Dispatch from the European Union | September '25

*** Our weekly Dispatches provide an overview of the most relevant recent and upcoming developments for the shift to climate neutrality in selected European countries, from policy and diplomacy to society and industry. For a bird's-eye view of the country's climate-friendly transition, read the respective 'Guide to'. ***

Stories to watch in the weeks ahead

• EU NDC and 2040 target. The Danish presidency of the EU Council — which represents the bloc’s 27 member states — wants to secure adoption of the EU’s new 2035 climate target at the next meeting of environment ministers on 18 September, ahead of COP30 in Belem, Brazil, which starts on 10 November. The EU must submit its updated joint “nationally determined contribution” (NDC) to the UN’s framework convention for climate change (UNFCCC) by the end of September. The 2035 target will be derived from the EU’s 2040 climate goal, which is currently under difficult negotiations in both the European Parliament and the Council to set the contributions required by each country. 

  How it works: The EU submits a single climate plan to the UNFCCC, validated solely by the Council — the Parliament has no say in this process. A key element of this submission will be the 2035 emissions reduction target, which all 27 member states must agree on by the end of September. The 2040 target, however, follows a different path: the Commission put forward its proposal on 2 July in the form of an amendment to the European Climate Law. That draft will then have to be adopted by both co-legislators — the European Parliament and the Council.

• Sustainable finance. The deadline for the European Commission to respond to the EU Ombudsman inquiry for more information regarding the first omnibus package process ends on 15 September. Following a complaint by eight civil society organisations, the European Ombudswoman Teresa Anjinho has opened an inquiry concerning how the Commission prepared a legislative proposal as part of its omnibus package of simplification measures. The eight NGOs argue that the Commission failed to justify why it did not carry out a public consultation or impact assessment on the draft legislation. According to the EU Climate Law, the Commission should have conducted a climate consistency assessment.

  On 26 February 2025, the European Commission tabled its omnibus package that weakens four pieces of already-adopted legislation: the Taxonomy regulation, the Carbon Border Adjustment Mechanism (CBAM), the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD). The move came following major political pressure from countries like France and Germany, and more legislation is expected to be revised in the coming months.

• Car industry. The third round of the Automotive Strategic Dialogue at CEO level on CO2 vehicle standards will take place on 12 September. The meeting is expected to focus on the phase-out of combustion engines scheduled for 2035 and CO₂ fleet legislation, Table Media reports. In an open letter published on 8 September, leading executives of over 150 companies from across Europe’s electric vehicles value chain called on European Commission president Ursula von der Leyen to “not step back” on the EU’s 2035 Zero-Emission Target for cars and vans – and launch bolder action for Europe’s electric mobility leadership. On the other hand, car manufacturer lobby ACEA is framing this meeting as an opportunity to ‘recalibrate’ EU policy amid calls from the German car industry to revert the EU 2035 combustion engine ban.

The latest in EU policymaking – last month in recap

• State of the Union speech. During her annual State of the Union address, delivered on 10 September at the European Parliament in Strasbourg, Commission president Ursula von der Leyen presented the Green Deal as a pillar of European economic sovereignty. Through the launch of a ‘Small Affordable Cars’ initiative, von der Leyen announced the European Commission's support for integrating climate policy into a strategy to decarbonise the European industrial sector and improve its competitiveness. “The future will be electric, whether we like it or not,” she insisted.

• EU 2040. The European Parliament Environment Committee’s debate on 4 September over the Commission’s proposed 90 percent net emissions cut by 2040 ended without a clear majority in favour. Pro-European parties backed the proposal, putting them at odds with Czech MEP Ondřej Knotek, rapporteur and member of the far-right Patriots for Europe parliamentary group (to which France’s National Rally also belongs), who called for its rejection. Yet divisions within the conservative group European People’s Party (EPP) keep the outcome uncertain. The committee vote is scheduled for 23 September, with a plenary vote expected in early October.

• EU budget. The European Commission presented the seventh draft of its so-called Multiannual Financial Framework (MFF) covering the period 2028 to 2034 on 16 July, signalling a major policy shift away from prioritising the Green Deal, towards competitiveness and defence. While the Commission sought to reassure stakeholders on climate and environmental spending, NGOs voiced concern. The proposed budget amounts to 2 trillion euros, a sharp increase from the current 1.211 trillion euros. Thirty-five percent — around 700 billion euros — of the proposed budget would be earmarked for climate and environmental action. In the current budget period, which ends in 2027, 30 percent of the 1.211 trillion euros are dedicated to climate and 10 percent to the environment.  

Claire’s picks – Highlights from upcoming events and top reads

• On 15 September, leading European scientists will meet in Brussels to share the latest climate data with EU representatives as the bloc negotiates its 2040 climate target. More information and registration here.
• On 23 September, an event will mark the conclusion of the three-day “Back to the Future” march. The march, from Maastricht, where the Treaty for a Social Europe was signed, to Brussels, home of the EU institutions, aims to send a message to Commission President Ursula von der Leyen: abandon the deregulation agenda and uphold rules that prevent companies from violating human and environmental rights. Politicians, civil society representatives, and trade unionists are expected to take part.
• The EU’s Copernicus Climate Change Service has tracked “intense global wildfire activity” in the first six months of 2025.