Table.Briefing: Europe

Dry COP conclusion + IRIS2 + Ecodesign for tablets

  • From historic to disappointing: the decisions of Sharm el-Sheikh
  • IRIS2: rocket propulsion for the economy
  • Ecodesign: agreement on specifications for tablets and smartphones
  • AI Act still about details
  • EU sets anti-dumping duties on coated steel imports
  • German LNG terminals cost more than twice as much
  • Opinion: Media Freedom Act
Dear reader,

Nothing stands in the way of Donald Trump’s comeback. Fortunately, we’re not talking about a return to the White House but to the online platform Twitter. In a vote, a majority had spoken out in favor of giving Trump access to his account again. Elon Musk respects the will of the majority. But Trump is hesitant. It’s quite possible that he no longer trusts Twitter services since the chaos regarding the checkmark. After all, Trump wants to have control over the fake news spread under his name.

The sleep deprivation of the night spent negotiating is followed by the COP 27 hangover. Commission President Ursula von der Leyen expresses dissatisfaction with the meager results in Sharm el-Sheikh. “A small step towards climate justice was taken with COP27, but the planet needs much more,” she says. “We have treated a few symptoms, but not cured the patient of their fever.” Lukas Scheid sat through the last night of negotiations on the Red Sea and wrote up the results for us.

From Sharm el-Sheikh to space: Corinna Visser has been following up on the deal that EU co-legislators struck last week for a satellite-based secure communications network. Space Commissioner Thierry Breton has lined up €2.4 billion in budgetary funding for IRIS2, underlining his reputation as a doer: The agreement was reached in a record-breaking nine months.

Not Breton, but the Commissioner for the European Way of Life, Margaritis Schinas, is leaving for the World Cup in Qatar in the very first week. In today’s Apéro, Falk Steiner criticizes EU politicians’ handling of the sheikhs’ football event in the desert sand: lacking in credibility to a shocking degree.

Have a great start to the week!

Your
Markus Grabitz
Image of Markus  Grabitz

Feature

From historic to disappointing: the decisions of Sharm el-Sheikh

Just a week ago – at the halfway point of COP27 – it was considered almost impossible that a fund for loss & damage would come to be. Now it has been decided and is to come next year. It is a historic decision, as developing countries have been calling for a financial instrument to address loss and damage resulting from climate change for 30 years. Christoph Bals, political director of Germanwatch called it an important breakthrough. He says the German government was instrumental in getting the EU and other industrialized countries to warm up to this fund.

Loss & damage: historical agreement

The agreement on loss & damage at COP27 includes:

  • A new fund for particularly vulnerable developing countries
  • Other financing measures outside the fund
  • New additional funding from a variety of sources, including the World Bank and the International Monetary Fund
  • The establishment of a transition committee to clarify details and make proposals between now and COP28

On Sunday night, there was still wrangling over whether only “particularly vulnerable” developing countries or all developing countries should be eligible to receive funds from the loss and damage financial instruments. A formulation that classified all developing countries as of 1992 as recipient countries was dropped shortly before the closing plenary of the COP.

Just as controversial was the question of who should provide the funding. The EU and later also some island states insisted that new financial sources must be found – so far, so vague. Originally, the EU demanded to expand the group of contributing countries. Thus, emerging economies that are now wealthy, such as China, India, South Korea, Indonesia, Mexico and oil-rich nations, would also have had to pay into the fund. “The EU wanted to make China and the Gulf states contributors – but in the end, it didn’t have the courage for the necessary confrontation,” analyzes David Ryfisch, head of the International Climate Policy team at Germanwatch.

While the new formulation does not exclude the expansion of contributors, it is not particularly explicit either. It is now up to the transition committee to propose new funding sources for loss and damage. This means that the debate on whether China, as the historically second-largest emitter, must also bear responsibility for climate damage is by no means over, but merely postponed until COP28.

Mitigation work program: 1.5-degree target wobbles

The roadmap for global greenhouse gas reductions was of enormous importance to Europeans at the COP. It was supposed to be an ambitious path to achieving the 1.5-degree target. But it falls short of many expectations. “In Glasgow, we were still able to maintain the 1.5. At this COP, we are at a juncture where it could lose,” said Franz Perrez, Switzerland’s chief negotiator.

The Greenhouse Gas Mitigation Work Program:

  • Runs until 2026 with possible extension
  • Urges countries to align national climate targets with the 1.5-degree path
  • Establishes sectoral consideration of GHG reductions (as per IPCC report)
  • Calls for annual progress reports at COP
  • Calls for funding for Just Energy Transition Partnerships (JETPs).

The industrialized countries would have preferred even more ambitious targets, which they, as the main emitters, would most likely have had to implement themselves. But even less ambitious targets would have been possible: An earlier version of the text stated that the work program must not lead to higher climate targets. An absolute no-go for the EU, which it also made clear to the Egyptian COP presidency. Without higher climate targets (NDCs), the 1.5-degree target would remain out of reach. The EU prevailed, but at what price?

Cover decision: Shoukry’s legacy

The price may have been horse-trading, as the final text – called the cover decision – falls short of Glasgow and will likely be a bad memory of European negotiators for a long time to come.

The cover decision states:

  • phasing out coal-fired power without carbon capture and storage (like Glasgow)
  • eliminating “inefficient” fossil fuel subsidies (like Glasgow)
  • reducing global emissions by at least 43 percent by 2030 compared to 2019 levels
  • clean and equitable transition to renewables
  • expansion of “low-emission and renewable” energies

The last point in particular leaves many questions unanswered because “low-emission” also means gas and nuclear power. EU climate commissioner Frans Timmermans said on Sunday that only gas with CO2 capture is considered “low-emission”. However, David Ryfisch of Germanwatch estimates that other countries will interpret the wording differently.

However, there are also positive signals from the Sharm el-Sheikh Implementation Plan. For example, the accelerated expansion of renewable energies in the Cover Decision is also considered progress in EU circles. What is not in the cover decision is much more important than what is in it:

  • no emissions peak in 2025 (EU call)
  • no sentence on methane
  • no fossil phase-out/down

An alliance of 80 countries (including the US, India and the EU) firmly tried to build on the ambitions shown in Glasgow on Saturday night. They explicitly called for a “phase-out” of all fossil fuels. But COP President Sameh Shoukry ignored the push, as opposition, particularly from oil-rich countries like Saudi Arabia, was too strong. Instead, the presidency submitted the now-agreed text to a “take it or leave it” vote, says Christoph Bals. In the end, after a night of negotiations, at 7 a.m., none of the 80 countries voiced any objections.

  • Climate & Environment
  • Climate Policy

IRIS2: rocket propulsion for the economy

Thierry Breton is right. This is record speed. After just nine months of deliberation, the Commission, Council and Parliament agreed late last week on a Union program for secure connectivity in space. IRIS2 stands for Infrastructure for Resilience, Interconnectivity and Security by Satellite. And the Commission has also put up its share of funding: €2.4 billion. That’s how fast it can happen when a commissioner, a rapporteur and a member state push European legislation.

With IRIS2, the Union is pursuing two goals:

  • Establishing a sovereign infrastructure in space to provide secure, autonomous, reliable and cost-effective communications services for government users – such as for critical infrastructure protection, crisis management and defense.
  • And creating the conditions for the private sector to provide commercial services over this secure infrastructure – for example, to further expand the high-speed broadband network and offer seamless connectivity even where there is no network today.

IRIS2: secure communications for government agencies

This also makes it clear that the primary aim is to meet the state’s needs for secure communications and not to provide cheap Internet from space for everyone – as the shadow rapporteur for the Greens/EFA, Niklas Nienaß, had called for, for example. The BDI, on the other hand, welcomes the orientation. Matthias Wachter, BDI’s space expert, writes on LinkdIn that it is positive that IRIS2 is clearly focused on government and military needs, thus avoiding competition with commercial providers and crowding-out effects.

The French, Commissioner Breton and rapporteur Christophe Grudler (Renew) presumably also pursued their own goals: strengthening the existing French space industry – Airbus, Eutelsat. These companies are predestined candidates when it comes to launching satellites into space and setting up communications networks there. This explains why the French have pushed ahead with the project.

Germany sets other priorities

Germany’s focus is somewhat different. Germany is looking to build a new commercial space economy (New Space) away from established companies and space agencies. SMEs and startups should be able to compete with companies like Starlink. For example, in a joint letter with his Italian counterpart to Breton, German Economy Minister Robert Habeck (Green Party) wrote: “…and we see the complementary commercial opportunities this could create for the European space industry in the current climate of increased global competition.” The BDI, for example, is convinced that New Space could be the key to future technologies such as autonomous driving, Industry 4.0 or fast global Internet.

There are other reasons Breton has pressed the pace. If the plan works out for the Commission’s first in-orbit services to come online in 2024, Breton himself will still be able to get them up and running. But there are also weightier reasons:

Last but not least, IRIS2 is also intended to become a stimulus program for the European space economy. “In the rapidly changing market, it is important that the European space economy develops rapidly,” says Niklas Nienaß. In total, the estimated cost of the satellite constellation in space is around €6.5 billion.

ESA decides on budget this week

In addition to the €2.4 billion from the EU, the rest of the money is to come from the European Space Agency (ESA) and its member states. This was another reason why haste was needed. Because at the ESA Council of Ministers CM22, which will take place in Paris on Nov. 22 and 23, the 22 member states will decide on the budget for the coming years. According to Nienaß, ESA is also planning to launch an additional program that will build on IRIS2 in order to offer further services, such as Internet from mid-Earth orbit.

The most significant points of contention, says Nienaß, have been in the negotiations over what role ESA and EUSPA will play in implementing the project. That’s because while ESA includes countries such as Switzerland, Norway and the United Kingdom, EUSPA is the EU’s space agency. “We pushed through the compromise that both would be involved,” Nienaß says.

This is of crucial importance. Because if rockets for IRIS2 were only allowed to be launched into space from EU territory, only the Kourou spaceport in French Guiana, 5,000 kilometers away and operated by the French space agency CNES, would come into consideration. This is where the Ariane and Vega rockets are launched.

Micro launcher could launch in the North Sea

However, heavy launchers like Ariane are not needed to transport small satellites, which enable numerous new business models at the interface between navigation, communication, earth observation and digitization. Rather, what is needed are micro launchers that launch further north. ESA members Norway and Scotland are working on this.

But a private consortium is active in Germany. It plans to launch micro launchers from aboard a special ship in the German Exclusive Economic Zone in the North Sea. Among others, the German space company OHB is involved in the German Offshore Spaceport Alliance.

And with more satellites being launched into space in the coming years than ever before, another aspect was important to the Greens: “We brought in sustainability criteria that everyone who wants to participate has to meet.” These criteria are:

  • leaving no junk in space
  • reducing light pollution and CO2 emissions
  • returning space debris.

The Commission now needs to concretize these criteria in a further legal act. Nienaß sees this as the first steps for a space traffic management system and for an international space law. In any case, for a European space law. This will then apply to all those who want to offer services from space in the EU.

The political agreement reached in the trilogue still has to be formally adopted by the European Parliament and the Council.

  • France
  • Germany
  • Satellites
  • Technology

News

Energy Charter: Commission wants to postpone modernization

The EU has no mandate to vote on the modernization of the Energy Charter Treaty on Nov. 22. A qualified majority could not be reached in the vote in the Permanent Representatives Committee on Friday. Germany, France, Spain and the Netherlands abstained. Accordingly, the EU cannot approve the modernization of the treaty at the Energy Charter Conference in Mongolia scheduled for Tuesday.

The outcome was predictable. The vote in the Permanent Representatives Committee was supposed to take place on Wednesday, but was taken off the agenda at the last moment. It became clear that there could be a blocking minority. In recent months, more and more EU countries have decided to withdraw from the Charter. The German government decided to leave the Energy Charter only a week ago.

The EU Commission now wants to postpone the vote on modernizing the Energy Charter. It now works to remove the vote from the agenda of the ECT conference on Nov. 22. “Member states could not vote individually if there was no EU position. There would be no quorum,” a diplomat told Europe.Table.

More and more votes for EU exit

Christina Eckes, an expert in EU public law, takes a more differentiated view. In the case of mixed treaties, in the absence of a Council decision, each EU member would have to vote individually. But under EU law, this would be a violation of competence rights. The core issue of the Energy Charter, foreign direct investment, falls under EU competence. “The Energy Charter reform is an example of why mixed membership in treaties is so difficult,” Eckes says.

Meanwhile, calls for the EU to withdraw from the Energy Charter are growing louder. With the vote on Friday, “the climate killer treaty has now also finally failed at the EU level. We call on the EU Commission to immediately initiate the exit!”, writes the Munich Environmental Institute in a press release.

This is exactly how MEP Anna Cavazzini (Greens) sees it: “This climate-damaging adhesion contract can no longer be saved. The EU must now also finally get out.” Since last week, a letter has already been circulating in which MEPs from the Greens, Renew, S&D and the Left call on the EU Commission to withdraw from the Charter. On the coming Thursday votes the EU Parliament on a resolution to modernize the Charter. CDU/CSU and EPP approve the ECT reform.

Luxembourg also withdraws from the Charter

On Friday afternoon, Luxembourg also announced its withdrawal from the Energy Charter. “Even if the modernization of the Energy Charter Treaty leads to some progress, the treaty is still not compatible with the goals of the Paris Climate Agreement, as it continues to protect investments in fossil and nuclear energies,” criticizes Green energy minister Claude Turmes.

Nevertheless, Luxembourg voted in the Permanent Representatives Committee to approve the reform text. “Our legal analysis says that we can then exit with a sunset clause shortened to ten years,” the energy ministry said. cw

  • Energy
  • Energy Charter
  • Energy policy
  • European policy
  • Luxembourg

Ecodesign: agreement on specifications for tablets and smartphones

On Friday, the European Commission and EU member states agreed on new requirements for the eco-design of smartphones and tablets. These are intended to reduce the environmental impact of the device groups through more sustainable product design: Individual parts such as batteries and screens should be more robust and easier to replace, software updates should be available longer and free of charge, and spare parts should be available longer and more easily. For the first time, manufacturers must disclose information about the raw materials used.

The regulation is part of the Circular Economy 2020 Action Plan. At the beginning of September, the Commission published a first draft each for new ecodesign requirements and for a repair and energy label for cell phones, smartphones and tablets (Europe.Table reported). These were available for public consultation until the end of September, and the Commission intends to adopt the regulations before the end of the year. The specifications would then come into force next year and apply to all devices sold in the EU after a transition period of 21 months.

The “right to repair” campaign, an alliance of over 100 European organizations, sees major gaps in the draft. In an open letter to a panel of member state experts, the alliance calls for, among other things, a price cap of replacement parts and for them to also be included as a factor in the planned repair label. “Price is currently one of the biggest hurdles when it comes to ensuring that a product can not only be repaired but is actually repaired,” the letter states. leo

  • Climate & Environment
  • Environmental policy
  • Environmental protection
  • Sustainability

AI Act still about details

The discussion continues. It is true that the Permanent Representatives of the member states in the Council agreed to the Council Presidency’s proposal for a General Approach on the AI Act on Friday, including Germany. However, from Germany’s point of view, this is not final. There are still some detailed adjustments that Germany hopes can be taken into account in the further process, according to reports in Brussels.

According to government sources in Berlin, Germany referred to its last statement of Nov. 8 when giving its approval on Friday. It said Germany thanked the Council presidency for the adjustments to the individual articles to takegreater account of the special features of public administration, particularly in the areas of security and migration,” as demanded by Germany. Nevertheless, Germany sees a need for further adjustments. “In particular, we are of the opinion that the requirements for secrecy and the guarantee of confidentiality and data security should be specified in Article 70.”

And apparently the issue of biometric mass surveillance has not yet been fully discussed. “We are clearly sticking to the wording in the coalition agreement,” government sources say. The word “biometric” appears only twice in the coalition agreement. The relevant passages are open to interpretation.

In one place, it says, “Biometric recognition in public spaces, as well as automated government scoring systems through AI, are to be excluded under European law.” This does not mean that these systems must be excluded “without exception,” according to government sources.

Elsewhere it says, “We reject blanket video surveillance and the use of biometric capture for surveillance purposes.” Surveillance does not mean, however, that biometric recording may not be used for law enforcement purposes and to locate missing children. vis

  • Artificial intelligence
  • Digital policy
  • European policy
  • Germany

EU sets anti-dumping duties on coated steel imports

The European Commission imposed anti-dumping duties on imports of electrolytic chromium coated steel (ECCS) originating in China and Brazil. This type of coated steel is used in beverage cans and household appliances, among other things. The products are sold at unreasonably low prices within the EU, harming European manufacturers, the Brussels-based authority said. The Chinese tin-free steel was dumped at margins between 30.7 and 77.9 percent, EU officials estimated. To counter this, the Commission now approved tariffs of €239 to €607 per ton of imported tin-free steel.

The EU market for tin-free steel is estimated at almost €500 million, according to the Commission. The EU Commission had begun reviewing imports of tin-free steel from China and Brazil in September 2021 after receiving a complaint from the European Steel Association. The EU already imposed safeguard tariffs against a number of foreign metal imports, including tin-free steel. ari

  • Steel
  • Trade
  • Trade Policy

German LNG terminals cost more than twice as much

Acquisition and maintenance of floating liquefied natural gas terminals will cost Germany at least €3.5 billion more than planned. A total of around €6.56 billion in budget funds is currently earmarked, the Federal Ministry for Economic Affairs said on Sunday. In the budget for 2022, €2.94 billion had still been budgeted. The increase was “necessary due to the dynamically developing situation”. The Bundestag’s budget committee has just approved additional money for the terminals. rtr

  • Energy
  • Energy Prices
  • Federal Government
  • Germany
  • Natural gas

Opinion

Media Freedom Act: Is Brussels abolishing press freedom?

By Helmut Verdenhalven and Philippe Meistermann
Helmut Verdenhalven (l.), Member of the Executive Board, and Philippe Meistermann, Head of Brussels Office, German Newspaper Publishers and Digitalpublishers Association (BDZV).

The EU Commission wants to save media freedom in Europe – with a European supervisory authority. Spot the mistake.

But let’s start at the beginning: For years, there has been a decline in press freedom in some EU member states. Especially, but not only, in Hungary and in Poland independent media are under pressure. The Rule of Law Report and the EU’s Media Pluralism Monitor conclude that the freedom and independence of the media in the EU is at risk.

So there is a need for action. In response, the EU Commission has chosen a path that will achieve the opposite of what is necessary. Instead of countering those states that do not guarantee media freedom with the existing, quite sharp tools of EU law, a regulatory corset is to be put together for media everywhere in Europe. It is not only Germany that has criticized the proposed regulation, which the Commission presented in September. The draft is an “encroachment on the cultural and media sovereignty of the EU states that goes beyond the scope of their powers,” said State Secretary Heike Raab at the Media Days in Munich, and rightly so. A subsidiarity complaint is being discussed in the Bundesrat. German press publishers fear “political appropriation”.

European media regulation: a paradigm shift

In her State of the Union address, Commission President von der Leyen made an extensive announcement about the European Media Freedom Act (EMFA) in 2021 and promised that the proposal would be published a year later. In the media environment, the plan has raised big question marks. Media regulation at the European level is tantamount to breaking a taboo of sorts. Until now, the EU had not ventured beyond regulating broadcasting, which is already intensively regulated at the member state level. For good reason: the treaties simply do not provide for EU competence for the media and especially the press. On the contrary, the member states have always understood the highly sensitive field of media policy as their sole competence. The EMFA, therefore, represents a paradigm shift.

The uproar in Germany is understandable for that reason alone. But the content of the Commission’s proposal also offers explosives in terms of media policy. In particular, the plans to create the “body,” a kind of European media supervisory authority, break with central principles of press freedom. For not only is this authority, which is to be created from the merger of the national media supervisory authorities of the member states, also to be responsible for the press. The EU Commission itself is also supposed to take over the management of this institution. This is an affront to the press, which in a modern democracy is responsible for its content before the law and judges alone, and for a good reason.

A misguided ‘one-size-fits-all’ approach

However, the body would not only mean that the press in Europe would be placed under official supervision for the first time but also that some countries viewed critically by the EU Commission would in future also be given powers for the entire European media landscape. For example, Hungarian and Polish media regulators would, in the future, also have a seat at the table when it comes to regulating German media. This highlights a major flaw in the overall project: Europe’s different media landscapes, which are characterized by linguistic, cultural and demographic differences, cannot be lumped together.

The immense problems in various EU member states must be solved, that is beyond question. But European media regulation is certainly not the right way to go about it. Precisely when it comes to protecting the freedom and diversity of the media, politics cannot afford to be overreaching. Neither the Commission nor the governments of the member states have exhausted their political options for action so far.

The Commission likes to portray the European Media Freedom Act as the last chance to turn things around, but that simply cannot be allowed to happen given the unambitious actions of the EU and its member states in the face of developments in their own ranks over the past decades. It is all about choosing your tools carefully. The EU must not undermine media freedom where it still exists.

  • Democracy
  • European policy
  • Society

Apéro

World Cup in Qatar, or The Political Swan Dive

How hypocritical is European criticism of the World Cup in Qatar? Is FIFA president Gianni Infantino even right when he accuses the critics of hypocrisy?

Sport and politics have long had a complicated relationship. That sporting events are apolitical has been an outright lie since ancient times. There are many examples in modern sports history – the bloc confrontation boycotts at the 1980 Moscow and 1984 Los Angeles Olympics and, of course, the 1936 Berlin Olympics. Also, the 2018 World Cup in Russia – four years after the attack on Crimea and eastern Ukraine – the 2022 Beijing Winter Games and the 2008 Summer Games. Sport and politics are closely linked, whether in booth visits or in attempts to brush off unpopular legislative proposals during major sporting competitions.

When the Parliament puts the human rights situation in Qatar on the plenary agenda today, the impact for the workers on the ground will predictably be small. The expected media attention for the EP, however, will be significant. This, too, is little more than pandering to King Football – a political swan dive. The process would be a little more credible if half of Europe were not currently cheering with the sheikhs in the stands, in search of liquid gas. But human rights are of interest to larger circles in the EU, especially when they contribute to their own perception. EP President Roberta Metsola, Commission President Ursula von der Leyen and Council President Charles Michel are demonstratively not making any travel plans – while the Belgian king will hardly be able to resist a visit.

Commission Vice President Margaritis Schinas put it succinctly: “The power of football is the power of the people of Europe.” It is fitting that he, of all people, is representing the EU Commission in Doha. On the weekend, Schinas preemptively certified that the host Qatar had made “considerable and noticeable progress” in the area of workers’ rights – completely free of criticism. In this case, this should be understood as an admission of European powerlessness.

Europe.Table Editorial Office

EUROPE.TABLE EDITORS

Licenses:
    • From historic to disappointing: the decisions of Sharm el-Sheikh
    • IRIS2: rocket propulsion for the economy
    • Ecodesign: agreement on specifications for tablets and smartphones
    • AI Act still about details
    • EU sets anti-dumping duties on coated steel imports
    • German LNG terminals cost more than twice as much
    • Opinion: Media Freedom Act
    Dear reader,

    Nothing stands in the way of Donald Trump’s comeback. Fortunately, we’re not talking about a return to the White House but to the online platform Twitter. In a vote, a majority had spoken out in favor of giving Trump access to his account again. Elon Musk respects the will of the majority. But Trump is hesitant. It’s quite possible that he no longer trusts Twitter services since the chaos regarding the checkmark. After all, Trump wants to have control over the fake news spread under his name.

    The sleep deprivation of the night spent negotiating is followed by the COP 27 hangover. Commission President Ursula von der Leyen expresses dissatisfaction with the meager results in Sharm el-Sheikh. “A small step towards climate justice was taken with COP27, but the planet needs much more,” she says. “We have treated a few symptoms, but not cured the patient of their fever.” Lukas Scheid sat through the last night of negotiations on the Red Sea and wrote up the results for us.

    From Sharm el-Sheikh to space: Corinna Visser has been following up on the deal that EU co-legislators struck last week for a satellite-based secure communications network. Space Commissioner Thierry Breton has lined up €2.4 billion in budgetary funding for IRIS2, underlining his reputation as a doer: The agreement was reached in a record-breaking nine months.

    Not Breton, but the Commissioner for the European Way of Life, Margaritis Schinas, is leaving for the World Cup in Qatar in the very first week. In today’s Apéro, Falk Steiner criticizes EU politicians’ handling of the sheikhs’ football event in the desert sand: lacking in credibility to a shocking degree.

    Have a great start to the week!

    Your
    Markus Grabitz
    Image of Markus  Grabitz

    Feature

    From historic to disappointing: the decisions of Sharm el-Sheikh

    Just a week ago – at the halfway point of COP27 – it was considered almost impossible that a fund for loss & damage would come to be. Now it has been decided and is to come next year. It is a historic decision, as developing countries have been calling for a financial instrument to address loss and damage resulting from climate change for 30 years. Christoph Bals, political director of Germanwatch called it an important breakthrough. He says the German government was instrumental in getting the EU and other industrialized countries to warm up to this fund.

    Loss & damage: historical agreement

    The agreement on loss & damage at COP27 includes:

    • A new fund for particularly vulnerable developing countries
    • Other financing measures outside the fund
    • New additional funding from a variety of sources, including the World Bank and the International Monetary Fund
    • The establishment of a transition committee to clarify details and make proposals between now and COP28

    On Sunday night, there was still wrangling over whether only “particularly vulnerable” developing countries or all developing countries should be eligible to receive funds from the loss and damage financial instruments. A formulation that classified all developing countries as of 1992 as recipient countries was dropped shortly before the closing plenary of the COP.

    Just as controversial was the question of who should provide the funding. The EU and later also some island states insisted that new financial sources must be found – so far, so vague. Originally, the EU demanded to expand the group of contributing countries. Thus, emerging economies that are now wealthy, such as China, India, South Korea, Indonesia, Mexico and oil-rich nations, would also have had to pay into the fund. “The EU wanted to make China and the Gulf states contributors – but in the end, it didn’t have the courage for the necessary confrontation,” analyzes David Ryfisch, head of the International Climate Policy team at Germanwatch.

    While the new formulation does not exclude the expansion of contributors, it is not particularly explicit either. It is now up to the transition committee to propose new funding sources for loss and damage. This means that the debate on whether China, as the historically second-largest emitter, must also bear responsibility for climate damage is by no means over, but merely postponed until COP28.

    Mitigation work program: 1.5-degree target wobbles

    The roadmap for global greenhouse gas reductions was of enormous importance to Europeans at the COP. It was supposed to be an ambitious path to achieving the 1.5-degree target. But it falls short of many expectations. “In Glasgow, we were still able to maintain the 1.5. At this COP, we are at a juncture where it could lose,” said Franz Perrez, Switzerland’s chief negotiator.

    The Greenhouse Gas Mitigation Work Program:

    • Runs until 2026 with possible extension
    • Urges countries to align national climate targets with the 1.5-degree path
    • Establishes sectoral consideration of GHG reductions (as per IPCC report)
    • Calls for annual progress reports at COP
    • Calls for funding for Just Energy Transition Partnerships (JETPs).

    The industrialized countries would have preferred even more ambitious targets, which they, as the main emitters, would most likely have had to implement themselves. But even less ambitious targets would have been possible: An earlier version of the text stated that the work program must not lead to higher climate targets. An absolute no-go for the EU, which it also made clear to the Egyptian COP presidency. Without higher climate targets (NDCs), the 1.5-degree target would remain out of reach. The EU prevailed, but at what price?

    Cover decision: Shoukry’s legacy

    The price may have been horse-trading, as the final text – called the cover decision – falls short of Glasgow and will likely be a bad memory of European negotiators for a long time to come.

    The cover decision states:

    • phasing out coal-fired power without carbon capture and storage (like Glasgow)
    • eliminating “inefficient” fossil fuel subsidies (like Glasgow)
    • reducing global emissions by at least 43 percent by 2030 compared to 2019 levels
    • clean and equitable transition to renewables
    • expansion of “low-emission and renewable” energies

    The last point in particular leaves many questions unanswered because “low-emission” also means gas and nuclear power. EU climate commissioner Frans Timmermans said on Sunday that only gas with CO2 capture is considered “low-emission”. However, David Ryfisch of Germanwatch estimates that other countries will interpret the wording differently.

    However, there are also positive signals from the Sharm el-Sheikh Implementation Plan. For example, the accelerated expansion of renewable energies in the Cover Decision is also considered progress in EU circles. What is not in the cover decision is much more important than what is in it:

    • no emissions peak in 2025 (EU call)
    • no sentence on methane
    • no fossil phase-out/down

    An alliance of 80 countries (including the US, India and the EU) firmly tried to build on the ambitions shown in Glasgow on Saturday night. They explicitly called for a “phase-out” of all fossil fuels. But COP President Sameh Shoukry ignored the push, as opposition, particularly from oil-rich countries like Saudi Arabia, was too strong. Instead, the presidency submitted the now-agreed text to a “take it or leave it” vote, says Christoph Bals. In the end, after a night of negotiations, at 7 a.m., none of the 80 countries voiced any objections.

    • Climate & Environment
    • Climate Policy

    IRIS2: rocket propulsion for the economy

    Thierry Breton is right. This is record speed. After just nine months of deliberation, the Commission, Council and Parliament agreed late last week on a Union program for secure connectivity in space. IRIS2 stands for Infrastructure for Resilience, Interconnectivity and Security by Satellite. And the Commission has also put up its share of funding: €2.4 billion. That’s how fast it can happen when a commissioner, a rapporteur and a member state push European legislation.

    With IRIS2, the Union is pursuing two goals:

    • Establishing a sovereign infrastructure in space to provide secure, autonomous, reliable and cost-effective communications services for government users – such as for critical infrastructure protection, crisis management and defense.
    • And creating the conditions for the private sector to provide commercial services over this secure infrastructure – for example, to further expand the high-speed broadband network and offer seamless connectivity even where there is no network today.

    IRIS2: secure communications for government agencies

    This also makes it clear that the primary aim is to meet the state’s needs for secure communications and not to provide cheap Internet from space for everyone – as the shadow rapporteur for the Greens/EFA, Niklas Nienaß, had called for, for example. The BDI, on the other hand, welcomes the orientation. Matthias Wachter, BDI’s space expert, writes on LinkdIn that it is positive that IRIS2 is clearly focused on government and military needs, thus avoiding competition with commercial providers and crowding-out effects.

    The French, Commissioner Breton and rapporteur Christophe Grudler (Renew) presumably also pursued their own goals: strengthening the existing French space industry – Airbus, Eutelsat. These companies are predestined candidates when it comes to launching satellites into space and setting up communications networks there. This explains why the French have pushed ahead with the project.

    Germany sets other priorities

    Germany’s focus is somewhat different. Germany is looking to build a new commercial space economy (New Space) away from established companies and space agencies. SMEs and startups should be able to compete with companies like Starlink. For example, in a joint letter with his Italian counterpart to Breton, German Economy Minister Robert Habeck (Green Party) wrote: “…and we see the complementary commercial opportunities this could create for the European space industry in the current climate of increased global competition.” The BDI, for example, is convinced that New Space could be the key to future technologies such as autonomous driving, Industry 4.0 or fast global Internet.

    There are other reasons Breton has pressed the pace. If the plan works out for the Commission’s first in-orbit services to come online in 2024, Breton himself will still be able to get them up and running. But there are also weightier reasons:

    Last but not least, IRIS2 is also intended to become a stimulus program for the European space economy. “In the rapidly changing market, it is important that the European space economy develops rapidly,” says Niklas Nienaß. In total, the estimated cost of the satellite constellation in space is around €6.5 billion.

    ESA decides on budget this week

    In addition to the €2.4 billion from the EU, the rest of the money is to come from the European Space Agency (ESA) and its member states. This was another reason why haste was needed. Because at the ESA Council of Ministers CM22, which will take place in Paris on Nov. 22 and 23, the 22 member states will decide on the budget for the coming years. According to Nienaß, ESA is also planning to launch an additional program that will build on IRIS2 in order to offer further services, such as Internet from mid-Earth orbit.

    The most significant points of contention, says Nienaß, have been in the negotiations over what role ESA and EUSPA will play in implementing the project. That’s because while ESA includes countries such as Switzerland, Norway and the United Kingdom, EUSPA is the EU’s space agency. “We pushed through the compromise that both would be involved,” Nienaß says.

    This is of crucial importance. Because if rockets for IRIS2 were only allowed to be launched into space from EU territory, only the Kourou spaceport in French Guiana, 5,000 kilometers away and operated by the French space agency CNES, would come into consideration. This is where the Ariane and Vega rockets are launched.

    Micro launcher could launch in the North Sea

    However, heavy launchers like Ariane are not needed to transport small satellites, which enable numerous new business models at the interface between navigation, communication, earth observation and digitization. Rather, what is needed are micro launchers that launch further north. ESA members Norway and Scotland are working on this.

    But a private consortium is active in Germany. It plans to launch micro launchers from aboard a special ship in the German Exclusive Economic Zone in the North Sea. Among others, the German space company OHB is involved in the German Offshore Spaceport Alliance.

    And with more satellites being launched into space in the coming years than ever before, another aspect was important to the Greens: “We brought in sustainability criteria that everyone who wants to participate has to meet.” These criteria are:

    • leaving no junk in space
    • reducing light pollution and CO2 emissions
    • returning space debris.

    The Commission now needs to concretize these criteria in a further legal act. Nienaß sees this as the first steps for a space traffic management system and for an international space law. In any case, for a European space law. This will then apply to all those who want to offer services from space in the EU.

    The political agreement reached in the trilogue still has to be formally adopted by the European Parliament and the Council.

    • France
    • Germany
    • Satellites
    • Technology

    News

    Energy Charter: Commission wants to postpone modernization

    The EU has no mandate to vote on the modernization of the Energy Charter Treaty on Nov. 22. A qualified majority could not be reached in the vote in the Permanent Representatives Committee on Friday. Germany, France, Spain and the Netherlands abstained. Accordingly, the EU cannot approve the modernization of the treaty at the Energy Charter Conference in Mongolia scheduled for Tuesday.

    The outcome was predictable. The vote in the Permanent Representatives Committee was supposed to take place on Wednesday, but was taken off the agenda at the last moment. It became clear that there could be a blocking minority. In recent months, more and more EU countries have decided to withdraw from the Charter. The German government decided to leave the Energy Charter only a week ago.

    The EU Commission now wants to postpone the vote on modernizing the Energy Charter. It now works to remove the vote from the agenda of the ECT conference on Nov. 22. “Member states could not vote individually if there was no EU position. There would be no quorum,” a diplomat told Europe.Table.

    More and more votes for EU exit

    Christina Eckes, an expert in EU public law, takes a more differentiated view. In the case of mixed treaties, in the absence of a Council decision, each EU member would have to vote individually. But under EU law, this would be a violation of competence rights. The core issue of the Energy Charter, foreign direct investment, falls under EU competence. “The Energy Charter reform is an example of why mixed membership in treaties is so difficult,” Eckes says.

    Meanwhile, calls for the EU to withdraw from the Energy Charter are growing louder. With the vote on Friday, “the climate killer treaty has now also finally failed at the EU level. We call on the EU Commission to immediately initiate the exit!”, writes the Munich Environmental Institute in a press release.

    This is exactly how MEP Anna Cavazzini (Greens) sees it: “This climate-damaging adhesion contract can no longer be saved. The EU must now also finally get out.” Since last week, a letter has already been circulating in which MEPs from the Greens, Renew, S&D and the Left call on the EU Commission to withdraw from the Charter. On the coming Thursday votes the EU Parliament on a resolution to modernize the Charter. CDU/CSU and EPP approve the ECT reform.

    Luxembourg also withdraws from the Charter

    On Friday afternoon, Luxembourg also announced its withdrawal from the Energy Charter. “Even if the modernization of the Energy Charter Treaty leads to some progress, the treaty is still not compatible with the goals of the Paris Climate Agreement, as it continues to protect investments in fossil and nuclear energies,” criticizes Green energy minister Claude Turmes.

    Nevertheless, Luxembourg voted in the Permanent Representatives Committee to approve the reform text. “Our legal analysis says that we can then exit with a sunset clause shortened to ten years,” the energy ministry said. cw

    • Energy
    • Energy Charter
    • Energy policy
    • European policy
    • Luxembourg

    Ecodesign: agreement on specifications for tablets and smartphones

    On Friday, the European Commission and EU member states agreed on new requirements for the eco-design of smartphones and tablets. These are intended to reduce the environmental impact of the device groups through more sustainable product design: Individual parts such as batteries and screens should be more robust and easier to replace, software updates should be available longer and free of charge, and spare parts should be available longer and more easily. For the first time, manufacturers must disclose information about the raw materials used.

    The regulation is part of the Circular Economy 2020 Action Plan. At the beginning of September, the Commission published a first draft each for new ecodesign requirements and for a repair and energy label for cell phones, smartphones and tablets (Europe.Table reported). These were available for public consultation until the end of September, and the Commission intends to adopt the regulations before the end of the year. The specifications would then come into force next year and apply to all devices sold in the EU after a transition period of 21 months.

    The “right to repair” campaign, an alliance of over 100 European organizations, sees major gaps in the draft. In an open letter to a panel of member state experts, the alliance calls for, among other things, a price cap of replacement parts and for them to also be included as a factor in the planned repair label. “Price is currently one of the biggest hurdles when it comes to ensuring that a product can not only be repaired but is actually repaired,” the letter states. leo

    • Climate & Environment
    • Environmental policy
    • Environmental protection
    • Sustainability

    AI Act still about details

    The discussion continues. It is true that the Permanent Representatives of the member states in the Council agreed to the Council Presidency’s proposal for a General Approach on the AI Act on Friday, including Germany. However, from Germany’s point of view, this is not final. There are still some detailed adjustments that Germany hopes can be taken into account in the further process, according to reports in Brussels.

    According to government sources in Berlin, Germany referred to its last statement of Nov. 8 when giving its approval on Friday. It said Germany thanked the Council presidency for the adjustments to the individual articles to takegreater account of the special features of public administration, particularly in the areas of security and migration,” as demanded by Germany. Nevertheless, Germany sees a need for further adjustments. “In particular, we are of the opinion that the requirements for secrecy and the guarantee of confidentiality and data security should be specified in Article 70.”

    And apparently the issue of biometric mass surveillance has not yet been fully discussed. “We are clearly sticking to the wording in the coalition agreement,” government sources say. The word “biometric” appears only twice in the coalition agreement. The relevant passages are open to interpretation.

    In one place, it says, “Biometric recognition in public spaces, as well as automated government scoring systems through AI, are to be excluded under European law.” This does not mean that these systems must be excluded “without exception,” according to government sources.

    Elsewhere it says, “We reject blanket video surveillance and the use of biometric capture for surveillance purposes.” Surveillance does not mean, however, that biometric recording may not be used for law enforcement purposes and to locate missing children. vis

    • Artificial intelligence
    • Digital policy
    • European policy
    • Germany

    EU sets anti-dumping duties on coated steel imports

    The European Commission imposed anti-dumping duties on imports of electrolytic chromium coated steel (ECCS) originating in China and Brazil. This type of coated steel is used in beverage cans and household appliances, among other things. The products are sold at unreasonably low prices within the EU, harming European manufacturers, the Brussels-based authority said. The Chinese tin-free steel was dumped at margins between 30.7 and 77.9 percent, EU officials estimated. To counter this, the Commission now approved tariffs of €239 to €607 per ton of imported tin-free steel.

    The EU market for tin-free steel is estimated at almost €500 million, according to the Commission. The EU Commission had begun reviewing imports of tin-free steel from China and Brazil in September 2021 after receiving a complaint from the European Steel Association. The EU already imposed safeguard tariffs against a number of foreign metal imports, including tin-free steel. ari

    • Steel
    • Trade
    • Trade Policy

    German LNG terminals cost more than twice as much

    Acquisition and maintenance of floating liquefied natural gas terminals will cost Germany at least €3.5 billion more than planned. A total of around €6.56 billion in budget funds is currently earmarked, the Federal Ministry for Economic Affairs said on Sunday. In the budget for 2022, €2.94 billion had still been budgeted. The increase was “necessary due to the dynamically developing situation”. The Bundestag’s budget committee has just approved additional money for the terminals. rtr

    • Energy
    • Energy Prices
    • Federal Government
    • Germany
    • Natural gas

    Opinion

    Media Freedom Act: Is Brussels abolishing press freedom?

    By Helmut Verdenhalven and Philippe Meistermann
    Helmut Verdenhalven (l.), Member of the Executive Board, and Philippe Meistermann, Head of Brussels Office, German Newspaper Publishers and Digitalpublishers Association (BDZV).

    The EU Commission wants to save media freedom in Europe – with a European supervisory authority. Spot the mistake.

    But let’s start at the beginning: For years, there has been a decline in press freedom in some EU member states. Especially, but not only, in Hungary and in Poland independent media are under pressure. The Rule of Law Report and the EU’s Media Pluralism Monitor conclude that the freedom and independence of the media in the EU is at risk.

    So there is a need for action. In response, the EU Commission has chosen a path that will achieve the opposite of what is necessary. Instead of countering those states that do not guarantee media freedom with the existing, quite sharp tools of EU law, a regulatory corset is to be put together for media everywhere in Europe. It is not only Germany that has criticized the proposed regulation, which the Commission presented in September. The draft is an “encroachment on the cultural and media sovereignty of the EU states that goes beyond the scope of their powers,” said State Secretary Heike Raab at the Media Days in Munich, and rightly so. A subsidiarity complaint is being discussed in the Bundesrat. German press publishers fear “political appropriation”.

    European media regulation: a paradigm shift

    In her State of the Union address, Commission President von der Leyen made an extensive announcement about the European Media Freedom Act (EMFA) in 2021 and promised that the proposal would be published a year later. In the media environment, the plan has raised big question marks. Media regulation at the European level is tantamount to breaking a taboo of sorts. Until now, the EU had not ventured beyond regulating broadcasting, which is already intensively regulated at the member state level. For good reason: the treaties simply do not provide for EU competence for the media and especially the press. On the contrary, the member states have always understood the highly sensitive field of media policy as their sole competence. The EMFA, therefore, represents a paradigm shift.

    The uproar in Germany is understandable for that reason alone. But the content of the Commission’s proposal also offers explosives in terms of media policy. In particular, the plans to create the “body,” a kind of European media supervisory authority, break with central principles of press freedom. For not only is this authority, which is to be created from the merger of the national media supervisory authorities of the member states, also to be responsible for the press. The EU Commission itself is also supposed to take over the management of this institution. This is an affront to the press, which in a modern democracy is responsible for its content before the law and judges alone, and for a good reason.

    A misguided ‘one-size-fits-all’ approach

    However, the body would not only mean that the press in Europe would be placed under official supervision for the first time but also that some countries viewed critically by the EU Commission would in future also be given powers for the entire European media landscape. For example, Hungarian and Polish media regulators would, in the future, also have a seat at the table when it comes to regulating German media. This highlights a major flaw in the overall project: Europe’s different media landscapes, which are characterized by linguistic, cultural and demographic differences, cannot be lumped together.

    The immense problems in various EU member states must be solved, that is beyond question. But European media regulation is certainly not the right way to go about it. Precisely when it comes to protecting the freedom and diversity of the media, politics cannot afford to be overreaching. Neither the Commission nor the governments of the member states have exhausted their political options for action so far.

    The Commission likes to portray the European Media Freedom Act as the last chance to turn things around, but that simply cannot be allowed to happen given the unambitious actions of the EU and its member states in the face of developments in their own ranks over the past decades. It is all about choosing your tools carefully. The EU must not undermine media freedom where it still exists.

    • Democracy
    • European policy
    • Society

    Apéro

    World Cup in Qatar, or The Political Swan Dive

    How hypocritical is European criticism of the World Cup in Qatar? Is FIFA president Gianni Infantino even right when he accuses the critics of hypocrisy?

    Sport and politics have long had a complicated relationship. That sporting events are apolitical has been an outright lie since ancient times. There are many examples in modern sports history – the bloc confrontation boycotts at the 1980 Moscow and 1984 Los Angeles Olympics and, of course, the 1936 Berlin Olympics. Also, the 2018 World Cup in Russia – four years after the attack on Crimea and eastern Ukraine – the 2022 Beijing Winter Games and the 2008 Summer Games. Sport and politics are closely linked, whether in booth visits or in attempts to brush off unpopular legislative proposals during major sporting competitions.

    When the Parliament puts the human rights situation in Qatar on the plenary agenda today, the impact for the workers on the ground will predictably be small. The expected media attention for the EP, however, will be significant. This, too, is little more than pandering to King Football – a political swan dive. The process would be a little more credible if half of Europe were not currently cheering with the sheikhs in the stands, in search of liquid gas. But human rights are of interest to larger circles in the EU, especially when they contribute to their own perception. EP President Roberta Metsola, Commission President Ursula von der Leyen and Council President Charles Michel are demonstratively not making any travel plans – while the Belgian king will hardly be able to resist a visit.

    Commission Vice President Margaritis Schinas put it succinctly: “The power of football is the power of the people of Europe.” It is fitting that he, of all people, is representing the EU Commission in Doha. On the weekend, Schinas preemptively certified that the host Qatar had made “considerable and noticeable progress” in the area of workers’ rights – completely free of criticism. In this case, this should be understood as an admission of European powerlessness.

    Europe.Table Editorial Office

    EUROPE.TABLE EDITORS

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