Should the EU’s climate plans primarily protect people and the climate, or should they become a tool to attract investment and strengthen the economy? The debate over that question has intensified as the European Commission prepares to revise the rules that dictate how EU countries plan and report their climate progress.
SOLIDAR, a European network representing more than 50 civil society organisations, is calling on Brussels to bake “social justice” into the new rules. Currently, they argue, the rules are too fragmented and rely mostly on voluntary actions, which has led to uneven progress across different countries.
Industry players, meanwhile, emphasise the the importance of consistent rules and investment security.
According to SOLIDAR, it should become mandatory for Member States to explain the socio-economic effects of their climate and energy plans under all circumstances. They argue that most plans currently do not clearly define measures to mitigate negative effects or to maximise social and environmental benefits.
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Fossil fuel subsidy phase-out should be at the center of the update of the Governance Regulation. – United for Climate Justice
The organisation is reacting to a public consultation opened by the European Commission to collect input from citizens, businesses and experts to inform the upcoming revision of the Regulation on the Governance of the Energy Union and Climate Action – launched in December last year.
With this revision, the Commission aims to streamline planning and reporting duties to ensure the EU meets its international commitments while reducing administrative burdens – including through digitalisation.
Investment roadmap
Another civil society network, United for Climate Justice (UCJ), urges the Commission to introduce binding commitments to phase out fossil fuel subsidies and strengthen transparency requirements.
“Fossil fuel subsidy phase-out should be at the center of the update of the Governance Regulation,” UCJ writes.
“It needs to anchor binding provisions on a harmonised definition of fossil fuel subsidies, mandatory transparent reporting, national and Union phase-out deadlines, and a robust monitoring and enforcement mechanism.”
For companies such as Italgas, an Italian gas distributor, and the German energy company Proxima Fusion, regulatory predictability and investment certainty are key in the upcoming revision.
NECPs should evolve into genuine investment plans that mobilise private capital. – Italgas
According to Italgas, new plans should support “internal competitiveness and reduce external dependencies”.
The company argues that safeguarding gas assets to preserve energy security and ensure the ramp-up of green gases is crucial. The NECPs should also aim to mobilise private capital and attract investors, Italgas wrote.
The German energy company Proxima Fusion also underlines the importance of unlocking funding opportunities. The company argues that the European Commission’s revision should focus on clean energy and infrastructure, including clean power generation, electricity grids, electrification and strategic supply chains.
NECPs should evolve into “genuine investment plans”, providing credible financing pathways capable of attracting both public and private capital, the company wrote.
EU climate framework
The Regulation was originally adopted in 2018 and set out to harmonise climate and energy reporting among Member States, making it easier to assess whether the bloc is on track to meet its 2030 climate goals.
At the heart of the governance system are Integrated National Energy and Climate Plans (NECPs). These ten-year plans detail how each Member State intends to achieve its climate and energy objectives.
The revision of the reporting commitments for Member States falls within the EU’s drive to become more competitive. According to the EU executive, climate governance should become less bureaucratic and more integrated with industrial policy. The energy transition should strengthen Europe’s economic position rather than undermine it.
Next steps
The consultation runs until 12 March 2026 and represents the first concrete step toward adapting the governance framework.
According to the European Commission’s 2026 Work Programme, a legislative proposal is expected in the fourth quarter of 2026, accompanied by an impact assessment. The proposal will then be sent to the European Parliament and the Council of the EU for further negotiations.
