This article deals with the potential influence of European parliamentarism on environmental policy in forested areas. It is addressed as much to policy analysts and parliamentary theorists as to those most directly involved therein, for example international lobbyists and policy‐makers. The relative powers of the European Parliament, Council of Ministers and Commission and assorted interest groups (forestry and environmental activists) will be considered through the analysis of documents and expert interviews. The gradual extension of the European Parliament's power (co‐operation and co‐decision procedures) in combination with the parliamentary functions (control, legislation, election, articulation and communication) will be described where relevant to forest environment policy, in particular to competition, harmonization, internal markets, industry, research, land use, energy and development. The optimal lobbying terrains and prospects of environmental interest groups are also examined and the potential influence of the European Parliament on the implementation of such policy is explored. Copyright © 2002 John Wiley & Sons, Ltd and ERP Environment.