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First published in

Horizon scan brief (October 2026)
EU-tech sovereignty and sustainability

EU-tech sovereignty and sustainability

Discoursive shifts in political priorities signal efforts in reaching technological sovereignty risk putting environmental goals under strain in the EU.

Ethical salience

value trade-offs in sustainability-related policy

Trend category

technological
(geo)political
environmental

Policy stakeholders

technology, industry, environmental policy

Impact on

human and non-human life-forms, ecosystems

Timeframe

ongoing

Increasing efforts in reaching technological sovereignty risk putting environmental goals under strain in the EU. It will be up to political decisionmakers to decide whether they accept certain setbacks in terms of sustainability targets in order to make progress on technological sovereignty.

Amidst geopolitical tensions, the EU is striving for technological sovereignty and economic independence, as reflected in recent discussions on strategic autonomy and decoupling. Technological sovereignty of political entities can be understood as comprising of two axes, namely the possession of technological capacities as well as independence from foreign entities in the exercise of these capacities. Key initiatives include "Digital sovereignty for Europe", the Tech Sovereignty Package – published June 2026, building on the Competitive Compass, both the Chips and the AI Act, as well as the EuroStack initiative. Relevant events include the Sovereign Tech Europe conference in April 2026 and the Summit on European Digital Sovereignty between Germany and France in November 2025. Among many stakeholders, like STOA observes bolstered European technology sectors are relevant for competitiveness. Such efforts aim to address important ethical and societal concerns, including the governance of powerful digital technologies, data protection, and the promotion of a democratic and prosperous Union through increased European production capacity.

However, some of these endeavours may generate ethical trade-offs between technological goals on the one hand, and environmental sustainability goals on the other. This is increasingly visible in policy discourse through shifts in political priorities.

It is EU policymakers responsibility to anticipate trade-offs and consider the interdependencies and tensions between technological sovereignty and sustainability targets.

Tech sovereignty in EU policy and...

The EU depends on China in AI and semiconductor technology, as well as on the US in data governance. The following initiatives aim to tackle ethical issues resulting from this and increase the focus on tech-sovereignty in the EU:

  • AI systems: With the AI Act, the EU has begun to enable self-established regulation. Further, with the AI Continent Action plan, the EU strives for more computing infrastructure by building several AI factories, among other goals.
  • Semiconductor technology: The Chips Act aims at avoiding shortages and creating more resilient supply chains, as vulnerabilities affect critical services like health and slow progress in decarbonising industry and mobility.
  • Data management and cyber security: The EU remains heavily dependent on foreign governments and corporations for cloud services, secure communications, and the data infrastructure underpinning AI systems. In response, authorities in Germany and other EU countries are considering changing to open-source digital services, or have already made the change instead of relying on US products.

…ethical significance of sustainability

Beyond the EU's strategic interest to continue with climate action, biodiversity, climate stability, and clean, healthy environments are also ethically relevant. They enable securing fundamental human rights for both current and future generations and are thus key in EU policy objectives. However, the EU's short-term technological priorities make its climate commitments uncertain.

  • Health and wellbeing: Environmental policies are ethically relevant due to their wide impact on the quality of and access to food, water and air for current EU inhabitants. The increasing technological development in AI-powered factories could affect water availability for human communities and ecosystems, and could also lead to higher emissions due to energy requirements.
  • Future generations: Putting environmental sustainability at the core of EU policies enables the EU to fulfill obligations to future generations. Due to the long-term impact of environmental harms tech sovereignty targets could compromise fulfilling these obligations.
  • Economic wellbeing: Major parts of the economy rely on stable climate conditions as well as biodiversity levels among plants and pollinators. A shift in priorities towards tech sovereignty would risk harming European economies and have a negative impact on prosperity and quality of life.

Tech sovereignty putting sustainability under threat

The intensified prioritisation of technological capacities could constitute significant value trade-offs for the EU regarding environmental sustainability:

With policy discourses increasingly shifting to matters of tech sovereignty, economic independence and domestic production, there is evidence that environmental policy in the EU is beginning to be framed in more economic terms, or that the environment is put in service of strategic autonomy and economic gains. This trend raises ethical concerns, particularly if resources earmarked for sustainability are redirected toward sectors associated with technological sovereignty. Such reallocation is already evident in the restructuring of the EU Cohesion Funds.

Subsidies and other support for technology developers that are not conditional on improving sustainability could delay environmental targets. The "twin transition", i.e. the "convergence of the green and digital transitions", has been recognised as a potential setback to sustainability goals. Finally, reports that US technology lobbyists influenced EU regulation to conceal data centres’ energy consumption, underscore the sensitivity of policymaking at the intersection of technological development and sustainability. Expanding digital infrastructure could undermine environmental targets as for instance data centre energy demand is projected to rise sharply over the next decade, with the European Environmental Agency (EEA) estimating a doubling of electricity consumption by 2030 and an elevenfold increase in water use relative to 2024 levels.30 To address this issue, in a recent Strategic Roadmap the EC announced to adopt, among others, a Data Centre Energy Efficiency Package which should help to align sustainability goals with increased usage of cloud and AI systems. If initiatives for technological sovereignty are not assessed for their compatibility with sustainability goals, decision-makers run the risk of jeopardising these goals in the long term.

Scenarios

The EU may consider several future scenarios to ethically evaluatepolicy options in these matters:

First Scenario

The EU deprioritises sustainability goals and reduces funding and subsidies in sensitive areas of sustainability and environmental protection. This puts the protection of the health and wellbeing of EU citizens and the resilience of the economy under threat, as well as the obligations towards future generations, leading to civil protest.

Second Scenario

The EU maintains sustainability as a top priority. That is, it readjusts and increases spending on achieving environmental goals at the expense of boosting economic independence and technological sovereignty. The EU thus makes itself vulnerable to heightened technological and geopolitical rivalry, and under heightened geopolitical tensions with the US, key supply chains are disrupted with no adequate European alternatives.

Third Scenario

A middle way is found. The EU channels more expenditure and support into areas that increase tech sovereignty and that are simultaneously consistent with the objectives of environmental sustainability, e.g. more energy-efficient European semiconductor technology or data centers powered by renewables. This approach slows down the achievements of both technological and sustainability goals in the short term.

Potential anticipatory activities

Longer-term options:

  • Assess long-term budget trade-offs: Assess how budget reallocations are already affecting sustainability spending and whether such trade-offs are likely to intensify in the future.
  • Track policy discourse trends: Analyse shifts in EU sustainability, technology, and industrial policy discourse over 3-5 years. Significant changes may signal future shifts in (funding) priorities.
  • Identify synergies between tech sovereignty and sustainability: Assess how technological developments and policy options can advance both objectives. An integrated approach should identify sectors with the greatest environmental impacts and explore how technological sovereignty can be strengthened while also advancing with environmental sustainability goals.

References