Claims that the EU must weaken environmental rules to remain competitive are not supported by Europe’s businesses, according to a new GlobeScan survey of senior business leaders, commissioned by WWF.
Instead, nine in ten business leaders (91%) believe the transition to a low-carbon, environmentally sustainable economy strengthens the EU’s long-term competitiveness. Meanwhile, more than half (55%) say recent EU ‘simplification’ efforts have had a negative or mixed impact on their business.
Titled ‘Beyond Uncertainty’, the survey captures the views of 350 senior business leaders across various sectors in the EU on the links between sustainability and competitiveness.
The findings show a clear disconnect between the EU’s push to weaken environmental and sustainability rules and what companies say they need to compete.
For the business leaders surveyed, maintaining course on the EU’s green transition is an economic priority – pointing to lower exposure to climate and nature risks, greater energy and resource security, and more stable and predictable costs.
“How many more reality checks does Europe need to realise that we cannot deregulate our way out of the climate crisis?” said Ester Asin, Director of WWF EU. “This summer was a painful reminder that Europe is already paying the price of climate breakdown, with massive economic costs. Yet, the EU’s response is to put our environmental protections on the chopping block. Businesses are now making it clear: weakening sustainability policies will only make Europe less competitive.”
The economic costs of climate inaction are already hitting Europe. This summer’s extreme heat could reduce EU GDP by around 1% in 2026 due to economic damage.
Meanwhile, the European Commission estimates that the cost of failing to implement existing EU environmental laws is around €180 billion a year – that is ten times the €17 billion in annual administrative savings the Commission says its simplification efforts have achieved so far.
The survey also finds that recent efforts to reopen and revise EU environmental legislation are creating uncertainty for many companies, with only 29% of business leaders reporting positive impacts from recent EU initiatives to simplify laws.
Among those reporting negative or mixed impacts, the most frequently cited consequence is greater uncertainty about the future direction of EU policy (57%), alongside wasted compliance-preparation investments and a weakened business case for sustainability.
When asked what the EU should prioritise to boost competitiveness, businesses put predictable and coherent policy and legislation at the top of the list (43%), ahead of public investment and incentives (31%) and affordable clean energy (29%).
“Business leaders are not asking EU policy-makers to choose between sustainability and competitiveness, and it is time to abandon this misleading framing. Instead, they are calling for ambitious and stable EU rules that give companies the confidence to invest and innovate. The real economic burden comes from delaying the green transition and creating uncertainty about its direction,” concluded Ester Asin.
‘Beyond Uncertainty’ surveyed 350 senior businesses executives from companies across sectors and geographies in Europe, including mid-sized businesses and multinationals, in June-July 2026. The full report is available here.
