While the picture differs among six leading European countries, environmental and sustainability consultants see a promising outlook.
Environment Analyst’s Focus on Europe Insight Report highlights many opportunities and challenges for environment and sustainability consultants in six countries – Germany, France, the Netherlands, Belgium, Denmark and Sweden.
For each country, Environment Analyst has provided a high-level picture of the economic and environmental situation and political backdrop, along with commentary from local consultants. There are some common themes in those countries – competition, skills shortages, rollback of certain EU rules and challenging political context – but the differences are also marked. For example, their energy mixes differ considerably.
Below is a quick synopsis of each country.
Germany
Germany’s E&S consultancy market is driven by industrial activity and strict regulatory pressures. There is strong demand for specialised services, particularly in areas like renewable energy integration, circular economy solutions, and ESG reporting.
The government’s recently introduced infrastructure bill is expected to significantly bolster the market. Investments in projects, such as smart grids, public transport electrification and resilient urban planning, will create substantial opportunities for E&S consultancies. This includes demand for environmental impact assessments, sustainable design and engineering services, and support for green financing mechanisms related to these projects.
Environment Analyst’s discussions with consultants there reveal good opportunities in areas including green finance, sustainable supply chain management and digital solutions for environmental monitoring. Client needs often revolve around achieving compliance, enhancing corporate sustainability performance and seizing opportunities in the transition to a low-carbon economy.
France
France’s E&S consultancy market is primarily driven by high levels of public investment, particularly through the €54bn ‘France 2030’ plan, which focuses on reindustrialisation and green transition.
The country also has strong environmental regulations, often exceeding EU requirements, such as the Climate and Resilience Law and the ZĂ©ro Artificialisation Nette (ZAN) objective, which incentivises brownfield development and remediation. Remediation remains a major service area, with increasing demand for PFAS contamination work.
Public awareness of environmental issues is also rising, leading to increased demand for services like permitting, where strong cases are needed to deal with legal risks.
The Netherlands
Despite a weak economic outlook, the Dutch E&S consultancy market has promising potential, according to consultants Environment Analyst spoke with. EU regulation is a key driver. Despite the pause on parts of CSRD, progress on the EU’s Emissions Trading Scheme (ETS) and Carbon Border Adjustment Mechanism (CBAM), mean larger international clients are progressing on decarbonisation goal setting and emissions reporting.
Also, despite the government’s leaning, the country has strong political and financial support for sustainability in infrastructure projects. Important work areas are energy, water, infrastructure, ecology and ESG consultancy. There is a focus on expanding renewable sources, water treatment, sustainable urban development and biodiversity conservation.
Belgium
Belgium’s complex and long-established environment, health and safety legislation drives much of the demand for services. Climate targets of a 55% reduction in greenhouse gas emissions by 2030 and climate neutrality by 2050 and ambitious city-level climate plans, all play a part.
However, the low share of renewable energy in Belgium – 14.7% in 2023 – highlights a need for increased renewable electricity generation, though the country is now open to expanding nuclear capacity.
Strict permitting processes, often taking years, also create high demand for expert guidance on compliance. Infrastructure projects, including transport upgrades to the ports of Antwerp and Ghent, offer opportunities for clean initiatives and renovations. Water management, particularly addressing PFAS contamination and flood defences, is also a key area.
Denmark
Strong public and political support for the green transition drives the market in Denmark. The country aims to reduce greenhouse gas emissions by 70% by 2030 and achieve climate neutrality by 2045.
Key markets for E&S consultancies include PFAS contamination in groundwater, where significant public concern has led to a National Action Plan for remediation. Climate change adaptation, particularly flood defence, is also a major driver due to the country’s flat geography and rising sea levels.
Furthermore, nature and biodiversity restoration initiatives, such as the Green Tripartite Agreement, are generating a substantial amount of work. However, consultants Environment Analyst spoke to indicated that ESG consulting is currently a niche area, with many companies preferring in-house compliance or specialist providers. Challenges also exist in offshore wind development due to economic factors.
Sweden
The picture is different in Sweden, where the E&S consultancy market is currently in a period of adjustment, influenced by a political shift to the right and rollback of EU legislation. While the country has historically been a leader in environmental regulations, the Swedish government, formed after the 2022 election, has reversed some progressive environmental policies. This has created uncertainty for investors, especially in the energy transition sector.
Despite this, a strong industrial base and significant infrastructure needs continue to fuel demand for E&S consultancy. Areas like compliance work, including air emissions control and environmental impact monitoring, are expected to drive growth and sectors including defence and nuclear are seeing investment.
The role of the EU
The European Union is clearly a driver of a lot of environmental and sustainability legislation across the bloc. The rollback of some of some elements of the EU’s Green Deal is undoubtedly impacting work in the ESG field. However, the EU’s policies and legislation in energy, water, nature and infrastructure are all powerful engines of E&S consultancy services across the region.
Global members of Environment Analyst can download the report here and and UK members can download the report here.
This article was originally published on the Environment Analyst website.
