Climate and environmental targeting of the new EU budget for 2028–2034 overestimated

Abstract

For the EU Multiannual Financial Framework 2028–34, the system of intervention areas (IA) with their climate and environmental coefficients is central to financing environmental and climate-related measures. The Commission’s proposal is analyzed for selected IA, and policy options are outlined. The analysis shows that the COM proposal overestimates positive environmental impacts by assigning excessively high coefficients to many IA. Selected IA that contribute to this overestimation—such as direct payments to farmers—are examined as examples. A targeted adjustment of the instrument could help to reflect climate and environmental objectives more realistically and achieve them more effectively.