AI for growth, not for green : a critical look at environmental considerations and trade-offs in EU AI governance

Overview & Synopsis

This master’s thesis critically examines the European Union’s regulatory approach to the environmental impacts of the Artificial Intelligence (AI) technology stack across its lifecycle. It investigates two hypotheses: first, that EU regulatory frameworks insufficiently address AI’s environmental impacts compared to scientific risk assessments; and second, that EU regulatory and policy instruments prioritise economic objectives, such as innovation, competitiveness, and digital sovereignty, over these environmental risks. Using Doctrinal Legal Analysis and Qualitative Policy Analysis, the study evaluates AI’s environmental footprint across production, operation, and end-of-life stages within the EU legal and policy landscape. Findings reveal significant gaps. Regulations on hardware production are fragmented and geographically limited, failing to account for global supply chains. Operational directives largely focus on reporting rather than binding energy or water efficiency standards, leaving data centres and AI computing underregulated. End-of-life regulations face delays, enforcement challenges, and ambiguous scope, amplified by rapid hardware obsolescence. The research demonstrates that EU AI policy consistently emphasizes economic growth and innovation, framing environmental concerns as secondary or instrumental rather than directly regulating ecological impacts. This reflects a broader institutional trend of subordinating environmental safeguards to market priorities. By challenging techno-optimistic narratives and highlighting the environmental impacts of AI, the study provides actionable insights for policymakers to strengthen environmental integration in AI governance. Despite limitations in methodology and data availability, it offers a systematic framework for understanding the interplay between AI’s material footprint, technological development, and regulatory priorities.