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EU Commission's consultancy spend surges amid Green Deal push

Financial Times Companies •
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EU Commission spending on external consultants for energy and climate has surged, up 433% to €127 million since 2014. Overall advisory spend across all policy areas rose 173% to €1.45 billion. The spike ties to the Green Deal's ambitious legislative agenda, prompting industry groups to demand cuts to what they call burdensome red tape. The Commission defends the practice as essential for technical expertise.

Critics argue the reliance on firms that also lobby Brussels creates conflicts of interest. A 2022 audit flagged the Commission’s conflict‑of‑interest rules as inadequate, and the European Ombudsman rebuked the body in 2020 over BlackRock’s role in sustainable‑finance advice. The issue is most visible in hydrogen policy, where consultancy fees have ballooned. Industry groups say the consulting boom inflates costs and slows policy implementation.

US‑based Guidehouse alone secured at least 11 contracts between 2020 and 2024, helping draft the European Hydrogen Bank, which has funneled over €2 billion in subsidies. Simultaneously, the firm staffed lobby groups like Gas for Climate, raising alarms that public funds may be channelled toward industry‑favoured projects rather than cost‑effective decarbonisation. EU officials maintain that strict conflict checks are applied, though watchdogs remain skeptical.