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OPINION (COM(2025)0555 – C100165/2025 – 2025/0555(COD))

On the proposal for a regulation of the European Parliament and of the Council establishing the European Competitiveness Fund ('ECF’), including the specific programme for defence research and innovation activities

ENVI-AD-784252

Committee on the Environment, Climate and Food Safety · Rapporteur: Stine Bosse

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The Committee on the Environment, Climate and Food Safety proposes amendments to the proposed regulation establishing the European Competitiveness Fund, including the specific programme for defence research and innovation. It adds environmental, climate and circularity conditions throughout the text. The amendments require ECF funding to align with the European Green Deal, climate neutrality by 2050, the do no significant harm principle and the phase-out of fossil fuels, and to support clean technologies, resource efficiency and biodiversity. They raise the Fund's financial envelope to EUR 261 434 260 000 and set minimum amounts for its windows, including at least 25% of the clean transition window for specified activities and EUR 3 390 000 000 for LIFE actions. The amendments keep LIFE as a separate programme for 2028 to 2034, continue its actions under the ECF, and add support for SMEs, skills, advisory services and the EU for Business Network. They also add environmental and resilience conditions to the defence, space, digital and raw materials parts of the Fund, including energy efficiency, circularity and reduced emissions.

Committee position. The Committee on the Environment, Climate and Food Safety proposes amendments to the lead committee to align the European Competitiveness Fund with the European Green Deal, climate neutrality, the do no significant harm principle and the phase-out of fossil fuels, and to increase the Fund's budget and environmental safeguards.

Key points

  1. The title is amended to repeal Regulations (EU) 2021/522, (EU) 2021/694, (EU) 2021/697 and (EU) 2021/783, and to amend Regulations (EU) 2021/783, (EU) 2021/696, (EU) 2023/588 and (EU) [EDIP].
  2. New and amended recitals state that the European Green Deal remains the Union's overarching sustainable growth strategy and that the ECF should support, not hinder, the green transition.
  3. Recitals add that ECF funding should follow the do no significant harm principle, use science-based indicators, and support the phase-out of fossil fuel energy production and consumption.
  4. The ECF should protect and restore the environment, halt biodiversity loss, enhance climate and water resilience, and finance LIFE actions under its Clean Transition and Decarbonisation window.
  5. The general objective is amended to include strengthening and safeguarding Union competitiveness, productivity, resilience and security while ensuring alignment with climate neutrality, environmental standards and social fairness.
  6. New specific objectives cover the shift to a circular, resource-efficient and climate-neutral economy, environmental protection and restoration, and resource efficiency through remanufacturing and recycling.
  7. The minimum financial envelope for 2028 to 2034 is set at EUR 261 434 260 000, with EUR 16 000 000 000 for general objectives, EUR 38 658 700 000 for clean transition and EUR 30 078 560 000 for health, biotechnology, bioeconomy and agriculture.
  8. At least 25% of the clean transition allocation must go to specified activities, and EUR 3 390 000 000 of that is dedicated to LIFE actions.
  9. The maximum budgetary guarantee under the ECF InvestEU Instrument is EUR 70 000 000 000, expected to mobilise around EUR 1 000 000 000 000, with a minimum Union support of EUR 27 000 000 000.
  10. A new Article 9a sets award criteria that assess proposals on decarbonisation, resource efficiency and environmental and biodiversity protection, balancing them with technical excellence and feasibility.
  11. Article 10 conditions for support must be risk-based and proportionate, and supply and content restrictions must be temporary, gradual and selective in strategic value chains.
  12. The LIFE programme is kept as a separate programme for 2028 to 2034, and its actions continue under the ECF, including demonstration, testing and market uptake of innovative solutions.

Who is affected

  • Businesses and projects in the Union, including SMEs, start-ups and scale-ups, which must meet environmental, climate and circularity conditions to receive ECF support.
  • The clean technology, energy-intensive, bioeconomy, agri-food, digital, space and defence sectors, which receive targeted support with environmental and resilience conditions.
  • Member States and regional and local authorities, which may make additional contributions and must coordinate with the ECF on competitiveness priorities.
  • The Commission, which must adopt work programmes by delegated acts, ensure coherence with other Union funds and report on environmental and climate performance.

Figures and deadlines

  • EUR 261 434 260 000: minimum financial envelope for the ECF for 1 January 2028 to 31 December 2034.
  • EUR 16 000 000 000: allocation for activities contributing to the general objectives.
  • EUR 38 658 700 000: allocation for the clean transition and industrial decarbonisation objectives.
  • At least 25% [9.66 bn] of the clean transition allocation for specified activities, and EUR 3 390 000 000 for LIFE actions.
  • EUR 30 078 560 000: allocation for health, biotechnology, bioeconomy and agriculture and food security objectives.
  • EUR 70 000 000 000: maximum budgetary guarantee under the EU Compartment of the ECF InvestEU Instrument, provisioned at 50%.
  • EUR 1 000 000 000 000: additional investments expected to be mobilised by the budgetary guarantee.
  • EUR 27 000 000 000: minimum Union support delivered through the ECF InvestEU Instrument.