The appointment of Wopke Hoekstra as Commissioner for Climate, Net Zero, and Clean Growth introduces an expanded portfolio for the next five years, combining climate action with industrial transformation – both of which are central to achieving the European Green Deal’s goals. Previously the Dutch Minister of Finance and Foreign Affairs, Hoekstra assumed this role in 2023 following the resignation of Frans Timmermans, a key figure in implementing EU climate policy. Building on Timmermans’ legacy, Hoekstra now has an ambitious mandate to sustain and advance Europe’s climate commitments, with tricky financial aspects to deal with.
Legacy of the previous Commission: The impact of Frans Timmermans
As Executive Vice-President for the Green Deal, Frans Timmermans was pivotal in shaping the EU’s approach to climate neutrality, setting a legal framework with the European Climate Law in 2021. For the first time, the goal of climate neutrality by 2050 was legally binding, with a clear 55% emissions reduction target by 2030, relative to 1990 levels. This law became a cornerstone of the EU’s climate framework, ensuring Member States had both shared goals and legally enforceable commitments to follow. Timmermans also led the ambitious Fit for 55 package, which introduced new reforms to decarbonize high-emission sectors like industry, transport, and energy. One of the most impactful measures was the reform of the Emissions Trading System, expanding it to cover road transport and buildings, sectors previously outside the carbon market’s scope. This reform has been important in advancing decarbonization targets. Alongside this, the Carbon Border Adjustment Mechanism was established to prevent carbon leakage and encourage foreign trading partners to adopt similar emissions reduction standards.
More than that, Timmermans launched the European Climate Pact to foster a greater sense of public responsibility for the climate, mobilizing citizens, communities, and businesses to reduce their environmental impact. This initiative empowered local actions for emissions reduction and energy savings, creating a collective sense of responsibility across EU borders. On the innovation front, Timmermans strengthened the Innovation Fund, supporting low-carbon technology in critical sectors like steel, cement, and green hydrogen. The promotion of carbon capture, utilization, and storage was also a notable legacy, with technologies designed to contain emissions from sectors where decarbonization remains challenging.
Looking towards 2040
Building on Timmermans’ legacy, Hoekstra’s roadmap centers on reinforcing Europe’s climate objectives with a long-term focus on 2040. His mandate includes priorities like deepening industrial decarbonization, strengthening climate-focused fiscal policy, and advancing climate diplomacy. Hoekstra is tasked with formulating a binding climate target for 2040, aiming for at least a 90% reduction in emissions relative to 1990 levels. He is also expected to establish a new “Clean Industrial Deal”, an idea you can find on the draghi report, to promote decarbonization technologies while ensuring a “just transition” for affected workers. This plan continues the principles of Fit for 55, with an emphasis on balancing industrial competitiveness with the climate transition.
Fiscal reforms form another central part of Hoekstra’s role. He is tasked with revising the Energy Taxation Directive to incentivize green fuels and gradually phase out fossil fuel subsidies. Another priority is strengthening the fight against tax evasion to ensure that fiscal resources support the EU’s climate ambitions. The Social Climate Fund will also fall under his purview, aimed at ensuring that vulnerable citizens have access to energy-saving upgrades and renovations. A major focus of Hoekstra’s mandate is also on clean technology innovation. Leveraging the Innovation Fund, Hoekstra is set to advance technologies like CCUS and synthetic fuels to help industries with heavy emissions reduce their environmental impact while staying competitive. An integrated EU carbon market is also planned to harmonize carbon trading, ensuring a level playing field for businesses across Member States.
What about the audit?
Hoekstra’s portfolio presents new challenges as it merges climate goals with economic and fiscal policies, demanding a balance between emissions reductions and industrial competitiveness, a very clear line from the new commission. Public and political expectations are high, especially following Timmermans’ era, which rallied strong support around the Green Deal. Hoekstra will need to reassure MEPs that his strategies to achieve the 2040 target are both robust and aligned with Timmermans’ legacy. He will need to reinforce industry support in this transition, particularly in sectors with high carbon intensity.
A key challenge lies in coordinating Member States’ commitments, as many have not yet finalized their National Energy and Climate Plans, causing delays. Hoekstra, in collaboration with the Commissioner for Energy, must ensure these plans align with EU-wide goals, fostering dialogue with countries lagging behind in their commitments. Facing global competition, particularly from China and the United States, Hoekstra must ensure that European industries have the necessary support to stay competitive. His proposed Clean Industrial Deal will need effective support mechanisms to attract investments in green technologies while responding to the pressures of international competition. The fiscal reforms Hoekstra envisions also pose substantial challenges, as tax changes require Member State consensus, particularly around fossil fuel subsidies and a shared corporate tax base. Achieving these reforms will demand careful negotiation to balance national interests with EU climate targets and prevent market distortions.