Swaying the Green Tide: Evaluating the Influence of Business and NGO Lobbying on Sustainable policy outcomes in the EU: Insights from the EU Taxonomy Regulation.

The European Union (EU) has committed to achieving climate neutrality by 2050, recognizing climate change as a serious threat. To facilitate this transition, the EU developed a taxonomy to distinguish between sustainable and unsustainable investments. This regulation aims to guide green investments, due to the significant role of the private sector in this transition. However, from its initial report in 2018 to the final Delegated Act in 2021, the Taxonomy underwent significant changes ascribed to lobbying by private interest groups (IGs). This thesis examines the success of non-governmental organizations (NGOs) and business associations in influencing the outcomes of the Taxonomy 852 and the Delegated Taxonomy Act (2021). It explores the factors contributing to the varying levels of influence exerted by fossil fuel, agriculture, and NGO associations. The research is crucial for understanding the EU political landscape and the impact of lobbying on environmental regulations. Given the ongoing academic debate and contradictory information about the EU's policy formulation process, this study investigates whether the EU structurally favours private interests or if other factors are at play. The thesis provides insights into the effectiveness of lobbying efforts and their impact on EU climate policies, highlighting the balance between private and public interests. Using the preference attainment method, this research assessed the influence of private and public interest groups on four sub-issues of the Taxonomy. Findings indicate that private lobby groups had a 58% success rate, while NGO lobby groups achieved 0%. The private sector provided the most resources, had a significantly higher budget, and had more access to the Commission during the 2020 lobbying period. Media salience of the policy was low, which benefited private interests. Lobby staff size was negligible in determining influence. These factors underscore the comparative advantage of private sector lobbying in exerting their influence on the EU Taxonomy.