Negotiations over the European Union’s next long-term budget will determine the funding allocated to protect the population from climate change impacts, who will bear the costs of the energy transition, and which regions risk being left behind if investment does not reach those who need it most.
These issues were discussed during “The EU Budget and Climate Action: What’s at Stake?”, a webinar we organised recently alongside Revo Prosperidad, Climate Strategy, and the Green Finance Institute Spain. The discussion explored how the next Multiannual Financial Framework (MFF) 2028–2034 will condition Europe’s capacity to finance the green transition and respond to its social and public health impacts.
While the European Commission proposes that 35% of the budget contribute to climate objectives, participating organisations warn that this target may be insufficient without clear oversight mechanisms to monitor how funds are invested and their real impact. The debate directly affects everyday issues such as building renovation, public transport, air quality, and the resilience of health systems facing increasingly frequent heatwaves.
One of the main challenges is scale. Although the EU budget will grow slightly in nominal terms, a significant portion of resources will be constrained by the servicing of debt generated after the pandemic and by climate investment needs that continue to rise.
The webinar also highlighted the risk of certain investments being classified as “climate expenditure” without delivering a real environmental impact. Our organisations call for stricter criteria, independent monitoring systems, and mechanisms to measure concrete outcomes, such as emissions reductions, energy efficiency improvements, or reduced social vulnerability.
Another pillar of the debate was the link between climate change, public health, and inequality. Rising temperatures, air pollution, and energy poverty already have direct health consequences, particularly among the elderly and low-income groups. Ensuring that EU spending delivers health co-benefits, rather than contributing to increased atmospheric pollutant emissions, is therefore essential—yet it remains largely overlooked in the current debate.
The negotiations for the next European budget also reflect a broader political struggle: how to balance industrial competitiveness, territorial cohesion, and the green transition without leaving behind the most vulnerable territories and social groups. The outcome will define for years Europe’s ability to respond to a climate crisis that already has direct consequences for health, the economy, and social inequalities.
If you would like to learn more, this document summarises (in Spanish) the main insights from the event and is available for download here.
