EU Climate Leadership Faces Challenges Amid Right-Wing Pushback and Global Pressures
The EU's Green Deal and its role as a leader in climate action have been increasingly sidelined amid a right-wing backlash favoring competitiveness and technological neutrality. The bloc has weakened its 2040 greenhouse gas reduction targets through backsliding review clauses and a growing reliance on questionable carbon credits.
Far-right governments in Italy and Central and Eastern Europe are driving a retreat from climate measures, contributing to delays and dilution in key initiatives such as the expansion of the emissions trading scheme to homes and transport and the deforestation regulation. The planned 2035 ban on new internal combustion engine vehicles may also face delays or weakening. The omnibus package presents concerns as it could undermine sustainability, due diligence, and the Carbon Border Adjustment Mechanism (CBAM).
CBAM is slated to begin on 1 January 2026; in response, several countries, including Brazil, Turkey, and Japan, have introduced or tightened domestic carbon pricing to avoid EU levies. External pressures further complicate the EU’s climate leadership, including the US withdrawal from the Paris Agreement and lobbying from gas-exporting nations such as Qatar aimed at weakening reporting requirements.
Despite these challenges, the EU remains a leader in climate targets, policies, and financing. However, experts highlight the critical need for the bloc to re-align its approach with the Global South to maintain international influence and to encourage China to take greater responsibility on climate action.
