This paper discusses the appropriate role for local governments in relation to EU environmental policy. The discussion is framed through a critical examination of the principle of subsidiarity. Firstly due to the way the member states have defined the principle there is a danger of inconsistency in its application. Secondly, across Europe there is mixed evidence to suggest local governments cope well with having to do more in environmental policy. Indeed a sensible balance between the local, regional, national and EU level seems at risk of being undermined if subsidiarity is taken too far. This paper argues that more appropriate roles for local governments might be to contribute to policy innovation and better implementation. What seems more needed is an approach that systematically improves intergovernmental relationships in environmental policy across Europe. Specific reforms suggested include expanding Commission led networking while making it more accountable and democratic, as well as including indicative responsibilities for local governments in future framework directives. Copyright © 2000 John Wiley & Sons, Ltd and ERP Environment