In a powerful statement addressed to the European Commission, SolarPower Europe and 63 European companies have jointly urged the EU to maintain a horizontal climate and environmental spending target in its next long-term budget.
“A horizontal spending target for climate and the environment is the simplest yet most powerful way to ensure the EU continues to channel funds into projects that drive the clean industrial transition and strengthen Europe’s resilience,” the letter states.
The demand comes in response to the Commission’s February 2025 Communication, which proposes a more streamlined and impact-oriented EU budget — but without a clear commitment to maintaining the 30% climate spending target and its complementary biodiversity goal.
“Thanks to this commitment, the EU budget has co-funded more than 11,000 projects since 2021,” the letter highlights. These initiatives include investments in energy efficiency, the circular economy, renewable deployment, and clean transport electrification.
Why keeping the climate target matters
The signatories stress that removing this target would put at risk Europe’s competitiveness, energy security, and long-term prosperity.
“Green investments yield higher returns than non-green expenditure. They deliver faster, more sustainable productivity growth while enhancing economic and climate resilience,” the statement affirms.
In today’s volatile energy and geopolitical landscape, continued support for renewable deployment and smart infrastructure is key to mitigating price instability and import dependency.
“European companies and investors need certainty that the financing landscape will continue to support these priorities,” the signatories add. Horizontal climate targets, they argue, also help attract private capital, innovation, and talent from beyond the EU.
Climate risks: Europe cannot afford to scale back
The letter warns that Europe is the fastest-warming continent in the world, and that scaling back climate and biodiversity action now would increase vulnerability to environmental and security risks.
“Without decisive action, climate risks, exacerbated by biodiversity loss, will raise the cost of inaction and severely impact European businesses,” the document states.
Eliminating the climate objective from the post-2027 MFF would weaken the EU’s leadership in the global transition towards a nature-positive and net-zero economy.
“By maintaining and reinforcing horizontal targets for climate and the environment, the EU can ensure that every euro delivers maximum impact,” the organisations emphasise.
A broad and cross-sectoral appeal
The open letter was signed by a diverse coalition of 63 entities, including trade associations, think tanks, NGOs, energy companies, and financial actors.
Their collective message is clear: the next EU budget must not dilute its climate ambition. Instead, it should reaffirm that climate and environmental goals are non-negotiable priorities that cut across all policy areas.
“Doing so will send a clear, unambiguous signal that Europe remains committed to leading the global transition to a climate-neutral and nature-positive economy,” the letter concludes.
