From the Emerald Isle to Leading Europe: Ireland Faces the the Challenge of Green Competitiveness

Translated by Giulia Girardi

On July 1st, Ireland assumed the rotating Presidency of the Council of the European Union, at a particularly challenging moment for the Union. Whereas the Green Deal has served as the cornerstone of European climate and energy integration in recent years, the current priority is to demonstrate that decarbonisation can be pursued without eroding industrial competitiveness, compromising energy security, or weakening the Union’s ability to navigate an increasingly unstable, fragmented world.

In other words, Dublin is succeeding the Cypriot Presidency at a time when the European debate is entering a new phase. Over the past six months, policy discussions have progressively evolved from the formulation of new climate goals to the implementation of existing legislation, with particular attention to the recent reform of the EU Emissions Trading System (EU ETS), the efforts to simplify the Green Deal regulatory framework, and the initial negotiations on the 2028-2034 Multiannual Financial Framework. This means that the European climate policy is increasingly being re-shaped by two imperatives: economic competitiveness and strategic security.

Maintaining this delicate balance lies at the heart of Ireland's Presidency agenda. Its slogan, “The Strength of Unity”, encapsulates the ambition to confront an increasingly challenging geopolitical landscape — marked by trade disputes, international instability, and fierce technological competition — through a coordinated European response. Competitiveness, values, and security are the pillars of the Irish agenda. Despite this, competitiveness is expected to be the overarching theme of the Presidency.

The stated objective is not to slow the green transition, but rather to make it a driver of economic growth. According to the Presidency's programme, Europe should strengthen its energy security by accelerating the deployment of renewable energy, investing in electricity grids, and promoting the electrification of energy consumption, thereby reducing dependence on imported fossil fuels and lowering energy costs for households and businesses. From this perspective, decarbonisation is presented not only as a response to the climate crisis, but also as a means of enhancing the European Union's economic resilience.

The Irish Presidency will also benefit from a favourable political context. As several analysts — including Politico — have observed, the coming months will see the launch of negotiations that will shape the European Union's new legislative cycle, offering Dublin an opportunity to influence several strategic policy dossiers that remain unresolved. At the same time, this leaves the Irish Presidency exposed to tensions among Member States with diverging priorities: while some are determined to preserve the Union's climate objectives, others argue that the regulatory burden imposed by environmental legislation should be eased to strengthen the competitiveness of European industrial giants.

Therefore, the success of the Irish Presidency will not lie in the adoption of new legislation, but in its ability to forge compromises among the Member States. The Presidency’s early agenda provides a clear indication of Irish priorities: reinforcing the role of the European Union within international climate dimplomacy, while advancing a more integrated approach to marine resource management — two themes expected to gain increasing prominence within European policy debates in the months ahead.

Climate, ocean, and increasingly sophisticated technology: Ireland aspires to guide the transition

The opening engagements of the Irish Presidency quickly made clear the country’s strategic priorities. The informal workshop of the Working Party on International Environment Issues - Climate Change (WIPIEI-CC) initiated discussion among Member States while preparing for COP31. Simultaneously, the EU Ocean Act Conference, held in Wexford on 7-8 July, marked the beginning of a debate on what could become a flagship legislative initiative in the field of the maritime governance of Europe.

Although they pursued different objectives, the two events were driven by the same logic: reinforcing the European Union’s role as a global player in climate and environmental governance as multilateralism faces mounting challenges.

The WPIEI-CC workshop represented the first exchange among the Member States following the Bonn negotiating sessions, and marked the beginning of the process that will lead to the definition of a common European position for COP31. At a time of major disagreements over climate finance and the future of the energy transition, the ability of the European Union to act with a united front will be key to safeguarding its credibility on the global negotiating stage.

At the same time, the conference on the European Ocean Act highlighted a different, yet closely related, policy priority. The proposed legislation, set to be introduced in 2027, seeks to consolidate a range of currently fragmented policies — including marine biodiversity conservation, maritime spatial planning, and the development of the blue economy — within a single governance framework. The economy and geography of Ireland are intrinsically linked to the sea, advancing a more integrated model of ocean governance. This also means to reinforce the strategic contribution of marine resources to the green transition of Europe.

While these events help define the Presidency's international profile, it is in the field of energy policy that Dublin will be expected to deliver its most tangible results.

Unveiling the Presidency's programme, the Irish Minister for Climate, Energy and the Environment, Darragh O’Brien, identified electrification as one of the key instruments for simultaneously strengthening energy security, competitiveness, and decarbonisation. The strategy is designed to speed up the deployment of renewable energy, modernise electricity networks, and reduce Europe's dependence on fossil fuelds, thereby making the energy transition a driver of economic resilience as well as environmental sustainability.

This approach reflects a broader shift in the European policy debate. If the years following the Russian invasion of Ukraine were largely defined by concerns over energy security, the focus has now shifted towards Europe’s ability to comete with the United States and China in more ethical technology development. Within this framework, investment in electricity grids, industrial innovation, and decarbonisation has come to be seen as an integral component of European competitiveness.

Ireland will also be required to reconcile competing priorities. Environmental organisations and several Member States are urging the Presidency to further nurture and perpetuate climate goals, while governments and industry are pushing for regulatory simplification and policies that mitigate the costs associated with the transition.

It is no coincidence that the priorities of the Presidency also include the Omnibus Environmental Simplification, through which the Commission aims to reduce the administrative burden on business without altering the Union's climate objectives. The dossier encapsulates the challenge the challenge that will accompany Dublin throughout its six-month term: Simplification is not meant to weaken environmental policies, but about making these more effective and easier to implement.

The same balance will also define discussions on the future of the EU Emissions Trading System (EU ETS), which is expected to remain one of the Union’s core instruments for decarbonisation. Although no immediate reform of the system is envisaged, the debate over its future reflects a broader question: how to maintain climate ambition without undermining the competitiveness of European industry. This is a question that will define much of Ireland’s Presidency and is likely to extend beyond it, shaping the agenda of the current institutional mandate.

EU Budget and Global Leadership: The Defining Challenge of Ireland's Presidency

While the opening months of the Presidency have outlined its ambitions and priorities, the success of Ireland's six-month term will ultimately depend on its ability to manage a number of divisive divisive policy dossiers. The most significant among these is the 2028-2034 Multiannual Financial Framework (MFF), whose negotiation process is due to begin under Dublin’s stewardship.

While an agreement at this stage remains unlikely, the launch of negotiations on the Multiannual Financial Framework (MFF) marks a pivotal moment. The MFF is more than just a budgetary instrument; it reflects the political priorities of the European Union. Decisions on the allocation of resources will influence the balance between investment in the green transition, industrial competitiveness, energy security, defence, and support for Ukraine, while preserving long-established policies such as agriculture and cohesion.

In this context, the Irish Presidency will operate at a time of growing tension between climate ambition and economic constraints. With the legislative architecture of Green Deal now largely in place, the European debate has shifted from policymaking to implementation. The question is no longer simply how much emissions should be cut down, but how the transition can be financed and supported without undermining Europe's industrial competitiveness. The debate surrounding the Environmental Simplification Omnibus reflects this broader transformation. While the initiative seeks to reduce administrative complexity without weakening environmental standards, it also illustrates the growing difficulty of sustaining political consensus in an increasingly fragmented landscape.

The Irish Presidency will play a key role in the preparation for COP31, where the European Union will need to demonstrate its ability to maintain a unified position in an increasingly fragmented international environment. The credibility of the European Union in the climate negotiations will depend on its capacity to reconcile industrial interests with climate ambition, ensuring that internal divisions do not weaken its global influence.

The Irish Presidency is receiving considerable attention among policy analysts. Several observers, including Politico, argue that Dublin is well positioned to act as a credible intermediary between Member States with differing policy preferences. At the same time, policy briefings by organisations such as Bellon highlight the opportunity to strengthen the links between climate policy, energy security, and industrial competitiveness, moving beyond the traditional trade-off between economic growth and sustainability.

Yet the challenges facing the Irish Presidency remain substantial. Weaker economic growth in several Member States, pressure from energy-intensive industries, persistent tensions in energy markets, and divergent views on the pace of the green transition may limit the ability of Ireland to broker ambitious compromises. These challenges are further intensified by a geopolitical landscape that continues to redefine the Union's priorities, including its relations with the United States and China and its long-term support to Ukraine.

The Irish Presidency as a Political Test for the Green Deal

The Irish Presidency does not inaugurate a new chapter for the European Green Deal. Instead, it represents a critical moment of evaluation. After years of regulatory development, the European Union has entered a stage in which the credibility of the transition depends on its effective implementation and its compatibility with the economic and industrial needs of Member States.

Therefore, the Irish strategy is centred on a delicate balance: preserving the ambition of Europe’s limate objectives while showing that the transition can also serve as a driver of competitiveness, energy security, and innovation. This is ultimately a political test rather than a technical one, and will depend more on the ability to mediate and build consensus than on the launch of new legislative initiatives.

Should this approach deliver tangible outcomes, the Irish Presidency may ultimately be remembered not for a single reform or landmark agreement, but for helping to redefine the European understanding of the green transition itself. The transition would no longer be understood as a linear journey centred exclusively on climate objectives, but as a continuous effort to balance environmental sustainability with economic resilience and strategic autonomy.

At a time when Europe is navigating global competition while addressing its own vulnerabilities, these attempts could become the most significant legacy of the Irish Presidency.

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