by Nikolai G. Wenzel
The American Institute for Economic Research
The eyes of the world may be on the US presidential election. But another, usually sleepy campaign is underway: European Parliament elections in June 2024. Most of the action takes place in the executive and bureaucracy (the European Commission). But Parliament must approve laws. This could have interesting results for the European Union (EU) Green Deal.
The Green Deal was first implemented in 2019, with a series of environmental measures. Most notably, the EU committed to cutting CO2 emissions by 55 percent by 2030. The EU is set to push for carbon neutrality by 2050, a measure that will require approval from the newly installed parliament. But, since the summer of 2023, the Green Deal has been on regulatory pause, as the EU faces a “greenlash” against environmental policies. In the face of inflation, consumers and trade groups are starting to resent the cost of environmental regulation. Over the past few months, proposals on industrial pollution, pesticide restrictions, and conservation have all been tabled at the EU level. A ban on new combustion engines, effective 2035, still stands, but it is facing increasing resistance.