Details of the Clean Industrial Deal + Riyadh without Zelenskiy + Mercosur divided in two

Dear reader,

Commission President Ursula von der Leyen and Council President António Costa received the US Special Envoy for Ukraine and Russia, Keith Kellogg, for talks in Brussels on Tuesday. A peace solution must respect the independence, sovereignty and territorial integrity of Ukraine and be based on strong security guarantees, the Commission explained. Stephan Israel and Viktor Funk analyze Kellog’s visit to Brussels and why Ukrainian President Volodymyr Zelenskiy canceled his trip to Riyadh. US Secretary of State Marco Rubio and Russian Foreign Minister Sergey Lavrov met there yesterday.

Next week, the EU Commission intends to present its Clean Industrial Deal, a plan to make Europe’s industry more climate-friendly while remaining competitive. The first concrete details have now emerged from a draft of the plan, which is available to Europe.Table. For example, EU citizens are to receive financial support from the Social Climate Fund if they switch to climate-friendly products. My colleagues and I have analyzed the draft in detail for you and summarized the most important announcements.

I wish you an enlightening read,

Your
Lukas Knigge

Clean Industrial Deal: Commission wants to facilitate leasing of EVs and heat pumps

The Commission wants to make it easier to lease electric vehicles, heat pumps and other clean technologies at reduced rates this year. This is provided for in the Clean Industrial Deal, which the authority intends to present in a week’s time and which is available to Table.Briefings in draft form. EU citizens are to receive financial support from the Climate Social Fund if they switch to climate-friendly products.

The initiative is part of Commission President Ursula von der Leyen’s plan to establish Europe as a location for climate-friendly industries. The communication also lists measures for falling energy prices and local content criteria for buyers of “green” products. The concept should help to “give Europe’s industry a stronger business model for major investments in the climate neutrality of energy-intensive industries and clean tech,” it says.

Negotiations still ongoing

The Commission also wants to mobilize new funds for this in the short term. However, the draft does not yet contain any concrete figures. The content could also change significantly before the planned publication on Feb. 26 – negotiations are still in full swing, according to the Commission.

The plan is based on six building blocks:

Affordable energy
Lead markets
Public and private investments
Circular economy and raw materials
International partnerships
Social balance

Energy: Key question remains unanswered

In the energy sector, the projects are not expected to have a rapid impact on prices. According to a draft action plan on affordable energy prices, the Commission is encouraging the member states to subsidize grid fees. It also wants to make a proposal by the middle of the year on how grid charges can incentivize more flexible electricity consumption. However, the big question of who will ultimately pay for the investments in the energy system remains unanswered, says Greg Van Elsen from CAN Europe.

As early as Feb. 26, the Commission, together with the EIB, intends to announce a guarantee program for direct purchase agreements (PPAs) between electricity producers on the one hand and industry and operators of electrolyzers for hydrogen production on the other. A similar program for investments in energy efficiency is to follow later. Industry should be able to purchase electricity directly from other EU countries more easily. “This could help the PPA market to grow together across borders,” says Christoph Maurer from Consentec.

Green lead markets through public and private demand

“Targeted mandates and criteria for local content can bring national spending in line with the EU’s broader decarbonization and competitiveness agenda,” writes the Commission. The Commission had already announced in the Competitiveness Compass that it intends to introduce a “European preference” with the reform of the Public Procurement Directive in 2026.

The criteria are intended to “strengthen demand for EU-produced clean-tech products.” According to the Commission, the exact definition of these criteria is still open. However, it is fairly certain that they will go further than the resilience criteria set out in the Net Zero Industry Act.

Private demand is also being addressed. The EU Commission is considering how it can incorporate conditions and non-price criteria into product regulations, for example for sustainable steel and sustainable batteries.

In order to accelerate production in the lead markets, exemptions from EU regulations may be needed. In the industry, it is assumed that this could be the case for the production of green steel, for example, whose use in the automotive industry is included in the CO₂ balance and can therefore have an impact on the CO₂ limits. The existing regulation would have to be adapted for this.

Financing the Clean Industrial Deal

In the medium term, the Commission intends to meet the enormous funding requirement of around 480 billion euros per year from the planned competitiveness fund, among other sources. However, the industry also needs immediate access to capital.

Among other things, the Brussels authority wants to tap into the revenue from the European Emissions Trading System (ETS) for a new decarbonization facility by 2025. However, the draft leaves open whether the Commission wants to take the certificates from the market stability reserve in order to generate additional money or whether it only wants to reserve the conventional revenue for this purpose.

The Commission also wants to encourage more private investment. To this end, the InvestEU Regulation, for example, is to be adapted to increase the leverage effect. The European Investment Bank is also to launch a new billion-euro program to finance start-ups in the clean tech sector. A new Clean Industry Framework is also intended to help member states attract investors.

Circular economy: More recycling of raw materials

In order to secure access to important raw materials for the energy transition and digitalization, the Commission wants to prioritize the implementation of the Critical Raw Materials Act. It plans to announce the first strategic projects for mining, processing and recycling capacities in March. An initiative to jointly organize the procurement of critical raw materials is to be created by the end of 2026.

The Circular Economy Act, also announced for the last quarter of 2026, is also intended to strengthen the market for secondary raw materials. In order to promote recycling, the Commission wants to limit the export of used critical raw materials. Measures for more efficient collection of materials are also on the cards.

The establishment of “transregional circularity hubs” is already planned for the end of 2025. These are to help scale up recycling projects at the suggestion of member states or industry. The Commission also wants to support the states in developing a new IPCEI for circular new materials (“advanced materials”) for clean technologies.

Trade: More protection against overproduction

In view of the trade conflict threatening to escalate, the Commission wants to make greater use of its trade defense instruments (TDIs). The internal market should not serve as an “export destination for state-driven, global overcapacity.” It therefore wants to “sharpen up” existing TDIs, for example by shortening the investigation period or through more “ex officio” processes. It will also examine whether further instruments are needed to supplement the TDI toolbox.

In addition to this more protectionist approach, the Commission also wants to speed up the free trade agreements that have not yet been ratified. It also wants to agree to a first “Clean Trade and Investment Partnership” (CTIP) with a third country as early as March – with which one is still unknown. These partnerships are intended to offer a “more flexible and targeted approach” than regular free trade agreements and do not appear to be legally binding. The EU wants to enter into regulatory cooperation with third countries in order to facilitate investments by EU companies. This should help the EU to diversify its supply chains and reduce dependencies.

CBAM: Review still in 2025, revision in 2026

The Commission wants to review the Carbon Border Adjustment Mechanism (CBAM) this year and report on it in the second half of the year. According to the Commission, this will cover the risks of circumventing the CBAM rules, the expansion to other sectors and products as well as indirect emissions. A corresponding legislative proposal is expected to follow in the first half of 2026. Till Hoppe, Manuel Berkel, János Allenbach-Ammann, Nicolas Heronymus, Markus Grabitz and Lukas Knigge

Ukraine: Why Zelenskiy canceled his trip to Riyadh

By

Stephan Israel

Following a visit to Turkish President Recep Tayyip Erdoğan, Ukrainian President Volodymyr Zelenskiy canceled his onward journey to Riyadh on Tuesday. Zelenskiy had originally planned to fly from Ankara to the Saudi capital today in order to be informed about the outcome of the initial talks between the US and Russian delegations.

His country wants an end to the war more than anyone else, but negotiations must be conducted fairly and not behind the backs of the Ukrainians, Zelenskiy said at a press conference. The meeting between the USA and Russia had come as a surprise and he had not been invited. According to the Bloomberg news agency, host Prince Mohammed had originally intended to have Zelenskiy present at the start of the talks. However, the USA and Russia had rejected this.

USA and Russia work out a plan

In Riyadh, US Secretary of State Marco Rubio and his Russian counterpart Sergei Lavrov agreed to appoint high-caliber teams which, according to Washington, should work towards an end to the conflict as quickly as possible.

In the official Russian statement on the meeting in Riyadh, however, the war in Ukraine only appears in the third paragraph. Russian representatives have once again shown that Moscow’s priorities are relations with the USA and a new security order in Europe. In any case, Moscow has two points in its favor so far: Firstly, the talks are taking place at all because of the initiative of Donald Trump’s US administration, and secondly, the very countries at stake – Ukraine and the EU – are not at the table.

The start of a new relationship

After four and a half hours of talks, Russian representatives such as Foreign Minister Sergei Lavrov and financial specialist Kirill Dmitriev expressed their satisfaction with the start: The USA and Russia would like to restore diplomatic relations between the two states. A number of working groups are also to begin communication on various other international problems “taking into account the special responsibility of Russia and the USA in peace and security issues as nuclear powers and permanent members of the UN Security Council.”

A three-stage plan is being discussed for an end to the war in Ukraine: Ceasefire, elections, and finally a written, final agreement. Moscow has long been pushing for new elections in Ukraine. The hope is obviously that a more agreeable successor than Volodymyr Zelenskiy can be persuaded to give in more easily.

Kellogg in Brussels

Commission President Ursula von der Leyen and António Costa received the US special envoy Keith Kellogg for separate talks in Brussels on Tuesday. A peace solution must respect the independence, sovereignty, and territorial integrity of Ukraine and also be based on strong security guarantees, according to the EU Commission’s read-out. The Commission President also emphasized the EU’s willingness to work alongside the USA “to end the bloodshed” and help ensure a lasting peace.

EU Council President Costa expressed similar sentiments on the short messaging service X: “Peace cannot be a simple ceasefire,” he wrote. What is needed is an agreement that brings comprehensive, just, and lasting peace and security to Ukraine. The Council and Commission did not respond to the question of whether Donald Trump’s special envoy for Ukraine and Russia had offered the Europeans a seat at the negotiating table. According to reports, the former general was unable to make any promises in this regard. Keith Kellogg may travel to Kyiv this week to meet with Zelenskiy.

No special summit before Bundestag elections

The entire EU Commission is also planning to travel to Kyiv next Monday to mark the third anniversary of the Russian invasion of Ukraine. According to diplomats, Brussels is also discussing the appointment of a high-profile special representative for Ukraine, who would have a certain weight and the necessary political experience for the EU at the negotiating table. The name of former German Chancellor Angela Merkel has also been mentioned.

Following the disagreement on the issue of security guarantees and peacekeeping troops at the informal meeting in Paris on Monday, no special summit of all 27 member states is planned for the time being, according to EU circles. A meeting this week would also not be opportune in view of the elections in Germany on Sunday. According to diplomats, time is pressing. However, a crisis summit would currently only reinforce the image of a lack of unity and ability to act.

Kosovo Prime Minister Kurti: ‘A Republika Srpska in Kosovo is unacceptable’

By

Gabriel Bub

Prime Minister Kurti, the new government you want to build will have to face some challenges. How do you assess the current security situation in the Western Balkans?

It has been relatively calm, compared to the Russian aggression in Ukraine. However, we have had some security challenges mainly coming from Serbia. Some were also linked with Russia. We are very vigilant, because I do not think that President Vucic can say no to President Putin if he wants to enlarge the context of his imperialism and hegemonic aspirations.

In Ukraine, Donald Trump’s initiative to push for immediate negotiations with Wladimir Putin could indicate what Kosovo might face. Are you concerned that Trump could revive his first-term plan for a land swap with Serbia?

It’s difficult to predict, however, it is my impression that President Trump is trying to bring some settlement between Ukraine and Russia because of the higher priority he has, that is China. This has little do with the Balkans where all six countries amount to the population of the Netherlands.

Trump’s special envoy, Richard Grenell, criticized you publicly ahead of the elections. Do you regret having refused to grant greater autonomy to ethnic Serb majority municipalities?

Special Envoy Grenell has been very outspoken against me since 2020. It did not start during the election campaign. However, we consider the US to be our indispensable ally and Special friend. Regarding Serbia, we have a basic agreement with an implementation annex from February and March 2023. This agreement is being violated. I have been urging Serbia to sign the agreement it has already agreed to. Likewise, Serbia should withdraw the letter of Madam Brnabic, Speaker of Parliament and former Prime Minister from December 2023 saying that she does not respect the territorial integrity of Kosova. And they must hand over Milan Radoičić, the chief criminal of Serbia’s little green men who in September 2023 killed our police sergeant Afrim Bunjaku. Serbia might want something like Republika Srpska in Kosovo. But that is neither acceptable nor possible.

The NATO-led international peacekeeping Kosovo Force (KFOR) has strengthened its presence in the region. Should Germany advocate to increase it more?

Serbia has 48 forward operating bases near Kosovo, including 28 military bases and 20 operated by the Gendarmerie. It is like a horseshoe around Kosova. So yes, we do need the support of KFOR. We need many German troops. People cherish very much Germany’s contributions. As long as Serbia does not recognize us, as long as we are still not members of NATO, as long as Serbia keeps this close relation with the Kremlin, we need our allies to be close to us.

The EU suspended funding for certain projects in Kosovo, but didn’t do so for Serbia. Is Serbia being held at the same standards?

The EU would like to remove some of the measures but can’t reach consensus due to internal dynamics. On the other hand, I think it’s unfair that Serbia hasn’t been sanctioned by the EU for its pro-Kremlin behavior and not putting sanctions on Russia for three years. There has been an asymmetric treatment and I strongly hope that the second term of President Ursula von der Leyen will change this.

You met the EU Special Representative, Peter Sørensen at the MSC. How are your hopes towards him and the High Representative for Foreign Affairs, Kaja Kallas regarding the Belgrade Pristine dialogue?

I expect firmness and clarity, that European values will not be sacrificed for short-term geopolitical considerations, fearing pressuring Belgrade would make it the New Belarus in Southeast Europe. Unfortunately, the regime in Serbia already decided to be on the side of the Kremlin. I hope that they are going to make Serbia watch itself in the mirror rather than keep watching Kosovo with binoculars.

Serbia’s president Aleksandar Vučić is under significant pressure due to the anti-corruption protests. Do you see a momentum for a policy shift regarding a recognition of Kosovo?

In Serbia there is no basic rule of law. There is no proper political pluralism. There is no respect for human rights and minority rights. When you oppress your own people and suppress their discontent because you promise regional hegemonic influence there will be protests. Homogenization for Serbia’s hegemony cannot last long. As far as I noticed, the protests are even bigger than when Milosevic was overthrown a quarter of a century ago. And let us not forget at the time his minister of propaganda was the current president of Serbia, Aleksandar Vučić. Relations between Kosovo and Serbia should be normalized, but Serbia first should become a normal democratic country.

Do you think that Kosovo might enter the EU within the next ten years?

Of course. Some countries joined the EU after three years after applying, while others waited for almost two decades. I think that the average is nine years, so we shall go for the average. We want to join the EU not only to benefit, but also to contribute. And I think that we are on the right track. The EU Country Progress report for Kosovo says that out of 38 areas, Kosovo made progress in 36. We want this to be more acknowledged and we want a merit-based process. No back door and no fast track.

Mercosur: Trade section to be ratified separately

The EU Commission will probably split the free trade agreement between the EU and Mercosur into two parts to enable faster ratification, said Bernd Lange (SPD), Member of the European Parliament, on Tuesday. According to the Chairman of the EU Parliament’s Trade Committee, the same should happen with the modernized agreement with Mexico. They want to do it like the “Chile model.” The free trade agreement between the EU and Chile was signed in 2023 and the trade section came into force in February of this year.

“There is an agreement, but the large trade part – 90 percent of the agreement – will be detached and will finally come into force after ratification by the European Parliament,” said Lange. Once the entire agreement, which also contains the trade part in identical wording, has been ratified by the 27 member states, it would replace the trade part, said Lange. “This is the Chilean model and we will do the same with Mercosur and Mexico.”

As trade is an EU competence, simple trade agreements can be ratified by a qualified majority of the Council and the consent of Parliament. Mixed agreements, which also affect policy areas within the competence of the member states, must be ratified by all member states individually. Lange explained that splitting the agreement would guarantee the final entry into force of the trade part without the risk of having to unwind the entire agreement because a member state did not want to ratify it.

Ratification in spring 2026

France, Ireland and other member states in particular had been critical of the Mercosur agreement. It had therefore long been suspected that the EU Commission would come out in favor of a split agreement architecture. When asked by Table.Briefings, a Commission spokesperson said that “no final decision” had yet been made.

Lange assumes that the Mercosur agreement will be signed this year after the summer break. He expects the ratification vote in parliament to take place in spring 2026. jaa

Gas supply: Fewer LNG imports to Europe despite new terminals

Imports of liquefied natural gas (LNG) to Europe fell by 19% in 2024 compared to the previous year. This is according to the latest “European LNG Tracker” from the Institute for Energy Economics and Financial Analysis (IEEFA). It will be published this Tuesday and was made available to Table.Briefings in advance. The main reason for the current decline is the increased use of pipeline gas, which is imported to Europe from Norway, the UK and North Africa, among others. Overall, natural gas imports remained roughly stable year-on-year. In a longer-term comparison, however, a significant decline can also be seen there: in 2024, European gas demand was around 20 percent lower than in 2021. Ana Maria Jaller-Makarewicz, lead author of the report, cites the expansion of renewable energies and political measures to reduce gas consumption as reasons for this.

At the same time, the capacity for landing and liquefying LNG in Europe has been expanded again. In 2024, it increased by six percent; since 2021, it has grown by a total of 29%. Due to the combination of higher capacity and lower imports, the utilization of European LNG terminals fell from 58% in 2023 to 42% in 2024. IEEFA expects capacity utilization to continue to fall in the future, as capacities are expected to increase by 60% by 2030 compared to 2021, while gas consumption will fall. The USA was the most important LNG supplier: on average, 45% of imports from EU countries came from there, while in Germany the figure was around 90%.

In contrast to most other European countries, LNG imports increased slightly in Germany in 2024. While the terminal in Wilhelmshaven was operating at 64% capacity according to calculations by Deutsche Umwelthilfe and the terminal in Brunsbüttel at 49%, the capacity utilization at the particularly hotly contested terminal on Rügen was only 8%. Even the hope that the terminal would be used more after the end of the gas transit through Ukraine at the turn of the year has not yet been fulfilled; since mid-December, there has been practically no more feed-in. The private operator Deutsche Regas has therefore terminated the contract for one of its two terminal ships, which it had rented from the German government. The BMWK is clearly not prepared to accept this. The federal government will “take the necessary steps to protect its interests,” a spokesperson said, without giving details. mkr

Bureaucracy reduction: Standards Control Council calls for Germany to play a stronger role

Germany must play a more active role in the Council working groups in Brussels: This is what the German Regulatory Control Council (NKR) writes in its recommendations to the next Federal Government, which will be published on Wednesday. According to the recommendations, “clear responsibilities and a simple coordination process” are needed within the government in order to be able to make concrete and early contributions to reducing bureaucracy in the Commission – ideally during its consultation phase. In addition, the ministries should be obliged to examine EU projects for their bureaucratic cost implications for Germany and to advocate for corresponding simplifications during negotiations in the European Council.

In addition, the so-called EU ex-ante procedure needs to be revised. Within this framework, the ministries are obliged to submit estimates of the follow-up costs of European requirements. To date, these have been submitted to the NKR, which examines them. The committee, which is based at the Federal Ministry of Justice, explained that this has recently been ineffective. As an alternative, it is therefore proposing annual reporting on EU projects and measures taken to avoid bureaucracy. If the NKR has its way, the topic will also become a fixed item on the agenda of the Federal Government’s Committee of State Secretaries for Better Regulation and Bureaucracy Reduction. okb

Macron invites to second Ukraine meeting

French President Emmanuel Macron has invited EU counterparts to a second Ukraine meeting in Paris today at short notice. This time, representatives of member states who were not present at the first meeting on Monday have been invited, wrote the news agency Reuters. Accordingly, Norway, Lithuania, Estonia, Latvia, the Czech Republic, Greece, Finland, Romania, Sweden and Belgium have been invited. Canada will now also be present.

The meeting will take place hybrid on-site and via video link. On Monday, Macron received German Chancellor Olaf Scholz, British Prime Minister Keir Starmer, and the heads of the EU and NATO in Paris for a mini-summit on the situation in the Ukraine war. The heads of state and government had been unable to agree on whether there should be peacekeeping troops from European countries in Ukraine. rtr/mbn

EPR system for textiles: Trade associations want private sector organization

Three German trade associations are calling on the EU to utilize previous experience with already established take-back systems for the “Extended Producer Responsibility” (EPR) for textiles and shoes. This includes the private sector organization of the future system, explained the German Retail Association (HDE), the German Textile, Footwear and Leather Goods Retail Association (BTE) and the Foreign Trade Association of the German Retail Trade (AVE) in a concept paper.

The planned EPR system is part of the revision of the EU Waste Framework Directive in the areas of textiles and food, which is currently being negotiated in Brussels. In order to finance the costs of collecting and treating textile waste, fashion brands, and textile manufacturers are to pay fees. The amount of the fees depends on the recyclability and environmental compatibility of the textiles.

Successful take-back systems have already been developed in recent years, for example for packaging, old electrical appliances, and batteries, explained HDE Managing Director Stefan Genth. These approaches could be transferred to the textile and shoe sector.

The associations demanded that the EU first establish clear definitions for the durability, recyclability and reparability of products. These definitions should be formulated as part of the Ecodesign Regulation in order to ensure legal certainty. The associations consider a staggered approach to be sensible, starting with “mass products” such as T-shirts. leo

EUROPE.TABLE EDITORIAL OFFICE

Till
Hoppe

Sarah
Schaefer

Lukas
Knigge

Corinna
Visser

Markus
Grabitz

Alina
Leimbach

Eric
Bonse

Manuel
Berkel

Stephan
Israel

Claire
Stam

János
Allenbach-Ammann

Dear reader,

Commission President Ursula von der Leyen and Council President António Costa received the US Special Envoy for Ukraine and Russia, Keith Kellogg, for talks in Brussels on Tuesday. A peace solution must respect the independence, sovereignty and territorial integrity of Ukraine and be based on strong security guarantees, the Commission explained. Stephan Israel and Viktor Funk analyze Kellog’s visit to Brussels and why Ukrainian President Volodymyr Zelenskiy canceled his trip to Riyadh. US Secretary of State Marco Rubio and Russian Foreign Minister Sergey Lavrov met there yesterday.

Next week, the EU Commission intends to present its Clean Industrial Deal, a plan to make Europe’s industry more climate-friendly while remaining competitive. The first concrete details have now emerged from a draft of the plan, which is available to Europe.Table. For example, EU citizens are to receive financial support from the Social Climate Fund if they switch to climate-friendly products. My colleagues and I have analyzed the draft in detail for you and summarized the most important announcements.

I wish you an enlightening read,

Your
Lukas Knigge

Clean Industrial Deal: Commission wants to facilitate leasing of EVs and heat pumps

The Commission wants to make it easier to lease electric vehicles, heat pumps and other clean technologies at reduced rates this year. This is provided for in the Clean Industrial Deal, which the authority intends to present in a week’s time and which is available to Table.Briefings in draft form. EU citizens are to receive financial support from the Climate Social Fund if they switch to climate-friendly products.

The initiative is part of Commission President Ursula von der Leyen’s plan to establish Europe as a location for climate-friendly industries. The communication also lists measures for falling energy prices and local content criteria for buyers of “green” products. The concept should help to “give Europe’s industry a stronger business model for major investments in the climate neutrality of energy-intensive industries and clean tech,” it says.

Negotiations still ongoing

The Commission also wants to mobilize new funds for this in the short term. However, the draft does not yet contain any concrete figures. The content could also change significantly before the planned publication on Feb. 26 – negotiations are still in full swing, according to the Commission.

The plan is based on six building blocks:

Affordable energy
Lead markets
Public and private investments
Circular economy and raw materials
International partnerships
Social balance