The European Commission is facing growing criticism after a new report by watchdog Corporate Europe Observatory (CEO) accused Brussels of weakening environmental protections in order to accelerate industrial and energy projects across Europe.
Published on Tuesday, the report claims the EU is using the ongoing energy crisis to justify deregulation measures that could benefit fossil fuel companies, mining firms, hydrogen developers, and major technology corporations. According to CEO, proposed legislation would speed up approval processes for projects labelled as “strategic” or of “overriding public interest,” potentially allowing them to bypass environmental assessments and reducing opportunities for public scrutiny.
The debate comes amid broader discussions in Brussels over balancing Europe’s industrial competitiveness and green transition goals with environmental safeguards and democratic oversight. The issue has gained further attention following the EU executive’s recent decision to increase free pollution allowances for energy-intensive industries under the bloc’s carbon market by nearly €4 billion.
CEO researcher and campaigner Pascoe Sabido argued that while the energy crisis initially pushed Europe toward reducing dependence on fossil fuels, industry lobbying has transformed fast-track measures into tools for expanding polluting infrastructure.
The report warns that the proposed reforms could weaken protections for local communities by limiting their ability to challenge projects affecting health, land, and livelihoods. Hydrogen transport systems, carbon dioxide pipelines, and large-scale data centres were identified as projects that could undermine environmental and social standards.
Specific concerns were raised over mining developments in Sweden linked to critical raw materials for the energy transition, which campaigners say threaten Indigenous Sámi communities and local water systems. In Ireland, rapidly expanding data centres are reportedly placing additional pressure on the national electricity grid and increasing reliance on fossil fuel power generation.
The report also highlights concerns over carbon dioxide transport pipelines associated with fossil gas infrastructure. CEO pointed to incidents in Yazoo County in the United States as evidence of potential health risks linked to pipeline leaks, including asphyxiation and long-term health impacts.
According to the analysis, industry lobbying has influenced several upcoming EU legislative initiatives, including the Environmental Omnibus, the Grids Package, and the Industrial Accelerator Act. Campaigners argue these proposals could reduce environmental impact assessments, expand automatic permit approvals, and restrict access to legal appeals.
Danish MEP Niels Fuglsang defended accelerated permitting procedures for renewable energy and grid projects, arguing that Europe must speed up clean energy deployment to strengthen energy independence, competitiveness, and the green transition. He also supported exemptions from certain EU water regulations for grid infrastructure projects, calling current procedures excessively time-consuming.
The European Commission has defended its broader simplification agenda as necessary to accelerate the energy transition, improve industrial competitiveness, and reduce dependence on imported fossil fuels. Environmental groups, however, warn that easing restrictions for polluting infrastructure could lock Europe into long-term fossil fuel dependence rather than prioritising cleaner energy alternatives.
