländer: The global trading system is shifting — and it has real
consequences. It shapes investment flows, supply chains and the rules of
competition in real time.
Other regions are acting with intent ― investing heavily to secure their
industrial bases through billions in subsidies, raw material lockdowns and
strategic alliances that give them an edge. Access to energy, technology and key
inputs is now, very openly, used as leverage. The risk for Europe isn’t
deglobalization, it’s marginalization. It’s falling behind while others move
with more speed and focus.
Europe must remain open with a trade policy that reinforces our competitiveness,
secures our supply chains and reflects our values, while recognizing and
managing strategic dependencies.
PS: Amid the United States’ increasingly isolationist trade policies, is there a
new opportunity for Europe?
FN: There could be, if the EU stops playing defense and starts thinking
strategically about where it wants to lead. Europe has a chance to position
itself as a stable, credible anchor for open and fair trade. For that, we need
cohesion within the EU, and alignment of environmental, economic and trade
policy. More free trade agreements with core partners (such as Mercosur) are
essential today after a long period of insufficient EU engagement.
Europe has what it takes to lead: a strong Single Market, technological
leadership and a solid rule-of-law tradition. What’s missing is the will to
shape the global trading system, not just manage its consequences.
We should focus on areas where the need for collaboration is highest, such as
climate-neutral industry, resilient supply chains and high-value innovation. The
EU must be capable of swiftly recalibrating its priorities to keep pace with the
evolving geopolitical environment, or it may find itself sidelined. We need to
envisage growth as an imperative again.
PS: What emerging technologies could define Europe’s competitive edge? How is
BMW helping to accelerate them?
FN: Europe’s edge will be defined by the convergence of climate ambition and
industrial competitiveness. The winning technologies will be those that deliver
both. At BMW, this is already shaping how we build, invest and compete globally.
We have long embedded circularity into the core of our strategy ― in the design
phase, material sourcing and end-of-life recycling. We are also investing
heavily in battery cell innovation and scaling European production capacity
while continuing to advance a broad range of powertrain technologies ― from
electric drivetrains to highly efficient combustion engines running on renewable
fuels. In fact, all diesel BMW vehicles produced in Germany are now delivered
with HVO100, a renewable fuel that reduces life cycle CO2 emissions by up to 90
percent.
Europe has the talent and industrial base to lead. The challenge now is to
translate that potential into scale — with policy that recognizes and
accelerates technological leadership. We need agile policy frameworks,
public-private partnerships and an ecosystem that fosters innovation, rather
than policies that dictate technologies.
> Europe has the talent and industrial base to lead. The challenge now is to
> translate that potential into scale — with policy that recognizes and
> accelerates technological leadership.
PS: How can Europe turn decarbonization into a long-term competitive advantage?
What role does BMW play in that transformation?
FN: Decarbonization can give Europe an economic edge if we scale up
cost-effective, low-carbon technologies. While Europe led with ever tighter
regulation, other regions ― notably the U.S. and China ― have advanced by
mobilizing massive investments, securing critical resources and rapidly scaling
technologies. Still, Europe has what it takes to lead this transition through
choice and innovation, not restrictions.
Take the supply chain. The largest levers for reducing CO2 emissions lie
upstream from manufacturers. We prioritize renewable electricity, secondary
materials and low-carbon production processes, and we actively invest in and
source from suppliers that meet those standards. That creates real momentum on
the demand side to accelerate the transition.
This approach plays to Europe’s industrial strengths: advanced engineering
capabilities, integrated supply chains and the ability to deliver premium
solutions across multiple technologies. Let companies compete to deliver the
best climate solutions — that’s how we’ll maintain global leadership.
PS: How does life cycle assessment (LCA) affect BMW’s strategies?
FN: At BMW, our strategic focus is clear ― achieving business success while
reducing our climate footprint. To do that, we must look at the full life cycle
of our products ― from raw material extraction to manufacturing, use and
end-of-life recycling. This is essential if we want climate policy to reflect
real impact.
Tailpipe emissions cannot be the only measure of a vehicle’s environmental
impact. We need to assess CO2 emissions across the entire value chain. This
means designing with carbon footprint in mind from the start, and we’re already
applying this approach with the Neue Klasse, a new, fully electric BMW model
generation, where we are embedding circularity and carbon reduction every stage
of development.
The EU’s move toward LCA is welcome — but it needs consistency, transparency and
practical application across sectors. Done right, LCA will reward innovation
where it matters most: in cutting total emissions.
PS: How is BMW future-proofing its global supply chain?
FN: Europe’s future competitiveness will hinge on whether we treat supply chains
as a strategic asset, not a logistical challenge. That’s especially true in
areas such as the battery value chain, where industrial success depends on both
resilience and global cooperation. This will require massive investments — just
look at the figures in the Draghi report.
This isn’t about reducing complexity. It’s about managing it. Engagement with
partners such as China must be realistic and rules-based, because decoupling is
neither feasible nor desirable. Europe cannot operate as an island.
At BMW, our global production footprint is built upon a strong European
foundation. We localize to serve markets more efficiently and to strengthen
resilience, and our international presence amplifies Europe’s role as a hub for
innovation, engineering excellence and high-value manufacturing.
> Climate neutrality must be engineered — deliberately, collaboratively, and at
> scale.
PS: What can the EU do to ensure that companies like BMW remain globally
competitive while leading the green transition?
FN: Europe has the chance to define climate neutrality in a way that keeps
Europe competitive and keeps jobs here.
Stronger cooperation between governments and industry is key. The Strategic
Dialogue launched by EU Commission President Ursula von der Leyen was an
important step to this and must continue.
The future will be shaped by many choices — smart regulation, strong industrial
alliances and a shared commitment to progress that is measurable, not
ideological.
PS: What future does BMW imagine for a climate-neutral world?
FN: A climate-neutral Europe is not just a moral responsibility — it’s a
competitive imperative. It means rethinking how we power industries, design
products and create value chains. The future will be built not on a single
breakthrough but by thousands of decisions across technology, regulation and
investment. Climate neutrality must be engineered — deliberately,
collaboratively and at scale.
At BMW Group, we are engineering that future with purpose. Our 2030 climate
targets are fully aligned with the Paris Agreement, which means reducing our CO2
emissions by 40 million tons by 2030 as compared to 2019.
Europe has the potential to lead this transformation. But leadership requires
the courage to move beyond outdated regulations, respond decisively to shifting
geopolitical realities and streamline the path forward. This is the moment to
lead with conviction.
The EU’s Common Agricultural Policy (CAP) is grounded in the recognition that
people, land, and society are deeply interlinked. But today, that connection is
under strain. Farmers face mounting pressure from extreme weather, rising input
costs and increasing regulatory complexity. Against this backdrop, the upcoming
CAP reform is a pivotal moment, one that must deliver real outcomes to
future-proof European agriculture.
To do that, policymakers should focus on three clear priorities: enabling
co-investment between the public and private sectors; ensuring payments are
simpler and rewarding farmers for what really matters; and equipping farmers
with tailored support beyond payments. This is the foundation for a CAP that
truly supports food security, climate action, and farmer livelihoods, while
keeping food affordable for consumers.
By aligning around these priorities, the CAP can move beyond being just a
rulebook for farmers and become a framework that brings together everyone
involved in sustaining and shaping our food future, balancing agricultural
progress with care for the environment and our communities. At PepsiCo, we see
the impact of these policies up close, starting from the very first step of our
value chain. Across the EU, we work with over 800 farmers to source key
agricultural crops and ingredients, including potatoes, corn and oats. These
ingredients are the backbone of iconic brands like Lay’s, Doritos, and Quaker,
which rely on thriving farming communities and sustainable agricultural
practices. Their success is our success. And so is their sustainability.
But I can also see that today’s farmers face an uncertain future. With the EU
standing at a crossroads, we have to rethink how to support food security,
respond to climate impacts and deliver more equitable outcomes for farmers,
while keeping food affordable and accessible for consumers.
That’s why CAP reform matters now. Done right, the CAP can become a global model
for a public-private partnership that drives meaningful and measurable progress
across the full agri-food value chain.
On PepsiCo’s part, we remain committed to being a constructive partner in
support of a more competitive, resilient and sustainable food system — based on
regenerative agriculture. This approach uses science-based farming practices
that aim to restore ecosystems by improving soil health and fertility, reducing
emissions, enhancing water quality and protecting biodiversity while also
supporting farmer livelihoods. For example, in Jaén, southern Spain, we recently
launched ‘Viva Oliva’ to support local olive growers, many of whom have been
working in this historic trade for generations. Through this project, we’re
providing hands-on training from agronomy experts so that farmers can protect
the ecosystem more efficiently and conserve vital resources.
Crucially, these practices also create new opportunities, ensuring that farming
can continue to be a viable option for the next generation. In 2024 we sourced
100 percent of the olive oil for our Alvalle gazpacho brand from Jaén, securing
a high-quality local supply for Alvalle while strengthening the role of farmers
in our supply shed.
> We’re investing in innovative techniques that bring life back to the land
> because it is the right thing to do for our business, for the farmers we work
> with and for the planet.
Viva Oliva is just one of the many projects that’s helped us spread regenerative
agriculture across a total of 3.5 million acres (approximately 1.4 million
hectares) of farmland. Recently, we extended our target and are now aiming to
reach 10 million acres (around 4 million hectares) globally by 2030.
We’re also taking action further upstream through partnerships with fertilizer
companies like Yara, equipping farmers with precision tools to improve nutrient
efficiency, increase yields and lower the carbon footprint of their crops. This
collaboration supports approximately 1,000 farms across the EU and the UK that
supply key ingredients for Lay’s and Walkers, covering around 128,000 hectares.
By 2030 the partnership aims to reduce fertilizer production emissions by up to
80 percent and in-field fertilizer emissions by up to 20 percent, helping scale
regenerative practices while supporting farmer productivity.
> Recently, we extended our regenerative agriculture target and are now aiming
> to spread these practices across 10 million acres of farmland globally by
> 2030.
I know that we have the expertise and ambition to meet these goals, but we can’t
do it alone. To make this a reality, we need EU policymakers to deliver a
coherent and enabling regulatory framework that’s fit for purpose, based on
three guiding principles.
Firstly, policymakers must match ambition with investment. Strong public funding
is essential, but the CAP should be reimagined to enable co-investment through
blended finance models, where public and private capital work together to
accelerate impact. Private investment should be results driven, allowing trusted
private-sector partners, who operate at size and scale, to co-design solutions
with farmers.
Secondly, payments should be simpler and pay farmers for what really matters.
This requires rewarding farmers not just for compliance but also for delivering
real, measurable environmental benefits such as healthier soils, lower
emissions, cleaner water, and richer biodiversity. Farming is unlike most other
businesses, with income around 40 percent lower than non-agricultural income,1,
which is why CAP incentives must reflect the true costs farmers face, including
machinery upgrades and land-use shifts. And the system should incentivize
progress over perfection — farmers who are already taking action should be
compensated accordingly.
Thirdly, the CAP must recognize that farmers need support beyond payments.
Investing in climate information systems, knowledge sharing networks, rural
infrastructure and novel technologies will help accelerate and scale the
implementation of new techniques — while ensuring profitability. Travelling
across Europe to meet our teams on the ground, I see firsthand how local needs
differ, so farmers should also be free to choose the solutions that are best
suited to their region and crops to ensure policies are impactful.
> “Done right, the CAP can become a global model for a public-private
> partnership that drives meaningful and measurable progress across the full
> agrifood value chain.
Archana Jagannathan
And PepsiCo is committed to being part of that solution. Together with
like-minded partners, we’re fully committed to growing food in a way that
revitalizes the earth, supports farmer livelihoods, and feeds a growing
population.
As the EU Digital Summit opens today in Gdańsk under the auspices of the Polish
EU Presidency, the AI Chamber unveiled the CEE AI Action Plan – a landmark
initiative aimed at transforming Central and Eastern Europe into a globally
competitive hub for artificial intelligence innovation.
Backed by compelling economic data and crafted over months of regional
consultation, the CEE AI Action Plan arrives at a critical moment: with over 150
million citizens and a combined GDP of €2.5 trillion, CEE is at a tipping point
– one where the adoption or neglect of AI in the next 24 months could define the
region’s economic trajectory for decades.
High stakes for an undervalued region
The CEE AI adoption rate remains far below Western Europe. By 2024, only 4–6% of
CEE firms had adopted AI – compared to the EU’s average of 13.5%, well below the
EU’s target of 75% by 2030. SMEs are even further behind, with most still at the
experimentation stage.
The region holds 22% of the EU’s population but only 11% of its GDP. Yet,
unlocking AI could boost CEE’s GDP by up to €100 billion annually (5%),
equivalent to adding an economy the size of Croatia every year. In a more
ambitious scenario, the gain could reach €135 billion, or 8% of GDP. But the
window is rapidly closing and without fast, coordinated action, the upside could
shrink to a mere €15 billion a year.
CEE’s core strengths – a strong track record of creating cutting-edge
technologies, world-class STEM education, deep technical talent, and a growing
startup ecosystem – offer a unique opportunity. AI, the Chamber argues, could
serve as a “force multiplier” to empower SMEs, scale globally competitive
startups, attract investment, and ultimately raise living standards across the
region.
A five-pillar roadmap for regional transformation
The CEE AI Action Plan lays out a concrete, region-specific roadmap of tailored,
actionable recommendations to boost productivity, scale breakthrough innovation,
and drive competitiveness for the region.Framed around coordinated action that
leverages the unique regional strengths and fosters cooperation rather than
fragmented national efforts, the strategy calls for alignment across
governments, businesses, academia, and civil society to turn CEE into an AI
powerhouse.
The Plan offers a strategy to foster innovation and productivity across five
critical areas: infrastructure, data, talent, regulation, and innovation. The
focus is on SMEs, which make up 99% of all businesses and contribute around half
of CEE GDP.
“This is a roadmap to transformation – but it’s not one-size-fits-all. We will
work together with local authorities, ministries, and partner organizations in
every CEE country to adapt and implement this plan where it matters most.” says
Tomasz Snażyk, CEO of the AI Chamber.
Building capacity and removing friction
The Plan envisions a regionally integrated high-performance computing network
linking existing national supercomputers to provide startups, SMEs, and
researchers with the computing power needed to build advanced AI solutions or
launch of testbed facilities in sectors like healthcare and autonomous vehicles.
In terms of data, the Plan outlines the creation of a CEE Open Data Knowledge
Network for public institutions to share best practices and make national Open
Data Portals more accessible to developers and researchers. By introducing
common governance standards and launching cross-border data trusts in sectors
like healthcare and manufacturing, stakeholders would be able to securely pool
data – laying the groundwork for more powerful and reliable AI model training.
When it comes to talent, the Plan outlines targeted financial incentives, such
as 1,000 fully funded AI fellowships, new academic programs, and a Brain
Circulation program to both retain talent at home and attract top professionals
from abroad.
On regulation, the Plan advocates the creation of a CEE AI Policy Council to
give the region greater influence in Brussels, ensuring that EU-wide rules
reflect the region’s needs – such as protecting SMEs from disproportionate
burdens. It also calls for regional regulatory sandboxes where startups could
test AI systems safely, without drowning in legal complexity.
Mobilizing capital for AI-driven growth
In 2024, CEE startups raised just €2.3 billion in venture funding – a fraction
of Western Europe’s total. With less than 10% of EU AI investment reaching CEE,
AI Chamber’s strategy proposes a network of AI innovation hubs near top
universities, challenge-driven National AI R&D funding, and region-wide
technology transfer programs. These would help transform promising ideas –
especially in traditional sectors like manufacturing and agriculture – into real
products and growth companies.
“The CEE region doesn’t have the luxury of waiting. The next 12 to 24 months are
pivotal,” comments Snażyk. “If we empower SMEs with the right tools, data, and
capital, they won’t just compete – they will lead.”
Changing the narrative: from outsourcing to leadership
The Plan is also about repositioning CEE globally. It proposes a CEE AI
Champions portfolio featuring companies like UiPath, Rossum, and Infermedica,
and a regional branding campaign to shift the perception of CEE from outsourcing
center to AI innovation hub.
“CEE doesn’t need to copy Silicon Valley to succeed – it needs to amplify its
own strengths,” emphasizes Snażyk. “With strong local ecosystems and affordable
talent, we can build startups that scale from Prague, Sofia, or Vilnius – not
just from London or San Francisco.”
A European challenge – and a regional answer
The urgency is both regional and continental. AI is emerging as a crucial lever
to offset demographic decline, counter rising labor costs, and sustain global
competitiveness. The persistent digital divide with the West continues to limit
AI’s potential in critical sectors including manufacturing, healthcare, and
public administration.
“CEE has a key advantage: there is far less legacy thinking and resistance to
change than in many other places – giving us a real chance to leapfrog ahead.
But seizing this opportunity will require strong public-private partnerships and
profound changes in education and other key areas, as AI affects everyone and
everything. We’ll also need stronger regional coordination – something this
Action Plan calls for.” – says Mark Boris Andrijanič, member of the EIT
Governing Board, Vice President of International Markets at Kumo.AI and former
Minister of Digital Transformation for Slovenia.
Message to Brussels: CEE is ready to lead
Crafted in close alignment with the EU’s digital agenda and launched during
Poland’s EU Council Presidency, the Plan signals that the region is no longer
content to follow – it is ready to help lead Europe’s AI future.
Nick Dearden is the director of Global Justice Now. Peter Maybarduk is the
Access to Medicines director of Public Citizen. Both are members of the People’s
Medicines Alliance.
U.S. President Donald Trump has more tariff chaos up his sleeve, and medicine in
his sights.
This week, he issued an executive order blaming America’s sky-high drug prices
on other countries — and pharmaceutical tariffs could be next.
Panic is starting to set in. Tens of thousands of pharmaceutical workers in
Ireland are worried about their jobs; politicians across the EU and U.K. are
concerned the industry will pull investment and reinvest across the Atlantic;
and there are even warnings of higher prices and drug shortages — particularly
for generic medicines — in the U.S.
But it is the pharmaceutical industry itself that’s stoking these fears. Big
Pharma corporations never miss a chance to turn crisis into opportunity and to
boost their already inflated profits. And now, they’re using the opening Trump
has given them to demand the removal of regulations they dislike.
Under the pretense that Europe is no longer a profitable place to invest and
manufacture, drug makers are demanding all manner of concessions, including
looser regulation on clinical trials and tighter monopoly protection of the
intellectual property that underpins their power.
Most of these have nothing to do with making Europe a better place to
manufacture drugs and everything to do with raising prices. And it should make
us very suspicious of lobby group claims that “unless Europe delivers rapid,
radical policy change then pharmaceutical research, development and
manufacturing is increasingly likely to be directed towards the US.”
Since Trump has Big Pharma’s back, we can surely expect he’ll push their
wishlist — yet another reason governments have to reject his attempts to
strong-arm them.
Meanwhile, a similar move is afoot in the U.K., with pharma companies pushing
the government to reform the system that helps the National Health Service keep
a lid on medicine costs. The government has already granted them a review.
None of this should surprise us. Why wouldn’t Big Pharma latch on to the
opportunity of Trump’s tariff threats to make price-gouging easier, even if it’s
one of the most profitable industries in the world already? The truth is, it’s
perfectly profitable to produce medicines in Europe as is — it just isn’t
profitable enough for an industry that feels entitled to sky-high returns.
According to the pharmaceutical industry, it must secure these returns to invest
in a new generation of medicines, the cost of which is high. But sadly, even
handing blank checks to Big Pharma wouldn’t get us the medicines we need at a
price we can afford. Instead, it just means “unprofitable” but potentially
devastating problems like antimicrobial resistance will be ignored, while
companies try to create the next blockbuster drug that our health services won’t
be able to afford.
Big Pharma is a bully. It will take what it can get and then come back for more.
This isn’t to say Trump’s tariffs wouldn’t create havoc in supply chains and hit
generic production where margins are low. Indeed, generic manufacturers are
warning that any increase in production costs could lead to drug shortages and
higher prices — including for U.S. patients.
Generic manufacturers are warning that any increase in production costs could
lead to drug shortages and higher prices — including for U.S. patients. |
Allison Dinner/EFE via EPA
But European governments need to take this as an opportunity for restructuring
how they make medicines, and create a model that serves the public interest.
Of course, this will cost money. But medicines cost the public a small fortune
anyway. And if we’re going to be spending, let’s at least ensure we’re getting
the medicines we want and aren’t paying twice for the final product.
What we need is to work across Europe to build world-class, publicly controlled
medical research capacity. Then, rather than handing over that research — or,
indeed, the patient data underlying it — to the pharma cartel, we need to
develop a different model of intellectual property protection that allows for
the sharing and licensing of research in a way that supports international
collaboration to produce better medicines for all.
Such an approach wouldn’t just undercut Trump’s plans to enhance U.S. power, it
would also mean no longer treating lifesaving medical knowledge as commercial
property that only the richest can afford.
Knowledge is the lifeblood of modern society, we are told — so, why are we
allowing private interests to wall it off for decades?
In the meantime, we need to build manufacturing capacity as well. The public
sector doesn’t have to produce every medicine our society needs, but in an
increasingly insecure world, we do need more homegrown capacity. That means a
more balanced range of private sector companies involved in medicines, as well
as better public sector capacity, so we can’t be held to ransom.
Finally, given the long-term impact that cuts to U.S. and European aid will have
on health care globally, we should work with countries in the global south to
help boost their production capacity too. As things stand, too many nations have
been discouraged from addressing their local health needs. And we should be
supporting them with our know-how, technology transfer and a different
intellectual property model.
We can have a world where everyone has access to the medicines they need. But
both Trump and Big Pharma will push us in the opposite direction. It’s time for
something else.
Europe is at a pivotal crossroads. Geopolitical instability and economic anxiety
dominate the headlines and risk leading politicians into neglecting, or worse,
actively dismantling, the continent’s climate leadership. This must not happen.
Rather than turning their backs in a time of crisis, EU leaders should seek to
accelerate climate action as a path to both security and prosperity.
In the face of rampant disinformation and constant undermining by vested
interests in the fossil fuel industry, some now talk of diluting Europe’s
climate goals to appease lobby groups and climate-skeptic politicians. This
would be a big mistake. Climate ambition cannot be diminished or dismissed for
short-term political goals or vested interests. It must be long-sighted,
future-proofed and transformational. Europe must now, more than ever, double
down and show that climate action delivers for people, particularly those who
have lost faith that climate action can benefit their everyday lives.
A commitment to reducing net emissions by at least 90 percent by 2040, phasing
out fossil fuels and a strong Clean Industrial Deal that puts cities at the
center of its delivery is as important to the health and well-being of Europeans
as a strong
defense policy, trade relationships or social safety net. If done well, with
workers and families’ needs at the center, it will be essential to building a
resilient, competitive and secure Europe.
If Europe wants to win hearts, minds and markets, it must prove how the climate
transition delivers not just long-term targets, but also tangible benefits — and
this all begins in cities with good green jobs, security, healthier places to
live, work and play and lower bills.
Europe cannot achieve industrial competitiveness without decarbonization, and it
cannot meet its climate commitments without transforming industry. Cities are
hubs of economic activity, innovation and workforce development that will
determine whether Europe succeeds in achieving both goals.
City leaders understand how EU policies land on the ground. Empowered cities can
turn high-level climate ambition into real economic transformation.
Today, Europe’s 18 C40 cities, representing approximately 48 million residents
and contributing €3.51 trillion to the global economy, already support 2.3
million green jobs — 8 percent of their total employment — including over 1.3
million in sectors like clean energy, waste and transport. That number will only
grow as key sectors decarbonize. With the right support, cities can accelerate
the creation of good, green jobs and better access to them: jobs that are safe,
secure and future-proof.
> Europe’s 18 C40 cities, representing approximately 48 million residents and
> contributing €3.51 trillion to the global economy, already support 2.3 million
> good, green jobs
The examples are everywhere: London’s Green Skills Academy is reskilling
thousands for low-carbon careers. Rotterdam, where construction materials and
buildings account for 25 percent of the city’s €1.3 billion annual spend, is
using procurement to scale the circular economy, and through the Circular
Materials Purchasing Strategy, strives for a 50 percent reduction in primary
resource consumption by 2030. Considering that C40’s European cities have
reduced per-capita emissions by 23 percent between 2015 and 2024, these are not
just local initiatives — they are scalable models of the industrial
transformation Europe needs.
Cities also control powerful economic levers. Strategic procurement can shape
markets, drive clean-tech adoption and support local small and medium-sized
enterprises (SMEs). For example, Oslo mandates zero-emission construction in
public projects, and five years on, 77 percent of municipal building sites are
emission-free, a great example of procurement driving industry-wide changes.
With direct access to funding and streamlined EU instruments, cities can go
further and faster, creating demand for clean innovation and building thriving
local economies from the ground up.
Yet today, only 13 percent of the global workforce is ready for these future
careers, and Europe faces urgent skills shortages in high-emitting sectors.
Cities are ideally placed to bridge that gap. Madrid and London, for instance,
are already training workers in retrofitting, heat pumps and renewables. Paris
streamlines business registration to support start-ups, while Lisbon provides
free ESG training to SMEs, ensuring they meet evolving climate standards. But
this needs serious investment at the EU level and real collaboration. Without
structured EU-city collaboration, industrial policies risk being disconnected
from economic realities and workforce needs.
A just transition also means ensuring that new green jobs are high-quality,
inclusive and secure. The green economy has the potential to create 30 percent
more jobs compared with a business-as-usual approach, but only if inclusion and
fairness are built in from the start so these jobs will go to those who need
them the most. Cities, in partnership with unions, businesses and workers, can
ensure that industrial shifts translate into widespread job opportunities,
particularly for marginalized communities. Projects such as ‘Boss Ladies’ in
Copenhagen are championing the inclusion of women in the building sector.
A Clean Industrial Deal that excludes cities will fall short. One that
recognizes them as co-creators — alongside businesses, unions and communities —
can build the industrial, climate and social transition Europe urgently needs in
a time of crisis. Cities must be full partners, with direct access to the tools,
funding and policy frameworks needed to drive this transition.
To translate ambition into action, the Clean Industrial Deal must include clear
national frameworks for sustainable investment, early business engagement and
market-shaping tools like grants, innovation hubs and procurement. With strong
public-private partnerships and targeted investments in cities, we can create
the conditions for green jobs, resilient industries and lower energy bills.
This unpredictable decade has presented a once-in-a-generation opportunity for
Europe to create a future that works for everyone. Europe’s clean industrial
strategy must prioritize city-led innovation, invest in workforce transformation
and deliver for those who feel most left behind. That is how Europe can regain
global leadership — not by pulling back, but by proving how climate action can
be the surest path to economic resilience, energy independence and shared
prosperity.
> This unpredictable decade has presented a once-in-a-generation opportunity for
> Europe to create a future that works for everyone.
Over the past couple of years there has been a growing focus on PFAS (per- and
poly-fluoroalkyl substances) — a group of more than 10,000 synthetic chemicals
that are widely used in consumer and industrial products. Their chemical
stability and resistance to oil and water has made them incredibly useful across
many industries, including the pharmaceutical sector, where they are critical to
medicines and medical devices, manufacturing and packaging.
Following a joint REACH restriction proposal by five EU member states in 2023,
this broad group of chemicals has been under the spotlight due to environment
and health concerns, potentially concluding in a widespread ban on all PFAS by
2027.
The research-based pharmaceutical industry supports regulating PFAS of concern,
substituting them or minimizing their use while protecting patients’ access to
medicines.
> The research-based pharmaceutical industry supports regulating PFAS of
> concern, substituting them or minimizing their use while protecting patients’
> access to medicines.
There is also broad consensus within the pharmaceutical sector that
environmental legislation is important in mitigating environmental impacts and
climate change, and companies are working on numerous initiatives to achieve
this.
€50 million project launched
Our industry is actively searching for alternatives. As part of the Innovative
Health Initiative (IHI) — a public-private partnership initiative for health
research and innovation between the EU and Europe’s life science industries — a
call was launched for a project on PFAS exposure, emissions and end-of-life
management in the health care sector.
The initiative will see at least €48 million — half of which are in-kind
contributions from the industry and half EU funding for public partners —
committed to explore which PFAS are currently used in the pharma and medtech
sectors, identify opportunities to phase out PFAS of concern and find
alternatives that maintain at least the same level of patient safety and product
performance. From the industry side, the initiative is led by Belgian based
pharma company, UCB, and involving 26 pharmaceutical and medtech companies.
Further proposal considerations will look at the improved usage of PFAS
materials and minimize environmental exposure, map the types and applications of
PFAS throughout the supply chain, and develop a database of alternatives. The
call is open until April, 23 for consortia to apply for the funding. Large
companies that would like to contribute in-kind and join the existing industry
consortium should contact EFPIA.
via EFPIA
The IHI call is important. Currently no evidence exists of technically suitable
and readily available alternatives that can substitute PFAS active
pharmaceutical ingredients (APIs). No single ‘drop in’ replacement exists, given
that each API is not only treating a certain medical condition, but also has
individual properties like efficacy, side-effects, incompatibilities and drug
interactions.
Understanding PFAS and its uses in medicines
PFAS is a broad non-specific term relating to thousands of molecules. Not all
PFAS present the same risks to the environment or health. The industry relies on
certain PFAS for safe manufacturing, distribution and use of medicinal products.
Packaging, drug application devices and processing machinery, or items to extend
a medicine’s shelf life or protect sterility, are just a few examples of what
would fall under a blanket ban.
For example, high-performance fluoropolymers — especially
polychlorotrifluoroethylene and ethylene tetrafluoroethylene — are vital to the
containment, storage and delivery of injectable medicinal products. They help to
form protective barriers, ensuring quality and safety and preventing degradation
and deterioration. They also facilitate sterilization according to required Good
Manufacturing Practices standards of fully coated stoppers due to the smooth
hard surface. The unique properties of fluoropolymers provide resistance to
biological, chemical and physical degradation.
The impact on medicines and vaccines development
It is with this in mind that the industry is urging caution on a blanket ban on
PFAS. Without a derogation for medicines, 98% of the market authorizations of
new medicines would need to be amended, which in turn could see around 70% of
critical medicines in EU member states at risk of short supply.
An EFPIA survey of 40 pharmaceutical companies found that at least 93% of APIs
manufacturing relies on PFAS.
via EFPIA
If the ban applies as proposed, a wide range of medicines will become in short
supply or unavailable, with impact on patient health anticipated both within and
outside of the European Economic Area (EEA). Manufacturing and product
development will have to be relocated outside of the EEA, impacting the economy
and strategic autonomy of Europe. Additionally, banning PFAS within the EU while
importing PFAS-containing products from elsewhere would be inconsistent and
undermine the policy’s credibility.
via EFPIA
Protecting patient care is a joint responsibility. While European lawmakers will
need to make difficult decisions, changes to environmental legislation need to
work for Europe and for all patients while being realistically deliverable over
the long and short term.
> If the ban applies as proposed, a wide range of medicines will become in short
> supply or unavailable, with impact on patient health anticipated both within
> and outside of the European Economic Area.
The way forward
Our industry wants to see legislation that is proportionate, effective and safe
with a transitional period of time-limited or unlimited derogations for low risk
PFAS while protecting patients’ access to medicines.
There is currently no like-for-like replacement for PFAS, and making changes to
medicines in this highly regulated sector requires new approvals. Any
alternatives must be analyzed for their superior environmental performance and
must not compromise patient safety. When a viable and scalable alternative is
identified, implementation will require time and collaboration among partners in
the value chain — including regulators, as any changes in manufacturing
necessitate new regulatory approvals.
To make a regulation fit for purpose, EFPIA is proposing three recommendations:
1. Time limited derogations until suitable alternative solutions are commonly
agreed and qualified.
2. The development of partnerships throughout supply chains to better manage
PFAS emissions.
3. Global health authorities expedite approvals of suitable fluorine-free
alternatives.
Pharmaceutical companies are among the most active in the world in developing
policies to mitigate climate change and improve public health. They often aim
higher than the compliance targets set within the various EU legislative
requirements as part of the EU Green Deal initiatives, including under the zero
pollution, circular economy and climate action plans.
From the climate emergency to clean water, there are projects underway to
minimize the environmental impacts of our supply chain, manufacturing and
products. As the EU navigates the complexities of PFAS regulation, we must
champion policies that simultaneously uphold environmental goals and ensure
uninterrupted access to medicines.
David Miliband is the president and CEO of the International Rescue Committee.
European Commission President Ursula von der Leyen’s aspiration for a
“geopolitical Commission” speaks to the modern era.
The world is more connected now than ever before, with increasing global risks
from health pandemics to climate change and nuclear proliferation. At the same
time, political fragmentation is creating the “post-American world,” even though
the U.S. economy is sustaining its share of global GDP at around 25 percent.
The EU’s aspiration for a coherent role in this world, bringing together hard
and soft power, is an important test for the new Commission. And as the
distinctions between foreign and domestic policy are increasingly frayed, the
need for a joined-up approach is growing.
One such example is the Global Gateway program. Described by the EU as its “plan
for major investment in infrastructure development around the world,” the
incoming Commission wants to use it to compete for geopolitical influence and
spur public-private partnerships in emerging markets like Egypt and Columbia.
The program could also spur important progress in climate mitigation and
adaptation.
However, if the price of this strategy is paid by the rest of the international
development program — which is meant to tackle extreme poverty, and needs to be
focused in fragile and conflict-affected states that are the source of
increasing poverty and displacement — the Commission’s geopolitical imperative
will be undermined.
Rather, to unlock maximum benefit and mitigate any potential harm, the Global
Gateway could and should be adapted to deliver in a wider range of settings.
However, channeling effective outcomes in the most fragile and conflict-affected
contexts will require a separate strategy — one underpinned by sufficient
resources and political will.
With the vast majority of humanitarian needs centered in a handful of countries
caught at the intersection of conflict, climate change and economic shocks,
renewed effort to address this new geography of crisis is essential — not only
to uphold the EU’s own fundamental values but to galvanize greater political
stability, protect against global spillover crises and secure the bloc’s
reputation as a global leader.
Based on the International Rescue Committee’s (IRC) experience working in
fragile contexts, there’s a blueprint for how the EU can create a framework for
fragile states that is truly fit for the future:
Firstly, the Global Gateway must recognize the changing reality that extreme
poverty and climate vulnerability are growing in fragile and conflict-affected
states. The amount of global funding available for Least Developed Countries is
diminishing, and multilateral finance is often failing to reach those most in
need. This is why it is important to improve access to finance in these
settings, and the IRC recommends pioneering the use of “humanitarian debt swaps”
in order to abate the flow of funds out of the poorest countries in debt
payments and reroute this finance toward humanitarian needs.
European Commission President Ursula von der Leyen’s aspiration for a
“geopolitical Commission” speaks to the modern era. | Kenzo Tribouillard/Getty
Images
Second, there isn’t just a “finance gap” — there’s also a “delivery gap.”
Fragile contexts don’t offer the easy option of a government-centric partnership
because, by definition, their governments are challenged at best, and at worst,
they’re simply not present. Von der Leyen’s call for the creation of an
“integrated approach to fragility” is an important recognition of this reality.
The EU has already demonstrated it can deliver both humanitarian and development
aid in the most complex settings if it broadens its range of partners. And in
contexts where the EU can’t work with governments, it should deepen
collaboration with civil society organizations. These groups — women- and
refugee-led organizations in particular — are often best placed to identify
groups with specific needs, conduct negotiations to overcome barriers to access
and ensure aid can reach those who need it most. Our EU-funded work with a
number of civil society organizations in the Central African Republic to
economically empower women and reduce their exposure to gender-based violence is
a great example of this.
Such people-centric partnerships aren’t just stopgap measures to keep people
alive in emergencies. They can also lay the groundwork for longer-term systems
strengthening. An effective fragility strategy could better support this
important work through the creation of a new EU Resilience Fund, jointly funded
by the Commission’s departments for humanitarian aid (ECHO) and international
partnerships (INTPA), leveraging the former’s expertise in delivering in fragile
contexts and the latter’s strengths in catalyzing long-term sustainable
development outcomes.
Lastly, the IRC has identified 17 particularly climate-vulnerable and
conflict-affected countries — including Afghanistan, Yemen, Syria and Sudan —
which account for just 10.5 percent of the total global population but make up a
staggering 71.1 percent of those in humanitarian need. The EU needs to approach
these contexts with the recognition that when conflict and climate change
intersect, development is set back. So, the answer needs to address climate
adaptation as a strategy for livelihoods.
However, in 2022, only about 6 percent of the EU’s adaptation financing for
developing countries was committed to fragile and conflict states — a number
that clearly falls far short of climate finance needs and should be tripled. The
bloc should also double the proportion of Official Development Assistance
disbursed to the world’s most fragile countries to 50 percent, and follow
Germany’s example in scaling up the proportion of its budget spent on
anticipatory climate action from 2 percent to 5 percent.
On the cusp of their new mandate, von der Leyen’s new Commissioners have the
chance to forge a new approach to fragile states that actually works, while
spearheading a global shift toward better supporting the world’s most complex
and vulnerable regions. This isn’t only a moral imperative, it’s a crucial step
if the EU is to save lives and strengthen communities amid new global threats,
retain its position as a heavyweight on the world stage and raise the bar for
the broader international community.