The EU Green Deal in turbulent times: insights from the EU Green Policy Tracker from Sweden and Estonia

The EU Green Policy Tracker prototype reveals that the implementation of the European Green Deal in Sweden and Estonia is hindered by severe administrative capacity constraints and a lack of policy coherence. Key obstacles include overwhelming reporting requirements, conflicts between EU state aid rules and funding mechanisms, and tensions between economic interests and carbon sequestration targets. The report also notes a broader political shift in the EU, where environmental ambitions are being scaled back or rebranded as the 'Clean Industrial Deal' to prioritize economic competitiveness.

• The EU Green Policy Tracker prototype, launched in spring 2025, identifies two primary challenges hindering the implementation of European Green Deal (EGD) policies at the member state level: capacity constraints caused by high policy load and rapid change, and a lack of policy coherence resulting from conflicting demands.
• Implementation of the Carbon Border Adjustment Mechanism (CBAM) in Sweden and Estonia is hampered by disagreements over data management responsibilities, a lack of emissions measurement frameworks in exporting countries, and high administrative burdens. Sweden specifically underestimated the number of affected businesses and noted that the timeline may be insufficient for member states to meet deadlines.
• The revised Energy Efficiency Directive (EED) faces implementation obstacles due to the high volume of reporting requirements and a shortage of administrative and financial resources. In Estonia, the simultaneous adoption of multiple EGD initiatives has strained administrative capacity, leading to a general inability among most member states to meet the implementation timeline.
• The revised Land Use, Land Use Change and Forestry (LULUCF) regulation is challenged by unclear reporting guidance and the difficulty of balancing competing interests. Sweden has experienced a five-year delay in submitting sample plot data for living biomass, while Estonia faces polarized debates over felling rates to balance carbon sequestration with economic output.
• The Just Transition Fund (JTF) implementation in Sweden and Estonia was significantly delayed by conflicts between funding decisions and EU state aid rules, which required competitive tenders. Additionally, the JTF's requirement for advanced institutional capacity at regional and local levels has proven difficult for newer EU countries that lack existing industry decarbonization plans.
• There is a perceived decline in green ambition within the EU, evidenced by the withdrawal of five initiatives (including the Regulation on the sustainable use of plant protection products) and the watering down of the Nature Restoration Law. The EGD has been rebranded as the 'Clean Industrial Deal' under Ursula von der Leyen's new mandate, shifting focus toward competitiveness and clean industry over environmental objectives.

APA

Kappe, K., Mikaelsson, M. A., & Krustok, I. (2025). The EU Green Deal in turbulent times: insights from the EU Green Policy Tracker from Sweden and Estonia. Stockholm Environment Institute. https://www.sei.org/wp-content/uploads/pdfs/189760/eu-green-deal-turbulent-times-eu-green-policy-tracker-sweden-estonia.pdf

Chicago

Kappe, Kira, Mikael Allan Mikaelsson, and Ivo Krustok. The EU Green Deal in turbulent times: insights from the EU Green Policy Tracker from Sweden and Estonia. Stockholm Environment Institute, 2025. https://www.sei.org/wp-content/uploads/pdfs/189760/eu-green-deal-turbulent-times-eu-green-policy-tracker-sweden-estonia.pdf.

Wikipedia

{{cite report |last1=Kappe |first1=Kira |last2=Mikaelsson |first2=Mikael Allan |last3=Krustok |first3=Ivo |title=The EU Green Deal in turbulent times: insights from the EU Green Policy Tracker from Sweden and Estonia |publisher=Stockholm Environment Institute |date=April 2025 |url=https://www.sei.org/wp-content/uploads/pdfs/189760/eu-green-deal-turbulent-times-eu-green-policy-tracker-sweden-estonia.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{kappe2025green, author = {Kappe, Kira and Mikaelsson, Mikael Allan and Krustok, Ivo}, title = {{The EU Green Deal in turbulent times: insights from the EU Green Policy Tracker from Sweden and Estonia}}, institution = {Stockholm Environment Institute}, year = {2025}, month = apr, url = {https://www.sei.org/wp-content/uploads/pdfs/189760/eu-green-deal-turbulent-times-eu-green-policy-tracker-sweden-estonia.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }