Is the EU now moving in the opposite direction, risking leaving the Nordics with stranded assets and investments that won’t pay off within the field of green transition and sustainability?
The Nordics have long been ahead of the pack when it comes to sustainability reporting, responsibility for supply chains and investments in energy efficiency and sustainable fuels. Now the EU was supposed to catch up, and requirements to be harmonised, leading to better competitiveness for Nordic industries, which were already ahead.
However, looking at the new Commission Work Programme, it seems the EU might be more hesitant about the green transition or at least slowing down the pace.
In particular, several initiatives seem to slow down the responsible supply chain rules. These rules, like the Carbon Border Adjustment Mechanism (CBAM) and the Corporate Sustainability Due Diligence Directive (CSDDD), were supposed to level the playing field between EU and non-EU actors. If the EU backtracks on these, Nordic businesses stand to lose the most, since they have been the most invested.
While the new Commission’s heavy focus on simplification and deregulation might at first seem like the right move to boost competitiveness, Nordic countries should stay wary. We need to make sure this isn’t a step backwards on sustainability that only benefits non-sustainable industries in other parts of Europe — and outside the union. On the European scale, it’s our Nordic, more sustainable companies that risk being among the losers with the new EU approach.
