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The COFFIS Observatory welcomes the climate complaint filed by Both ENDS with the European Commission’s Single Entry Point under the EU-New Zealand Free Trade Agreement (FTA). The agreement, which entered into force in 2024, contains provisions regarding climate and sustainable development. Notably, neither side may weaken environmental laws to encourage trade or investment, and each side must implement the Paris Agreement, refraining from any action or omission that undermine its objectives. The complaint, submitted on 29 September 2026, challenges New Zealand’s systematic rollbacks of environmental standards, including the introduction of new subsidies supporting fossil fuel production in the country. New Zealand

Addressing the upcoming Q4 2026 European Commission framework on phasing out fossil fuel subsidies requires balancing climate ambition with legal feasibility, as measures mandating direct subsidy removal touch national fiscal policy and require unanimous Council approval. Following a previous high-level paper, this discussion paper puts forward two options. As a highly ambitious benchmark, Option 1, the “Hard Deadline” approach, is proposed. It introduces a dedicated new regulation setting binding Union-wide phase-out timelines alongside targeted amendments to existing governance legislation. While providing maximum policy ambition and clarity, it carries a high risk of political gridlock due to the Council unanimity requirement. In