Spain issued a strong warning that one of the EU’s flagship environmental funds risks losing its impact if it is absorbed into broader funding structures as negotiations over the multi-annual budget intensify, according to a document seen by Euronews.
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In the document circulated ahead of environment ministers’ meeting in Brussels on June 25, Spain called on EU countries to examine how the LIFE environmental fund — the bloc’s main funding instrument for climate and environmental action — can be safeguarded in the EU’s next long-term budget for 2028–2034.
“The proposal to integrate the LIFE programme into broader financial frameworks (such as a potential European Competitiveness Fund) could, if implemented, lead to a loss of visibility, specific funding and the capacity for effective implementation on the ground, subordinating environmental objectives to other priorities,” Spain warns.
It argues that Europe is facing a “triple environmental crisis” of biodiversity loss, climate change and pollution and that “there is a clear risk” that “specialised instruments and environmental ambition will be watered down,” in the current budget debate.
The document also raises concerns that the European Commission’s proposed funding levels for biodiversity and nature restoration in the 2028–2034 budget may be lower than current allocations, which stood at €5.4 billion for the 2021-2027 budget.
While the EU has increased its environmental ambitions through initiatives such as the European Green Deal, with considerable derailments under Ursula von der Leyen’s second term in the Commission, Madrid contends that ambitious targets require dedicated financial tools to translate policy into practical results.
A lifeline for biodiversity and nature restoration
The EU’s environmental fund, LIFE, has become the EU’s flagship funding mechanism for environmental and climate action since 1992, backing more than 6,000 projects and mobilising over €12 billion in investment.
In 2028, conservationists in the Iberian Peninsula celebrated the recovery of the Iberian lynx, which was no longer classed as “endangered” by the International Union for Conservation of Nature.
The population of the medium-sized feline endemic to the Iberian Peninsula has gone from 62 in 2001 to more than 2,000 thanks to the successful breeding and reintroduction programs backed by LIFE.
Other contributions to nature and biodiversity include the restoration and management of Danube floodplain habitats, the removal of air pollution through urban reforestation, and the management and restoration of Mediterranean wetlands as carbon sinks to trap CO2 from the atmosphere.
Diluting LIFE
The controversy emerges amid negotiations over the EU’s seven-year budget plan, as proposals to simplify EU spending could see the LIFE program folded into larger funding vehicles, potentially including a future European Competitiveness Fund.
The document sheds light on LIFE’s unique status as the only EU financial instrument dedicated exclusively to environmental and climate objectives. Its structure spans biodiversity, circular economy initiatives, climate action and energy transition projects, allowing it to address interconnected environmental challenges through a single framework.
LIFE supporters argue that its success lies not only in funding but also in its ability to foster cooperation among national, regional and local authorities.
Over the years, Spain argues, LIFE has strengthened technical expertise, encouraged the exchange of best practices between EU countries and enabled innovative environmental solutions to be tested and replicated at scale.
Without such a practical approach, Madrid argues that the gap between EU policy ambitions and real-world implementation will be wider.
Parliament’s counter-proposal
Spain’s position echoes concerns expressed by the European Parliament’s environment committee, which has stressed the importance of maintaining a dedicated environmental funding instrument.
MEPs adopted a text on Tuesday that requires EU countries to meet targets for climate, environment and biodiversity when preparing their national plans. The broad support reflects previous Parliament positions and pushes back against the Commission’s proposal to drop a dedicated target for nature.
“The integration of LIFE-type actions into a broader Facility must not dilute its strategic nature, long-term programming stability or support for civil society. Dedicated budget lines, multiannual work programming, financing and governance safeguards are necessary to preserve LIFE’s added value such as strategic nature projects,” reads an opinion backed by 54 MEPs against 16 on Tuesday.
Lawmaker Ana Vasconcelos (Renew/Portugal) said the attempt to dismantle LIFE was “very contentious” but despite the centre-right group European People’s Party starting talks to water down environmental funds, the “EPP in the end managed to support the file”.
“The EPP in the Parliament’s committee is different from the EPP as a political group,” Vasconcelos said.
Faustine Bas-Defossez, policy director at the NGO European Environmental Bureau, urged the Council, which represents EU member states, to reinstate LIFE as a standalone fund for 2028-2034 and to ensure strong climate and nature funding in the next EU budget.
_”_We welcome Spain’s initiative to open a debate on the future of LIFE. At a time when Europe is facing yet another extreme heatwave and climate impacts are becoming the new normal, weakening one of the EU’s most effective environmental programmes would be a step in the wrong direction.
Beate Aikens, senior advocacy officer at the environmental NGO WWF EU, said that support for LIFE remains unwavering across political groups.
“MEPs are united in recognising that weakening one of the EU’s most effective tools for delivering tangible results for the environment, local communities and businesses is not an option,” added Aikens.
Council and Parliament are continuing negotiations on the EU’s next multi-annual budget, particularly on EU funds for economic, social and territorial cohesion. Both Spain and the Parliament’s environment committee are hoping these national allocations can offset the loss of environmental funds proposed by the Commission.
