Table.Briefing: Europe

Germany loses influence in the EU + AI Act + Subsidies

Dear reader,

The most important job in the EU is held by a German: Commission President Ursula von der Leyen. Germany has also been well positioned in other key positions at the EU level. But now many are saying goodbye to their top posts – such as Klaus Welle, Secretary-General of the European Parliament until the end of 2022, Helga Schmid, Secretary-General of the External Action Service for four years, and currently, Werner Hoyer, who plans to step down as EIB President by the end of the year. Germany will be less well represented on the EU stage in the future – and there is little the traffic light coalition can do about it, as Christof Roche and Markus Grabitz analyze.

For over a year now, the European Parliament has been dealing with legislation on artificial intelligence (AI Act). But MEPs have still not agreed on a definition. The popularity of the AI ChatGPT now increases the pressure, as Corinna Visser reports. Read her in-depth interview with Dragoş Tudorache (Renew), co-rapporteur for the AI Act in the LIBE Committee, here.

Commission President Ursula von der Leyen will be hosted by US President Joe Biden at the White House today. The two are expected to agree on commodity cooperation that will give European battery manufacturers access to some of the benefits of the Inflation Reduction Act.

At the same time, the EU is looking for its own answers to the multi-billion US investment program. The Temporary Crisis and Transition Framework (TCTF), which has now been adopted, relaxes aid rules for the production of key technologies in the EU. “Specifically, we can provide targeted support for the production of batteries, solar panels, wind turbines, heat pumps or electrolyzers, and much more comprehensively than before,” said Economy Minister Robert Habeck. Read more in the News.

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Sarah Schaefer
Image of Sarah  Schaefer

Feature

Germany loses influence in the EU

For a long time, Germany was well represented on the European stage as the member state with the largest population and economy in Europe. Germany was particularly strong in the financial sector, in the foreign service and in parliamentary administration. With Ursula von der Leyen, the Commission President comes from Germany and thus fills by far the most important job in the EU.

The heads of the European Investment Bank (EIB), the European Stability Mechanism (ESM) and the Single Resolution Board (SRB) have or had a German passport. In addition, the secretaries general in the European External Action Service (EEAS) and in the European Parliament.

But in the meantime, German influence has shrunk. Klaus Welle, secretary general of the European Parliament from 2009 until the end of 2022, has made way for the Italian Alessandro Chiocchetti. Helga Schmid, Secretary General of the External Action Service for four years, has left for the OSCE in the same capacity. Elke König has left the resolution authority for distressed banks (SRB) and has been replaced by Frenchman Dominique Laboureix. Klaus Regling, longtime head of the euro rescue umbrella, has also departed. Today, the stability mechanism is headed by the Luxembourger Pierre Gramegna.

German leaves the house bank of the EU

And recently, Werner Hoyer, who has headed the EU’s house bank, the EIB, since 2012, also announced that he would be stepping down from his post by the end of the year at the latest. It is highly unlikely that Germany will be able to retain its leadership of the banking powerhouse.

Formally speaking, Germany could put forward a new candidate of its own. But after two mandates, as is now the case with Hoyer, it is usually another country’s turn. The first strong names are already being traded: Spanish Economy Minister Nadia Calviño and Commission Vice President Margrethe Vestager.

Does Theurer want to go to EIB?

Italy could also lay claim to the post at the head of the EIB. The EU founding country does not currently occupy any of the top posts at EU level. However, Germany will not completely lose its influence in the EU bank. Berlin has always been assured a place on the board. Interest in moving to Luxembourg for the job of vice president at the EIB is said to lie with Liberal Michael Theurer, parliamentary state secretary in the transport ministry.

It is becoming apparent that Ursula von der Leyen will be the only top representative with a German passport on the EU stage as of next year. Given the size of the country and its economic importance, Germany would thus be poorly represented.

Cards will be reshuffled in 2024

There will be changes in 2024. After the European elections in May, the EU’s top personnel will be reconstituted. There will be changes not only in the Parliament but also in the Commission and other institutions. As soon as the Parliament is constituted in its new composition, the first step will be to elect the new Parliament President.

Ever since Martin Schulz (SPD) was able to confidently use the stage as President of the Parliament and thus achieved EU-wide fame, the job, which is in itself rather representative, has been considered highly attractive. It is currently held by the Maltese Roberta Metsola. She has managed to position herself as a possible top candidate of the Christian Democratic party family EPP.

However, the job has one drawback: The two major party families, Christian Democrats and Socialists, share the term of office. Whoever wins the office has only two and a half years to gain profile. During this term, EPP group leader Manfred Weber (CSU) would have liked to become parliamentary president. But now that he also leads the party family, he is unlikely to make another attempt.

Who will be the head of the council?

The President of the European Council has more influence. He prepares the summit agenda, organizes the summits and determines the strategic direction of the EU in cooperation with the EU heads of state and government. However, the unwritten law applies that the permanent Council president must have previously been a head of state or government in their own country. Otherwise, it is said, they lack the authority to be heard in the circle of presidents.

It is very unlikely that Germany will provide the next permanent Council president: Gerhard Schröder and Angela Merkel are not interested, although Schröder would no longer be an option either. That leaves the incumbent chancellor, Olaf Scholz, but that is currently ruled out.

French lead banks

Other top posts, such as the chair at the European Central Bank (ECB) or the leadership of the Eastern European Bank, are not up for grabs at the moment. Incidentally, both are held by Frenchmen – Christine Lagarde and Odile Renaud-Basso.

It is thus foreseeable that it will be lonely for the Germans on the EU stage, leaving Ursula von der Leyen as the only top German politician on the Brussels stage. There are also hardly any opportunities for the traffic light government to elevate its own party friends to top positions in Brussels, Strasbourg and Luxembourg. Only the Greens have the prospect of providing the German commissioner. This is laid down in the coalition agreement. However, it only applies if the incumbent German Commission President does not enter her second term.

Does von der Leyen want to keep doing the back-breaking job?

According to reports in Brussels, Ursula von der Leyen has not yet decided for herself whether she wants to continue. The job at the head of the Commission, with its more than 30,000 officials, is at least as time-consuming as that of chancellor. At the end of a second term, von der Leyen would be 71. She may decide to have a family instead of doing the back-breaking job again.

So far, Olaf Scholz did not clarify whether von der Leyen would have the support of the German government. Perhaps Scholz would not be wrong if the CDU politician were still at the helm of the Commission after 2024. The SPD’s interest in sending a green commissioner to Brussels is likely to be limited.

What’s more, if Scholz were to refuse von der Leyen’s support, he would have to brace himself for broadsides from the CDU/CSU. The CDU/CSU would accuse the traffic light coalition of having gambled away Germany’s top positions in Europe out of party tactical considerations – at a time when other front-row posts on the EU stage are not available. with Markus Grabitz

  • EU
  • European Commission
  • EZB

AI Act: searching for a definition

While the public has only been discussing the ChatGPT language model for a few months, the European Parliament has already been dealing with artificial intelligence legislation (AI Act) for more than a year. But it is only now that many people have become aware of the wide range of possible applications and the potential dangers of AI with ChatGPT. Will the discussion in the committees have to be completely reopened after the appearance of ChatGPT?

The co-rapporteur for the AI Act from the LIBE Committee, Dragoş Tudorache (Renew), says no. “We are still working on the final package of compromises on some of the key parts of the text. For example, on the definitions, including how we define General Purpose AI (GPAI),” Tudorache told Table.Media. Changes to the text will still occur.

The success of ChatPGT had an impact on the consultations

However, it is still unclear which ones these will be. Because although the parliamentarians had also dealt with the question of how GPAI should be incorporated into the legislative text from the very beginning, they still have not reached an agreement on the definition of AI and the scope of the law.

The commission had not envisioned AI developed for any particular purpose but for multiple purposes (general-purpose AI, or GPAI) to be included in the rulebook. “We have recognized it is something that we cannot ignore – this has been proven through the massive success of ChatGPT and how relevant it already is,” Tudorache says.

In January, the EPP had made an initial proposal on what adjustments it considers necessary in the law with regard to technologies such as ChatGPT. But so far, the rapporteurs have not submitted a text that takes these proposed changes into account. Meetings are currently taking place at the technical level. However, a meeting of the shadow rapporteurs this week was canceled. There is no new date yet.

The state of negotiations is unclear

Thus, there is still uncertainty about the status of the political negotiations. While German MEPs gave the impression in a background interview that nothing has been fully negotiated yet, the rapporteur sees it differently. “Specifically, we have worked and are still working, as we speak, on the scope and definition,” Tudorache says. “And we are still making some tweaks to Articles 5 and 6 on the prohibited and high-risk practices. The rest of the text is mostly finished.”

The discussion about the definition is central since it is a question here of which applications are covered by the law. Time and again, it was heard that the rapporteurs wanted to follow the OECD definition of AI. Tudorache disagrees: “The definition is ours. We have not looked to other organizations or to other definitions as a source of inspiration. We have looked at the elements that we considered to be crucial.” Only at the final stage, he says, did they realize that it would be easier for stakeholders to accept the definition if it was aligned with other organizations’ definitions.

EPP approves of orientation to OECD definition

“We must phrase the definition in a way that other global partners will understand because companies from other corners of the world will also have to work with this legislation if they plan on staying in Europe or continuing to invest in the European market,” Tudorache says. So, he says, the definition is still up for discussion at the moment. And it will certainly be the last to be finalized.

The EPP, in particular, would approve of being guided by the OECD definition. But there is no current OECD definition at all, as the organization is currently revising it. In contrast, the National Institute of Standards and Technology (NIST) in the USA presented a definition in January. The rapporteurs are also looking at this.

The National Institute of Standards and Technology defines an AI system as a technical (engineered) or machine-based system, which, for a given set of goals, can produce results such as predictions, recommendations, or decisions that affect real or virtual environments. AI systems are designed to operate with varying degrees of autonomy.

Each of these points could be debated. For example, the Greens are not happy with the phrase “affecting real or virtual environments.” What about emotion recognition? Does this fall under it, or does it then fall out of regulation altogether? There is still a lot to discuss.

No date yet for the next political meeting

However, there is no longer a timetable for this at the moment. A new date for the shadow rapporteurs has not yet been set. “I’m hoping that we can finish negotiations next month,” says Tudorache. Others think that is illusory. Even the rapporteur admits, “I don’t want to give estimates anymore – I did that before and I was wrong. The important thing is that we do it right.”

His group colleague, German MEP Svenja Hahn (FDP), who does not want to rush things, shares his opinion. “Because I think the law is very crucial and it is not yet clear in which direction it will go,” Hahn says. “If we manage to come up with a smart legislative proposal, then we can actually make the European Union an attractive location for technological innovation.” But there is still a long way to go before that happens.

You can read the detailed interview with Dragoş Tudorache here.

  • Artificial intelligence
  • Artificial Intelligence Regulation
  • Digital policy

EU Monitoring

March 13-14, 2023
Council of the EU: Employment, Social Policy, Health and Consumer Affairs
Topics: Exchange of views on the European Semester 2023; exchange of views on the EU’s Global Health strategy; information from the Commission concerning the report by the High-level group on the future of social protection and of the welfare state in the EU. Draft Agenda

March 13, 2023; 10 a.m.
Eurogroup
Topics: Macroeconomic and fiscal developments in the euro area (including fiscal policy guidance for 2024); preparation of international meetings (including exchange rate developments and debrief from the February G7 meeting of Finance Ministers and Central Bank Governors); inflation developments in the euro area and the member states. Draft Agenda

March 13, 2023; 5-10 p.m.
Plenary Session of the EU Parliament: Fit for 55, energy performance, policy coherence
Topics: Debate on the outcome of the negotiations on Fit for 55; debate on energy performance of buildings; policy coherence for development. Draft Agenda

March 14, 2023
Weekly Commission Meeting
Topics: Net Zero industry act, European critical raw materials act. Draft Agenda

March 14, 2023; 9 a.m.-10 p.m.
Plenary Session of the EU Parliament: Data Act, Globalisation Adjustment, EU-Armenia relations
Topics: Debate on the Data Act; vote on mobilization of the European Globalisation Adjustment Fund; debate on the EU-Armenia relations. Draft Agenda

March 14, 2023; 10 a.m.
Council of the EU: Economic and Financial Affairs
Topics: Exchange of views on the Economic recovery in Europe; exchange of views on the fiscal policy guidance for 2024; exchange of views on the economic and financial impact of Russia’s aggression against Ukraine. Draft Agenda

March 15, 2023; 9 a.m.-10 p.m.
Plenary Session of the EU Parliament: European Council, EU-United States Agreement, human rights
Topics: Debate on preparation of the European Council meeting of March 23-24, 2023; vote on the EU-United States Agreement (modification of concessions on all the tariff rate quotas included in the EU Schedule CLXXV); debates on cases of breaches of human rights, democracy and the rule of law. Draft Agenda

March 16, 2023
EU-Albania Stabilization and Association Council
Topics: The EU-Albania Stabilization and Association Council meets for consultations. Draft Agenda

March 16, 2023
Commission meeting
Topics: Revision of EU’s internal electricity market design reform, The Single Market at 30, Long-term competitiveness strategy. Draft Agenda

March 16, 2023; 9 a.m.-4 p.m.
Plenary Session of the EU Parliament: European Citizens’ Initiative, votes, major interpellations
Topics: Debate on the European Citizens’ Initiative “Save bees and farmers! Towards a bee-friendly agriculture for a healthy environment”; votes; major interpellations. Draft Agenda

March 16, 2023; 9:30 a.m.
Council of the EU: Environment
Topics: Policy debate on the regulation on packaging and packaging waste; policy debate on the regulation establishing a Union certification framework for carbon removals; exchange of views on greening the European Semester. Draft Agenda

March 17, 2023
EU-Republic of North Macedonia Stabilisation and Association Council
Topics: The EU-Republic of Northern Macedonia Stabilization and Association Council meets for consultations. Draft Agenda

News

Subsidies: Germany prevails

When it comes to state aid for clean tech factories, the Commission spares financially strong member states like Germany from having to cooperate with other EU countries on a crucial point. This emerges from the decision on the TCTF state aid framework, which the Commission published yesterday. According to an initial draft, the location of battery factories in Germany would have been severely hampered in the future. At the same time, the Commission adopted amendments to the General Block Exemption Regulation.

The new regulation relates to the case where an EU state wishes to exceed the flat-rate ceiling for subsidies in order to match a non-member state such as the USA in terms of subsidies. In contrast to the first draft, this so-called “matching” is no longer only possible if the company is located in a particularly disadvantaged A-support area of European regional support or if several EU states cooperate. “Matching” is now also permitted for structurally weak C-assisted areas, such as those in eastern Germany.

Battery factories call for billions of euros

Subsidies beyond the flat-rate ceilings are particularly relevant for battery factories. According to a report in the Financial Times, Volkswagen had pointed out to EU officials last week that it could receive $9 to $10 billion in grants and loans under the Inflation Reduction Act (IRA) for the construction of a gigafactory in the USA.

The Temporary Crisis and Transition Framework (TCTF), which has now been adopted, relaxes the aid rules for the production of key technologies in the EU. “Specifically, we can provide targeted support for the production of batteries, solar panels, wind turbines, heat pumps or electrolyzers, and this much more comprehensively than before,” said Economy Minister Robert Habeck. In addition, the focus is on equipment for the capture, use and storage of CO2 (CCUS) as well as the reprocessing and recycling of critical raw materials.

Federal government wanted to weaken cooperation requirement

In a consultation, the German government had advocated a relaxation of the cooperation requirement, and France also wanted to push through facilitations. A group of 14 smaller and medium-sized member states, on the other hand, urged caution in a non-paper obtained by Table.Media this week. The single market, they said, is “one of the Union’s proudest achievements”. They argued that changes to state aid rules must not jeopardize fair competition.

In a two-page text, the signatories – Belgium, the Czech Republic, Denmark, Estonia, Finland, Ireland, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovakia and Slovenia – also called for “better enforcement of existing rules” and “further progress on the three pillars of the Banking Union and the deepening of the Capital Markets Union“. The possible establishment of a European sovereign wealth fund was not mentioned. ber/Sérgio Aníbal

  • Battery
  • Beihilfenrecht
  • Financial policy
  • France
  • Hydrogen
  • Recycling
  • Solar
  • Wind power

Oil and gas producers to finance CO2 storage facilities

Numerous storage sites for injected carbon dioxide are supposed to be created in the EU countries by 2030. At least 50 million metric tons of CO2 should be able to be stored in them each year. This is what the EU Commission calls for according to a current version of the Net Zero Industry Act, which it plans to present next week. “Contexte” had published the draft of a legislative proposal that is to be Europe’s answer to the US Inflation Reduction Act.

Member states would have to publish precise data on possible deposits. European oil and gas producers would also be required to contribute to achieving this target. Depending on the volume produced, individual contributions are to be defined for the producers. Details for the assessment are not yet included in the draft.

In this context, companies can develop CO2 storage facilities themselves or in cooperation with other oil and gas producers or finance corresponding projects. However, these storage facilities must be operational by 2030, according to the draft. luk

  • Climate & Environment
  • CO2 storage
  • European policy

Energy Efficiency Directive: Parliament and Council at odds over ambition level

Setting the level of ambition in the target to reduce energy consumption remains the most contentious issue in the final trilogue on the Energy Efficiency Directive (EED). Negotiations began at 2 p.m. yesterday and were still ongoing at press time.

“This is the most difficult point of the negotiations,” reports a source close to the negotiations. The Swedish presidency is highlighting its compromise proposal: to achieve an 11 to 12 percent reduction in EU energy consumption by 2030.

The target remains below the 14.5 percent aimed for by the EU Parliament. However, it comes close to what the Commission aims for, namely an EU-wide reduction in energy consumption of at least 13 percent compared to the 2020 reference scenario.

Trade-offs in energy poverty, heating buildings, energy savings goals

On the other hand, a compromise has been reached on the issue of energy poverty, the source adds. It is about supporting the most vulnerable households, the source reports, without giving details. An agreement was also reached on phasing out the use of fossil fuels for heating buildings by 2030.

On the binding nature of energy savings targets – an aspect the European Parliament has been pushing for – a compromise was reached on the introduction of mandatory monitoring by member states. At the time of going to press, this was the state of the negotiations; the results may change in the course of the night, it is said. cst

  • Energy efficiency
  • Trilog

Simson: boycott Russian LNG providers

European Union countries and companies should not sign new contracts to buy Russian liquefied natural gas, as part of the bloc’s attempt to end its energy dependence on Moscow, the EU’s energy policy chief said on Thursday. She said the commission would also propose that EU countries extend their voluntary target to cut gas consumption by 15 percent in winter until next year.

But while Moscow slashed pipeline gas flows, deliveries of Russian liquefied natural gas to Europe increased last year – to 22 bcm, up from around 16 bcm in 2021, according to an EU analysis seen by Reuters.

“We can and should get rid of Russian gas completely as soon as possible, still keeping in mind our security of supply,” EU energy commissioner Kadri Simson told a meeting of EU lawmakers on Thursday. “I encourage all member states and all companies to stop buying Russian LNG, and not to sign any new gas contracts with Russia once the existing contracts have expired,” Simson said, adding that this could also reassure other gas suppliers Europe is trying to negotiate deals with. rtr

  • LNG
  • Natural gas

Twelve EU states meet to solve e-fuel dispute

On the initiative of the Czech Republic, the transport ministers of twelve EU countries will meet on Monday to find a way out of the dispute over the approval of e-fuels for new passenger cars and light commercial vehicles after 2035 as part of the CO2 fleet limits. The twelve countries are, in addition to the Czech Republic and Germany:

  • Finland
  • France
  • Italy
  • Poland
  • Portugal
  • Romania
  • Slovenia
  • Slovakia
  • Spain
  • Hungary

Originally, the twelve member states wanted to discuss the Euro 7 emissions standard at the meeting and agree a common position for the votes in the Council. But now it is also about finding a compromise that will allow the use of CO2-neutral e-fuels in new cars beyond 2035. Most of the countries present at the meeting have car or supplier industries.

A few days before the final vote on CO2 fleet limits and the 2035 phase-out of internal combustion engines, the FDP part of the German government had called for a solution for e-fuels. If the Commission did not present a compromise, Germany would have to abstain. mgr

  • E-Fuels
  • Euro 7
  • European Council
  • Traffic

Council: Irishwoman becomes new Director-General

Emer Finnegan is the new Director-General of the Legal Service in the Council as of April. At the same time, she serves as legal advisor to the European Council. The Irishwoman has been a Director in the Council Legal Service since December 2015. Since October 2018 she has been the Director responsible for legal issues in the Competitiveness, Environment, and Transport, Telecom, and Energy Councils.

The Council’s Legal Service is responsible for ensuring the legality and drafting quality of legal acts. Emer Finnegan joined the legal service in 1999. She had previously studied law and French in Galway and European law in Bruges. She replaces Thérèse Blanchet, who became Secretary-General of the Council on Nov. 1, 2022. mgr

  • European Council

Lührmann praises Moldova’s pro-European stance

During her visit to the Republic of Moldova, Anna Lührmann, Minister of State at the Federal Foreign Office, praised the leadership’s efforts. “Despite massive pressure and destabilization attempts from Russia,” the government as well as parliament and society are resolutely pro-European and are doing a great deal to welcome many refugees from Ukraine, she told Table.Media. “We strongly support the EU accession perspective for Moldova.”

Lührmann had traveled with colleagues from seven other European countries to the country, which has a population of around 2.5 million and borders Ukraine to the west. The government there is pushing for accession negotiations to begin this year. President Maia Sandu had recently accused Russia of attempting to overthrow the country.

Georgia government withdraws controversial law

In Georgia, still one step behind Moldova and Ukraine in the accession process, the ruling party on Thursday withdrew its plans for a controversial law on non-governmental organizations after days of protests. The Georgian Dream party said it wanted to avoid confrontation in society in this way.

The plan called for organizations that receive at least 20 percent of their funding from abroad to be placed under supervision by the Ministry of Justice. NGO representatives were supposed to be classified as “foreign agents”. Draconian fines were envisaged in the event of violations. The EU Commission and the German government reacted with relief. tho/rtr

  • European policy

Column

What’s cooking in Strasbourg? Swedish mystery

By Claire Stam
Schwarz-weiß Portrait von Claire Stam

So here we go with the acronyms:

  • In the coming plenary week in Strasbourg, the first topic will be the ESR. This stands for Effort Sharing Regulation, i.e. the sharing of efforts between member states to reduce their emissions.
  • Next is the MSR, which stands for Market Stability Reserve. This instrument aims to create price stability for production facilities covered by the EU Emissions Trading System. It is intended to create certainty and confidence among investors so that they can invest in green technologies and energy efficiency.
  • And finally, the queen of acronyms: LULUCF. It stands for Land Use, Land-Use Change and Forestry. What this name doesn’t tell you is that it is about the contribution of land use and forestry to climate change mitigation, that is, the use of soils, trees, plants, biomass and wood. This sector is special because it can both sequester carbon and emit greenhouse gases (carbon dioxide, methane and nitrous oxide).

This is where we now want to dwell for a bit.

Liese: the most important element of Fit for 55 alongside the ETS

For MEP Peter Liese (CDU), who led the now famous “jumbo trilogue,” LULUCF is “actually the most important element of the whole fit-for-55 package, alongside the ETS“. That’s because an agreement next week in Strasbourg would allow the European Union to raise its climate target from 55 percent to 57 percent.

Why is that? For that, we need to look back to COP27 in Sharm el-Sheikh. There, Frans Timmermans, the European Commission vice president in charge of the Green Deal, had announced that the EU was ready to present a new climate plan (also known as an NDC) that would raise the target for net emissions reductions between 1990 and 2030 to “at least 57 percent”.

This is two percentage points more than the target adopted by the European Council at the end of 2020 (55 percent) and 17 percentage points more than the EU’s original target submitted to the UNFCCC (40 percent).

LULUCF makes it possible. The tentative agreement reached between the Council and Parliament last November stipulates that 310 million metric tons of CO2-equivalent as net uptake must be achieved by the European Union in the LULUCF sector by 2030. This means that the climate impact of LULUCF is very strong, much stronger than for the transport sector, for example, as Peter Liese summarizes.

Several tons above the target of the old federal government

“I want to make it clear that these are very ambitious targets,” added Liese’s party colleague and LULUCF rapporteur Norbert Lins. “We are currently at around 215 million metric tons. So that means we need to add about 50 percent over the next seven years to reach those 310 million metric tons.”

For soils in Germany, this means that they will have to absorb around 31 million metric tons of CO2 equivalent by 2030. “That’s a few tons more than the old German government set in its target. They had envisaged 25 million tons by 2030, and now we’ve raised that by another 6 million tons,” Lins said.

Because things are now getting concrete, the political debate about these hitherto subordinate dossiers is picking up speed. Two fronts are getting ready: associations from the agricultural and forestry sectors, for whom the targets are too ambitious, on the one hand, and environmental organizations, which would like to see more ambitious targets.

Swedish mystery

Because Sweden holds the presidency of the Council until summer, Stockholm is leading the negotiations. The only problem is that Sweden is a country whose territory consists of 70 percent forest. It is one of the largest timber exporters in the world. In Brussels, the question is how Stockholm will behave. Will it be more protectionist and push for maximum wood production?

It is important to note here that, at the same time, Sweden has an ambitious goal of CO2 neutrality by 2045, thanks to the enormous carbon uptake that its forests enable. France, for example, would not be able to reduce its emissions by 85 percent by that date, as Sweden proposes.

  • Agriculture
  • Fit for 55
  • LULUCF
  • Sweden

Europe.Table Editorial Office

EUROPE.TABLE EDITORS

Licenses:
    Dear reader,

    The most important job in the EU is held by a German: Commission President Ursula von der Leyen. Germany has also been well positioned in other key positions at the EU level. But now many are saying goodbye to their top posts – such as Klaus Welle, Secretary-General of the European Parliament until the end of 2022, Helga Schmid, Secretary-General of the External Action Service for four years, and currently, Werner Hoyer, who plans to step down as EIB President by the end of the year. Germany will be less well represented on the EU stage in the future – and there is little the traffic light coalition can do about it, as Christof Roche and Markus Grabitz analyze.

    For over a year now, the European Parliament has been dealing with legislation on artificial intelligence (AI Act). But MEPs have still not agreed on a definition. The popularity of the AI ChatGPT now increases the pressure, as Corinna Visser reports. Read her in-depth interview with Dragoş Tudorache (Renew), co-rapporteur for the AI Act in the LIBE Committee, here.

    Commission President Ursula von der Leyen will be hosted by US President Joe Biden at the White House today. The two are expected to agree on commodity cooperation that will give European battery manufacturers access to some of the benefits of the Inflation Reduction Act.

    At the same time, the EU is looking for its own answers to the multi-billion US investment program. The Temporary Crisis and Transition Framework (TCTF), which has now been adopted, relaxes aid rules for the production of key technologies in the EU. “Specifically, we can provide targeted support for the production of batteries, solar panels, wind turbines, heat pumps or electrolyzers, and much more comprehensively than before,” said Economy Minister Robert Habeck. Read more in the News.

    Your
    Sarah Schaefer
    Image of Sarah  Schaefer

    Feature

    Germany loses influence in the EU

    For a long time, Germany was well represented on the European stage as the member state with the largest population and economy in Europe. Germany was particularly strong in the financial sector, in the foreign service and in parliamentary administration. With Ursula von der Leyen, the Commission President comes from Germany and thus fills by far the most important job in the EU.

    The heads of the European Investment Bank (EIB), the European Stability Mechanism (ESM) and the Single Resolution Board (SRB) have or had a German passport. In addition, the secretaries general in the European External Action Service (EEAS) and in the European Parliament.

    But in the meantime, German influence has shrunk. Klaus Welle, secretary general of the European Parliament from 2009 until the end of 2022, has made way for the Italian Alessandro Chiocchetti. Helga Schmid, Secretary General of the External Action Service for four years, has left for the OSCE in the same capacity. Elke König has left the resolution authority for distressed banks (SRB) and has been replaced by Frenchman Dominique Laboureix. Klaus Regling, longtime head of the euro rescue umbrella, has also departed. Today, the stability mechanism is headed by the Luxembourger Pierre Gramegna.

    German leaves the house bank of the EU

    And recently, Werner Hoyer, who has headed the EU’s house bank, the EIB, since 2012, also announced that he would be stepping down from his post by the end of the year at the latest. It is highly unlikely that Germany will be able to retain its leadership of the banking powerhouse.

    Formally speaking, Germany could put forward a new candidate of its own. But after two mandates, as is now the case with Hoyer, it is usually another country’s turn. The first strong names are already being traded: Spanish Economy Minister Nadia Calviño and Commission Vice President Margrethe Vestager.

    Does Theurer want to go to EIB?

    Italy could also lay claim to the post at the head of the EIB. The EU founding country does not currently occupy any of the top posts at EU level. However, Germany will not completely lose its influence in the EU bank. Berlin has always been assured a place on the board. Interest in moving to Luxembourg for the job of vice president at the EIB is said to lie with Liberal Michael Theurer, parliamentary state secretary in the transport ministry.

    It is becoming apparent that Ursula von der Leyen will be the only top representative with a German passport on the EU stage as of next year. Given the size of the country and its economic importance, Germany would thus be poorly represented.

    Cards will be reshuffled in 2024

    There will be changes in 2024. After the European elections in May, the EU’s top personnel will be reconstituted. There will be changes not only in the Parliament but also in the Commission and other institutions. As soon as the Parliament is constituted in its new composition, the first step will be to elect the new Parliament President.

    Ever since Martin Schulz (SPD) was able to confidently use the stage as President of the Parliament and thus achieved EU-wide fame, the job, which is in itself rather representative, has been considered highly attractive. It is currently held by the Maltese Roberta Metsola. She has managed to position herself as a possible top candidate of the Christian Democratic party family EPP.

    However, the job has one drawback: The two major party families, Christian Democrats and Socialists, share the term of office. Whoever wins the office has only two and a half years to gain profile. During this term, EPP group leader Manfred Weber (CSU) would have liked to become parliamentary president. But now that he also leads the party family, he is unlikely to make another attempt.

    Who will be the head of the council?

    The President of the European Council has more influence. He prepares the summit agenda, organizes the summits and determines the strategic direction of the EU in cooperation with the EU heads of state and government. However, the unwritten law applies that the permanent Council president must have previously been a head of state or government in their own country. Otherwise, it is said, they lack the authority to be heard in the circle of presidents.

    It is very unlikely that Germany will provide the next permanent Council president: Gerhard Schröder and Angela Merkel are not interested, although Schröder would no longer be an option either. That leaves the incumbent chancellor, Olaf Scholz, but that is currently ruled out.

    French lead banks

    Other top posts, such as the chair at the European Central Bank (ECB) or the leadership of the Eastern European Bank, are not up for grabs at the moment. Incidentally, both are held by Frenchmen – Christine Lagarde and Odile Renaud-Basso.

    It is thus foreseeable that it will be lonely for the Germans on the EU stage, leaving Ursula von der Leyen as the only top German politician on the Brussels stage. There are also hardly any opportunities for the traffic light government to elevate its own party friends to top positions in Brussels, Strasbourg and Luxembourg. Only the Greens have the prospect of providing the German commissioner. This is laid down in the coalition agreement. However, it only applies if the incumbent German Commission President does not enter her second term.

    Does von der Leyen want to keep doing the back-breaking job?

    According to reports in Brussels, Ursula von der Leyen has not yet decided for herself whether she wants to continue. The job at the head of the Commission, with its more than 30,000 officials, is at least as time-consuming as that of chancellor. At the end of a second term, von der Leyen would be 71. She may decide to have a family instead of doing the back-breaking job again.

    So far, Olaf Scholz did not clarify whether von der Leyen would have the support of the German government. Perhaps Scholz would not be wrong if the CDU politician were still at the helm of the Commission after 2024. The SPD’s interest in sending a green commissioner to Brussels is likely to be limited.

    What’s more, if Scholz were to refuse von der Leyen’s support, he would have to brace himself for broadsides from the CDU/CSU. The CDU/CSU would accuse the traffic light coalition of having gambled away Germany’s top positions in Europe out of party tactical considerations – at a time when other front-row posts on the EU stage are not available. with Markus Grabitz

    • EU
    • European Commission
    • EZB

    AI Act: searching for a definition

    While the public has only been discussing the ChatGPT language model for a few months, the European Parliament has already been dealing with artificial intelligence legislation (AI Act) for more than a year. But it is only now that many people have become aware of the wide range of possible applications and the potential dangers of AI with ChatGPT. Will the discussion in the committees have to be completely reopened after the appearance of ChatGPT?

    The co-rapporteur for the AI Act from the LIBE Committee, Dragoş Tudorache (Renew), says no. “We are still working on the final package of compromises on some of the key parts of the text. For example, on the definitions, including how we define General Purpose AI (GPAI),” Tudorache told Table.Media. Changes to the text will still occur.

    The success of ChatPGT had an impact on the consultations

    However, it is still unclear which ones these will be. Because although the parliamentarians had also dealt with the question of how GPAI should be incorporated into the legislative text from the very beginning, they still have not reached an agreement on the definition of AI and the scope of the law.

    The commission had not envisioned AI developed for any particular purpose but for multiple purposes (general-purpose AI, or GPAI) to be included in the rulebook. “We have recognized it is something that we cannot ignore – this has been proven through the massive success of ChatGPT and how relevant it already is,” Tudorache says.

    In January, the EPP had made an initial proposal on what adjustments it considers necessary in the law with regard to technologies such as ChatGPT. But so far, the rapporteurs have not submitted a text that takes these proposed changes into account. Meetings are currently taking place at the technical level. However, a meeting of the shadow rapporteurs this week was canceled. There is no new date yet.

    The state of negotiations is unclear

    Thus, there is still uncertainty about the status of the political negotiations. While German MEPs gave the impression in a background interview that nothing has been fully negotiated yet, the rapporteur sees it differently. “Specifically, we have worked and are still working, as we speak, on the scope and definition,” Tudorache says. “And we are still making some tweaks to Articles 5 and 6 on the prohibited and high-risk practices. The rest of the text is mostly finished.”

    The discussion about the definition is central since it is a question here of which applications are covered by the law. Time and again, it was heard that the rapporteurs wanted to follow the OECD definition of AI. Tudorache disagrees: “The definition is ours. We have not looked to other organizations or to other definitions as a source of inspiration. We have looked at the elements that we considered to be crucial.” Only at the final stage, he says, did they realize that it would be easier for stakeholders to accept the definition if it was aligned with other organizations’ definitions.

    EPP approves of orientation to OECD definition

    “We must phrase the definition in a way that other global partners will understand because companies from other corners of the world will also have to work with this legislation if they plan on staying in Europe or continuing to invest in the European market,” Tudorache says. So, he says, the definition is still up for discussion at the moment. And it will certainly be the last to be finalized.

    The EPP, in particular, would approve of being guided by the OECD definition. But there is no current OECD definition at all, as the organization is currently revising it. In contrast, the National Institute of Standards and Technology (NIST) in the USA presented a definition in January. The rapporteurs are also looking at this.

    The National Institute of Standards and Technology defines an AI system as a technical (engineered) or machine-based system, which, for a given set of goals, can produce results such as predictions, recommendations, or decisions that affect real or virtual environments. AI systems are designed to operate with varying degrees of autonomy.

    Each of these points could be debated. For example, the Greens are not happy with the phrase “affecting real or virtual environments.” What about emotion recognition? Does this fall under it, or does it then fall out of regulation altogether? There is still a lot to discuss.

    No date yet for the next political meeting

    However, there is no longer a timetable for this at the moment. A new date for the shadow rapporteurs has not yet been set. “I’m hoping that we can finish negotiations next month,” says Tudorache. Others think that is illusory. Even the rapporteur admits, “I don’t want to give estimates anymore – I did that before and I was wrong. The important thing is that we do it right.”

    His group colleague, German MEP Svenja Hahn (FDP), who does not want to rush things, shares his opinion. “Because I think the law is very crucial and it is not yet clear in which direction it will go,” Hahn says. “If we manage to come up with a smart legislative proposal, then we can actually make the European Union an attractive location for technological innovation.” But there is still a long way to go before that happens.

    You can read the detailed interview with Dragoş Tudorache here.

    • Artificial intelligence
    • Artificial Intelligence Regulation
    • Digital policy

    EU Monitoring

    March 13-14, 2023
    Council of the EU: Employment, Social Policy, Health and Consumer Affairs
    Topics: Exchange of views on the European Semester 2023; exchange of views on the EU’s Global Health strategy; information from the Commission concerning the report by the High-level group on the future of social protection and of the welfare state in the EU. Draft Agenda

    March 13, 2023; 10 a.m.
    Eurogroup
    Topics: Macroeconomic and fiscal developments in the euro area (including fiscal policy guidance for 2024); preparation of international meetings (including exchange rate developments and debrief from the February G7 meeting of Finance Ministers and Central Bank Governors); inflation developments in the euro area and the member states. Draft Agenda

    March 13, 2023; 5-10 p.m.
    Plenary Session of the EU Parliament: Fit for 55, energy performance, policy coherence
    Topics: Debate on the outcome of the negotiations on Fit for 55; debate on energy performance of buildings; policy coherence for development. Draft Agenda

    March 14, 2023
    Weekly Commission Meeting
    Topics: Net Zero industry act, European critical raw materials act. Draft Agenda

    March 14, 2023; 9 a.m.-10 p.m.
    Plenary Session of the EU Parliament: Data Act, Globalisation Adjustment, EU-Armenia relations
    Topics: Debate on the Data Act; vote on mobilization of the European Globalisation Adjustment Fund; debate on the EU-Armenia relations. Draft Agenda

    March 14, 2023; 10 a.m.
    Council of the EU: Economic and Financial Affairs
    Topics: Exchange of views on the Economic recovery in Europe; exchange of views on the fiscal policy guidance for 2024; exchange of views on the economic and financial impact of Russia’s aggression against Ukraine. Draft Agenda

    March 15, 2023; 9 a.m.-10 p.m.
    Plenary Session of the EU Parliament: European Council, EU-United States Agreement, human rights
    Topics: Debate on preparation of the European Council meeting of March 23-24, 2023; vote on the EU-United States Agreement (modification of concessions on all the tariff rate quotas included in the EU Schedule CLXXV); debates on cases of breaches of human rights, democracy and the rule of law. Draft Agenda

    March 16, 2023
    EU-Albania Stabilization and Association Council
    Topics: The EU-Albania Stabilization and Association Council meets for consultations. Draft Agenda

    March 16, 2023
    Commission meeting
    Topics: Revision of EU’s internal electricity market design reform, The Single Market at 30, Long-term competitiveness strategy. Draft Agenda

    March 16, 2023; 9 a.m.-4 p.m.
    Plenary Session of the EU Parliament: European Citizens’ Initiative, votes, major interpellations
    Topics: Debate on the European Citizens’ Initiative “Save bees and farmers! Towards a bee-friendly agriculture for a healthy environment”; votes; major interpellations. Draft Agenda

    March 16, 2023; 9:30 a.m.
    Council of the EU: Environment
    Topics: Policy debate on the regulation on packaging and packaging waste; policy debate on the regulation establishing a Union certification framework for carbon removals; exchange of views on greening the European Semester. Draft Agenda

    March 17, 2023
    EU-Republic of North Macedonia Stabilisation and Association Council
    Topics: The EU-Republic of Northern Macedonia Stabilization and Association Council meets for consultations. Draft Agenda

    News

    Subsidies: Germany prevails

    When it comes to state aid for clean tech factories, the Commission spares financially strong member states like Germany from having to cooperate with other EU countries on a crucial point. This emerges from the decision on the TCTF state aid framework, which the Commission published yesterday. According to an initial draft, the location of battery factories in Germany would have been severely hampered in the future. At the same time, the Commission adopted amendments to the General Block Exemption Regulation.

    The new regulation relates to the case where an EU state wishes to exceed the flat-rate ceiling for subsidies in order to match a non-member state such as the USA in terms of subsidies. In contrast to the first draft, this so-called “matching” is no longer only possible if the company is located in a particularly disadvantaged A-support area of European regional support or if several EU states cooperate. “Matching” is now also permitted for structurally weak C-assisted areas, such as those in eastern Germany.

    Battery factories call for billions of euros

    Subsidies beyond the flat-rate ceilings are particularly relevant for battery factories. According to a report in the Financial Times, Volkswagen had pointed out to EU officials last week that it could receive $9 to $10 billion in grants and loans under the Inflation Reduction Act (IRA) for the construction of a gigafactory in the USA.

    The Temporary Crisis and Transition Framework (TCTF), which has now been adopted, relaxes the aid rules for the production of key technologies in the EU. “Specifically, we can provide targeted support for the production of batteries, solar panels, wind turbines, heat pumps or electrolyzers, and this much more comprehensively than before,” said Economy Minister Robert Habeck. In addition, the focus is on equipment for the capture, use and storage of CO2 (CCUS) as well as the reprocessing and recycling of critical raw materials.

    Federal government wanted to weaken cooperation requirement

    In a consultation, the German government had advocated a relaxation of the cooperation requirement, and France also wanted to push through facilitations. A group of 14 smaller and medium-sized member states, on the other hand, urged caution in a non-paper obtained by Table.Media this week. The single market, they said, is “one of the Union’s proudest achievements”. They argued that changes to state aid rules must not jeopardize fair competition.

    In a two-page text, the signatories – Belgium, the Czech Republic, Denmark, Estonia, Finland, Ireland, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovakia and Slovenia – also called for “better enforcement of existing rules” and “further progress on the three pillars of the Banking Union and the deepening of the Capital Markets Union“. The possible establishment of a European sovereign wealth fund was not mentioned. ber/Sérgio Aníbal

    • Battery
    • Beihilfenrecht
    • Financial policy
    • France
    • Hydrogen
    • Recycling
    • Solar
    • Wind power

    Oil and gas producers to finance CO2 storage facilities

    Numerous storage sites for injected carbon dioxide are supposed to be created in the EU countries by 2030. At least 50 million metric tons of CO2 should be able to be stored in them each year. This is what the EU Commission calls for according to a current version of the Net Zero Industry Act, which it plans to present next week. “Contexte” had published the draft of a legislative proposal that is to be Europe’s answer to the US Inflation Reduction Act.

    Member states would have to publish precise data on possible deposits. European oil and gas producers would also be required to contribute to achieving this target. Depending on the volume produced, individual contributions are to be defined for the producers. Details for the assessment are not yet included in the draft.

    In this context, companies can develop CO2 storage facilities themselves or in cooperation with other oil and gas producers or finance corresponding projects. However, these storage facilities must be operational by 2030, according to the draft. luk

    • Climate & Environment
    • CO2 storage
    • European policy

    Energy Efficiency Directive: Parliament and Council at odds over ambition level

    Setting the level of ambition in the target to reduce energy consumption remains the most contentious issue in the final trilogue on the Energy Efficiency Directive (EED). Negotiations began at 2 p.m. yesterday and were still ongoing at press time.

    “This is the most difficult point of the negotiations,” reports a source close to the negotiations. The Swedish presidency is highlighting its compromise proposal: to achieve an 11 to 12 percent reduction in EU energy consumption by 2030.

    The target remains below the 14.5 percent aimed for by the EU Parliament. However, it comes close to what the Commission aims for, namely an EU-wide reduction in energy consumption of at least 13 percent compared to the 2020 reference scenario.

    Trade-offs in energy poverty, heating buildings, energy savings goals

    On the other hand, a compromise has been reached on the issue of energy poverty, the source adds. It is about supporting the most vulnerable households, the source reports, without giving details. An agreement was also reached on phasing out the use of fossil fuels for heating buildings by 2030.

    On the binding nature of energy savings targets – an aspect the European Parliament has been pushing for – a compromise was reached on the introduction of mandatory monitoring by member states. At the time of going to press, this was the state of the negotiations; the results may change in the course of the night, it is said. cst

    • Energy efficiency
    • Trilog

    Simson: boycott Russian LNG providers

    European Union countries and companies should not sign new contracts to buy Russian liquefied natural gas, as part of the bloc’s attempt to end its energy dependence on Moscow, the EU’s energy policy chief said on Thursday. She said the commission would also propose that EU countries extend their voluntary target to cut gas consumption by 15 percent in winter until next year.

    But while Moscow slashed pipeline gas flows, deliveries of Russian liquefied natural gas to Europe increased last year – to 22 bcm, up from around 16 bcm in 2021, according to an EU analysis seen by Reuters.

    “We can and should get rid of Russian gas completely as soon as possible, still keeping in mind our security of supply,” EU energy commissioner Kadri Simson told a meeting of EU lawmakers on Thursday. “I encourage all member states and all companies to stop buying Russian LNG, and not to sign any new gas contracts with Russia once the existing contracts have expired,” Simson said, adding that this could also reassure other gas suppliers Europe is trying to negotiate deals with. rtr

    • LNG
    • Natural gas

    Twelve EU states meet to solve e-fuel dispute

    On the initiative of the Czech Republic, the transport ministers of twelve EU countries will meet on Monday to find a way out of the dispute over the approval of e-fuels for new passenger cars and light commercial vehicles after 2035 as part of the CO2 fleet limits. The twelve countries are, in addition to the Czech Republic and Germany:

    • Finland
    • France
    • Italy
    • Poland
    • Portugal
    • Romania
    • Slovenia
    • Slovakia
    • Spain
    • Hungary

    Originally, the twelve member states wanted to discuss the Euro 7 emissions standard at the meeting and agree a common position for the votes in the Council. But now it is also about finding a compromise that will allow the use of CO2-neutral e-fuels in new cars beyond 2035. Most of the countries present at the meeting have car or supplier industries.

    A few days before the final vote on CO2 fleet limits and the 2035 phase-out of internal combustion engines, the FDP part of the German government had called for a solution for e-fuels. If the Commission did not present a compromise, Germany would have to abstain. mgr

    • E-Fuels
    • Euro 7
    • European Council
    • Traffic

    Council: Irishwoman becomes new Director-General

    Emer Finnegan is the new Director-General of the Legal Service in the Council as of April. At the same time, she serves as legal advisor to the European Council. The Irishwoman has been a Director in the Council Legal Service since December 2015. Since October 2018 she has been the Director responsible for legal issues in the Competitiveness, Environment, and Transport, Telecom, and Energy Councils.

    The Council’s Legal Service is responsible for ensuring the legality and drafting quality of legal acts. Emer Finnegan joined the legal service in 1999. She had previously studied law and French in Galway and European law in Bruges. She replaces Thérèse Blanchet, who became Secretary-General of the Council on Nov. 1, 2022. mgr

    • European Council

    Lührmann praises Moldova’s pro-European stance

    During her visit to the Republic of Moldova, Anna Lührmann, Minister of State at the Federal Foreign Office, praised the leadership’s efforts. “Despite massive pressure and destabilization attempts from Russia,” the government as well as parliament and society are resolutely pro-European and are doing a great deal to welcome many refugees from Ukraine, she told Table.Media. “We strongly support the EU accession perspective for Moldova.”

    Lührmann had traveled with colleagues from seven other European countries to the country, which has a population of around 2.5 million and borders Ukraine to the west. The government there is pushing for accession negotiations to begin this year. President Maia Sandu had recently accused Russia of attempting to overthrow the country.

    Georgia government withdraws controversial law

    In Georgia, still one step behind Moldova and Ukraine in the accession process, the ruling party on Thursday withdrew its plans for a controversial law on non-governmental organizations after days of protests. The Georgian Dream party said it wanted to avoid confrontation in society in this way.

    The plan called for organizations that receive at least 20 percent of their funding from abroad to be placed under supervision by the Ministry of Justice. NGO representatives were supposed to be classified as “foreign agents”. Draconian fines were envisaged in the event of violations. The EU Commission and the German government reacted with relief. tho/rtr

    • European policy

    Column

    What’s cooking in Strasbourg? Swedish mystery

    By Claire Stam
    Schwarz-weiß Portrait von Claire Stam

    So here we go with the acronyms:

    • In the coming plenary week in Strasbourg, the first topic will be the ESR. This stands for Effort Sharing Regulation, i.e. the sharing of efforts between member states to reduce their emissions.
    • Next is the MSR, which stands for Market Stability Reserve. This instrument aims to create price stability for production facilities covered by the EU Emissions Trading System. It is intended to create certainty and confidence among investors so that they can invest in green technologies and energy efficiency.
    • And finally, the queen of acronyms: LULUCF. It stands for Land Use, Land-Use Change and Forestry. What this name doesn’t tell you is that it is about the contribution of land use and forestry to climate change mitigation, that is, the use of soils, trees, plants, biomass and wood. This sector is special because it can both sequester carbon and emit greenhouse gases (carbon dioxide, methane and nitrous oxide).

    This is where we now want to dwell for a bit.

    Liese: the most important element of Fit for 55 alongside the ETS

    For MEP Peter Liese (CDU), who led the now famous “jumbo trilogue,” LULUCF is “actually the most important element of the whole fit-for-55 package, alongside the ETS“. That’s because an agreement next week in Strasbourg would allow the European Union to raise its climate target from 55 percent to 57 percent.

    Why is that? For that, we need to look back to COP27 in Sharm el-Sheikh. There, Frans Timmermans, the European Commission vice president in charge of the Green Deal, had announced that the EU was ready to present a new climate plan (also known as an NDC) that would raise the target for net emissions reductions between 1990 and 2030 to “at least 57 percent”.

    This is two percentage points more than the target adopted by the European Council at the end of 2020 (55 percent) and 17 percentage points more than the EU’s original target submitted to the UNFCCC (40 percent).

    LULUCF makes it possible. The tentative agreement reached between the Council and Parliament last November stipulates that 310 million metric tons of CO2-equivalent as net uptake must be achieved by the European Union in the LULUCF sector by 2030. This means that the climate impact of LULUCF is very strong, much stronger than for the transport sector, for example, as Peter Liese summarizes.

    Several tons above the target of the old federal government

    “I want to make it clear that these are very ambitious targets,” added Liese’s party colleague and LULUCF rapporteur Norbert Lins. “We are currently at around 215 million metric tons. So that means we need to add about 50 percent over the next seven years to reach those 310 million metric tons.”

    For soils in Germany, this means that they will have to absorb around 31 million metric tons of CO2 equivalent by 2030. “That’s a few tons more than the old German government set in its target. They had envisaged 25 million tons by 2030, and now we’ve raised that by another 6 million tons,” Lins said.

    Because things are now getting concrete, the political debate about these hitherto subordinate dossiers is picking up speed. Two fronts are getting ready: associations from the agricultural and forestry sectors, for whom the targets are too ambitious, on the one hand, and environmental organizations, which would like to see more ambitious targets.

    Swedish mystery

    Because Sweden holds the presidency of the Council until summer, Stockholm is leading the negotiations. The only problem is that Sweden is a country whose territory consists of 70 percent forest. It is one of the largest timber exporters in the world. In Brussels, the question is how Stockholm will behave. Will it be more protectionist and push for maximum wood production?

    It is important to note here that, at the same time, Sweden has an ambitious goal of CO2 neutrality by 2045, thanks to the enormous carbon uptake that its forests enable. France, for example, would not be able to reduce its emissions by 85 percent by that date, as Sweden proposes.

    • Agriculture
    • Fit for 55
    • LULUCF
    • Sweden

    Europe.Table Editorial Office

    EUROPE.TABLE EDITORS

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