Delivering on the European Green Deal A Private Sector Perspective 2025

Permitting According to Business Europe, 83% of companies see both the complexity and duration of industrial permitting as major obstacles to investing in Europe.94 Specific challenges include the response times of public authorities, the complexity of both EU and national legislation, and the lack of coordination between authorities.95 Additionally, 63% of companies experience regular delays of Environmental Impact Assessments (EIA).96 Reasons for this include the following: –mandatory deadlines not being respected by authorities –lengthy public consultation –unconstructive stakeholder engagement –difficulty navigating multiple EU and national legislations related to EIA97 In this context it is unsurprising that 81% of wind capacity in the EU is stuck in permitting at various stages of the process.98 Such delays translate to significant additional costs for renewables’ developers, which can account for as much as 36% of a project’s value (see Figure 9). Examples of financial impact of permitting delays on renewable energy projects FIGURE 9 Technology Delay Cost of delayOnshore wind 35MW 7 years €4,850,000Hydropower 4MW 7 years €1,750,000Hydropower 1MW 3-4 years (projected) €360,000-600,00 (projected)Rooftop solar 380kw 2 years €25,000 Cost as % of project value 9% (estimate)26% (estimate)22-36% (projected estimate)10% Source: Accenture analysis; Eurelectric. (2020). Statement on RES permitting; International Renewable Energy Agency (IRENA). (2023). Renewable power generation costs in 2022; European Central Bank. (2024). 2022 average EUR/USD exchange rate. On average, the complexity of planning and timelines in the EU,99 based on the Global Business Complexity Index, is the highest out of the major global economies; but it is important to note that it varies significantly between member states, with processes in bigger member states tending to be more complex.100 Delivering on the European Green Deal: A Private Sector Perspective 18