The European Commission, through a study carried out by RAMBOLL Management Consulting, has examined how best to integrate climate and environmental objectives into the Multiannual Financial Framework (MFF) after the year 2027. The aim of this messages, completed in May 2025, is to provide the Commission with concrete proposals to improve the greening architecture for the next financial period.

EU strategic green priorities

The report highlights the need for EU funding to be prioritised where it is needed. EU added value highest. This means financing needs that cannot be covered equally effectively or efficiently by national public or private resources alone. The proposed green priorities are designed to align EU spending with broad objectives such as the European Green Deal, the EU Biodiversity Strategy to 2030 and the "Fit for 55" package. The main cross-cutting priorities include:

• Decarbonization of the energy sector: Emphasis on increasing the share of renewable energy sources and strengthening the EU's production capacity for net-zero technologies.
• Adaptation to climate change: Focusing on vulnerable regions, cross-border cooperation and strengthening disaster preparedness, as well as supporting the operational implementation of national adaptation plans.
• Water resistance and restoration of marine ecosystems: Investments in water efficiency, pollution reduction and nature-based solutions.
• Biodiversity protection and ecosystem restoration: Increase funding for ecosystem restoration and support for innovative financial mechanisms.
• Circular economy and zero pollution: Funding projects higher up the waste hierarchy (prevention, reuse, recycling) and addressing pollution (e.g. PFAS "forever chemicals").
• Just transformation: Ensuring that the green transition benefits all regions and sectors, especially vulnerable groups and small and medium-sized enterprises (SMEs).

Improving financing for nature restoration and nature-based solutions

The report identifies a significant funding gap for nature restoration, with an estimated €48 billion needed annually, but national and EU contributions falling short by around €18 billion. Key challenges include insufficient private investment due to limited monetisation of the benefits of nature restoration and nature-based solutions, which are often implemented on public goods.

The report recommends:

• Improving tracking methodologies: Introducing more precise indicators, such as "hectares of restored ecosystems", to complement existing monitoring methods.
• Technical assistance and capacity building: Providing advice and support for project development, especially for smaller organizations, through consolidated platforms and regional contact points.
• Comprehensive financial instrument: Creating mechanisms to combine EU funds with private investment, for example through a nature restoration fund under the successor to InvestEU.
• Dedicated funding: Establishing targeted funding for nature restoration to complement inclusion efforts.

Decarbonization of industry and clean technology

Investment needs to decarbonise EU industry and boost clean technology production capacity are estimated to be in the hundreds of billions of euros. Key challenges include complex and slow approval processes for state aid and IPCEI (Important Projects of Common European Interest), which pose a barrier for SMEs and start-ups. Leveraging private investment is also insufficient. Recommendations include:

• Simplifying and accelerating financing processes: Especially for SMEs and start-ups.
• Strengthening risk reduction tools: To attract private capital to strategic sectors through guarantees, loans and tax breaks.
• Better coordination of funding: Between Member States and at EU level to avoid "subsidy races" and ensure efficient use of funds.

Tools and methodologies for ecological mainstreaming

The report assesses existing instruments such as the Do No Significant Harm (DNSH) principle, Strategic Environmental Assessment (SEA) and Climate Screening. The findings highlight the overlap and fragmentation of instruments, leading to administrative burdens. JRi