Opinion on Guidelines for the 2026 Budget - Section III

18.2.2025

Mr Johan Van Overtveldt

Chair

Committee on Budgets

BRUSSELS

Subject: Opinion on Guidelines for the 2026 Budget - Section III (2024/2110(BUI))

Dear Mr Chair,

The Coordinators of the Committee on the Environment, Climate and Food Safety (ENVI) decided on 16 December 2024 that ENVI would provide an opinion on the Guidelines for the 2026 budget – Section III (2024/2110(BUI)) in the form of a letter. Therefore, as both ENVI Chair and Standing Rapporteur for the Budget, let me provide you with ENVI’s contribution in the form of resolution paragraphs, which was adopted by ENVI at its meeting of 18 February 2025 and which I kindly request will be taken into account by your committee:

1. Highlights that the current serious geopolitical context requires the Union to allocate sufficient resources for accelerating the green transition to transform the EU into a modern, resource-efficient and competitive economy; calls on the Commission and Member States to ensure the full execution of the REPowerEU Plan to accelerate the deployment of renewable energy sources and of energy efficiency technologies to speed up the green transition and end dependency on fossil fuels

2. Stresses the importance of the Paris Agreement’s goal of keeping the global average temperature increase below 1,5°C compared to pre-industrial times; recalls the Union’s obligations to deliver the financial commitments made for international climate financing; considers that the Union should continue leading the efforts towards decarbonisation at global level;

3. Stresses that the Union’s budget for 2026 should be aligned with the realisation of the European Union’s objectives to reduce pollution and enhance biodiversity, as well as the long-term vision for a prosperous, modern, competitive and climate-neutral economy, the legally enshrined objective to reach climate neutrality by 2050 and the Union’s intermediate climate targets for 2030 and 2040, as laid down in the European Climate Law;

4. Points out that the European Green Deal is a growth strategy, whose effective implementation with adequate funding is fundamentally connected to the Union’s strength and competitiveness; believes that the future Clean Industrial Deal and Circular Economy Act should further increase the Union’s competitiveness capacity and sustainability and resource-efficiency to achieve the European Green Deal objectives and ensure a just and inclusive transition;

5. Reminds that the EU’s long-term budget for 2021-2027, together with NextGenerationEU, is aimed at implementing the EU’s long-term priorities in various areas, including climate and the environment; emphasizes, specifically, that 30 % of total EU expenditures under the MFF have to be allocated to climate-related projects, including clean-tech and innovation projects; stresses that the future Multi-Financial Framework post-2027 should maintain the level of ambition on climate and environment protection;

6. Considers it unacceptable that the Union did not reach its objective of allocating at least 7.5 % of annual expenditure to biodiversity in 2024; calls on the Member States and Commission to take the necessary measures to ensure that the 10 % objective will be reached in both 2026 and 2027 in order to achieve concrete outcomes, including the objectives set in the Kunming-Montreal Agreement, whilst ensuring cost-effectiveness and long-term sustainability; notes the importance of the Common Agriculture Policy (CAP) to reach biodiversity objectives;

7. Emphasises the need to allocate sufficient funding for each individual budget line that contributes to the achievement of the green transition, with a particular focus on sustainability, climate change, innovation, competitiveness, resource-efficiency and biodiversity conservation, such as attention to bees and pollinators’ protection and their role as indicators for healthy ecosystems; emphasizes the importance of the Social Climate Fund (SCF), established to support vulnerable groups in the Union’s green transition;

8. Highlights the importance of improving disaster prevention and preparedness by implementing climate adaptation measures, allowing the Union to better prevent and respond to emergencies like recent climate change events; emphasizes the ongoing need to ensure sufficient funding for the Union’s civil protection mechanism;

9. Notes the relevance of the reports adopted by the European Court of Auditors (ECA) in relation to the management of EU funds linked to climate and environment; urges the Commission and the Member States to implement the recommendations of the reports, in particular report 15/2024 on climate adaptation regarding the need to ensure that all relevant EU-funded projects are adapted to the current and future climate conditions; recalls the importance of the ECA recommendations in its special report 14/2024, emphasising the need for the Commission to better estimate climate spending under future funding instruments, to ensure their adequate design, and to enhance the performance of green transition measures;

10. Emphasises the need for more ambitious funding allocations for programs like LIFE to support climate and environment-related projects, as well as for the Just Transition Fund to assist the most vulnerable carbon-intensive regions in addressing the economic and social impacts of the climate transition to leave no one behind; emphasises that the funding under LIFE is crucial for the protection of nature and biodiversity, the transition towards an energy efficient, circular, climate neutral, competitive and climate resilient economy and for democratic participation in decision-making processes; notes that efficient and result-driven climate and biodiversity financing should be integrated into programming activities, while remaining flexible enough to address the diverse needs of different regions and sectors;

11. Reminds that a stronger European Health Union requires adequate funding with health-related expenditure that follows the ‘One Health’ and ‘Health in all policies’ approaches, securing the proper implementation of, inter alia, the European Health Data Space and of the Europe’s Beating Cancer Plan;

12. Strongly reiterates its regrets over the redeployment from the EU4Health programme of 1 billion EUR over the 2025-2027 period; considers that this funding shortfall threatens the programme's ability to achieve its critical objectives; renews its call for the Commission, Member States, and other stakeholders to identify practical solutions to offset this cut, ensuring that the programme’s objective of building stronger, more resilient, and more accessible health systems is achieved; calls as well for increased amounts allocated to Cluster Health in Horizon Europe; recognises that stronger health systems directly contribute to economic stability and productivity by reducing health-related workforce disruptions and increasing the resilience of the labour market;

13. Highlights the importance of effectively allocating sufficient human and financial resources to all relevant DGs for the implementation of the adopted legislation related to climate environment, chemicals and health as well as to the relevant European agencies, including the European Environment Agency (EEA), the European Chemicals Agency (ECHA) and the European Food Safety Authority (EFSA), the European Centre for Disease Prevention and Control (ECDC) and the European Medicines Agency (EMA);

14. Highlights the need for a strengthened EU own resources system that can address current challenges while supporting the Union's environmental, climate and health objectives; stresses the importance of implementing the Carbon Border Adjustment Mechanism effectively, enabling the Commission to take compensatory measures to address any shortfalls in meeting the EU budget's overall climate spending target.

I have sent a similar letter to Mr Andrzej Halicki, general rapporteur for the 2026 budget.

Yours sincerely,

Antonio Decaro

ANNEX: ENTITIES OR PERSONS FROM WHOM THE RAPPORTEUR HAS RECEIVED INPUT

The Chair in his capacity as rapporteur for the opinion declares under his exclusive responsibility that he did not receive input from any entity or person to be mentioned in this Annex pursuant to Article 8 of Annex I to the Rules of Procedure.