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Keeping you in-the-know on environmental, social and governance developments

ESG backlash and anti-ESG may be front and center in America, but those sentiments aren’t exclusive to this side of the Atlantic. The EU is feeling political backlash to the Green Deal. Elections for EU’s new government, which will be held in June, are expected to be less ESG-friendly. Euractiv recently published an article explaining current rifts in the EU government, and how these will be exacerbated by summer elections. The article states:

“For several months, opinion polls have all pointed in the same direction: The European Parliament is set to make a sharp turn to the right after the 2024 elections, with far-right and nationalist parties expected to make big gains at the expense of the Greens, leftists, and liberals.

In other words, the ‘Green wave’ that swept through Parliament after the last EU election, paving the way for the European Green Deal in 2019, is set to come crashing down and recede five years later.”

The article examines political changes through the lens of the European Commission’s recent recommendations for 2040 climate targets. It is clear that the right and center are less enthusiastic about climate legislation, and those views will be reflected in the incoming administration. At the heart of the issue is how voters are feeling impacts of climate legislation, or at least how they perceive the impact of climate legislation – given economic pressures they feel more acutely.

There are those that believe Green Deal policies put undue strain on the economy and EU society and want government to slow down its approach. The new EU government will be less climate-motivated than the current one, and while we’re unlikely to see a reversal of existing Green Deal policies, this does introduce uncertainty for developing policy. For example, if the CS3D cannot be fully negotiated before the new government, it may never see passage in its current form. The EU has been a global leader in ESG policy, whether that will continue under the new government is unclear.

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The Editor

Zachary Barlow is a licensed attorney. He earned his JD from the University of Mississippi and has a bachelor’s in Public Policy Leadership. He practiced law at a mid-size firm and handled a wide variety of cases. During this time he assisted in overseeing compliance of a public entity and litigated contract disputes, gaining experience both in and outside of the courtroom. Zachary currently assists the editorial team by providing research and creating content on a spectrum of ESG… View Profile