Europe sustainable development report 2025: SDG priorities for the new EU leadership
The Europe Sustainable Development Report 2025 assesses EU, EFTA, UK and candidate countries’ progress on the SDGs using updated indices. It highlights stalled convergence, rising within-country inequalities and significant international spillovers, and calls for scaled-up green, social and multilateral investment under the EU’s 2024–2029 leadership.
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OVERVIEW
Introduction: The new EU leadership (2024–2029) and the SDGs
The Europe Sustainable Development Report 2025 (ESDR2025) assesses progress on the Sustainable Development Goals (SDGs) across 41 European countries: 27 EU member states, nine candidate countries, four EFTA countries and the United Kingdom. It supports the new EU leadership’s 2024–2029 mandate and the 2030 Agenda.
The EU has reaffirmed commitment to the SDGs, including through Commissioners’ mission letters. The report frames the SDGs as an investment agenda in human capital and infrastructure. It references calls for an additional €800 billion annually to advance green and digital transitions, alongside reform of the Global Financial Architecture (GFA). The next Multiannual Financial Framework (2028–2035) is identified as critical for sustaining investment.
Performance of the EU and European countries on the SDGs in 2025
Nineteen of the top 20 countries in the global SDG Index are European. The EU’s average 2025 SDG Index score is 72.8. However, progress has slowed: average annual gains fell from +1.9 points (2016–2019) to +0.8 points (2020–2023). In Western and Northern Europe, performance has slightly declined since 2020.
Finland ranks first (81.1), followed by Denmark (79.7) and Sweden (79.4). Even top performers face at least two major goal challenges. Five structural issues are highlighted: stagnation on “Leave No One Behind” indicators; persistent biodiversity and food system gaps (SDGs 2, 12–15); negative international spillovers; slow convergence across countries, notably on SDG 9; and reversals on SDGs 16 and 17.
Southern Europe, Central and Eastern Europe, Baltic States and candidate countries would require an estimated 19, 23, 27 and 66 years respectively to converge with Northern Europe’s performance, based on linear extrapolation.
The leave-no-one-behind index
The LNOB Index measures within-country inequalities across poverty and material deprivation, income inequality, gender inequality, and access to services. Northern European countries lead, with Norway scoring 86.4 and the EU average at 75.2. Candidate countries average 52.3.
Since 2020, the EU has improved only on gender inequality, stagnated on income inequality and access to services, and declined on poverty and material deprivation. Housing cost overburden rates have increased across sub-regions. A new disability employment gap indicator reveals persistent labour market disparities. No European country has fully achieved SDG 5.
Partnerships for the goals
SDGs 16 and 17 underpin overall progress. Geopolitical tensions and conflicts risk diverting fiscal space from sustainable development. The report highlights the UN “Pact for the Future” and the Index of Countries’ Support for UN-based Multilateralism (UN-Mi), which tracks treaty ratification, UN voting alignment and financing.
Reform of the GFA is emphasised to unlock global savings—estimated at US$30 trillion—for SDG investment. Spain will host the Fourth Financing for Development Conference in June 2025. However, defence spending pressures may constrain Official Development Assistance. Press Freedom Index scores have declined in parts of Europe since 2015.
The international spillover index
The EU generates relatively large negative spillovers, particularly through unsustainable supply chains. Spillovers can account for 20–30% of total environmental footprints. The 2025 Spillover Index includes 15 indicators covering environmental, social, financial and security externalities.
Carbon pricing and the Carbon Border Adjustment Mechanism (CBAM) are considered conceptually appropriate but require alignment with international standards and dialogue on distributional impacts. The report calls for stronger global governance to address spillovers, including reform of the international trade system and improved pricing of environmental externalities.
Outlook
Four priorities are proposed for 2024–2029: scaling up investment in clean energy and digital technologies; strengthening social measures to address inequality and inflation pressures; reducing health and environmental harms from unsustainable consumption; and reinforcing SDG diplomacy and GFA reform.
The report recommends aligning the European Semester, research programmes and reporting frameworks with the SDGs. It calls for a Joint Political Statement reaffirming EU commitment, preparation of a second EU Voluntary Review before the 2027 SDG Summit, and structured civil society engagement mechanisms.
Methods summary
The 2025 Index covers 111 indicators, 103 with trend data, sourced 70% from official statistics. Scores are normalised from 0–100 and aggregated with equal weighting across goals. Performance thresholds use SDG targets, science-based benchmarks or top-performer averages. Dashboards reflect worst-performing indicators to avoid masking shortfalls.
ESG issues
Finance relevance
Sustainable Finance Practices
RELEVANT LOCATIONS
- Albania
- Austria
- Belgium
- Bosnia and Herzegovina
- Bulgaria
- Croatia
- Cyprus
- Czech Republic
- Denmark
- Estonia
- Finland
- France
- Georgia
- Germany
- Greece
- Hungary
- Iceland
- Ireland
- Italy
- Latvia
- Liechtenstein
- Lithuania
- Luxembourg
- Malta
- Moldova
- Montenegro
- Netherlands
- Norway
- Poland
- Portugal
- Romania
- Serbia
- Slovak Republic
- Slovenia
- Spain
- Sweden
- Switzerland
- Ukraine
- United Kingdom