This week in EU policy: Big plans for energy, defence and biodiversity

This week it was reported that Europe had "smashed" its solar targets for the first quarter of 2025, pointing to a major solar boost in the year overall. Welcome good news amid concerns over EU CSR rollbacks, the US-led backlash against the environmental transition and concerns over EU nations missing their climate targets. For this week's EU policy roundup, I've found a few more good news stories and, admittedly, a couple of ambivalent ones.

1. UK+EU pledge more cooperation and clean energy boost

The news: UK Prime Minister and European Commission President Ursula von der Leyen have pledged to work more closely together to ensure energy security across the continent, with an emphasis on reducing fossil fuels and boosting clean energy sources.

What happens now: This announcement, while big news, is still a long way off from being made concrete. We’ll be keeping an eye on what actual policy steps are taken in the next months to back up the rhetoric.

What it means for impact companies and investors: In theory, it’s good news for a number of reasons. Obviously the reduction of fossil fuels and boost in clean sources is something that – if it comes to fruition – will be great for the environmental impact sector. And a closer look at von der Leyen’s statement reveals an emphasis on regulatory certainty for the clean transition, which may be a sign that despite recent EU rollbacks, the focus needed for a properly joined-up EU-wide transition plan is still there.

2. EU politicians push for "more ambitious" defence industry planning

The news: The European Parliament’s committees on Industry, Research and Energy and Security and Defence have approved a draft law for ramping up and harmonising Europe’s defence industry, as well as providing more support to Ukraine.

What happens now: The draft law will be negotiated with the European Council, but no concrete next steps until the Europarl’s May plenary session.

What it means for impact companies and investors: As we’ve been looking at a lot in recent weeks, the EU’s ambitions for a bigger and more joined-up defence industry is a mixed bag. On the one hand, military buildup is not typically a climate-friendly endeavour. On the other, there’s a lot of interest in developing dual-use products (i.e. suitable for both civilian and military use) which could benefit various impact sectors, deeptech in particular. And a more coherent EU-wide defence infrastructure could cut down on replication and waste, though that does seem a bit ‘looking on the bright side.'

3. Commission announces ocean biodiversity plan

The news: The European Commission has revealed its plan to introduce an international agreement on protecting ocean biodiversity into EU law. The idea is to help member states get in line with the overall agreement, which includes protecting 30% of all oceans by 2030.

What happens now: The EU has said it intends to ratify that above-mentioned agreement (known as the BBNJ) in June 2025, though the agreement itself will not enter into force until 60 countries have ratified it – so far there’s only around 21.

What it means for impact companies and investors: Many people have observed that biodiversity is rapidly becoming as relevant to the overall climate fight as carbon emissions. It’s the “the next frontier" according to Aurore Falque-Pierrotin, co-founder of biodiversity reporting platform Darwin. And indeed, it’s impact-analytics companies like Darwin that may well stand to benefit most from this, as the EU approaches enshrining biodiversity commitments into law.

4. €612m state aid for Portugal's energy-intensive companies

The news: The commission has approved a €612m ($695m) scheme to reduce costs for energy-intensive companies in Portugal, in order to keep them from leaving the EU.

What happens now: The scheme looks like it’s meant to kick in straight away, and will run until April 2035.

What it means for impact companies and investors: The basic gist of this is that amid Portugal’s various energy price levies implemented to fund its environmental ambitions, there is concern companies will leave the EU to seek operations in cheaper environs, where they will no longer be bound by the EU’s climate strategies. That’s not much of anything for impact companies BUT within the terms of the state aid are requirements that those companies prioritise renewables and reduce operational carbon footprint – great news for startups in those two sectors who have a presence in Portugal.

5. Have your say: Commission seeks input on research and tech strategy

The news: A couple of weeks ago, we reported the Commission had opened a consultation on AI and science research in Europe. Now, they’re looking for submissions to the upcoming European Strategy on Research and Technology Infrastructures.

What happens now: The call for evidence will be open until 22 May 2025.

What it means for impact companies and investors: This is another opportunity for the impact world to shape and grow the landscape they operate in. The Research and Technology strategy could play a huge role in shaping science- and research-backed innovation on the continent. The Commission is emphasising their interest in facilitating scientific breakthroughs, developing those into scaled-up innovations, and making the EU’s employment landscape competitive to retain talent. A big deal for deeptech impact companies in particular, and the broader impact sector overall.

If you have any thoughts on this round-up, what should or should not be in here, or you want to reach out with a tip of your own, feel free to get in touch – editorial@loop.se.