Transparency Under Pressure: EU on the NGO Funding Scandal -

After a German newspaper claimed the EU paid NGOs to push climate policy, Brussels is pushing back, hard. The European Commission denied Welt am Sonntag’s report. Alleging it secretly paid NGOs like ClientEarth and Friends of the Earth €700,000 to promote the EU’s climate agenda.

The Commission insists: “There are no secret contracts. NGO funding is transparent and publicly documented.”

The allegations included claims that ClientEarth was paid €350K to launch legal action against German coal plants. The NGO responded that the grant was only used for staff and office costs, not litigation. It was also alleged that NGOs were asked to oppose the Mercosur trade deal, despite some EU officials still backing it. The Commission maintains NGOs act autonomously. The issue comes amid wider political backlash. The EPP has accused the Commission of encouraging NGOs to lobby MEPs on Green Deal priorities using taxpayer money. Back in January, Budget Commissioner Piotr Serafin admitted some LIFE programme contracts may have inappropriately included lobbying tasks, but defended the NGOs’ overall role. The European Court of Auditors also flagged EU NGO funding as “opaque,” warning of reputational risk, though it found no breach of EU values.

In response, the Commission issued new transparency guidelines, now blocking any grants involving direct lobbying of EU institutions.

This is a high-stakes fight over funding, climate politics, and transparency. With the Commission trying to contain reputational damage just months ahead of key elections.