This week in EU policy: Rollbacks in agricultural policy, and (possibly) more rollbacks to come

1. Rules to be simplified for Common Agricultural Policy

The news: The European Commission will this week unveil its ‘simplification’ package for the bloc’s Common Agricultural Policy. It’s expected to loosen rules for farmers on adopting green standards.

What happens now: The proposal will be sent to the European Parliament and Council for review and approval, which ought to happen later in the year.

What it means for impact companies and investors: It’s not great for the impact scene. First there was the package watering down CSR/ESG reporting, and now it’s time for agriculture. The Commission, working from the logic that agriculture needs to be protected amid concerns over food security and cost of living, is rolling back measures designed to protect biodiversity and reduce agriculture’s carbon footprint. By no means an encouraging policy direction, and that's not the only thing this week.

2. EU countries set their sights on energy policy for 'simplification'

The news: Various EU member states are lobbying for energy policy to be added to the Commission's 'simplification' package.

What happens now: This news comes ahead of a meeting of EU energy ministers in June, when proposals will be made more formally.

What it means for impact companies and investors: As with the existing and proposed 'simplification' rollbacks, it's a mixed to bad picture for the impact community. By adding energy policies to the list of sectors to see 'red tape' slashed, in pursuit of making things easier for business and increasing European self-reliance, the Commission would be very deliberately putting a brake on its net-zero and other environmental ambitions. Amendments to energy policies, lightening emissions reduction obligations for businesses, for instance, would have a direct effect on impact companies, particularly those providing renewables solutions.

3. €23m up for grabs to make fisheries and aquaculture greener

The news: Horizon Europe – the EU’s sustainability research funding programme - has put out a call for four projects, totalling €23m, on digital technologies to reduce energy consumption and improve data in Europe’s fisheries and aquaculture.

What happens now: The deadline for applications appears to be 24 Sep 2025.

What it means for impact companies and investors: This would be a great opportunity for emerging impact startups focussed on making aquaculture and fisheries more environmentally-friendly. Horizon Europe is dedicated to making Europe more climate resilient by 2030, and the funds it’s given out already have helped spur innovation across the board. A great source of funding, and a support platform for establishing a young hungry impact company. Also could be of interest to water-focussed VCs, as there may be opportunities for later investment in these projects.

4. Parliament endorses European Water Resilience Strategy

The news: The European Parliament has adopted its recommendations for the Commission's upcoming European Water Resilience Strategy, sending the signal they want to see an “ambitious strategy” from the Commission for managing water resources and increasing resilience.

What happens now: The Commission is expected to adopt the strategy before summer.

What it means for impact companies and investors: The European Water Resilience Strategy is the Commission’s plan for making Europe more water-resilient and encourage a circular economy around it. A lot of impact investors we’ve been speaking to at Impact Loop tell us they’re looking more at water as an investment vertical, so the signals from the parliament that they want to put more effort into water conservation and resilience should be encouraging.

5. Parliament eases vehicle emissions targets

The news: As mentioned last week, MEPs were considering rolling back emissions standards for new vehicles manufactured in the EU. They have now approved the relevant amendment, meaning car manufacturers can in theory reduce emissions of their vehicles more slowly.

What happens now: The amendment applies from this year

What it means for impact companies and investors: This hasn't been a week of good news. This decision, to spread out emissions standards over a three-year average rather than year-by-year, is another clear rollback on climate ambitions. Renewables news site CleanTechnica said the EU "has really dropped the ball" with this decision, particularly in light of an uptick in EV purchases in the last quarter. In a practical sense, this will mean auto-manufacturers will likely be less in a hurry to reduce emissions, which isn't great for companies looking to provide solutions in that area.

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.