EC's proposed budget sends environmentalists into frenzy over unfair division

The European Commission has unveiled a contentious proposal to consolidate several existing EU funding programs into a single “Competitiveness Fund” as part of its broader €1.816 trillion multiannual budget plan. The move, announced last week, has sparked criticism from both EU member states and civil society organizations, particularly over the absence of dedicated biodiversity funding.

Under the plan, biodiversity objectives will have no separate earmarked funding and will instead compete for resources with other environmental priorities such as climate change mitigation, water security, the circular economy, and pollution control.

According to reporting by Politico, environmental advocates warn that without clear allocation, funding could be diverted toward industrial projects aligned with the EU’s competitiveness agenda at the expense of urgent but less profitable biodiversity initiatives.

Ester Asin, director of the World Wide Fund for Nature (WWF) European Policy Office, cautioned of a “real danger” that biodiversity could be sidelined in favor of industrial priorities presented as green investments. The EC itself acknowledges an estimated €37 billion annual funding gap for biodiversity across the EU.

Currently, the EU’s €5.45 billion LIFE program specifically supports environmental and biodiversity projects. Under the new budget, LIFE would be merged with funds dedicated to digitalization and defense into a €409 billion Competitiveness Fund. Funding previously reserved for biodiversity would be grouped under a broad “environment and climate” target.

The Commission argues that overall financing for green priorities will rise. It says 35 percent of the total EU budget — around €700 billion — will be committed to achieving the EU Green Deal’s objectives, with 43 per cent of the Competitiveness Fund directed toward climate and environmental goals.

Environment Commissioner Jessika Roswall defended the changes, saying the budget takes a comprehensive approach by integrating environmental legislation with results-oriented funding. “We have a lot of [environmental] legislations that are really good, but now we also need to give the results, and this budget is actually addressing exactly this,” she told Politico.

Not everyone is buying into this idea

Despite these assurances, several NGOs remain unconvinced. Birdlife Europe’s Anouk Puymartin called the proposal a “devastating blow” for Europe’s nature, warning that biodiversity is losing its place in the EU budget without dedicated funding or prioritization.

The Commission’s plan positions environmental protection as a “horizontal issue” rather than a standalone budget category. According to the budget document, this structure will ensure consistent application of “horizontal priorities” across EU funding, including climate and biodiversity protection, the “do no significant harm” principle, social policies, and gender equality.

The article recalls that the “do no significant harm” principle requires EU policies and funds not to negatively impact six core environmental objectives, one of which is the protection and restoration of nature. However, conservation groups argue that this broad approach dilutes the focus on biodiversity and undermines its financial security.

WWF’s Asin called for “robust and transparent tracking methodologies” to ensure the 35 percent green spending target is genuine and measurable. Without such safeguards, she warned, the target risks becoming “little more than a PR exercise.”

Under the current budget framework, biodiversity has a clear share of EU spending: 7.5% of annual expenditure is allocated to biodiversity in 2024, with plans to rise to 10% in 2026 and 2027. Yet the new proposal eliminates these targets entirely.

The lack of ring-fenced funding extends beyond biodiversity to other environmental concerns. Notably, there is no specific allocation for water resilience, despite its inclusion among the EU’s 2024-2029 strategic priorities. This omission comes amid appeals from water-stressed member states such as Spain and Portugal for increased investment in water resilience and risk management.

By Nazrin Sadigova