You are reading the 16th edition of the Green Trade Network's newsletter, coordinated by IEEP; this monthly digest acts as a nexus for information and key happenings within the world of Green Trade. If this is your first time receiving it, you can find out more here and follow us on Twitter.
Tensions Mount in Brussels Over the EU-Mercosur Deal Amid Fierce Backlash to Green Deal Policies
This week, the Netherlands became the latest EU member state to formally reject the Mercosur agreement, prolonging the (already far too long) suspense surrounding the future of a deal that has become the symbol of political divisions over Europe’s trade policy strategy. Adding to these divisions is a climate of political uncertainty and a leadership vacuum in France following the collapse of Michel Barnier’s government yesterday—three months after taking office. As technical discussions between parties are still ongoing, whether this emerging political crisis in France will be used by the Commission as an opportunity to push the deal forward and submit it to the vote of EU trade ministers is still in question.
Environmental Concerns Under the Microscope
To refocus the debate on the Mercosur agreement’s environmental stakes, we hosted a one-hour webinar last week featuring four leading experts on the intersection of trade and sustainability. Spoiler alert: panelists unanimously criticized the agreement’s lack of environmental guarantees and ambition. They all deemed it “outdated,” even if provisions like making the Paris Agreement an essential clause were added—an effort they agreed falls woefully short of addressing the deal’s core shortcomings. In a powerful closing statement, CISDL’s Markus Gehring highlighted the disconnect between the agreement and the paradigm shift that European trade policy has been undergoing since the previous Commission’s term, aiming to align trade more closely with the EU’s sustainable development objectives.
Webinar: The environmental stakes of the EU-Mercosur deal Watch the recording
EUDR: the backlash is real…
In related news, the European regulation to combat imported deforestation has also faced significant turbulence. Amendments tabled by the European People’s Party (EPP) and backed by far-right parties sought to water down the regulation, notably by introducing a “no-risk zone” provision. Although many of these amendments were ultimately rejected by a strong majority in the EU Council, colegislators confirmed the 1-year delay in the regulation’s implementation. My colleague Nora offers a more detailed breakdown of these amendments in this LinkedIn post. While this attempt to derail the legislation failed, it signals a concerning trend: the emergence of a right-to-far-right majority in the European Parliament, capable of weakening—or even dismantling— flagship environmental policies passed during the previous mandate. This dynamic raises fears that the era of ambition may be behind us, replaced by a new phase of fierce battles to defend the Green Deal’s hard-won acquis amid growing distrust in the role of science and environmental organisations.
On this sobering note, it’s clear that unity and engagement are more vital than ever for civil society organisations committed to evidence-based policymaking and aware of the urgency of the planetary crisis. As we approach the festive period, let’s remember – as an esteemed colleague once told me - that environmental action is a marathon. Every moment of rest, recovery, and togetherness is like a pit stop—essential for keeping up the pace.
Wishing you joyful holidays and renewed energy for the road ahead!
Authors: César Dugast, Pierre Maquet (Carbone 4), Richard Baron, Samuel Leré (ECF)
With 81% of all imported emissions in the world4, G20 countries’ imports represent the lion’s share of embodied emissions, through trade amongst themselves and with the rest of the world. ECF, together with Carbon 4, recently released a paper on the embodied emissions of the G20 countries.
TESS launched a new series of sectoral briefing notes on trade and climate scenarios on the road to 2050 looking at the implications for developing countries and climate-resilient development. The sectors covered in the series will include agriculture, border carbon adjustments, carbon markets, critical minerals, digital trade, fisheries, renewable energy, heavy industries, textiles, tourism, and transport, each authored by experts in these respective fields. The first sectoral briefing notes in the series on carbon markets and fisheries are available
Authors: Cláudia Azevedo, Pascal Lamy, Geneviève Pons, Helena van Thiel
Looking back at the 2019-2024 cycle, this paper evaluates how the Commission aligned trade policy with environmental goals, takes stock of the main green trade initiatives and provides 5 policy recommendations to implement and improve the EU's green trade agenda in the new mandate.
The report emphasizes the need for the EU to adopt inclusive and cooperative sustainability measures. It advocates moving beyond unilateral “mirror measures” by fostering co-designed and co-implemented policies with global partners, ensuring fair, enforceable standards that benefit all stakeholders, particularly smallholder farmers and producers. It highlights equity, transparency, and shared responsibility as core principles for sustainable global trade.
The green industrial transformation hinges on scaling renewable energy and power-to-x technologies. This policy paper shows how strategic partnerships can unlock 'win-win' scenarios, fostering decarbonization in the Global North while empowering the Global South with sustainable industrial growth. By aligning renewable-rich resources with industrial value chains, nations can boost economic resilience, mitigate risks, and accelerate a just, global energy transition.
As more countries consider adopting Border Carbon Adjustments (BCAs), their design will determine the impact they have. In this video, Aaron Cosbey, IISD’s development economist with 30 years of experience in the areas of trade, investment, and sustainable development, dives into these issues, highlighting the need for international cooperation.
E3G's Johanna Lehne joined DG Trade's Sustainability Director Dora Correia on the Trade-Off podcast to explore how trade policy can drive the green transition. The discussion explored the EU's role in sustainable trade, partnerships for global action and the challenges and opportunities ahead.
In this episode, Marco talks more about the pressing needs and expectations of EU industries as they navigate the green transition against the backdrop of rising geopolitical tensions.
Future Matters is hiring a Brussels-based Senior Policy Manager to lead their climate protection team. Earlier this year at the GTN, they presented their climate policy prioritization study that systematically identified the most effective, yet underrated, EU policies to reduce global emissions. Future Matters engages key decision makers in the Commission and in national governments to put these policies on the EU agenda. Future Matters is looking for candidates with an analytical and impact-maximizing mindset, proven ability to manage a team and 5+ years of experience in EU policy.
The Green Trade Network (GTN) is a group of policy experts from 25 research organisations, ranging from think tanks to NGOs and academia, conducting evidence-based research and outreach activities on the trade and environment nexus. GTN member organisations are based in 9 EU Member States and the United States of America, the United Kingdom, and Switzerland. The GTN aims to collectively promote a European agenda for a better alignment of trade policies and trade-impacting measures with critical environmental and climate objectives.
Funded by the European Union. Views and opinions expressed are however those of the author(s) only and do not necessarily reflect those of the European Union or CINEA. Neither the European Union nor CINEA can be held responsible for them
The Institute for European Environmental Policy (IEEP) is an independent sustainability think tank with offices in Brussels. As a not-for-profit organisation with over 40 years of experience, we are committed to advancing impact-driven sustainability policy across the EU and the world.
Institute for European Environmental Policy, Rue Joseph II 36-38, 1000, Brussels, Belgium, 022111097
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