A European Green Deal Flashcards
Political guidelines main points
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General points**
* to propose a European Green Deal during first 100 days in office, to make Europe world’s first climate-neutral continent
* Include European climate law to enshrine the targets into law
* extend ETS to cover maritime sector, traffic & construction and reduce free allowances to airplane sector over time.
* intrdouce carbon border tax to avoid carbon leakage, compliant with WTO rules
A just transition
* put in place plan for a future-ready economy, a new industrial strategy
* EU will be will be a world leader in circular economy and clean technologies. We will work to decarbonise energy-intensive
industries.
* green transition needs to be just: hence will support people and regions with a new Just transition fund. Goal is to leav no one behind.
* EC will propose European Climate Pact, that will develop key climate pledges
A sustainable Europe Investment Plan
* EU to invest record amounts to reap benefits from transition. To propose a strategy for green financing and a Sustainable Europe Investment Plan
* Also to turn part of EIB into Europe’s climate bank - double 25% share of EIB lending to green projects by 2025
* Sustainable Europe Investment Plan will support EUR1 trillion of investment over next decade.
More ambitious targets for 2030
* reduce emissions by at least 50% by 2030
* EU to lead international negotiations to increase level of ambition of other major emitters by 2021.
* EC to put forward plan to reduce emissions by 55% by 2030 in a responsible manners, based on social, economic, and social impact assessments
Preserving Europe’s natural environment
* Preserving and restoring our ecosystem needs to guide all of our work
* EC will present Biodiversity strategy by 2030
* Support farmers with farm to fork strategy on sustainable food along whole value chain
* Cherish and preserve rural areas, which are core part of EU identity and economic potential, and invest in theri future.
* EU to move towards zero-pollution ambition. EU to put forward strategy to protect citizen’s health from environemtnal degradation and pollution
* Propose new circular economy action plan focusing on sustainable resource use
* EU to lead on issue of single-use plastic (by 2050 there will be more plastic in oceans than fish), especially by tackling micro-plastic
European Green Deal aim and background
Aim: Making Europe the first climate neutral continent by 2050.
Background: In November 2019, the Parliament declared a climate emergency asking the European Commission to adapt all its proposals in line with a 1.5 °C target for limiting global warming and ensure that greenhouse gas emissions are significantly reduced.In response, the Commission unveiled the European Green Deal, a roadmap for Europe becoming a climate-neutral continent by 2050.
It supports the transformation of the EU into a fair and prosperous society with a modern and competitive economy. Crucially, it will be the basis for the future growth model of the EU.
Fit for 55 package
For the EU to reach the 2030 target, the Commission proposed a package of new and revised legislation known as Fit for 55 in July 2021, comprising 13 interlinked revised laws and six proposed laws on climate and energy.
Included policies and state of play:
* revision of emmission trading scheme, o include polluting sectors, such as buildings and road transport and phase out free allowances by 2032. State: agreement betwenn EP and Council reached in all relevant legilations
* Social climate fund: fund to ensure a fair energy transition by tackling the resulting energy and mobility poverty, funded by external revenues. Adopted on April 2023
* CBAM: to fight carbon leakafe. State: adopted in April 2023
* effort sharing regulation revision, which sets binding targets for member states in sectors not covered by ETS or regulation on land use, land use change and forestry (LULUCF). State: adopted March 2023
* revision of the land use, land-use change and forestry (LULUCF) regulation: sets a binding commitment for the EU to reduce emissions and increase removals in the land use and forestry sectors, with more ambitious targets. State: adopted in March 2023
* regulation on CO2 emission standards for cars and vans, which introduces progressive EU-wide emissions reduction targets for cars and vans for 2030 and beyond, including a 100% reduction target for 2035 for new cars and vans. State: adopted in March 2023.
* **Reducing methane emissions in the energy sector: **, which aims to track and reduce methane emissions in the energy sector, first of its kind law. State: general approach by Council in Deccember 2022
* ReFUelEU Aviation propsal, whcih aims to aims to track and reduce methane emissions in the energy sector.. State: provisional agreement reached with EP in April 2023
* FuelEU maritime initiative: reduce the greenhouse gas intensity of the energy used on-board of ships by up to 75% by 2050. The new rules promote the use of renewable and low-carbon fuels in shipping. State: adopted in July 2023
* regulation on alternative fuels infrastructure (AFIR): ensure that citizens and businesses have access to a sufficient infrastructure network for recharging or refuelling road vehicles and ships with alternative fuels. State: adopted in July 2023
* revision of renewable energy directive: proposal is to increase the current EU-level target of at least 32% of renewable energy sources in the overall energy mix to at least 40% by 2030. State: provisional agreement between EP and Council in March 2023
* revision of energy efficiency directive: will reduce final energy consumption at EU level by 11.7% in 2030, compared to projections made in 2020. State: adopted in July 2023.
* revision of energy performance of buildings: to make buildings in the EU, ccount for 40% of energy consumed and 36% of energy-related direct and indirect greenhouse gas emissions in the EU, more energy efficient by 2030 and beyond. State: General approach of Council in October 2022
* hydrogen and decarbonised gas market package, proposes revised and new rules to lower the carbon footprint of the gas market. The goal is to shift from natural gas to renewable and low-carbon gases and boost their uptake in the EU by 2030 and beyond. State: General approach of Council reached on March 2023 for both proposals
* Revision of energy taxation directive: aim to align taxation of energy products and electriity with the EU’s energy and climate/envi policites. State: still being discussed in Council, no commitee vote yet in EP
EU circular economy action plan
March 2020, one of earlierst initiatives and main building blocks of Green Deal .
Background: The EU’s transition to a circular economy will reduce pressure on natural resources and will create sustainable growth and jobs. It is also a prerequisite to achieve the EU’s 2050 climate neutrality target and to halt biodiversity loss.
includes measures along the entire life cycle of products promoting circular economy processes, fostering sustainable consumption and guaranteeing less waste. It will focus on:
* electronics and ICT
* batteries and vehicles
* packaging and plastics
* textiles
* construction and buildings
* the food chain
and includes 35 actions in total.
* First initiative was Sustainable batteries regulation. Other proposals announced in the action plan include measures to
* tackle pollution (industrial emissions directive),
* for consumption (sustainable products initiative, empowering consumers in teh green transition),
* for certain goods/industries (revised constructin products regulation, EU strategy for sustainable and circular texties),
* and new industrial strategy
To monitor progress, om 2023 EC revised circular economy monitoring framework, which adds new indicators.
**European Semester: **In line with the European Green Deal and the 2020 Annual Sustainable Growth Strategy the Commission will reinforce the monitoring of national plans and measures to accelerate the transition to a circular economy as part of refocusing the European Semester process to integrate a stronger sustainability dimension.
Nature resoration law
- Statistics: 81% of habitats are in poor status. Every 1 euro invested into nature restoration adds €8 to €38 in benefits. One in three bee and butterfly species are in decline
- Sets a restoration objective for the long-term recovery of nature in the EU’s land and sea areas with binding restoration targets for specific habitats and species. These measures should cover at least 20% of the EU’s land and sea areas by 2030, and ultimately all ecosystems in need of restoration by 2050.
- State: strong discussions in EP due to fear for farming land. General approach in Council in June 2023, agreement in EP on July. Now trilogue ongoing.
Implementation
EU countries are expected to submit National Restoration Plans to the Commission within two years of the Regulation coming into force, showing how they will deliver on the targets. They will also be required to monitor and report on their progress.
EU biodiversity strategy
Overview: It is a strategy with action plan about puttingt Europe’s biodiversity on a path to recovery by 2030, and contains specific actions and commitments. It is a core plan of the green deal. Land use is the second major source of greenhouse gas emissions after fossil fuels, and a major cause of biodiversity loss, with overuse of fertilisers and peatland degradation a driver of both crises.
Objectives
* having at least 30% of EU land and 30% of EU seas designated as protected areas.
* setting legally binding EU nature restoration targets to restore degraded ecosystems
* reduce the use and risk of pesticides by 50% by 2030,
* leading efforts at international level to agree an ambitious new global post-2020 framework at COP15
* The decline in pollinators is reversed.
* mobilising €20 billion a year for biodiversity through various sources, including EU funds, national and private funding;
* three billion new trees are planted in the EU, in full respect of ecological principles.
* stepping up implementation and enforcement of EU environmental legislation;
* At least 25,000 km of free-flowing rivers are restored.
- New EU nature restoration law (proposed in 2022)
- proposal for the continent’s first Soil Health Law (proposed in July 2023):
- European biodiversity governance framework
- EU Forest Strategy:
- review of the EU Pollinators initiative
- action plan to conserve fisheries resources and protect marine ecosystems
- Revision of the Sustainable Use of Pesticides Directive (shared with Farm to Fork Strategy, also severe protests)
Farm to fork strategy
Background: food sector is one the main drivers of climate change. Even though EU agriculture is the only major farm sector worldwide to have reduced its greenhouse gas emissions (by 20% since 1990), it still accounts for about 10% of emissions (of which 70% are due to animals). It is estimated that in the EU in 2017 over 950,000 deaths could be attributed to unhealthy diets
Aim Presented in 2020, should guarantee a fair, healthy and environmentally friendly food system, whilst ensuring farmers’ livelihoods. It covers entire supply chain and is essentially a roadmap to build a sustainable European Union (EU) food system, in line with the aims of the European Green Deal.
Aufbau: four main areas
* sustainable food production
* sustainable food consumption
* Food loss and waste prevention
* sustainable food processing and distribution
Most important proposals on food production
* proposal for a legislative framework for sustainable food systems, with goal to accelerate and make the transition to sustainable food systems easier. Will be adopted by EC only in Q3 2023.Will include sustainable food labelling framework.
* The Commission will propose legally binding targets to reduce food waste across the EU by 2023.
* contingency plan to ensure food supply in times of crisis (2021, communication)
* Proposal for corporate sustainabiluty due diligence
* support the global transition to sustainable agri-food systems through its trade policies and international cooperation instruments.
* proposal on sustainable use of plant protection products (PPPs). Commission proposal in 2022. The regulation involves EU-wide targets to reduce by 50% the use and risk of chemical pesticides by 2030, in line with the EU’s Farm to Fork and Biodiversity strategies. New measures will ensure that all farmers and other professional pesticide users practice Integrated Pest Management (IPM). State: strong fights, EP wants to raise target to 80%, MS have requested new Impact assessment from Commission in December 2022. Commission published response in July 2023.
* Farm sustainability data network (FSDN): propsoed in 2022, to include data on sustainable farming practices in the current farm accountancy data network.
* New genomic techniques: adopted by EC in July 2023, to provide clear pathways for new genome techniques to the market. It will cover plants that contain genetic material from the same plant (targeted mutagenesis) or from crossable plants (cisgenesis, including intragenesis); transgenic plants (which contain genetic material from non-crossable species) will remain subject to the GMO legislation as it stands today.
Most important proposals beyond food production
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Soil Health Law
Bcakground Bases on Soil Strategy presented in 2021. Over 60% of European soils are unhealthy and scientific evidence shows that soils are further degrading. The loss of these essential soil ecosystem services costs the EU at least 50 billion euro per year, and healthy soils also can reduce effects of climate change.
Objectives: The new law aims to address key soil threats in the EU, such as erosion, floods and landslides, loss of soil organic matter, salinisation, contamination, compaction, sealing, as well as loss of soil biodiversity.
The new Soil Monitoring Law provides a legal framework to help achieve healthy soils by 2050
How:
* putting in place solid and coherent monitoring framework for all soils across the EU so Member States can take measures to regenerate degraded soils
* making sustainable soil management the norm in the EU. Member States will have to define which practices should be implemented by soil managers and which should be banned because they cause soil degradation
* requesting Member States to identify potentially contaminated sites, investigate these sites and address unacceptable risks for human health and the environment
Crucially, the new law will not have legally binding targets
Sustainable Europe Investment Plan
One of the first initiatives under Green Deal. It is a strategy on how to finance the Green Deal by attracting at least €1 trillion worth of public and private investment over the next decade. It is the investment pillar of the Green Deal.
Objectives:The European Green Deal Investment Plan has three main objectives:
* First, it will increase funding for the transition, and mobilise at least €1 trillion to support sustainable investments over the next decade through the EU budget and associated instruments, in particular InvestEU;
* Second, it will create an enabling framework for private investors and the public sector to facilitate sustainable investments;
* Third, it will provide support to public administrations and project promoters in identifying,
Where money will come from
* EU budget will invest 25% in climate action and on environments: EUR 503 billion extrapolated over 10 years
* EUr 25 billion from ETS (Innovation and Modernisation funds)
* Natioanl co-financing from structural funds EUR 114 billion
* Just transition mechanism EUR 100 billion (EUr 143 billion unti 2030)
* InvestEU to leverage EUR 279 billion of private and public money until 2030 through budget guarantee (30% of total allocation, will contribute Eur 45 billion to Just transition mechanism)
* In addition, EIB will increase share of green investments to 50% by 2025, and total EUR 1 trillion of investments until 2030
European Climate Law
Legal basis: Art 192 TFEU
The European Climate Law proposal provides the foundation for increased ambition and policy coherence on adaptation. It sets both the framework for achieving climate neutrality and the ambition on adaptation by 2050 by integrating the internationally-shared vision for action into EU law (i.e. the global goal on adaptation in Article 7 of the Paris Agreement and Sustainable Development Goal 13 on climate action)
The Climate Law includes measures to keep track of progress and adjust our actions accordingly, based on existing systems such as the governance process for Member States’ national energy and climate plans, regular reports by the European Environment Agency
European Climate Pact
non-legislative propsal
The European Climate Pact is an EU-wide initiative inviting people, communities and organisations to participate in climate action and build a greener Europe.
- The Climate Pact provides a space for people across all walks of life to connect and collectively develop and implement climate solutions, big and small. By sharing ideas and best practices, we can multiply their impact. The Pact will focus on spreading awareness and supporting action.
The European Commission joined the European Climate Pact in 2022.
Statistics: 4,377,420 pledges made by EU citizens, 16,603,080 kg delivered in CO2e reduction, 628
committed Ambassadors
Energy policy overview
Cssr: Kadri Simson (Estonia)
Legal basis: Art 194 TFEU. Goal specifies in the treaty;
(a) ensure the functioning of the energy market;
(b) ensure security of energy supply in the Union;
(c) promote energy efficiency and energy saving and the development of new and renewable forms of energy; and
(d) promote the interconnection of energy networks.
EU’s energy policy tries to balance three major goals represented by the so-called “Policy triangle”: Security of supply – Sustainability - Competition.
Based on this broad longer-term ambition (green deal), the Commission published strategies in 2020 on
- offshore renewable energy
- renovation wave
- energy system integration
- hydrogen
- methane
Changed focused since RU invasion - as states in REPowerEU
- Russia’s military aggression against Ukraine has increased the importance of the geopolitical aspects of the clean energy transition, highlighting the need to accelerate it and to join forces to achieve a more resilient energy system and a true Energy Union.
- In the medium term**, an integrated EU system largely based on producing clean energy, diversifying energy supplies, as well as increasing energy savings and energy efficiency in all sectors, is the most cost-effective solution to reduce the EU’s dependence on fossil fuels. **For example, full implementation of the Fit for 55 package would lower the EU’s gas consumption by 30% by 2030. This is even more relevant as progress of the twin transitions will increase the demand for electricity.
Clean Energy for All Package
2019 published: Package aimed at decarbonizing the EU’s energy system in line with the European Green Deal objectives, marking a significant step towards implementing the Energy Union strategy and the EU’s Paris Agreement commitments:
Consists of 8 new laws:
* Energy performance in buildings: Buildings are responsible for around 40% of energy consumption and 36% of CO2 emissions in the EU, making them the single largest energy consumer in Europe. It is estimated that currently 75% of the EU building stock is energy inefficient. The challenge is becoming higher as there will be around 80% of Europeans living in urban and intermediate regions by 2050, constituting small size households, likely to consume more energy er person than bigger ones.
EU’s objective to renovate 35 million energy inefficient buildings by 2030. Smart buildings ad meters could help achieving these goals and tackle energy efficiency.
- ** Renewable energy:** binding target of 45% for renewable energy in the EU’s energy mix by 2030 (increase propsed by Fit for 55 package).
- Putting energy efficiency first is a key objective in the package, as energy savings are the easiest way of reducing greenhouse emissions, while also saving consumers money. The EU has therefore set binding targets of increasing energy efficiency over current levels by at least 32.5% by 2030
- Governance regulation:The package includes a robust governance system for the energy union, the EU’s plan to fundamentally transform Europe’s energy system.
Under this strategy, each EU country is required to establish integrated 10-year national energy and climate plans (NECPs) for 2021-30, for all 5 dimensions of the energy union
- **Electricity market design: : ** addapt electricity market to new commercial realities
*
European Green Deal and Energy
Further decarbonizing the energy system is critical to reach climate objectives. Reducing greenhouse gas emissions by at least 55% by 2030 requires higher shares of renewable energy and greater energy efficiency. The production and use of energy across economic sectors account for more than 75% of the EU’s greenhouse gas emissions.
Therefore, the energy system needs to be:
* Largely based on renewable sources, complemented by the rapid phasing out of coal and decarbonizing gas
* EU’s energy supply needs to be secure and affordable for consumers and businesses
Goals
- Essential for European energy market to be fully integrated, interconnected and digitalized, while respecting technological neutrality.
- Member States have presented their revised energy and climate plans (2021-2030) in line with the Energy Union Regulation, in order to update national energy and climate plans in 2023.
- The clean energy transition should involve and benefit consumers, where renewable energy will have an essential role.
Energy System Integration Strategy
Presented in 2020.
Goal: Linking sectors will allow the optimisation of the energy system as a whole, rather than decarbonising and making separate efficiency gains in each sector independently.
Future EU integrated energy system : energy flows between users and producers, reducing wasted
resources and money
The new EU strategy will involve various existing and emerging technologies, processes and business models, such as ICT and digitalisation, smart grids and meters and flexibility markets, and be facilitated by the actions in the Clean energy for all package.
- The new EU strategy – in synergy with a new dedicated strategy on hydrogen in Europe – will lay the foundation for the decarbonised European energy system of the future.
3 pillars of strategy
* A more efficient and “circular” system, where waste energy is captured and re-use
* A cleaner power system, with more direct electrification of end-use sectors such as industry, heating of buildings and transport
* A cleaner fuel system, for hard-to-electrify sectors like heavy industry or transport
Actions
* o 38 actions
o ‘energy efficiency first’, more direct electrification, clean fuels
o Revised Trans-European Network in Energy (TEN-E) Regulation
o Revised Renewable Energy Directive
o Revised Energy Efficiency Directive
o Revised Energy Taxation Directive
o Revised Alternative Fuels Infrastructure Regulation
o Revised Industrial Emissions Directive
- Communication: Hydrogen Strategy
renewable energy directive
Proposed in 2018 (first REN directive with targets in 2009. Revision of REN directive is part of Fit for 55 package.
The Renewable Energy Directive is the legal framework for the development of clean energy across all sectors of the EU economy, supporting cooperation between EU countries towards this goal.
Background; Since the introduction of the Renewable Energy Directive (2009/28/EC), the share of renewable energy sources in EU energy consumption has increased from 12.5% in 2010 to 21.8% in 2021. HOwever, renewable energy is a pillar of the clean energy transition, which is why the directive is regularly revisited.
The 2 strategies outlined ways of creating an integrated energy system:
* based on renewable energy and fit for climate neutrality,
* and turning hydroen into a viable solution to help reach the objectives of the European Green Deal
**Actions included in revision: **
* Permitting procedures will be easier and faster
* Renewable energy will be recognised as an overriding public interest,
* In areas with high renewables potential and low environmental risks, Member States will put in place dedicated acceleration areas for renewables, with particularly short and simple permitting processes.
* The agreement includes targets and measures to support the uptake of renewables across various sectors of the economy
* As a key energy-consuming sector, industry is included for the first time in the Renewable Energy Directive. The agreement establishes indicative targets (1.6% of annual increase in renewable energy use) as well as a binding target to reach 42% of renewable hydrogen in total hydrogen consumption in industry by 2030.
* Targets for transport: 14.5% greenhouse gas intensity reduction or 29% share of renewable energy in final energy consumption
* buildings: pecific renewable energy benchmark of 49% for energy consumption in buildings
State: in 2023, Provisional agreement to raise 2030 target to at least 42.5%, aiming for 45%.
Review of the TEN-E Regulation
Energy infrastructure is a key enabler for the energy transition. The Trans-European Networks for Energy (TEN-E) is a policy that is focused on linking the energy infrastructure of EU countries, explicitly referred to in the European Green Deal.
Content:
* The revised Regulation updates the infrastructure categories eligible for support with an emphasis on decarbonisation and adds a new focus on offshore electricity grids, hydrogen infrastructure and smart grids.
* This will be done mostly through projects of common interest (PCIs), financed by the Connecting Europe Facility for 2021-2027.
* As part of the policy, eleven priority corridors and three priority thematic areas have been identified. EU support for development in these corridors will connect regions currently isolated from European energy markets, strengthen existing cross-border interconnections and help integrate renewable energy.
* The three priority thematic areas, which relate to the entire EU, include smart electricity grids deployment, smart gas grids, and a cross-border carbon dioxide network.
*
State: entered into force in June 2023
EU Hydrogen Strategy (2020)
**Background: ** In 2022, hydrogen accounted for less than 2% of Europe’s energy consumption and was primarily used to produce chemical products, such as plastics and fertilisers. 96% of this hydrogen was produced with natural gas, resulting in significant amounts of CO2 emissions.
Hydrogen can be used as a fuel, an energy carrier or a feedstock, and could reduce emissions in hard-to-abate sectors, particularly in industry and transport.
Renewable hydrogen can be obtained via electrolysis using renewable electricity to split water into hydrogen and oxygen and is referred to as ‘renewable fuels of non-biological origin’.
When produced at times when solar and wind energy resources are abundantly available, renewable hydrogen can also support the EU’s electricity sector, providing long-term and large-scale storage. The storage potential of hydrogen is particularly beneficial for power grids, as it allows for renewable energy to be kept not only in large quantities but also for long periods of time.
Overview
suggested policy action points in 5 areas: investment support; support production and demand; creating a hydrogen market and infrastructure; research and cooperation and international cooperation. Currently, there is no true hydrogen market in Europe
The full list of 20 key actions was implemented by the first quarter of 2022.
2030 Targets
- 40GW of Renewable Hydrogen electrolysers in the EU
- 10 million tonnes of renewable H2 produced in the EU
- hydrogen accelerator in REPowerEU plan: The ambition is to produce 10 million tonnes and import 10 million tonnes of renewable hydrogen in the EU by 2030.
Funding
* Clean hydrogen partnership under Horizon Europe, which is joint PPP
* European Clean Hydrogen Alliance (launched in 2020 as part of new industrial strategy), which brings otgegther brings together industry, national and local authorities, civil society and other stakeholders, to identify viable projects
* several EU programmes: investEU, ConnectionEurope facility, cohesion funds, Innovation Fund
* Sutainable finance strategy and EU taxonomy will help channel investments
* Furthermore, the recovery plan NextGenerationEU has been made available to EU countries to invest in hydrogen projects across the value chain.
* Investment support has also been provided through the Important Projects of Common European Interest (IPCEIs) on hydrogen.
* New state aid rules for IPCEI allow MS to pool resources and cooperate
* EU hybdrogen bank (proposal in Q1 2023, first pilot auction in autumn 2023), will will establish an initial market for renewable hydrogen, connecting supply and demand
Renovation Wave (2020) – greening our buildings & driving the clean energy transition
Renovating both public and private buildings is an essential action to support green deal,
- The Renovation Wave identifies 3 focus areas:
- Tackling energy poverty and worst-performing buildings
- Public buildings and social infrastructure
- Decarbonising heating and cooling
With nearly 34 million Europeans unable to afford to heat their homes properly, renovation also tackles energy poverty.
The Commission proposes to:
* require Member States to renovate at least 3% of the total floor area of all public buildings annually
* set a benchmark of 49% of renewables in buildings by 2030
* require Member States to increase the use of renewable energy in heating and cooling by +1.1 percentage points each year, until 2030
- It aims to double annual energy renovation rates in the next 10 years.
Funding
EU funding budget solutions that could support the renovation wave in different ways
- through direct investments
- by leveraging private investments
- for research and innovation
- to address market barriers and available technical assistance
New European Bauhaus
The New European Bauhaus brings citizens, experts, businesses, and institutions together to reimagine sustainable living in Europe and beyond.
It also provides access to EU funding for beautiful, sustainable, and inclusive projects. (funding taken from a variety of EU funds.
Focus is on: Beautiful are the places, practices, and experiences that are:
- Enriching, inspired by art and culture, responding to needs beyond functionality.
- Sustainable, in harmony with nature, the environment, and our planet.
- Inclusive, encouraging a dialogue across cultures, disciplines, genders and ages.
On July 2023, new proposed mision on NEB. This will be implemented until January 2024
Social Climate Fund
Introduced in 2021 to address any social impacts that arise from the revision of ETS, which will be extended to buildings and transport,
Objectives
* To finance temporary direct income support for vulnerable households;
* To support measures and investments that reduce emissions in road transport and buildings sectors and as a result reduce costs for vulnerable households, micro-enterprises and transport users.
The fund will be funded by revenues mainly from the new emissions trading system up to a maximum amount of EUR 65 billion, to be supplemented by national contributions. It is established temporarily over the period 2026-2032.
State: adopted by Council in Aril 2023.
Energy efficiency directive
To achieve the 2030 climate target and ensure energy security within the EU, energy efficiency must be prioritised.
The current Energy Efficiency Directive, in force since December 2018, sets a target of reducing both primary and final energy consumption by 32.5% by 2030 at EU level, compared with the energy consumption forecasts for 2030 made in 2007.
Revised in 2021 under Fit for 55 pacakge and updated amendments after RU invasion of Ukraine. State: adopted by Council in July 2023, and will enter into force in September 2023.
Targets
* Goal to educe final energy consumption at EU level by 11.7% in 2030, compared with the energy consumption forecasts for 2030 made in 2020. Member states will benefit from flexibilities in reaching the target.
* This translates into an upper limit to the EU’s final energy consumption of 763 million tonnes of oil equivalent and of 993 million tonnes of oil equivalent for primary consumption.The consumption limit for final consumption will be binding for member states collectively, whereas the primary energy consumption target will be indicative.
* The annual energy savings target for final energy consumption will gradually increase from 2024 to 2030. Member states will ensure new annual savings of 1.49% of final energy consumption on average during this period, gradually reaching 1.9% on 31 December 2030.
* The new rules set a specific obligation for the public sector to achieve an annual energy consumption reduction of 1.9% that can exclude public transport and armed forces. In addition to this, member states will be required to renovate each year at least 3% of the total floor area of buildings owned by public bodies.
How:
ll member states will contribute to achieving the overall EU target. They will set indicative national contributions and trajectories towards reaching the target in their integrated national energy and climate plans (NECPs).
Energy Security and REPowerEU
Prior to war, EU imported 90% of its gas consumption, with Russia providing around 45% of those imports, in varying levels across Member States. Russia also accounts for around 25% of oil imports and 45% of coal imports.
A key part of ensuring secure and affordable supplies of energy to Europeans involves diversifying supply routes. This includes identifying and building new routes that decrease the dependence of EU countries on a single supplier of natural gas and other energy resources through:
* Projects of Common Interest: i.e. a number of infrastructure projects. These projects which can benefit from streamlined permitting process, receive preferential regulatory treatment, and are eligible to apply for EU funding from the Connecting Europe Facility
* Liquified Natural Gas: Strategy for LNG and gas storage, a number considered as PCIs
* EU-Neighbourhood South Energy Cooperation: Creation of a Mediterranean Gas Hub
REPowerEU
March 2022, EU leaders agreed to phase out EU dependence on Russia and asked the European Commission to come up with a plan to rapidly reduce the EU’s over-dependence on Russian gas, oil and coal imports. The Commission presented the REPowerEU plan on 18 May 2022.
According to the Commission, additional investments of €210 billion by the public and private sectors are needed to phase out Russian fossil fuel supplies by 2027.
Measures
* modifies the Recovery and Resilience Facility (RRF) regulation and other legislative acts
* member states will be able to add a new REPowerEU chapter to their national recovery and resilience plans (RRPs) under NextGenerationEU, in order to finance key investments and reforms which will help achieve the REPowerEU objectives.
* These objectives include energy savings, the diversification of energy supplies and the accelerated roll-out of renewables.
* The reforms and investment in the REPowerEU chapters have to fulfil a certain set of criteria
* it does propose a legal amendment to raise the targets therein for energy efficiency and renewable energy to 13% and 45% respectively.
Financing
* REPowerEU chapters are mainly financed by remaining loans which amount to €225 billion.
* As regards the financing of the grants (EUR 20 billion), the sources will be the Innovation Fund (60%) and frontloading ETS allowances (40%).
* Member states which have unspent cohesion funds from the previous Multiannual Financial Framework (2014-2020) will have the possibility to use them (up to 10%) to support SMEs and vulnerable households particularly affected by energy price increases.
* Member states can also transfer up to €5.4 billion of funds from the Brexit Adjustment Reserve (BAR) to the RRF to finance REPowerEU measure
* Member states may also amend their cohesion programmes to include REPowerEU priorities for an amount of up to 7.5% of their cohesion policy funds for the 2021-2027 programming period.
European Gas Demand Reduction Plan
Goal: to reduce gas demand by 15% between August 2022 and March 2023, given the drop in gas supply from Russia (1/3rd of average level between 2016-2021). It is a Council Regulation and has been renewed again in 2023, extending the period for voluntary reduction by one year (hence between AUgust 2023 and March 2024)
In order to achieve the 15% gas demand reduction, the plan sets out the principles and criteria for coordinated demand reduction, but MS are free in choose their reduction paths.
If the supply situation deteriorates further, the proposed Council Regulation provides the possibility for the Commission to declare a Union Alert. Once the Alert is triggered, the gas demand reduction becomes binding on all Member States and an enforcement mechanism is triggered.
Common agricultural policy overivew and size
Legal basis, Aim, Funding structure, management, benefits
Legal basis:Articles 38 to 44 TFEU (shared competency)
Goal: The EU’s common agricultural policy (CAP) is a partnership between agriculture and society, and between Europe and its farmers. It aims to:
* support farmers and improve agricultural productivity, ensuring a stable supply of affordable food;
* safeguard European Union farmers to make a reasonable living;
* help tackle climate change and the sustainable management of natural resources;
* maintain rural areas and landscapes across the EU;
* keep the rural economy alive by promoting jobs in farming, agri-food industries and associated sectors.
Funding:
The total allocation for the common agricultural policy (CAP) amounts to €386.6 billion, divided between two funds (often referred to as the “two pillars” of the CAP):
1) European agricultural guarantee fund (EAGF) – Income Support and Market Measures
* allocation of €291.1 billion. Up to €270 billion will be provided for income support schemes, with the remainder dedicated to supporting agricultural markets.
* The EAGF supports EU farmers through different payment schemes, including a basic payment scheme, a payment for sustainable farming methods (“green direct payments”) and a payment for young farmers.
* - The EAGF also funds measures to support and stabilise agricultural markets. These market measures operate as part of the common market organisation (CMO), which sets out the parameters for intervening in agricultural markets
2) European agricultural fund for rural development (EAFRD) – Rural Development
* total allocation amounts to €95.5 billion. This includes €8.1 billion from the Next Generation EU recovery instrument to help address the challenges posed by the COVID-19 pandemic
* The EAFRD was included as one of the European Structural and Investment Funds (ESIF) until 2022, after which it fell under the CAP strategic plan.
* The European agricultural fund for rural development (EAFRD) finances the CAP’s contribution to the EU’s rural development objectives:
* improving the competitiveness of agriculture,
* encouraging sustainable management of natural resources and climate action,
* achieving a balanced territorial development of rural economies and communities.
Management of CAP Funds
- Mostly done through shared management (99.1% of the budget): Commission bears overall responsibility, but EU MS are responsible for setting up management and control system.
- Commission plays supervisory role, ensuring system compliant. MS execute payments, through paying agencies.
Beneftis of CAP
* Food production: There are around 10 million farms in the EU and 22 million people work regularly in the sector.
* Rural community development: To operate efficiently and remain modern and productive
* Environmentally sustainable farming: Farmers have a double challenge – to produce food whilst simultaneously protecting nature and safeguarding biodiversity.
The New CAP: A greener and fairer CAP
Overview, Background, How, Objectives
Adopted 2021, entred into force January 2023.
Reform of the CAP for 2023-2027, to pave the way for a fairer, greener and more performance-based CAP.
The reform covers three regulations, which generally applies from 1 January 2023:
* Horizontal regulation
* Strategic Plan regulation
* Common Market Organisation regulation
Background: Key issues that arose in new context were innovation, fairness, and growing challenges in relation to climate change, biodiversity loss and management of natural resources,
How:
Each EU country designed a national CAP Strategic Plan, combining funding for income support, rural development, and market measures. When designing their strategic plans, EU countries contributed to the ten specific objectives through a toolbox of broad policy measures provided by the Commission, which could be shaped around national needs and capabilities.
Objectives
The CAP 2023-27 contains a numbver of policy reforms to support the transition towards sustainable agriculture and forestry in the EU, linked to 10 key objectives of the new CAP
A greener CAP:
The CAP 2023-27 supports agriculture in making a much stronger contribution to the goals of the European Green Deal:
* higher green ambitions
* contribute to the Green Deal targets
* enhanced conditionality of payments to green factors (e.g. 3% of land dedicated to biodiversity and non-productive elements)
* eco-schemes: at least 25% of the budget for direct payments is allocated to eco-schemes, providing stronger incentives for climate-and environment-friendly farming practices and approaches
* rural development: at least 35% of funds are allocated to measures to support climate, biodiversity, environment and animal welfare;
* climate and biodiversity: 40% of the CAP budget has to be climate-relevant and strongly support the general commitment to dedicate 10% of the EU budget to biodiversity objectives by the end of the EU’s MFF
* a new obligation to protect wetlands and peatlands - which are major carbon sinks – as of 2025 at the latest;
A fairer CAP
* redistribution of income support: at least 10% to direct payments to the redistributive income support tool
* social conditionality: CAP payments are linked to the respect of certain EU labour standards
* supporting young farmers: EU countries have to distribute at least 3% of their direct payments budget towards young farmers
* improving the gender balance: gender equality and increasing the participation of women in farming are – for the first time – part of the objectives for CAP Strategic Plans
Improving competitveness
* improved bargaining power: new rules reinforce producer cooperation
* market orientation, e.g. by encouraging EU farms to align supply with demand in Europe and beyond
* crisis reserve: to cope with future crises, the reformed CAP includes a new financial reserve amounting to at least €450 million per year;
* support for the wine sector
Food safety
Legal basis, goals, EC role, history
Legal basis: Articles 43, 114, 168(4) and 169 TFEU
Cssr. Stella Kyriakides
European food safety policy aims are twofold:
* to protect human health and consumer interests,
* and to foster the smooth operation of the European single market.
Total budget allocation to food safety was: The Commission has proposed to maintain a specific food strand in the Single Market Programme, with a total allocation of 1.68 billion €.
However, food safety is also integral part of new CAP, and in the framework of “one health” approach under other budget priorities (e.g. Horizn Erope, ESF+, Digital Europe)
The implementation of this integrated Food Safety policy in the EU involves various actions, namely:
* to assure effective control systems and evaluate compliance with EU standards in the food safety and quality, animal health, animal welfare, animal nutrition and plant health sectors
* to manage international relations with non-EU countries and international organisations
* to manage relations with the European Food Safety Authority (EFSA) and ensure science-based risk management.
History:
* In the wake of a series of human food and animal feed crises (e.g. the bovine spongiform encephalopathy (BSE) outbreak and the dioxin scare), EU food safety policy underwent substantial reform in the early 2000s.
* This has led to the development of the **‘Farm to Fork’ **approach, which seeks to ensure a high level of safety at all stages of the production and distribution process for all food products marketed within the EU, whether produced within the EU or imported from third countries.
Farm to Fork strategy: main targets
1) Use of pesticides: reduce by 50% by 2030 use and risk of chemical pesticides, and use of hazardous pesticides
2) Address excess of nutrients in the environment, as a major source of air, soil and water pollution, negatively impacting biodiversity and the climate:
* reduce nutrient losses by at least 50%, while ensuring no deterioration on soil fertility
* reduce fertilizer use by at least 20% by 2030
3) Reduce by 50% the sales of antimicrobials for farmed animals and aquaculture by 2030, to help address antimicrobial resistance
4) Aim to achieve 25% of total farmland under organic farming by 2030
Food waste
Statistics on food waste and new targets
Background:
* Nearly 59 million tonnes of food waste (131 kg/inhabitant) are generated in the EU each year. This represents an estimated loss of €132 billion.
* Nearly 59 million tonnes of food waste (131 kg/inhabitant) are generated in the EU each year. This represents an estimated loss of €132 billion.
* Food waste has a huge environmental impact, accounting for 252 million tonnes of CO2 equivalents or about 16% of the total greenhouse gas emissions from the EU food system.
* If food waste were a Member State, it would be the fifth largest emitter of GHG emissions.
EU targets
* Commission adopted in July 2023 an amendet food waste directive, including mandatory legally binding food waste reduction targets
* the Commission proposes that, by 2030, Member States reduce food waste by 10%, in processing and manufacturing, and by 30% (per capita), jointly at retail and consumption (restaurants, food services and households).
Amended waste framwork directive
Adopted by EC in July 2023
Proposal to amend the Waste Framework Directive, with a focus on textiles waste. Under EU rules on waste, Member States are required to set up separate collection of textiles by 1 January 2025
In particular, the Commission is proposing to introduce mn particular, the Commission is proposing to introduce mandatory and harmonised Extended Producer Responsibility (EPR) schemes for textiles in all EU Member States.schemes for textiles in all EU Member States.
* EPR schemes require producers to take responsibility for the entire lifecycle of their products, in particular at the end of the product’s life.
* The proposal will foster research and development in innovative technologies that promote circularity in the textile sector
* To reduce illegal waste shipments to non-EU countries, often disguised as intended for reuse, the Commission’s proposal further clarifies the definitions of waste and reusable textiles (will complement proposed regulation on waste shipmens)
EU strategy for sustainable and circular textiles
Statistics, Objectives, actions, legislation
Statistics:
* 5 million tonnes of clothing discarded each year in the EU - around 12kg per person
* 20 to 35 jobs created for each 1000 tonnes of textiles collected for re-use
* 1% of material in clothing is recycled into new clothing
* EU consumption of textiles has, on average, the fourth highest impact on the environment and climate change, after food, housing and mobility.
* It is also the third highest area of consumption for water and land use, and fifth highest for the use of primary raw materials and greenhouse gas emissions
Objectives
The EU Strategy for Sustainable and Circular Textiles addresses the production and consumption of textiles, implementing commtiments of teh European Green Deal, Circular Economy Action Plan, and EU Industrial Strategy.
The Strategy aims to create a greener, more competitive sector that is more resistant to global shocks. The Commission’s 2030 vision for textiles is that
* all textile products placed on the EU market are durable, repairable and recyclable, to a great extent made of recycled fibres, free of hazardous substances, produced in respect of social rights and the environment
* ”fast fashion is out of fashion” and consumers benefit longer from high quality affordable textiles
* profitable re-use and repair services are widely available
* the textiles sector is competitive, resilient and innovative with producers taking responsibility for their products along the value chain
Actions
* Set design requirements for textiles to make them last longer, easier to repair and recycle as well as requirements on minimum recycled content
* Introduce clearer information and a Digital Product Passport
* Introduce mandatory and harmonised Extender Producer Responsibility rules for textiles in all Member States
* Restrict the export of textile waste and promote sustainable textiles globally
* Incentivise circular business models, including reuse and repair sectors
Implementations
* The Ecodesign for Sustainable Products Regulation, proposed in 2022, creates a framework to set ecodesign requirements for products, including textiles.
* The *Empowering Consumers in the Green Transition Directive *and Green Claims Directive, proposed in 2022 and 2023, aim to tackle greenwashing.
* The “Reset the Trend” campaign (#ReFashionNow) was launched in 2023 to raise awareness about sustainable fashion.
* The Waste Shipment Regulation, proposed in 2021, will help restrict the export of textile waste.
* Transition Pathway for the Textiles Ecosystem, published in 2023,and the European Circular Economy Stakeholder Platform (since 2018) promote and foster cooperation between industry, public authorities, social partners and other stakeholders.
* Calls have been launched under Horizon Europe to further develop technologies and processes increasing the circularity and sustainability of the textiles sector.
* In 2023 the Commission proposed a revision to the Waste Framework Directive to introduce mandatory and harmonised Extended Producer Responsibility (EPR) schemes for textiles in all EU Member States.
Impact of Russian invasion on food security and reaction
Relevance of Ukraine for food security
* Russia and Ukraine are key agricultural players, together exporting nearly 12 % of food calories traded globally.
* They are major providers of basic agro-commodities, including wheat (Ukraine 10% share of world exports), maize and sunflower oil (15% and 61%), and Russia is the world’s top exporter of fertilisers.
* Russia and Ukraine, combined, supply over 50 % of cereal imports in North Africa and the Middle East, while Eastern African countries import 72 % of their cereals from Russia and 18 % from Ukraine
* In Ukraine itself, the United Nations World Food Programme estimates that 45 % of the population are already ‘worried about finding enough to eat’.
Impacts
* Global fertilizer prices reached near-record levels in mid-2022 as global oil and natural gas prices rose
* rising food prices all over the world, also in the EU
EU action and solutions
* Together with the Member States, the EU has mobilised almost EUR 18 billion to help partner countries address the global food crisis until 2024. Almost EUR 7 billion has already been disbursed in 2022.
* Black Sea Grain Initiative was supposed to solve exports, but Russia ended deal in July unilaterally
* EU postponed of nature restoration law and sustainable use of pesticides directive
* EU communication outlining short-term and long-term actions to adress food security (e.g. state aid changes, support packages, market safety nets, etc.)
Environment, Oceans, Fisheries
Cssr.: Virginijus Sinkevičius (LT, Environment, Oceans and Fisheries)
1.
Environment policy
legal basis, history
Legal basis: Art. 11, 191-193 TFEU
The EU is competent to act in all areas of environment policy, such as air and water pollution, waste management and climate change. Its scope for action is limited by the principle of subsidiarity and the requirement for unanimity in the Council in the fields of fiscal matters, town and country planning, land use, quantitative water resource management, choice of energy sources and structure of energy supply.
** Agenda setting** Since 1973, the Commission has issued multiannual Environment Action Programmes (EAPs) setting out forthcoming legislative proposals and goals for EU environment policy. In May 2022, the 8th EAP entered into force, as the EU’s legally agreed upon common agenda for environment policy until the end of 2030.
History
* EU environment policy dates back to the European Council held in Paris in 1972, at which the Heads of State or Government EU environment policy dates back to the European Council held in Paris in 1972, at which the Heads of State or Governmen
* The Single European Act of 1987 introduced a new ‘Environment Title’, which provided the first legal basis for a common environment policy
* The Treaty of Maastricht (1993) made the environment an official EU policy area
* The Treaty of Amsterdam (1999) established the duty to integrate environmental protection into all EU sectoral policie
* Combating climate change’ (2.5.2) became a specific goal with the Treaty of Lisbon (2009), as did sustainable development in relations with third countries
