Today, in our fall preview, we focus on EU transport policy. A swift agreement is expected between the EU Parliament and the Council on the proposals to phase out internal combustion engines in 2035 and tighten CO2 fleet limits for passenger cars and light commercial vehicles. The situation is likely to be different with regard to the dossier on the development of a public charging infrastructure (AFIR). The Commission’s pending proposals, such as for pollutant regulation in transport (Euro 7) and CO2 fleet regulation for heavy-duty vehicles, are eagerly awaited. Markus Grabitz provides an overview of the timetables and possible lines of conflict.
“Golden Power Rules” – that’s what Italy’s FDI screening mechanism is called. Under Mario Draghi, the country has screened investments from China relatively strictly. Since he took office in February 2021, this has prevented three Chinese takeovers, among other things. The critical approach to China could intensify significantly after the parliamentary election, as Amelie Richter analyzes: Favorite Giorgia Meloni, head of the Fratelli d’Italia, has run on a clear anti-China approach and has shown that she is also likely to be confrontational regarding China’s Taiwan policy.
The top position at Agora Energiewende was vacant after longtime head Patrick Graichen moved to the Federal Ministry for Economic Affairs and Climate Action as State Secretary. Now Frauke Thies heads the think tank as part of a dual leadership team. Her focus is on Brussels, from where she is to strengthen Agora’s European work. The main topic currently on the experts’ minds is: How do we get through the energy crisis in a way that makes sense in terms of climate policy? Read more about Thies in today’s profile by Sarah Tekath.
The Commission’s Fit for 55 package car-related proposals are in the home stretch of the legislative process. The two key instruments aimed at reducing greenhouse gas emissions from transport by 90 percent by 2030 are at risk. The co-legislators – the EU Parliament and the Council – are expected to reach an agreement on the first dossier quickly, which involves phasing out internal combustion engines by 2035 and tightening CO2 fleet limits for passenger cars and light commercial vehicles.
The situation is different for the second dossier, which deals with the development of a public charging infrastructure (AFIR). The Parliament will vote on the report only in the second week of session in October (from 18.10.). Once the vote has been held, the schedule for the trilogue will be drawn up.
Schedule: At today’s meeting of Ertug with the shadow rapporteurs, a compromise text is to be carpentered, which will be voted on in committee on October 3. If things go quickly, the vote will take place in the Strasbourg plenum in the second week of October. The trilogue will start in November at the earliest and will certainly not be completed by the Czech Council presidency by Christmas. A result is not expected until spring 2023 at the earliest.
The Commission’s proposal requires member states to create a minimum number of charging points for e-fleets and hydrogen vehicles in the public space along the main roads. The number is based on the respective fleet size of the vehicles with the alternative drives. More charging capacity is to be provided for pure EVs (BEV) than for plug-in hybrids. The minimum distance between charging stations will also be defined.
The supply of liquid methane and the establishment of power supply for aircraft in parking and waiting positions as well as ships in inland and seaports are also to be regulated. Potential for conflict: The member states are more likely to put on the brakes, the Parliament wants to move forward more ambitiously and would also like to enforce penalties of €1,000 for each charging point that has not been created.
Actors: Frans Timmermans (Vice-President of the Commission, responsible for the Green Deal); rapporteur Ismail Ertug (SPD); shadow rapporteur Jens Gieseke (CDU); the responsible committee in the EP: Transport Committee (TRAN)
The AFIR proposal is dated July 14, 2021.
Schedule: Rapporteur Jan Huitema is expected to announce the first trilogue dates at Thursday’s ENVI meeting. It is expected that a maximum of three trilogue meetings will be needed to reach an agreement. It is becoming apparent what will be agreed upon: Parliament and member states want no more passenger cars with combustion engines to be newly registered in the EU from 2035. Additionally, manufacturers are to reduce CO2 emissions from new passenger cars by a further 55 percent between 2021 and 2030 and by 50 percent for vans. The Parliament’s chief negotiator also wants to introduce binding interim targets in 2027 but is unlikely to succeed in the trilogue.
One point of contention is synthetic fuels. Parliament and the Commission do not want manufacturers to be able to count the use of synthetic fuels toward the CO2 balance of fleets. The environment ministers of the 27 member states have asked the Commission to make a proposal for the market ramp-up of synthetic fuels. For the proposal to still be integrated into legislation, it would have to come quickly. But that is difficult to predict.
Actors: Frans Timmermans (Vice-President of the Commission, responsible for the Green Deal); rapporteur Jan Huitema (Liberals); shadow rapporteur Jens Gieseke (CDU); responsible committee in the EP: Environment Committee (ENVI). The Committees for Transport (TRAN) and Industry (ITRE) deliver opinions.
The Commission submitted its proposal for CO2 fleet regulation on July 14, 2021.
The Commission proposes to gradually reduce the use of fossil fuels in large ships of 5000 gross tons or more from 2025. In a resolution, the Parliament calls for a move away from heavy fuel oil in shipping and more investment for the decarbonization of shipping.
Actors: In Parliament, the Transport Committee (TRAN) is responsible; rapporteur Jörgen Warborn (EPP, Sweden), the Industry (ITRE) and Environment (ENVI) Committees are involved. The TRAN Committee is scheduled to vote in October, the plenary in November.
As part of the Fit for 55 package, the Commission proposes to take measures for the use of sustainable fuels in aviation. This is intended to create a level playing field for sustainable aviation. The measures are called the ReFuelEU Aviation Initiative.
Actors: In Parliament, the Transport Committee (TRAN) is the lead committee. The rapporteur is Søren Gade (Liberal, Denmark).
Also part of Fit-for 55 is the Commission’s effort to increase the involvement of European-based airlines in CORSIA, the International Civil Aviation Organization’s (ICAO) carbon footprint reduction scheme. To this end, the provisions in the aviation Emissions Trading System (ETS) are to be amended to require member states to inform EU-based airlines of their offset obligations under CORSIA.
Actors: In Parliament, the Environment Committee is responsible. The rapporteur is Sunčana Glavak (EPP, Croatia).
It is planned that the Commission will present its proposal for the next stage of pollutant regulation in transport (Euro 7) on October 12. This would affect passenger cars, vans, buses and commercial vehicles – both internal combustion engines and, for example, EVs with regard to tire wear. In the meantime, however, there are initial indications from the Commission that the deadline will be postponed again. The number of pollutants covered is to be expanded and the limits tightened. The industry is waiting for the Euro 7 proposal; it needs planning certainty.
On October 26, the Commission plans to present its proposal for the Air Quality Directive. It is envisaged that the air quality standards will be brought closer to the very strict recommendations of the World Health Organization (WHO). The question is whether the Commission will propose a 1:1 implementation of the limit values.
The proposal for CO2 fleet regulation for heavy commercial vehicles is due on November 30. As with passenger cars and delivery vans, this again raises the question of from which year no more trucks with combustion engines should be registered in the EU. There is also the question of which technologies the Commission will allow for decarbonization: Battery electric as well as trucks with fuel cells are set. It is questionable how the Commission will deal with the hydrogen engine and synthetic fuels in commercial vehicles. with Claire Stam
China’s share of direct investment in the European Union declined last year. In 2021, the People’s Republic accounted for just 2.3 percent of all foreign acquisitions, according to a new report by the EU Commission. In 2020, it was still 3.4 percent. In the greenfield sector, investment fell from 7.1 percent to 6 percent. Greenfield investment is a term used to describe the construction or expansion of new or existing plants with a focus on production. However, the value of FDI from China increased: While €6.5 billion were invested in 2020, the figure was around €9 billion in 2021.
According to the Brussels authority, strict Chinese capital controls and the concentration on certain core industries have reduced direct investment from the People’s Republic. The explanation of the development also includes: Some EU states have strengthened their audit mechanisms and are looking more closely at potential investments. Under Mario Draghi’s government, Italy was considered a good example in this regard.
Draghi has used the “Golden Power Rules” – as Italy’s FDI screening mechanism is called – more than any of the previous heads of government. Since he took office in February 2021, the investment checks have been applied to prevent three Chinese takeovers and the terms of a stake increase by an existing shareholder. Another acquisition was reversed altogether, even though it was completed before Draghi’s tenure.
“Italy’s Golden Power has been subject to numerous updates since its introduction in 2012,” says Francesca Ghiretti, an analyst at Berlin-based China research institute Merics. Italy has one of the most effective foreign investment review mechanisms in the European Union.
However, for the revision of EU-wide guidelines scheduled for 2023, the Italian approach may only be limited: Because FDI screening is based on national security and decided in capitals, Brussels can never go as far as individual member states themselves, Ghiretti explains. Thus, the revision of the EU’s investment screening can take the Italian approach as a model at most.
The Golden Power Rules are far from perfect, Ghiretti said. “The decisions about which investments to block and which to renegotiate are very political and depend on who is running the country at the time. It can then go either way.” Thus Italy, the screening model student, could soon undergo a transformation.
How Rome will deal with FDI screening and foreign investment in the future will be particularly interesting to see after the election at the end of September – because with the quite likely election victory of the right-wing populist alliance under Giorgia Meloni, a “schizophrenic” China policy, as Ghiretti calls it, could move into the Palazzo Chigi.
On September 25, Italy will elect a new parliament. It will then appoint the head of government – or, as is now the case, possibly Italy’s first female head of government. The favored candidate is the 45-year-old right-wing populist Giorgia Meloni.
Meloni, head of the Fratelli d’Italia, has so far taken a clear anti-China stance. However, her alliance partner Matteo Salvini of the right-wing populist Lega party and ex-premier Silvio Berlusconi have pursued a rather erratic China policy in the past, says Merics analyst Ghiretti. “One day he was speaking out against China, the next day, he was in favor of it,” Ghiretti says, referring to Lega leader Salvini, who has already served as Italy’s Interior Minister and Vice Prime Minister from June 2018 to September 2019.
That the right-wing populist alliance could also use its China policy as leverage against Brussels would not be a big surprise, Ghiretti says. The past’s inconsistent policies and contradictory statements of the three alliance partners toward Beijing make it difficult to predict the coming China policy under a possible Prime Minister Meloni.
Since 2014, Giorgia Meloni has headed Fratelli d’Italia, a party she co-founded two years earlier. Fratelli describes itself as a “national conservative, nationalist, traditionalist, post-fascist and sovereignist party.” In the EU Parliament, its members are represented in the parliamentary group of the European Conservatives and Reformers party, among others, together with the Polish ruling party Law and Justice (PiS).
Meloni’s policies are often compared to Hungarian Prime Minister Viktor Orbán: ultraconservative family views, anti-LGBTQ, and anti-migration. When it comes to China, however, the 45-year-old has a different mindset than Hungary’s head of government, says Italian journalist Giulia Pompili, who has closely followed China’s activities in her home country for years: “Something like what happened with Fudan University in Budapest would never happen with Meloni.”
A bitter dispute erupted in Hungary’s capital over the planned establishment of a Hungarian offshoot of China’s Fudan University (China.Table reported). While Orbán’s right-wing nationalist government is pushing ahead with the construction, angry citizens criticized that this would fund an institution controlled by the Chinese Communist Party with Hungarian taxpayers’ money. The Italian right-wing populist Meloni was instead going “Trumpian,” as in “Italy First”.
Because of that focus, the possible next prime minister has also been virtually absent from foreign policy stages so far, Pompili says. “She has been very focused on Italian affairs until now,” says Pompili. But for a few weeks, she says, China has moved into the 45-year-old’s circle of attention – and she’s going all in. At the end of July, Meloni posted a photo on Twitter with Andrea Sing-Ying Lee, Taiwan’s representative in Italy. What is particularly striking about this is that Meloni herself refers to him as an “ambassador” – a phrase that is not well received in Beijing. Meloni clearly wanted to send a signal, says journalist Pompili.
The impact direction of Italy’s next possible prime minister will also affect foreign investment: “My guess is that under a Meloni government, direct investment from China will fall dramatically,” says Pompili – regardless if not the entire leadership will originate from the right-wing populist Fratelli d’Italia.
It is not yet clear who will fill the post of the foreign minister if Meloni, Berlusconi, and Salvini win the election. However, Meloni has put former Italian Foreign Minister Giulio Terzi di Sant’Agata on her electoral list. This does not mean that the latter will fill the post again. However, the 76-year-old, who is known for a clear anti-China policy, moves inside the right-wing populist’s inner circle.
Meloni’s election campaign is currently benefiting greatly from the lack of a plan on the part of the centrists around Enrico Letta. “Letta hardly ever speaks out on foreign policy or China,” says journalist Pompili. Within the Democrats, she says, no real position is discernible. Letta has spoken out in favor of protecting foreign investments and critical infrastructure in Italy at the same time – however, a precise roadmap is not available with Letta, Pompili says.
Italy plans to save gas to prepare for the coming winter because of the risk of a disruption in Russian supplies. The measures were designed to reduce the risks of a possible total supply cut-off from Russia next winter and to respond to EU requirements to reduce consumption, the Ministry for Ecological Transition said in Rome on Tuesday.
According to the plan, the responsible minister, Roberto Cingolani, sees a savings potential of 5.3 billion cubic meters of gas. This would result from producing electricity from sources other than gas (2.1 billion cubic meters) and heating less (3.2 billion cubic meters).
The measures are only an initial forecast, the ministry stressed. Discussions with business associations and companies on further ways of saving energy are currently still underway. In terms of energy alternatives for electricity production, the ministry is thinking mainly of coal, according to the plan. Cingolani also wants to reduce the heating period by 15 days and have the heating plants run one hour less per day. Additionally, the ministry wants to further save energy by setting room temperatures around 17 degrees Celsius in industrial plants, for example, and around 19 degrees Celsius in other buildings. Hospitals, for example, are exempt from this.
In 2021, before Russia’s war in Ukraine, Italy covered its annual gas demand of 76 billion cubic meters with 29 billion cubic meters from Moscow. The Mediterranean country concluded new supply contracts with other states after the war began. By 2025, Italy wants to have replaced 25 billion cubic meters of Russian gas with that from other countries. As of September 1, Italy’s gas storage facilities were 83 percent full. The targeted goal is 90 percent, according to the ministry. dpa
In the debate over a possible third gas pipeline between France and Spain, the Commission has clarified that no EU funding is initially planned for it. The MidCat pipeline is not on the list of so-called projects of common interest, a Commission spokesman said on Tuesday. In the past, Spain and France had opposed adding the project to the list of projects to be given special support. In view of the tense situation on the energy markets, Spain and also Germany had campaigned for the pipeline, but France recently spoke out against it.
The list of projects of common interest (PCIs) identifies projects for European energy infrastructure that can be approved more quickly and supported with EU money. EU countries adopted the latest version of the list in May, voting not to support new projects using fossil fuels such as gas or oil in the future.
“Hydrogen infrastructure projects would be potentially eligible,” the commission spokesman said. As an example, he cited connections from liquefied natural gas (LNG) terminals on the Iberian Peninsula to the rest of Europe, through which environmentally friendly hydrogen could be delivered in the future. However, he stressed, “The project is not yet at a stage where we can assess whether it is eligible for this funding.”
On Monday, France’s President Emmanuel Macron rejected the project. Spain’s Minister for Ecological Transition, Teresa Ribera, insisted on the pipeline project. “The MidCat debate cannot be ended by the declaration of one country,” she told radio station Onca Cero on Tuesday.
Energy supplies between France and Germany are proceeding more straightforwardly, with France restarting a disused gas pipeline in the border region with Rhineland-Palatinate. The pipeline, which was actually built for deliveries to France, will bring gas to Germany in the winter, French government officials say. In total, up to two percent of Germany’s demand can be supplied via the pipeline.
On Monday, Germany and France agreed on energy supplies in the crisis. In view of the need to repair nuclear power plants, France will receive electricity from Germany, and gas will flow in the opposite direction. dpa/rtr
The full suspension of the EU-Russia visa facilitation agreement is expected to come into force at the beginning of next week. This was announced by EU Commissioner for Home Affairs Ylva Johansson in Brussels. This step, which was decided at the EU foreign ministers’ meeting in Prague last week, makes entry into the EU somewhat more difficult for Russians, but not impossible.
“Russia is responsible for unjustified, unprovoked military aggression,” Johansson said on Tuesday. “Russian citizens should not have easy access to the EU, and of course, it’s not a fundamental right to be a tourist in the EU.”
Specifically, the fee for a Schengen visa will be raised from €35 to €80, the standard processing time will be extended from 10 to 15 days, and the number of supporting documents required will be increased.
The EU Commission approved the states’ proposal last week. Now the 27 members must formally approve it. Johansson expressed confidence that this will happen this week. “As of Monday morning, we will then have a new common visa regime,” she said.
For weeks, especially the Baltic and Nordic states that share a border with Russia have been pushing for a “visa ban” on Russian tourists. Germany, France and EU High Representative for Foreign Affairs Josep Borrell rejected this on moral and tactical grounds. So this suspension was a compromise.
There are currently less than one million valid Schengen visas for Russians, Johansson said on Tuesday. The commission is still working on a common line on how to deal with this. This could be presented next week. She said it was also a matter of ensuring “that we are always open to and protect those who need to be protected”. In this context, she mentioned journalists, dissidents, human rights activists, students and people traveling for family reasons.
The figure of one million is significantly lower than the 12 million given, for example, by Lithuanian Foreign Minister Gabrielius Landsbergis. His country is discussing with Estonia, Finland, Latvia and Poland a regional solution with much stricter rules. Helsinki has already begun reducing the number of visas for Russians by 90 percent. Many Russian tourists have entered Finland by land due to the flight ban. joy
The EU and the US have significantly increased their imports of key industrial metals from Russia despite the Ukraine war, according to trade data. According to information compiled by Reuters from the international database United Nations Comtrade, the EU and the US imported up to 70 percent more aluminum and nickel from March to June compared to the same period last year.
The total value of imports of these two metals in the reporting period was $1.98 billion. Prices for these two metals climbed to record highs shortly after the start of the Ukraine war on February 24.
The West has imposed sanctions on various Russian products, people and entities because of Russia’s invasion of Ukraine, but has largely left out industrial metals. Russia is one of the countries with the richest reserves of raw materials. In addition to the energy sources oil and natural gas as well as coal, the country has important mineral resources such as iron ore, nickel, copper, aluminum and gold. rtr
The EU Commission has prohibited the planned acquisition of the US biotech company Grail by Illumina. The transaction could hinder competition for a blood-based screening test for cancer, said Margrethe Vestager, the vice president in charge. She ordered Illumina to unwind the already completed $7.1 billion acquisition. The US company announced it would appeal in court.
The commission argues that the Grail transaction gives Illumina an incentive to cut off rivals from access to its own technology, which they rely on. “It is vital to preserve competition between early cancer detection test developers at this critical stage of development,” according to Vestager.
To allay the antitrust concerns, Illumina had offered competitors free licenses for some patents, among other things. However, this did not convince the competition regulators in Brussels. In the USA, the Federal Trade Commission (FTC) also raised concerns. However, an administrative judge dismissed the complaint against the deal. The FTC then announced that it would appeal the decision. rtr/tho
Even though Frauke Thies only started her job a few weeks ago, a kind of typical daily routine has already emerged. During the day, the week is packed with appointments, meetings and events with decision-makers and researchers from the energy and climate sector. In the evenings, she tries to spend time with her family.
Since July 1, 2022, Frauke Thies heads Agora Energiewende in a dual leadership role with the previous managing director Markus Steigenberger. The position had become vacant after the think tank’s longtime head, Patrick Graichen, moved to the Federal Ministry for Economic Affairs and Climate Action as State Secretary.
As environmental scientist and economist, she brings a wealth of experience gained over more than ten years working for various organizations in the climate change and energy sectors. Most recently, she managed the climate protection portfolio of the Open Society Foundations in Europe. Previously, she was, among other things, managing director of the European business association for digital and decentralized energy solutions, smartEn, and policy director at Solarpower Europe.
At Agora Energiewende, Thies will now strengthen the think tank’s European work. To this end, she works primarily in the Brussels office. Frauke Thies knows her way around here: She has lived in the Brussels area for years – with her partner and three children.
Agora is in dialogue with people from politics, science, business and civil society to advance climate neutrality in Germany, Europe and worldwide. “Ultimately, we are concerned with shaping politically implementable solutions,” says Thies. The experts develop scientifically sound analyses and seek discussion with affected stakeholders to identify what the key steps toward climate neutrality are, what framework conditions are necessary to achieve them, and what measures can further accelerate the transformation.
Due to the current political situation, however, the experts in the think tank are currently focusing on measures to get through the energy crisis responsibly. These include concepts for gas savings in households and industry, for example, via heat pumps. “Climate protection and energy security go hand in hand. We are working to ensure that the solutions currently being discussed in Germany and Europe make sense in terms of climate policy,” says Thies.
The topic of climate change and the environment has occupied Frauke Thies since her school days. At that time, the nuclear phase-out was a big topic. When she was still in school, she went to demonstrations and organized events on the topic of nuclear energy. At the University of Lüneburg, where she studied environmental sciences, she organized a lecture series on the topic of transformation, with speakers from science and business.
However, delving into topics is not just something Thies does in her professional life but also in her private life. In her free time, she enjoys discussing things with friends and having long conversations. If there is still some time left in the evening after her youngest child has gone to bed, she likes to pick up a good book. It can even be something entertaining: “I’m a pretty non-discriminating reader,” she says and laughs. Sarah Tekath
Everyone is talking about supply chains, everyone is talking about China. And still, the EU Commission too often knows too little about key supply chains.
This is something that even Commissioner Stella Kyriakides has now had to own up to: In response to a question from an Italian ID deputy, she had to admit that Brussels is in the dark about more than medicine, chips and many other sometimes preliminary products. However, the focus was on relationships that are of great importance throughout Europe and could possibly even have a very significant influence on China’s well-being – entirely in the sense of strategic dependency equilibrium.
But is that the case? The EU Commission has no knowledge of this. There are no relevant EU rules on exporting from the EU. Does the Dual-Use Regulation help? No, it probably doesn’t apply here, either. Will the CSR Due Diligence Directive proposed in February solve the problem in the long term? Only if member states and parliament also take a close look at the opposite direction of global supply chains.
For the time being, however, it remains unclear whether this is a lever that can be used to rein in the People’s Republic if push comes to shove. Thierry Breton had previously emphasized the point of contention: “A Europe that does not want to retreat into its shell and produce everything itself, but a Europe that protects its entire supply against the dangers of geopolitical value chains.”
But what was the actual issue? Italian deputies wanted to know whether dogs and cats from the EU would be exported for Chinese dinner tables. The answer: No idea; there are no EU regulations that clearly oppose this. Bon appetit, Global Europe. Falk Steiner
Today, in our fall preview, we focus on EU transport policy. A swift agreement is expected between the EU Parliament and the Council on the proposals to phase out internal combustion engines in 2035 and tighten CO2 fleet limits for passenger cars and light commercial vehicles. The situation is likely to be different with regard to the dossier on the development of a public charging infrastructure (AFIR). The Commission’s pending proposals, such as for pollutant regulation in transport (Euro 7) and CO2 fleet regulation for heavy-duty vehicles, are eagerly awaited. Markus Grabitz provides an overview of the timetables and possible lines of conflict.
“Golden Power Rules” – that’s what Italy’s FDI screening mechanism is called. Under Mario Draghi, the country has screened investments from China relatively strictly. Since he took office in February 2021, this has prevented three Chinese takeovers, among other things. The critical approach to China could intensify significantly after the parliamentary election, as Amelie Richter analyzes: Favorite Giorgia Meloni, head of the Fratelli d’Italia, has run on a clear anti-China approach and has shown that she is also likely to be confrontational regarding China’s Taiwan policy.
The top position at Agora Energiewende was vacant after longtime head Patrick Graichen moved to the Federal Ministry for Economic Affairs and Climate Action as State Secretary. Now Frauke Thies heads the think tank as part of a dual leadership team. Her focus is on Brussels, from where she is to strengthen Agora’s European work. The main topic currently on the experts’ minds is: How do we get through the energy crisis in a way that makes sense in terms of climate policy? Read more about Thies in today’s profile by Sarah Tekath.
The Commission’s Fit for 55 package car-related proposals are in the home stretch of the legislative process. The two key instruments aimed at reducing greenhouse gas emissions from transport by 90 percent by 2030 are at risk. The co-legislators – the EU Parliament and the Council – are expected to reach an agreement on the first dossier quickly, which involves phasing out internal combustion engines by 2035 and tightening CO2 fleet limits for passenger cars and light commercial vehicles.
The situation is different for the second dossier, which deals with the development of a public charging infrastructure (AFIR). The Parliament will vote on the report only in the second week of session in October (from 18.10.). Once the vote has been held, the schedule for the trilogue will be drawn up.
Schedule: At today’s meeting of Ertug with the shadow rapporteurs, a compromise text is to be carpentered, which will be voted on in committee on October 3. If things go quickly, the vote will take place in the Strasbourg plenum in the second week of October. The trilogue will start in November at the earliest and will certainly not be completed by the Czech Council presidency by Christmas. A result is not expected until spring 2023 at the earliest.
The Commission’s proposal requires member states to create a minimum number of charging points for e-fleets and hydrogen vehicles in the public space along the main roads. The number is based on the respective fleet size of the vehicles with the alternative drives. More charging capacity is to be provided for pure EVs (BEV) than for plug-in hybrids. The minimum distance between charging stations will also be defined.
The supply of liquid methane and the establishment of power supply for aircraft in parking and waiting positions as well as ships in inland and seaports are also to be regulated. Potential for conflict: The member states are more likely to put on the brakes, the Parliament wants to move forward more ambitiously and would also like to enforce penalties of €1,000 for each charging point that has not been created.
Actors: Frans Timmermans (Vice-President of the Commission, responsible for the Green Deal); rapporteur Ismail Ertug (SPD); shadow rapporteur Jens Gieseke (CDU); the responsible committee in the EP: Transport Committee (TRAN)
The AFIR proposal is dated July 14, 2021.
Schedule: Rapporteur Jan Huitema is expected to announce the first trilogue dates at Thursday’s ENVI meeting. It is expected that a maximum of three trilogue meetings will be needed to reach an agreement. It is becoming apparent what will be agreed upon: Parliament and member states want no more passenger cars with combustion engines to be newly registered in the EU from 2035. Additionally, manufacturers are to reduce CO2 emissions from new passenger cars by a further 55 percent between 2021 and 2030 and by 50 percent for vans. The Parliament’s chief negotiator also wants to introduce binding interim targets in 2027 but is unlikely to succeed in the trilogue.
One point of contention is synthetic fuels. Parliament and the Commission do not want manufacturers to be able to count the use of synthetic fuels toward the CO2 balance of fleets. The environment ministers of the 27 member states have asked the Commission to make a proposal for the market ramp-up of synthetic fuels. For the proposal to still be integrated into legislation, it would have to come quickly. But that is difficult to predict.
Actors: Frans Timmermans (Vice-President of the Commission, responsible for the Green Deal); rapporteur Jan Huitema (Liberals); shadow rapporteur Jens Gieseke (CDU); responsible committee in the EP: Environment Committee (ENVI). The Committees for Transport (TRAN) and Industry (ITRE) deliver opinions.
The Commission submitted its proposal for CO2 fleet regulation on July 14, 2021.
The Commission proposes to gradually reduce the use of fossil fuels in large ships of 5000 gross tons or more from 2025. In a resolution, the Parliament calls for a move away from heavy fuel oil in shipping and more investment for the decarbonization of shipping.
Actors: In Parliament, the Transport Committee (TRAN) is responsible; rapporteur Jörgen Warborn (EPP, Sweden), the Industry (ITRE) and Environment (ENVI) Committees are involved. The TRAN Committee is scheduled to vote in October, the plenary in November.
As part of the Fit for 55 package, the Commission proposes to take measures for the use of sustainable fuels in aviation. This is intended to create a level playing field for sustainable aviation. The measures are called the ReFuelEU Aviation Initiative.
Actors: In Parliament, the Transport Committee (TRAN) is the lead committee. The rapporteur is Søren Gade (Liberal, Denmark).
Also part of Fit-for 55 is the Commission’s effort to increase the involvement of European-based airlines in CORSIA, the International Civil Aviation Organization’s (ICAO) carbon footprint reduction scheme. To this end, the provisions in the aviation Emissions Trading System (ETS) are to be amended to require member states to inform EU-based airlines of their offset obligations under CORSIA.
Actors: In Parliament, the Environment Committee is responsible. The rapporteur is Sunčana Glavak (EPP, Croatia).
It is planned that the Commission will present its proposal for the next stage of pollutant regulation in transport (Euro 7) on October 12. This would affect passenger cars, vans, buses and commercial vehicles – both internal combustion engines and, for example, EVs with regard to tire wear. In the meantime, however, there are initial indications from the Commission that the deadline will be postponed again. The number of pollutants covered is to be expanded and the limits tightened. The industry is waiting for the Euro 7 proposal; it needs planning certainty.
On October 26, the Commission plans to present its proposal for the Air Quality Directive. It is envisaged that the air quality standards will be brought closer to the very strict recommendations of the World Health Organization (WHO). The question is whether the Commission will propose a 1:1 implementation of the limit values.
The proposal for CO2 fleet regulation for heavy commercial vehicles is due on November 30. As with passenger cars and delivery vans, this again raises the question of from which year no more trucks with combustion engines should be registered in the EU. There is also the question of which technologies the Commission will allow for decarbonization: Battery electric as well as trucks with fuel cells are set. It is questionable how the Commission will deal with the hydrogen engine and synthetic fuels in commercial vehicles. with Claire Stam
China’s share of direct investment in the European Union declined last year. In 2021, the People’s Republic accounted for just 2.3 percent of all foreign acquisitions, according to a new report by the EU Commission. In 2020, it was still 3.4 percent. In the greenfield sector, investment fell from 7.1 percent to 6 percent. Greenfield investment is a term used to describe the construction or expansion of new or existing plants with a focus on production. However, the value of FDI from China increased: While €6.5 billion were invested in 2020, the figure was around €9 billion in 2021.
According to the Brussels authority, strict Chinese capital controls and the concentration on certain core industries have reduced direct investment from the People’s Republic. The explanation of the development also includes: Some EU states have strengthened their audit mechanisms and are looking more closely at potential investments. Under Mario Draghi’s government, Italy was considered a good example in this regard.
Draghi has used the “Golden Power Rules” – as Italy’s FDI screening mechanism is called – more than any of the previous heads of government. Since he took office in February 2021, the investment checks have been applied to prevent three Chinese takeovers and the terms of a stake increase by an existing shareholder. Another acquisition was reversed altogether, even though it was completed before Draghi’s tenure.
“Italy’s Golden Power has been subject to numerous updates since its introduction in 2012,” says Francesca Ghiretti, an analyst at Berlin-based China research institute Merics. Italy has one of the most effective foreign investment review mechanisms in the European Union.
However, for the revision of EU-wide guidelines scheduled for 2023, the Italian approach may only be limited: Because FDI screening is based on national security and decided in capitals, Brussels can never go as far as individual member states themselves, Ghiretti explains. Thus, the revision of the EU’s investment screening can take the Italian approach as a model at most.
The Golden Power Rules are far from perfect, Ghiretti said. “The decisions about which investments to block and which to renegotiate are very political and depend on who is running the country at the time. It can then go either way.” Thus Italy, the screening model student, could soon undergo a transformation.
How Rome will deal with FDI screening and foreign investment in the future will be particularly interesting to see after the election at the end of September – because with the quite likely election victory of the right-wing populist alliance under Giorgia Meloni, a “schizophrenic” China policy, as Ghiretti calls it, could move into the Palazzo Chigi.
On September 25, Italy will elect a new parliament. It will then appoint the head of government – or, as is now the case, possibly Italy’s first female head of government. The favored candidate is the 45-year-old right-wing populist Giorgia Meloni.
Meloni, head of the Fratelli d’Italia, has so far taken a clear anti-China stance. However, her alliance partner Matteo Salvini of the right-wing populist Lega party and ex-premier Silvio Berlusconi have pursued a rather erratic China policy in the past, says Merics analyst Ghiretti. “One day he was speaking out against China, the next day, he was in favor of it,” Ghiretti says, referring to Lega leader Salvini, who has already served as Italy’s Interior Minister and Vice Prime Minister from June 2018 to September 2019.
That the right-wing populist alliance could also use its China policy as leverage against Brussels would not be a big surprise, Ghiretti says. The past’s inconsistent policies and contradictory statements of the three alliance partners toward Beijing make it difficult to predict the coming China policy under a possible Prime Minister Meloni.
Since 2014, Giorgia Meloni has headed Fratelli d’Italia, a party she co-founded two years earlier. Fratelli describes itself as a “national conservative, nationalist, traditionalist, post-fascist and sovereignist party.” In the EU Parliament, its members are represented in the parliamentary group of the European Conservatives and Reformers party, among others, together with the Polish ruling party Law and Justice (PiS).
Meloni’s policies are often compared to Hungarian Prime Minister Viktor Orbán: ultraconservative family views, anti-LGBTQ, and anti-migration. When it comes to China, however, the 45-year-old has a different mindset than Hungary’s head of government, says Italian journalist Giulia Pompili, who has closely followed China’s activities in her home country for years: “Something like what happened with Fudan University in Budapest would never happen with Meloni.”
A bitter dispute erupted in Hungary’s capital over the planned establishment of a Hungarian offshoot of China’s Fudan University (China.Table reported). While Orbán’s right-wing nationalist government is pushing ahead with the construction, angry citizens criticized that this would fund an institution controlled by the Chinese Communist Party with Hungarian taxpayers’ money. The Italian right-wing populist Meloni was instead going “Trumpian,” as in “Italy First”.
Because of that focus, the possible next prime minister has also been virtually absent from foreign policy stages so far, Pompili says. “She has been very focused on Italian affairs until now,” says Pompili. But for a few weeks, she says, China has moved into the 45-year-old’s circle of attention – and she’s going all in. At the end of July, Meloni posted a photo on Twitter with Andrea Sing-Ying Lee, Taiwan’s representative in Italy. What is particularly striking about this is that Meloni herself refers to him as an “ambassador” – a phrase that is not well received in Beijing. Meloni clearly wanted to send a signal, says journalist Pompili.
The impact direction of Italy’s next possible prime minister will also affect foreign investment: “My guess is that under a Meloni government, direct investment from China will fall dramatically,” says Pompili – regardless if not the entire leadership will originate from the right-wing populist Fratelli d’Italia.
It is not yet clear who will fill the post of the foreign minister if Meloni, Berlusconi, and Salvini win the election. However, Meloni has put former Italian Foreign Minister Giulio Terzi di Sant’Agata on her electoral list. This does not mean that the latter will fill the post again. However, the 76-year-old, who is known for a clear anti-China policy, moves inside the right-wing populist’s inner circle.
Meloni’s election campaign is currently benefiting greatly from the lack of a plan on the part of the centrists around Enrico Letta. “Letta hardly ever speaks out on foreign policy or China,” says journalist Pompili. Within the Democrats, she says, no real position is discernible. Letta has spoken out in favor of protecting foreign investments and critical infrastructure in Italy at the same time – however, a precise roadmap is not available with Letta, Pompili says.
Italy plans to save gas to prepare for the coming winter because of the risk of a disruption in Russian supplies. The measures were designed to reduce the risks of a possible total supply cut-off from Russia next winter and to respond to EU requirements to reduce consumption, the Ministry for Ecological Transition said in Rome on Tuesday.
According to the plan, the responsible minister, Roberto Cingolani, sees a savings potential of 5.3 billion cubic meters of gas. This would result from producing electricity from sources other than gas (2.1 billion cubic meters) and heating less (3.2 billion cubic meters).
The measures are only an initial forecast, the ministry stressed. Discussions with business associations and companies on further ways of saving energy are currently still underway. In terms of energy alternatives for electricity production, the ministry is thinking mainly of coal, according to the plan. Cingolani also wants to reduce the heating period by 15 days and have the heating plants run one hour less per day. Additionally, the ministry wants to further save energy by setting room temperatures around 17 degrees Celsius in industrial plants, for example, and around 19 degrees Celsius in other buildings. Hospitals, for example, are exempt from this.
In 2021, before Russia’s war in Ukraine, Italy covered its annual gas demand of 76 billion cubic meters with 29 billion cubic meters from Moscow. The Mediterranean country concluded new supply contracts with other states after the war began. By 2025, Italy wants to have replaced 25 billion cubic meters of Russian gas with that from other countries. As of September 1, Italy’s gas storage facilities were 83 percent full. The targeted goal is 90 percent, according to the ministry. dpa
In the debate over a possible third gas pipeline between France and Spain, the Commission has clarified that no EU funding is initially planned for it. The MidCat pipeline is not on the list of so-called projects of common interest, a Commission spokesman said on Tuesday. In the past, Spain and France had opposed adding the project to the list of projects to be given special support. In view of the tense situation on the energy markets, Spain and also Germany had campaigned for the pipeline, but France recently spoke out against it.
The list of projects of common interest (PCIs) identifies projects for European energy infrastructure that can be approved more quickly and supported with EU money. EU countries adopted the latest version of the list in May, voting not to support new projects using fossil fuels such as gas or oil in the future.
“Hydrogen infrastructure projects would be potentially eligible,” the commission spokesman said. As an example, he cited connections from liquefied natural gas (LNG) terminals on the Iberian Peninsula to the rest of Europe, through which environmentally friendly hydrogen could be delivered in the future. However, he stressed, “The project is not yet at a stage where we can assess whether it is eligible for this funding.”
On Monday, France’s President Emmanuel Macron rejected the project. Spain’s Minister for Ecological Transition, Teresa Ribera, insisted on the pipeline project. “The MidCat debate cannot be ended by the declaration of one country,” she told radio station Onca Cero on Tuesday.
Energy supplies between France and Germany are proceeding more straightforwardly, with France restarting a disused gas pipeline in the border region with Rhineland-Palatinate. The pipeline, which was actually built for deliveries to France, will bring gas to Germany in the winter, French government officials say. In total, up to two percent of Germany’s demand can be supplied via the pipeline.
On Monday, Germany and France agreed on energy supplies in the crisis. In view of the need to repair nuclear power plants, France will receive electricity from Germany, and gas will flow in the opposite direction. dpa/rtr
The full suspension of the EU-Russia visa facilitation agreement is expected to come into force at the beginning of next week. This was announced by EU Commissioner for Home Affairs Ylva Johansson in Brussels. This step, which was decided at the EU foreign ministers’ meeting in Prague last week, makes entry into the EU somewhat more difficult for Russians, but not impossible.
“Russia is responsible for unjustified, unprovoked military aggression,” Johansson said on Tuesday. “Russian citizens should not have easy access to the EU, and of course, it’s not a fundamental right to be a tourist in the EU.”
Specifically, the fee for a Schengen visa will be raised from €35 to €80, the standard processing time will be extended from 10 to 15 days, and the number of supporting documents required will be increased.
The EU Commission approved the states’ proposal last week. Now the 27 members must formally approve it. Johansson expressed confidence that this will happen this week. “As of Monday morning, we will then have a new common visa regime,” she said.
For weeks, especially the Baltic and Nordic states that share a border with Russia have been pushing for a “visa ban” on Russian tourists. Germany, France and EU High Representative for Foreign Affairs Josep Borrell rejected this on moral and tactical grounds. So this suspension was a compromise.
There are currently less than one million valid Schengen visas for Russians, Johansson said on Tuesday. The commission is still working on a common line on how to deal with this. This could be presented next week. She said it was also a matter of ensuring “that we are always open to and protect those who need to be protected”. In this context, she mentioned journalists, dissidents, human rights activists, students and people traveling for family reasons.
The figure of one million is significantly lower than the 12 million given, for example, by Lithuanian Foreign Minister Gabrielius Landsbergis. His country is discussing with Estonia, Finland, Latvia and Poland a regional solution with much stricter rules. Helsinki has already begun reducing the number of visas for Russians by 90 percent. Many Russian tourists have entered Finland by land due to the flight ban. joy
The EU and the US have significantly increased their imports of key industrial metals from Russia despite the Ukraine war, according to trade data. According to information compiled by Reuters from the international database United Nations Comtrade, the EU and the US imported up to 70 percent more aluminum and nickel from March to June compared to the same period last year.
The total value of imports of these two metals in the reporting period was $1.98 billion. Prices for these two metals climbed to record highs shortly after the start of the Ukraine war on February 24.
The West has imposed sanctions on various Russian products, people and entities because of Russia’s invasion of Ukraine, but has largely left out industrial metals. Russia is one of the countries with the richest reserves of raw materials. In addition to the energy sources oil and natural gas as well as coal, the country has important mineral resources such as iron ore, nickel, copper, aluminum and gold. rtr
The EU Commission has prohibited the planned acquisition of the US biotech company Grail by Illumina. The transaction could hinder competition for a blood-based screening test for cancer, said Margrethe Vestager, the vice president in charge. She ordered Illumina to unwind the already completed $7.1 billion acquisition. The US company announced it would appeal in court.
The commission argues that the Grail transaction gives Illumina an incentive to cut off rivals from access to its own technology, which they rely on. “It is vital to preserve competition between early cancer detection test developers at this critical stage of development,” according to Vestager.
To allay the antitrust concerns, Illumina had offered competitors free licenses for some patents, among other things. However, this did not convince the competition regulators in Brussels. In the USA, the Federal Trade Commission (FTC) also raised concerns. However, an administrative judge dismissed the complaint against the deal. The FTC then announced that it would appeal the decision. rtr/tho
Even though Frauke Thies only started her job a few weeks ago, a kind of typical daily routine has already emerged. During the day, the week is packed with appointments, meetings and events with decision-makers and researchers from the energy and climate sector. In the evenings, she tries to spend time with her family.
Since July 1, 2022, Frauke Thies heads Agora Energiewende in a dual leadership role with the previous managing director Markus Steigenberger. The position had become vacant after the think tank’s longtime head, Patrick Graichen, moved to the Federal Ministry for Economic Affairs and Climate Action as State Secretary.
As environmental scientist and economist, she brings a wealth of experience gained over more than ten years working for various organizations in the climate change and energy sectors. Most recently, she managed the climate protection portfolio of the Open Society Foundations in Europe. Previously, she was, among other things, managing director of the European business association for digital and decentralized energy solutions, smartEn, and policy director at Solarpower Europe.
At Agora Energiewende, Thies will now strengthen the think tank’s European work. To this end, she works primarily in the Brussels office. Frauke Thies knows her way around here: She has lived in the Brussels area for years – with her partner and three children.
Agora is in dialogue with people from politics, science, business and civil society to advance climate neutrality in Germany, Europe and worldwide. “Ultimately, we are concerned with shaping politically implementable solutions,” says Thies. The experts develop scientifically sound analyses and seek discussion with affected stakeholders to identify what the key steps toward climate neutrality are, what framework conditions are necessary to achieve them, and what measures can further accelerate the transformation.
Due to the current political situation, however, the experts in the think tank are currently focusing on measures to get through the energy crisis responsibly. These include concepts for gas savings in households and industry, for example, via heat pumps. “Climate protection and energy security go hand in hand. We are working to ensure that the solutions currently being discussed in Germany and Europe make sense in terms of climate policy,” says Thies.
The topic of climate change and the environment has occupied Frauke Thies since her school days. At that time, the nuclear phase-out was a big topic. When she was still in school, she went to demonstrations and organized events on the topic of nuclear energy. At the University of Lüneburg, where she studied environmental sciences, she organized a lecture series on the topic of transformation, with speakers from science and business.
However, delving into topics is not just something Thies does in her professional life but also in her private life. In her free time, she enjoys discussing things with friends and having long conversations. If there is still some time left in the evening after her youngest child has gone to bed, she likes to pick up a good book. It can even be something entertaining: “I’m a pretty non-discriminating reader,” she says and laughs. Sarah Tekath
Everyone is talking about supply chains, everyone is talking about China. And still, the EU Commission too often knows too little about key supply chains.
This is something that even Commissioner Stella Kyriakides has now had to own up to: In response to a question from an Italian ID deputy, she had to admit that Brussels is in the dark about more than medicine, chips and many other sometimes preliminary products. However, the focus was on relationships that are of great importance throughout Europe and could possibly even have a very significant influence on China’s well-being – entirely in the sense of strategic dependency equilibrium.
But is that the case? The EU Commission has no knowledge of this. There are no relevant EU rules on exporting from the EU. Does the Dual-Use Regulation help? No, it probably doesn’t apply here, either. Will the CSR Due Diligence Directive proposed in February solve the problem in the long term? Only if member states and parliament also take a close look at the opposite direction of global supply chains.
For the time being, however, it remains unclear whether this is a lever that can be used to rein in the People’s Republic if push comes to shove. Thierry Breton had previously emphasized the point of contention: “A Europe that does not want to retreat into its shell and produce everything itself, but a Europe that protects its entire supply against the dangers of geopolitical value chains.”
But what was the actual issue? Italian deputies wanted to know whether dogs and cats from the EU would be exported for Chinese dinner tables. The answer: No idea; there are no EU regulations that clearly oppose this. Bon appetit, Global Europe. Falk Steiner