Insights
Ursula von der Leyen’s re-election as President of the European Commission saw the unveiling of her priorities for the next five years, including the future of the Green Deal. We look at how these ‘Political Guidelines’ align with what investors need to mobilise private capital for Europe’s green transition.
Despite the shift to the right in the European Parliament and some related pushback on the EU’s ambitious climate agenda to date, von der Leyen focused her political guidelines on the pro-European centre. She signalled a desire for continued climate action, framed in the context of competitiveness being the EU’s first priority over the next five years.
“We must and will stay the course on the goals set out in the European Green Deal. The climate crisis is accelerating at pace. And there is an equally urgent need to decarbonise and industrialise our economy at the same time.”
Many have nicknamed this ‘the investment Commission,’ with von der Leyen warning that Europe must now adapt to an age of geostrategic rivalries and the weaponisation of policies, including on energy and the climate. The returning President secured a comfortable 401 out of 720 possible votes, including support from the Greens for the first time.
The President’s full political guidelines for the next European Commission outline broad strategic priorities, including pledges to launch or complete different policy initiatives relating to climate. It’s worth noting that over 90% of von der Leyen’s last set of guidelines were eventually put into legislative proposals.
Our analysis considers how this prospective agenda lines up to the five key pillars from IIGCC’s EU Call to Action. 
A. Recommendation: Reinforce the EU’s path to 2050 climate neutrality
Investors will be reassured that the guidelines include a continued commitment to implementing the Green Deal, climate neutrality by 2050, and meeting the Fit for 55% emissions reduction target by 2030.
This pathway sets the scene for a proposal to amend the European Climate Law to include a legally binding 90% emissions reduction target for 2040. We have advocated for this ambition since 2023 and welcome its inclusion and alignment with recommendations from the European Scientific Advisory Board on Climate Change.
These clear climate priorities have been framed in the context of the first priority being to increase the bloc’s competitiveness, indicating a desire to remove red tape and simplify reporting requirements.
Though there is a case for streamlining processes, we continue to