EU proposes exempting AI gigafactories from environmental assessments

"Datacentres, AI gigafactories and affordable housing may be exempt from mandatory environmental impact assessments in the EU under a proposal that advances the European Commission's rollback of green rules. The latest in a series of packages to cut red tape calls for permitting processes for critical projects to be sped up and reducing the scope of environmental reporting rules for businesses. The proposed overhaul would expand the list of strategic sectors to count datacentres, in line with the EU's ambitions to become a global leader in AI, and affordable housing, to improve labour mobility."

"Member states would be free to decide whether such projects should be subject to environmental impact assessments. Other parts of the simplification plan include repealing a hazardous chemical database that lists substances of concern in products; removing requirements on EU polluters to have authorised representatives in member states where they sell their products; and pushing the need for environmental management systems in farms and industry from the level of plants to that of companies."

"Jessika Roswall, the environment and water commissioner, said: Make no mistake: this is not a dilution of our environmental rules. However, we must adapt to a rapidly changing world. The commission estimates its proposals, which were not accompanied by a formal impact assessment, will save companies 1bn a year. Green groups described the plans as part of a broader pattern of attack that is dismantling European environmental policy and undermining democratic accountability, and warned of its indirect costs to human health and nature."

The European Commission proposes exempting datacentres, AI gigafactories and affordable housing from mandatory environmental impact assessments, allowing member states to decide whether such projects need assessments. The package aims to speed permitting for critical projects and reduce the scope of environmental reporting obligations for businesses. Other measures include repealing a hazardous chemical database, removing requirements for authorised representatives for EU polluters in member states where they sell products, and shifting environmental management system expectations from plant to company level. The commission estimates the changes will save companies 1bn a year; environmental groups warn of deregulation, democratic-accountability erosion and indirect costs to health and nature. A study estimated the annual cost of not implementing existing EU environmental law at 180bn.

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