EU summit + Carbon farming + Meta vs. ‘Fair Share’

Dear reader,

The discussions about phasing out the internal combustion engine are almost soap opera-like at the moment. Who has promised what to whom? Or did they? Yesterday, the EU heads of state and government were also occupied with this issue. Yet it was not on the agenda of the EU summit in Brussels. It was actually about Ukraine. Further arms deliveries were promised to the country. But the heads of state and government left important details open. And there are many more unanswered questions, analyze Till Hoppe and Eric Bonse.

Do we need certificate trading to make regenerative agriculture profitable? That’s the point of contention: While some believe it is necessary, critics fear that trading could jeopardize climate targets. A new study now supports the critical voices. It states: Carbon farming does not need certificates to make money. The method is worthwhile for farmers in its own right. Timo Landenberger spoke with one of the authors.

Our next topic is also, you guessed it, a real bone of contention. It’s about “Fair Share,” Thierry Breton’s idea that the big technology companies should share the costs of expanding Europe’s mobile communications and broadband networks. The issue has now attracted criticism from prominent quarters. Read more about this in our news section.

Your
Alina Leimbach

EU summit: discussion over combustion engine phase-out

German Chancellor Olaf Scholz has insisted in Brussels that the EU Commission should present a proposal in the dispute over the phase-out of internal combustion engines. There is “an idea, signed by everyone,” that the Commission should propose how e-fuels powered vehicles could be registered even after 2035, he said. “That’s already consensus.”

Unlike Transport Minister Volker Wissing (FDP), however, Scholz did not insist that the Commission present this proposal before the final vote on fleet limits. The Brussels authority insists it never promised to do so at any point in the negotiations. The FDP, however, ties its approval of the trilogue result to binding commitments by the Commission. Wissing and Commission Vice President Frans Timmermans are currently negotiating how this can be done without calling the outcome of the negotiations on fleet limits into question.

Commission President Ursula von der Leyen said in the evening there was “the will on both sides to resolve this issue and to resolve it within the framework of the provisional agreement between the Council and Parliament.” Negotiations would now be intensified. She said she was “confident that we will soon find a good solution.”

Criticism and support for Scholz

In the circle of heads of state and government, there was criticism but also support for the German position. Latvian Prime Minister Krišjanis Kariņš was the most outspoken. He spoke of the German approach as a “very, very difficult sign for the future,” warning that “the entire architecture of decision-making would fall apart if we all did that.” Belgian Prime Minister Alexander De Croo cautioned, “We have chosen a clear path to phase out carbon emissions from cars. This is not the moment to waiver.”

Scholz, on the other hand, received backing from Italy’s Prime Minister Giorgia Meloni: “There are some technologies where Italy and Europe are ahead,” Meloni said of the automotive industry. “Tying ourselves to technologies where foreign countries have the upper edge does not favor the competitiveness of our system.” The heads of government of the Czech Republic and Slovakia, Petr Fiala and Eduard Heger, called for the discussion to be expanded to include the planned Euro 7 pollutant emission standard.

Macron refrains from nuclear power debate

The dispute dominated the public appearances of the summit participants but was not even on the official agenda. In the hall, the topic was reportedly only briefly raised in the discussion about the EU’s competitiveness. The entire debate proceeded without any major disputes. According to EU diplomats, France’s President Emmanuel Macron, who is under pressure at home, refrained from initiating a strategic debate on the importance of nuclear energy as previously announced. He merely urged that the principle of technological openness also applies to nuclear power.

The heads of state and government adopted the conclusions prepared by their staff on this issue without amendment, as they did those on energy policy. The latter discussion was actually scheduled for Friday but was brought forward due to the unusually low level of need for discussion. It was said the Commission’s approach of initially tackling only a cautious reform of the electricity market was accepted by all participants.

The strategy discussion on trade policy was also relatively uncontroversial. Accordingly, Macron reiterated that the planned trade agreements with Mercosur countries, for example, must be compatible with climate and environmental protection. Scholz had already stated before the start of the summit that the EU must “make clear that we are a fair partner.” He said it would also be in Europe’s interest if raw materials were also processed in Chile, for example. “That creates prosperity for many of these countries, but at the same time also ensures a more resilient global economic system that is less dependent on individual countries.”

Timmermans, Vestager and Dombrovskis responsible for cutting red tape

Otherwise, the heads of state and government essentially backed the EU Commission’s latest proposals for improving competitiveness. They spoke out in favor of ambitious action to complete the single market, particularly for data and services, where the need to catch up is greatest. They also called on the specialized ministers and the European Parliament to complete the planned projects to deepen the Capital Markets Union before the 2024 European elections.

In the conclusions, the summit participants also called for “competitiveness checks” for new legislative projects, as announced by von der Leyen. The reduction of reporting requirements for companies by a quarter, as promised by the Commission President, is also mentioned. Von der Leyen has tasked her three deputies Timmermans, Margrethe Vestager, and Valdis Dombrovskis with identifying dispensable bureaucratic requirements in EU law by the fall.

Ukraine receives further support

By

Eric Bonse

As expected, the heads of state and government have agreed to supply Ukraine with one million artillery shells. They thus followed a submission by the foreign and defense ministers on Monday. The ammunition is to be delivered within twelve months. The summit declaration talks about ground and artillery ammunition and, if needed, also missiles.

However, the heads of state and government still owe important details. It is unclear, for example, when the first deliveries are to be made. President Volodymyr Zelensky urged haste. Any delay will have serious consequences for the people on the ground, he said in a ten-minute video broadcast, according to summit participants. He said the situation on the ground is devastating.

New funding from EU budget

The EU decision is to be implemented in a “joint effort,” according to the summit declaration. However, there are also ambiguities regarding the modalities. While Germany is backing national procurement contracts that can be opened up to other member states, the majority prefers joint procurement via the European Defense Agency. The summit is keeping both options open.

Hungary does not want to participate in the procurement of ammunition but does not want to block it either. In contrast, Slovakia and Poland also want to supply fighter jets of the Soviet MiG-29 type. There is no common line on fighter jets.

It is a sovereign decision of the member states which weapons they send, said EU Commission Head Ursula von der Leyen. At the same time, she announced a legislative proposal for the further armament of Ukraine. She said it aims to finance weapons and ammunition from the EU budget in the future. So far, this is not possible. Two billion euros from the Peace Facility, which was set up outside the Community budget, will be used for artillery ammunition.

No lowering of the oil price cap

Chancellor Scholz promised Ukraine lasting support. However, Germany does not want to supply fighter jets. Estonia was also hesitant. At the moment, the Ukrainians mainly need ammunition, said Prime Minister Kaja Kallas.

Kallas called on the EU and the G7 countries to further lower the price cap for Russian oil to deprive Moscow of money for the war. However, she was unable to get her way with this. In the summit declaration, the EU merely expressed its willingness to increase pressure on Russia, including possible new sanctions. Work on the price cap would continue, it said.

UN Secretary-General urges cooperation with China

No mention is made of the sanctions against Belarus. UN Secretary-General António Guterres had called on the EU to ease sanctions against Belarusian fertilizer producers to secure the global grain supply. However, there was resistance to this, especially from the Baltic states. The “fertilizer oligarchs” should not be rewarded, it was said in Lithuania.

At a working dinner with the heads of state and government, Guterres also urged a cooperative attitude toward China. Guterres made it clear that Beijing wanted to work constructively with the EU, an EU official said after the discussion. He also pointed out that, in his view, it would be risky to isolate China internationally.

Sanchez meets Xi

However, the USA and some EU states are working towards this. In contrast, Luxembourg and Spain spoke out in favor of talks with Beijing. US President Joe Biden should negotiate a peace plan on Ukraine with Chinese leader Xi Jinping, said Luxembourg’s Prime Minister Xavier Bettel.

Spanish Head of government Pedro Sánchez wants to discuss China’s plan for ending the Ukraine war with Xi during a visit to China next week. Beijing could play a “very important role” in mediating between Kyiv and Moscow, it was said in Madrid. With his visit, Sánchez also wants to prepare for the EU Council presidency that begins in July.

Carbon farming: regenerative agriculture pays off according to study

By

Timo Landenberger

The Intergovernmental Panel on Climate Change (IPCC) has once again made clear that if climate change is to be halted, there is no way around net negative emissions in the long term. This means more carbon must be filtered out of the atmosphere and stored than emitted. The most crucial sink on land is the soil. But it is in poor condition and emitting more in Europe than it stores.

A favorite solution in Brussels: Carbon Farming. More sustainable and regenerative farming methods are supposed to make the soil more resilient, build up more hummus, and store greenhouse gases. But the conversion is complex and expensive, so everything revolves around the question of financing.

The European Commission has a controlled certificate trading in mind. At the end of last year, the authority presented a legal framework, which is now the subject of heated debate. Trading and the associated offsetting of emissions from other sectors could do a disservice to the fight against climate change and jeopardize the targets, critics say.

Study: up to 60 percent more profit

A study by the German Nature and Biodiversity Conservation Union (Nabu) and the Boston Consulting Group now shows that regenerative agriculture is worthwhile even without certificate trading. The authors predict that a conversion could lead to an increase in profits of up to 60 percent for an average arable farm after six to ten years. Although certificate trading is taken into account at 30 euros per metric ton of carbon, it only makes up a small part, says co-author and Nabu agricultural expert Simon Krämer.

Agriculture and the food industry are among the main causes of the climate and biodiversity crisis and are also among the hardest hit. Healthy soil, ecological diversity, water management, and climate resilience are thus increasingly becoming crucial production factors, the study says.

And it is precisely these that would be decisively strengthened by the application of regenerative cultivation methods. These include mainly dispensing with the usual tillage, cultivating sub- and interseeding to ensure sufficient soil cover and habitats, and regularly alternating fruit cultivation.

This would mean fewer heavy tractors would be needed and input costs for energy, pesticides, and fertilizers could be reduced. But why has regenerative agriculture received so little attention so far?

Influence of the agricultural industry

That would be mainly due to the economic interests of the agricultural industry, which would exert its influence in agriculture, Krämer says. “Just not plowing the soil means 60 percent fewer tractor sales. Add to that the savings in pesticides and fertilizers.” He also says regenerative agriculture is still barely a topic in education and agricultural science.

In addition, the conversion is very complex and costs a lot of time and money, says Aaron Scheid, an agricultural expert at the Ecologic Institute. “For example, if a farmer grows five different crops in the future instead of one, he needs new customers. That doesn’t happen overnight.” For this reason alone, many farmers are reluctant to make the switch, despite the advantages it offers.

Accordingly, finding a way to reward ecosystem services more strongly is important. However, Scheid says this should by no means focus solely on carbon storage. The decisive factor is that carbon farming practices actually have a benefit for biodiversity.

Reversing the approach: carbon storage as a co-benefit

The approach must thus be reversed: The improvement of biodiversity, soil health, and water bodies would have to be the central criteria for remuneration, which would result in higher carbon storage as a co-benefit. This is precisely what the EU Commission’s regulations must ensure, demands Célia Nyssens of the European Environmental Bureau.

Christian Holzleitner from the Directorate General Climate defends the Commission proposal. After all, this is the first step of many. The purpose is to give the already existing certificate trade a legal framework with clear criteria. “This is not a holistic approach, we are not solving every problem with this. But we also need to learn significantly more about how monitoring, reporting, and verification work to be prepared for the climate neutrality target.”

Sustainable marine fuels: Trilogue compromise with much grinding of teeth

On Thursday night, negotiators from the EU Parliament, Council, and Commission agreed on a compromise for new fuel standards for ships (FuelEU Maritime) to decarbonize the maritime sector. Ships with a gross tonnage over 5,000 will have to reduce their greenhouse gas emissions by two percent from 2025 compared to 2020, six percent from 2030, 14.5 percent from 2035, 31 percent from 2040, 62 percent from 2045, and 80 percent from 2050. Journeys for which the port of departure or destination is outside the EU will only be half affected by the new rules.

Tiemo Wölken (SPD), a member of the Environment Committee in the EU Parliament, described the planned reduction of only 80 percent for 2050 as disappointing. “Unfortunately, more could not be achieved with the conservatives in Parliament and the restrictive Council.” Wölken said that future revisions would need to work on the matter again.

On the other hand, he said, it is encouraging that there will be a binding target for the use of renewable fuels in the future. The agreement stipulates that at least two percent renewable fuel must be used from 2034. “This is the central innovation that will drive the decarbonization of shipping and was hard fought for.” The Parliament had called for the two percent quota from 2030, while the Council and Commission wanted none at all.

Criticism: quota for renewable fuels ‘too low’

Jutta Paulus (Greens), shadow rapporteur for the EU Parliament, sees the compromise as a missed opportunity to make Europe a leader in the research and development of sustainable fuels and marine propulsion systems. She said the low quota does not incentivize additional investments in sustainable synthetic fuels. “Nevertheless, a step forward from the status quo was achieved tonight: the world’s first law for alternative fuels in international maritime shipping,” Paulus said.

The E-Fuel Alliance, an advocacy group for synthetic fuels, also believes the quota is too low. That’s because it only applies if the share of renewable marine fuels is below one percent in 2030. It also includes low-carbon fuels and biofuels. It said this “dilution” of the sub-quota is a weak point of the law that thwarts its effectiveness.

Carola Kantz, an expert on synthetic fuels at the German Engineering Federation (VDMA), also believes the quota is “quite low.” However, she said, it signals to the market that hydrogen and e-fuels are needed promptly. “That’s why it’s now necessary to build up production capacities quickly,” Kantz demands. The climate protection targets for shipping can only be achieved with alternative fuels.

Regulations also for port facility

The new rules for more sustainable shipping were part of the Fit for 55 package. They require cargo and passenger ships to source all their energy needs from shore-side electricity while docked in major EU ports starting in 2035 so that no marine fossil fuel is burned. In 2035, the obligations will also apply to port facilities in smaller EU ports.

In 2028, the law is to be reviewed with regard to whether smaller ships should also be obliged to meet the GHG reduction targets.

The Trilogue result must first be adopted by the EU ambassadors of the member states. This will be followed by formal adoption in the Parliament and the Council of Ministers. luk

Meta managers rail against ‘Fair Share’

Internet company Meta is strongly opposed to large technology groups sharing the cost of the expansion of Europe’s mobile and broadband networks. “Network fee proposals are built on a false premise,” two senior managers of the Facebook parent wrote in a blog post. Additional network fees would not solve the financial problems of telecom groups, they said. Meta has done its part to lower data traffic costs with its stakes in transatlantic cables, cooperates with telecom providers, and leases fiber routes in Europe, they said.

European telecommunications industry association ETNO pointed to the expected increase in data volumes and associated costs. “The average Metaverse user is expected to consume up to 40 times more data than today.” Facebook parent Meta is pumping billions into the development of 3D virtual worlds. ETNO put the investment requirement at 174 billion euros. “The big tech companies should do their part, as their business is highly dependent on traffic on European networks.”

The idea of making the supplier pay for user traffic is also controversial within the EU Commission. After the initial statements by Digital Commissioner Thierry Breton and Vice Commission President Margrethe Vestager were met with loud protests last year, the project was separated from the Gigabit Infrastructure Act and stakeholders were asked for a consultation. On the basis of the consultation, further deliberations will then be held on whether technology companies will be obliged to take over part of the infrastructure expenditure of around 50 billion euros per year. rtr/fst

Baerbock campaigns in northern Macedonia for continued EU rapprochement

Foreign Minister Annalena Baerbock (Greens) has called on the government and opposition in northern Macedonia to implement a constitutional amendment in favor of the Bulgarian minority and thus move forward with the EU accession process. The constitutional amendment “must not become a political bone of contention in the competition for popularity ratings in polls or in the contest over which party might ultimately come out on top in the elections,” Baerbock said Thursday after a meeting with her northern Macedonian counterpart Bujar Osmani in the capital Skopje. North Macedonia is scheduled to hold new elections in 2024.

Osmani assured that the government intends to implement the changes. He said there was no alternative to further rapprochement with the EU. The constitutional amendment, which neighboring country and EU member Bulgaria has demanded, is a prerequisite for opening the first chapters of negotiations with the EU. The Republic of Northern Macedonia, with a population of about 1.8 million, is to recognize the approximately 3,000-strong Bulgarian minority in its constitution. Northern Macedonia has been a candidate country since 2005.

Baerbock promises help with EU accession

The government led by the Social Democratic Union (SDSM) in Skopje is under massive domestic political pressure. The constitutional amendment is controversial and unpopular in the country. The necessary two-thirds majority requires votes from the opposition. The largest opposition party, VMRO-DPMNE, rejects the amendment and is demanding early elections.

In view of Russian and Chinese attempts to exert influence in the Western Balkans, Baerbock promised support for the EU accession process: “Especially in these times, when other actors are trying to instrumentalize and divide heated discussions in countries, I would like to say at this point: you have my word, we will not leave you out in the cold.” She said to ensure that the process moves forward quickly all stops must be pulled out. dpa

Bernd Weber – climate neutral through market dynamics

Bernd Weber is the founder and Managing Director of the think tank Epico – Energy and Climate Policy and Innovation Council. (Photo: private)

Do we really need another think tank dealing with climate and energy policy? Bernd Weber asks this question himself at the beginning of our conversation – and naturally answers in the affirmative. “Epico fills a gap I observed during my professional career in the pre-political space: a think tank that wants to achieve a climate-neutral future, relying undogmatically on the dynamics of the market and innovations.”

The founder of Epico knows the political business. After studying at Ludwig Maximilian University in Munich and earning his doctorate on alternatives to Russian gas at Sciences Po Universities in Paris and Oxford, the now 38-year-old joined the Council of Economics. Weber rose quickly through the ranks. As Head of the Industry, Energy, and Environment Division, he first recognized the possibilities of thinking about climate policy coupled with the market economy. “I still think this holistic approach is important today,” Weber says.

Not excluding prosperity and growth

At Epico, he tries to take this approach further. “I am convinced that we will only achieve our target of climate neutrality if we maintain our prosperity and create sustainable economic growth.” And that is only possible if the interplay of market forces is harnessed and smart frameworks are put in place, Weber believes. Weber observes that, in doing so, he and his team keep running into barriers: “In many debates, we’re stuck in ideological trenches.”

The pragmatism that Epico founder Bernd Weber says is needed requires compromise. “Should we only use green hydrogen, or will blue hydrogen also work?” – society dwells on this question for too long, Weber thinks. “Of course, we need as much hydrogen as possible at first, but we also need to make sure that after a transition period, we can completely cover the high demand with just green hydrogen.” In politics, he says, far too often, only the first step is thought about while planning the second is forgotten.

Bringing digitization and climate protection together

One topic still drives Weber today: “We have two megatrends: digitization and climate protection. But the two are rarely thought of together.” Weber’s idea of an ecological future does not work without linked systems: “My energy system of the future is highly digitized and very flexible.” With algorithms and aggregators, he says, it is possible to synchronize many units on the production and consumer side, to include storage – and to provide consumers with more transparency. “How good would it be to know the amount of carbon in a product and then base my decision as a company or household on that.”

Demands for waivers don’t solve the problem, according to Bernd Weber. “I don’t think we will achieve climate neutrality with a degrowth approach,” he says. “We need continued economic growth if only to ensure acceptance with the population.” He adds climate protection cannot be carried out on the backs of individuals. Sure, everyone should always choose climate-friendly products when making everyday decisions – “but without a sustainable industry, appropriate policies, and necessary transparency, we’re not giving people the framework to make sustainable choices in the first place.” Svenja Schlicht

EUROPE.TABLE EDITORS

Till
Hoppe

Charlotte
Wirth

Falk
Steiner

Timo
Landenberger

Corinna
Visser

Lukas
Knigge

Eric
Bonse

Sarah
Schaefer

Manuel
Berkel

Lisa-Martina
Klein

Markus
Grabitz

Stephan
Israel

Claire
Stam

Dear reader,

The discussions about phasing out the internal combustion engine are almost soap opera-like at the moment. Who has promised what to whom? Or did they? Yesterday, the EU heads of state and government were also occupied with this issue. Yet it was not on the agenda of the EU summit in Brussels. It was actually about Ukraine. Further arms deliveries were promised to the country. But the heads of state and government left important details open. And there are many more unanswered questions, analyze Till Hoppe and Eric Bonse.

Do we need certificate trading to make regenerative agriculture profitable? That’s the point of contention: While some believe it is necessary, critics fear that trading could jeopardize climate targets. A new study now supports the critical voices. It states: Carbon farming does not need certificates to make money. The method is worthwhile for farmers in its own right. Timo Landenberger spoke with one of the authors.

Our next topic is also, you guessed it, a real bone of contention. It’s about “Fair Share,” Thierry Breton’s idea that the big technology companies should share the costs of expanding Europe’s mobile communications and broadband networks. The issue has now attracted criticism from prominent quarters. Read more about this in our news section.

Your
Alina Leimbach

EU summit: discussion over combustion engine phase-out

German Chancellor Olaf Scholz has insisted in Brussels that the EU Commission should present a proposal in the dispute over the phase-out of internal combustion engines. There is “an idea, signed by everyone,” that the Commission should propose how e-fuels powered vehicles could be registered even after 2035, he said. “That’s already consensus.”

Unlike Transport Minister Volker Wissing (FDP), however, Scholz did not insist that the Commission present this proposal before the final vote on fleet limits. The Brussels authority insists it never promised to do so at any point in the negotiations. The FDP, however, ties its approval of the trilogue result to binding commitments by the Commission. Wissing and Commission Vice President Frans Timmermans are currently negotiating how this can be done without calling the outcome of the negotiations on fleet limits into question.

Commission President Ursula von der Leyen said in the evening there was “the will on both sides to resolve this issue and to resolve it within the framework of the provisional agreement between the Council and Parliament.” Negotiations would now be intensified. She said she was “confident that we will soon find a good solution.”

Criticism and support for Scholz

In the circle of heads of state and government, there was criticism but also support for the German position. Latvian Prime Minister Krišjanis Kariņš was the most outspoken. He spoke of the German approach as a “very, very difficult sign for the future,” warning that “the entire architecture of decision-making would fall apart if we all did that.” Belgian Prime Minister Alexander De Croo cautioned, “We have chosen a clear path to phase out carbon emissions from cars. This is not the moment to waiver.”

Scholz, on the other hand, received backing from Italy’s Prime Minister Giorgia Meloni: “There are some technologies where Italy and Europe are ahead,” Meloni said of the automotive industry. “Tying ourselves to technologies where foreign countries have the upper edge does not favor the competitiveness of our system.” The heads of government of the Czech Republic and Slovakia, Petr Fiala and Eduard Heger, called for the discussion to be expanded to include the planned Euro 7 pollutant emission standard.

Macron refrains from nuclear power debate

The dispute dominated the public appearances of the summit participants but was not even on the official agenda. In the hall, the topic was reportedly only briefly raised in the discussion about the EU’s competitiveness. The entire debate proceeded without any major disputes. According to EU diplomats, France’s President Emmanuel Macron, who is under pressure at home, refrained from initiating a strategic debate on the importance of nuclear energy as previously announced. He merely urged that the principle of technological openness also applies to nuclear power.

The heads of state and government adopted the conclusions prepared by their staff on this issue without amendment, as they did those on energy policy. The latter discussion was actually scheduled for Friday but was brought forward due to the unusually low level of need for discussion. It was said the Commission’s approach of initially tackling only a cautious reform of the electricity market was accepted by all participants.

The strategy discussion on trade policy was also relatively uncontroversial. Accordingly, Macron reiterated that the planned trade agreements with Mercosur countries, for example, must be compatible with climate and environmental protection. Scholz had already stated before the start of the summit that the EU must “make clear that we are a fair partner.” He said it would also be in Europe’s interest if raw materials were also processed in Chile, for example. “That creates prosperity for many of these countries, but at the same time also ensures a more resilient global economic system that is less dependent on individual countries.”

Timmermans, Vestager and Dombrovskis responsible for cutting red tape

Otherwise, the heads of state and government essentially backed the EU Commission’s latest proposals for improving competitiveness. They spoke out in favor of ambitious action to complete the single market, particularly for data and services, where the need to catch up is greatest. They also called on the specialized ministers and the European Parliament to complete the planned projects to deepen the Capital Markets Union before the 2024 European elections.

In the conclusions, the summit participants also called for “competitiveness checks” for new legislative projects, as announced by von der Leyen. The reduction of reporting requirements for companies by a quarter, as promised by the Commission President, is also mentioned. Von der Leyen has tasked her three deputies Timmermans, Margrethe Vestager, and Valdis Dombrovskis with identifying dispensable bureaucratic requirements in EU law by the fall.

Ukraine receives further support

By

Eric Bonse

As expected, the heads of state and government have agreed to supply Ukraine with one million artillery shells. They thus followed a submission by the foreign and defense ministers on Monday. The ammunition is to be delivered within twelve months. The summit declaration talks about ground and artillery ammunition and, if needed, also missiles.

However, the heads of state and government still owe important details. It is unclear, for example, when the first deliveries are to be made. President Volodymyr Zelensky urged haste. Any delay will have serious consequences for the people on the ground, he said in a ten-minute video broadcast, according to summit participants. He said the situation on the ground is devastating.

New funding from EU budget

The EU decision is to be implemented in a “joint effort,” according to the summit declaration. However, there are also ambiguities regarding the modalities. While Germany is backing national procurement contracts that can be opened up to other member states, the majority prefers joint procurement via the European Defense Agency. The summit is keeping both options open.

Hungary does not want to participate in the procurement of ammunition but does not want to block it either. In contrast, Slovakia and Poland also want to supply fighter jets of the Soviet MiG-29 type. There is no common line on fighter jets.

It is a sovereign decision of the member states which weapons they send, said EU Commission Head Ursula von der Leyen. At the same time, she announced a legislative proposal for the further armament of Ukraine. She said it aims to finance weapons and ammunition from the EU budget in the future. So far, this is not possible. Two billion euros from the Peace Facility, which was set up outside the Community budget, will be used for artillery ammunition.

No lowering of the oil price cap

Chancellor Scholz promised Ukraine lasting support. However, Germany does not want to supply fighter jets. Estonia was also hesitant. At the moment, the Ukrainians mainly need ammunition, said Prime Minister Kaja Kallas.

Kallas called on the EU and the G7 countries to further lower the price cap for Russian oil to deprive Moscow of money for the war. However, she was unable to get her way with this. In the summit declaration, the EU merely expressed its willingness to increase pressure on Russia, including possible new sanctions. Work on the price cap would continue, it said.

UN Secretary-General urges cooperation with China

No mention is made of the sanctions against Belarus. UN Secretary-General António Guterres had called on the EU to ease sanctions against Belarusian fertilizer producers to secure the global grain supply. However, there was resistance to this, especially from the Baltic states. The “fertilizer oligarchs” should not be rewarded, it was said in Lithuania.

At a working dinner with the heads of state and government, Guterres also urged a cooperative attitude toward China. Guterres made it clear that Beijing wanted to work constructively with the EU, an EU official said after the discussion. He also pointed out that, in his view, it would be risky to isolate China internationally.

Sanchez meets Xi

However, the USA and some EU states are working towards this. In contrast, Luxembourg and Spain spoke out in favor of talks with Beijing. US President Joe Biden should negotiate a peace plan on Ukraine with Chinese leader Xi Jinping, said Luxembourg’s Prime Minister Xavier Bettel.

Spanish Head of government Pedro Sánchez wants to discuss China’s plan for ending the Ukraine war with Xi during a visit to China next week. Beijing could play a “very important role” in mediating between Kyiv and Moscow, it was said in Madrid. With his visit, Sánchez also wants to prepare for the EU Council presidency that begins in July.

Carbon farming: regenerative agriculture pays off according to study

By

Timo Landenberger

The Intergovernmental Panel on Climate Change (IPCC) has once again made clear that if climate change is to be halted, there is no way around net negative emissions in the long term. This means more carbon must be filtered out of the atmosphere and stored than emitted. The most crucial sink on land is the soil. But it is in poor condition and emitting more in Europe than it stores.

A favorite solution in Brussels: Carbon Farming. More sustainable and regenerative farming methods are supposed to make the soil more resilient, build up more hummus, and store greenhouse gases. But the conversion is complex and expensive, so everything revolves around the question of financing.

The European Commission has a controlled certificate trading in mind. At the end of last year, the authority presented a legal framework, which is now the subject of heated debate. Trading and the associated offsetting of emissions from other sectors could do a disservice to the fight against climate change and jeopardize the targets, critics say.

Study: up to 60 percent more profit

A study by the German Nature and Biodiversity Conservation Union (Nabu) and the Boston Consulting Group now shows that regenerative agriculture is worthwhile even without certificate trading. The authors predict that a conversion could lead to an increase in profits of up to 60 percent for an average arable farm after six to ten years. Although certificate trading is taken into account at 30 euros per metric ton of carbon, it only makes up a small part, says co-author and Nabu agricultural expert Simon Krämer.

Agriculture and the food industry are among the main causes of the climate and biodiversity crisis and are also among the hardest hit. Healthy soil, ecological diversity, water management, and climate resilience are thus increasingly becoming crucial production factors, the study says.

And it is precisely these that would be decisively strengthened by the application of regenerative cultivation methods. These include mainly dispensing with the usual tillage, cultivating sub- and interseeding to ensure sufficient soil cover and habitats, and regularly alternating fruit cultivation.

This would mean fewer heavy tractors would be needed and input costs for energy, pesticides, and fertilizers could be reduced. But why has regenerative agriculture received so little attention so far?

Influence of the agricultural industry

That would be mainly due to the economic interests of the agricultural industry, which would exert its influence in agriculture, Krämer says. “Just not plowing the soil means 60 percent fewer tractor sales. Add to that the savings in pesticides and fertilizers.” He also says regenerative agriculture is still barely a topic in education and agricultural science.

In addition, the conversion is very complex and costs a lot of time and money, says Aaron Scheid, an agricultural expert at the Ecologic Institute. “For example, if a farmer grows five different crops in the future instead of one, he needs new customers. That doesn’t happen overnight.” For this reason alone, many farmers are reluctant to make the switch, despite the advantages it offers.

Accordingly, finding a way to reward ecosystem services more strongly is important. However, Scheid says this should by no means focus solely on carbon storage. The decisive factor is that carbon farming practices actually have a benefit for biodiversity.

Reversing the approach: carbon storage as a co-benefit

The approach must thus be reversed: The improvement of biodiversity, soil health, and water bodies would have to be the central criteria for remuneration, which would result in higher carbon storage as a co-benefit. This is precisely what the EU Commission’s regulations must ensure, demands Célia Nyssens of the European Environmental Bureau.

Christian Holzleitner from the Directorate General Climate defends the Commission proposal. After all, this is the first step of many. The purpose is to give the already existing certificate trade a legal framework with clear criteria. “This is not a holistic approach, we are not solving every problem with this. But we also need to learn significantly more about how monitoring, reporting, and verification work to be prepared for the climate neutrality target.”

Sustainable marine fuels: Trilogue compromise with much grinding of teeth

On Thursday night, negotiators from the EU Parliament, Council, and Commission agreed on a compromise for new fuel standards for ships (FuelEU Maritime) to decarbonize the maritime sector. Ships with a gross tonnage over 5,000 will have to reduce their greenhouse gas emissions by two percent from 2025 compared to 2020, six percent from 2030, 14.5 percent from 2035, 31 percent from 2040, 62 percent from 2045, and 80 percent from 2050. Journeys for which the port of departure or destination is outside the EU will only be half affected by the new rules.

Tiemo Wölken (SPD), a member of the Environment Committee in the EU Parliament, described the planned reduction of only 80 percent for 2050 as disappointing. “Unfortunately, more could not be achieved with the conservatives in Parliament and the restrictive Council.” Wölken said that future revisions would need to work on the matter again.

On the other hand, he said, it is encouraging that there will be a binding target for the use of renewable fuels in the future. The agreement stipulates that at least two percent renewable fuel must be used from 2034. “This is the central innovation that will drive the decarbonization of shipping and was hard fought for.” The Parliament had called for the two percent quota from 2030, while the Council and Commission wanted none at all.

Criticism: quota for renewable fuels ‘too low’

Jutta Paulus (Greens), shadow rapporteur for the EU Parliament, sees the compromise as a missed opportunity to make Europe a leader in the research and development of sustainable fuels and marine propulsion systems. She said the low quota does not incentivize additional investments in sustainable synthetic fuels. “Nevertheless, a step forward from the status quo was achieved tonight: the world’s first law for alternative fuels in international maritime shipping,” Paulus said.

The E-Fuel Alliance, an advocacy group for synthetic fuels, also believes the quota is too low. That’s because it only applies if the share of renewable marine fuels is below one percent in 2030. It also includes low-carbon fuels and biofuels. It said this “dilution” of the sub-quota is a weak point of the law that thwarts its effectiveness.

Carola Kantz, an expert on synthetic fuels at the German Engineering Federation (VDMA), also believes the quota is “quite low.” However, she said, it signals to the market that hydrogen and e-fuels are needed promptly. “That’s why it’s now necessary to build up production capacities quickly,” Kantz demands. The climate protection targets for shipping can only be achieved with alternative fuels.

Regulations also for port facility

The new rules for more sustainable shipping were part of the Fit for 55 package. They require cargo and passenger ships to source all their energy needs from shore-side electricity while docked in major EU ports starting in 2035 so that no marine fossil fuel is burned. In 2035, the obligations will also apply to port facilities in smaller EU ports.

In 2028, the law is to be reviewed with regard to whether smaller ships should also be obliged to meet the GHG reduction targets.

The Trilogue result must first be adopted by the EU ambassadors of the member states. This will be followed by formal adoption in the Parliament and the Council of Ministers. luk

Meta managers rail against ‘Fair Share’

Internet company Meta is strongly opposed to large technology groups sharing the cost of the expansion of Europe’s mobile and broadband networks. “Network fee proposals are built on a false premise,” two senior managers of the Facebook parent wrote in a blog post. Additional network fees would not solve the financial problems of telecom groups, they said. Meta has done its part to lower data traffic costs with its stakes in transatlantic cables, cooperates with telecom providers, and leases fiber routes in Europe, they said.

European telecommunications industry association ETNO pointed to the expected increase in data volumes and associated costs. “The average Metaverse user is expected to consume up to 40 times more data than today.” Facebook parent Meta is pumping billions into the development of 3D virtual worlds. ETNO put the investment requirement at 174 billion euros. “The big tech companies should do their part, as their business is highly dependent on traffic on European networks.”

The idea of making the supplier pay for user traffic is also controversial within the EU Commission. After the initial statements by Digital Commissioner Thierry Breton and Vice Commission President Margrethe Vestager were met with loud protests last year, the project was separated from the Gigabit Infrastructure Act and stakeholders were asked for a consultation. On the basis of the consultation, further deliberations will then be held on whether technology companies will be obliged to take over part of the infrastructure expenditure of around 50 billion euros per year. rtr/fst

Baerbock campaigns in northern Macedonia for continued EU rapprochement

Foreign Minister Annalena Baerbock (Greens) has called on the government and opposition in northern Macedonia to implement a constitutional amendment in favor of the Bulgarian minority and thus move forward with the EU accession process. The constitutional amendment “must not become a political bone of contention in the competition for popularity ratings in polls or in the contest over which party might ultimately come out on top in the elections,” Baerbock said Thursday after a meeting with her northern Macedonian counterpart Bujar Osmani in the capital Skopje. North Macedonia is scheduled to hold new elections in 2024.

Osmani assured that the government intends to implement the changes. He said there was no alternative to further rapprochement with the EU. The constitutional amendment, which neighboring country and EU member Bulgaria has demanded, is a prerequisite for opening the first chapters of negotiations with the EU. The Republic of Northern Macedonia, with a population of about 1.8 million, is to recognize the approximately 3,000-strong Bulgarian minority in its constitution. Northern Macedonia has been a candidate country since 2005.

Baerbock promises help with EU accession

The government led by the Social Democratic Union (SDSM) in Skopje is under massive domestic political pressure. The constitutional amendment is controversial and unpopular in the country. The necessary two-thirds majority requires votes from the opposition. The largest opposition party, VMRO-DPMNE, rejects the amendment and is demanding early elections.

In view of Russian and Chinese attempts to exert influence in the Western Balkans, Baerbock promised support for the EU accession process: “Especially in these times, when other actors are trying to instrumentalize and divide heated discussions in countries, I would like to say at this point: you have my word, we will not leave you out in the cold.” She said to ensure that the process moves forward quickly all stops must be pulled out. dpa

Bernd Weber – climate neutral through market dynamics

Do we really need another think tank dealing with climate and energy policy? Bernd Weber asks this question himself at the beginning of our conversation – and naturally answers in the affirmative. “Epico fills a gap I observed during my professional career in the pre-political space: a think tank that wants to achieve a climate-neutral future, relying undogmatically on the dynamics of the market and innovations.”

The founder of Epico knows the political business. After studying at Ludwig Maximilian University in Munich and earning his doctorate on alternatives to Russian gas at Sciences Po Universities in Paris and Oxford, the now 38-year-old joined the Council of Economics. Weber rose quickly through the ranks. As Head of the Industry, Energy, and Environment Division, he first recognized the possibilities of thinking about climate policy coupled with the market economy. “I still think this holistic approach is important today,” Weber says.

Not excluding prosperity and growth

At Epico, he tries to take this approach further. “I am convinced that we will only achieve our target of climate neutrality if we maintain our prosperity and create sustainable economic growth.” And that is only possible if the interplay of market forces is harnessed and smart frameworks are put in place, Weber believes. Weber observes that, in doing so, he and his team keep running into barriers: “In many debates, we’re stuck in ideological trenches.”

The pragmatism that Epico founder Bernd Weber says is needed requires compromise. “Should we only use green hydrogen, or will blue hydrogen also work?” – society dwells on this question for too long, Weber thinks. “Of course, we need as much hydrogen as possible at first, but we also need to make sure that after a transition period, we can completely cover the high demand with just green hydrogen.” In politics, he says, far too often, only the first step is thought about while planning the second is forgotten.

Bringing digitization and climate protection together

One topic still drives Weber today: “We have two megatrends: digitization and climate protection. But the two are rarely thought of together.” Weber’s idea of an ecological future does not work without linked systems: “My energy system of the future is highly digitized and very flexible.” With algorithms and aggregators, he says, it is possible to synchronize many units on the production and consumer side, to include storage – and to provide consumers with more transparency. “How good would it be to know the amount of carbon in a product and then base my decision as a company or household on that.”

Demands for waivers don’t solve the problem, according to Bernd Weber. “I don’t think we will achieve climate neutrality with a degrowth approach,” he says. “We need continued economic growth if only to ensure acceptance with the population.” He adds climate protection cannot be carried out on the backs of individuals. Sure, everyone should always choose climate-friendly products when making everyday decisions – “but without a sustainable industry, appropriate policies, and necessary transparency, we’re not giving people the framework to make sustainable choices in the first place.” Svenja Schlicht