Climate Policy Engagement Analysis
Climate Policy Engagement Overview: BusinessEurope has strategically engaged on EU climate policy with predominantly negative positions since 2018 and appears to continue to advocate against proposals to increase climate policy stringency proposed under the EU Green Deal and the Fit for 55 package.
Top-line Messaging on Climate Policy: BusinessEurope states some support for climate policy in its top-line messaging, albeit with major exceptions. The association supported GHG emissions reductions in line with the 1.5°C target and EU 2050 Climate Target in a November 2024 LinkedIn post. The association appeared to support the UN Paris Agreement and ambitious action at COP28 in a November 2023 position paper. In letters sent to the EU Council President and EU Commission President in December 2023, the association supported the urgent decarbonization of China's economy, supporting “real” action from all major emitters.
However, in 2023-25, BusinessEurope regularly emphasized the risk of deindustrialization and impacts on competitiveness in relation to the EU Green Deal and 2050 climate neutrality target, for example in a position paper published in July 2024. Similarly, the association stressed the burdens on industry and the risks of unilateral action stemming from European climate policy, for example as reported in a news release from April 2025 where BusinessEurope’s President met directly with the EU Commission President to exchange views.
Engagement with Climate-Related Policies: BusinessEurope does not seem to support ambitious climate-related policies in the EU.
The association supported the EU Emissions Trading System (ETS) with major exceptions in a January 2025 report, by calling for a higher threshold for 'small emitters' to opt-out, emphasizing regulatory burdens in EU ETS Aviation, and appearing to advocate against a reduction of free emissions allowances. In a July 2024 position paper, BusinessEurope also appeared to advocate for exemptions for ice classed ships and winter navigation from the EU ETS. BusinessEurope supported the EU Carbon Border Adjustment Mechanism (CBAM) with major exceptions in a November 2024 statement by appearing to advocate for an export rebate scheme and seeming to be in favor of reconsidering the phase out of the free allocation of emissions allowances.
BusinessEurope appeared unsupportive of the EU Packaging and Packaging Waste Regulation in a December 2023 letter to the Chair of the EU Environment Council where it advocated for exemptions from the reuse obligations, and a report from January 2025 where it appeared to advocate against national sustainability requirements or higher reuse targets. The association broadly supported the EU Ecodesign for Sustainable Products Regulation (ESPR) in policy recommendations published in July 2024, advocating for supporting product-specific sustainability requirements. However, in a January 2025 report, BusinessEurope did not support several aspects of the policy, for example emphasizing the regulatory and economic burdens stemming from the Digital Product Passport.
BusinessEurope did not appear to support the EU Renewable Energy Directive in line with the EU Commission’s policy ambition in a July 2024 study posted on its website, in which it advocated for the inclusion of low carbon hydrogen in the legislation.
BusinessEurope repeatedly supported the EU Regulation on Deforestation-Free Products with major exceptions by supporting the delay of its implementation period by an additional 12 months, for example in a February 2025 letter to EU policymakers.
The association did not seem to support the EU Light and Heavy Duty Vehicle CO2 Targets in a July 2024 position paper, by advocating for all available decarbonization technology to be considered. In a July 2024 position paper the association appeared unsupportive of the EU Sustainable Aviation Fuel mandate, emphasizing competitiveness and carbon leakage concerns.
However, in an October 2024 position paper BusinessEurope supported a 2030 GHG emissions target in line with 1.5 degrees for all G20 countries.
Positioning on Energy Transition: BusinessEurope takes mostly unsupportive positions on the energy transition. In a declaration from November 2023, the association supported new exploration and production of fossil gas alongside increasing renewable, low carbon and nuclear energy capacity in the EU. In an October 2024 position paper, the association advocated for a weaker definition of low-carbon hydrogen in the EU Hydrogen and Gas Decarbonization Package Delegated Act than the one proposed by the EU Commission.
BusinessEurope supported the revision of the EU Energy Taxation Directive (ETD) with major exceptions in a February 2024 letter to EU policymakers, opposing a tax on maritime and aviation fuels and advocating for exemptions for co-generation to be made mandatory and for an 18-24 month transition period. In a July 2024 publication, the association advocated for exemptions for the aviation and maritime sectors from the ETD. BusinessEurope did not seem supportive of the decarbonization of the maritime sector in a July 2024 position paper, in which it advocated for exemptions for ice classed ships and winter navigation from FuelEU Maritime.
In January 2024, BusinessEurope opposed the Biden administration’s decision to pause liquified natural gas (LNG) export permits in a joint letter to President Biden.