Budget Signals Matter — Why We Co-Signed the Call for a Climate-Spending Target in the Next EU MFF
As the European Commission prepares to release its proposal for the post-2027 Multiannual Financial Framework (MFF), a critical question is once again on the table:
Will the EU’s next budget carry a clear, quantifiable commitment to climate and environmental investment?
This week, SWISOX joined more than 60 other organisations — from clean tech start-ups to global business associations and environmental NGOs — in urging the Commission to maintain a horizontal spending target for climate and biodiversity in the next MFF. You can read the full letter here:
We signed because budget signals matter. Not just politically — but structurally. They shape investment behaviour, capital flows, industrial strategy, and the credibility of the EU’s climate ambition.
Why this matters now
The current MFF, set for 2021–2027, allocates a minimum of 30% of EU-wide spending to climate action, with a separate target for biodiversity. That framework has supported more than 11,000 climate-aligned projects — from transport electrification to industrial innovation.
It’s not perfect. But it has provided something rare: a stable signal in an otherwise fragmented policy environment.
As the Commission now reconsiders its structure for 2028–2034, there’s growing concern that climate earmarks could be deprioritised in the name of “flexibility” or “simplification.” We believe that would be a strategic error — economically, financially, and competitively.
What a horizontal spending target achieves
Maintaining a climate spending target within the EU budget is not just a symbolic gesture. It is a simple, effective tool that reinforces several market-critical dynamics:
✅ Capital alignment: It signals to investors and industry where public funding will go — reducing uncertainty and unlocking private capital.
✅ Long-term orientation: It protects climate investment from short-term political cycles, allowing projects with multi-year timeframes to move forward.
✅ Resilience through infrastructure: It directs funds into energy efficiency, clean transport, and ecosystem services — all of which reduce Europe’s economic exposure to fossil imports and climate shocks.
✅ Competitiveness and innovation: Green investments consistently show higher ROI and productivity growth than non-green expenditure, especially when coupled with industrial innovation.
Why this aligns with SWISOX’s mission
At SWISOX, we are building the market infrastructure for credible climate-aligned finance. That work does not sit in opposition to public policy — it complements and depends on it.
For sustainable companies to scale.
For institutional investors to allocate capital confidently.
For classification systems to carry meaning.
There must be a predictable baseline of public support — and that support begins with the EU budget.
The MFF is not just an accounting exercise. It’s an architecture for transition.
A shared call — from across sectors
The letter to the Commission has been signed by a wide range of organisations — including ClientEarth, SolarPower Europe, Stiftung KlimaWirtschaft, E3, WWF, and The Climate Group — representing finance, energy, transport, legal, and scientific communities.
That diversity is important. It shows that this is no longer a “green” issue. It’s a structural one. When groups with very different mandates unite around the same ask, it signals that the fundamentals of the transition are now widely understood.
We are grateful to SolarPower Europe for coordinating the effort, and proud to be part of it.
What’s next
The Commission is expected to release its MFF proposal on 15 July 2025. From there, negotiations with Parliament and Council will shape the final outcome. We will be watching closely — and continuing to advocate for a financial architecture that reflects Europe’s stated goals.
Because without budget alignment, policy alignment is a promise on paper.
