The EU breathes a sigh of relief. The long-awaited agreement on the Northern Ireland Protocol was reached on Monday. According to the agreement, Great Britain will be able to ship goods to Northern Ireland more easily in the future. A label called “Not for EU” will also help –Till Hoppe reports that the label is intended to prevent goods from being shipped to Ireland without permission. But British Prime Minister Sunak still has to secure approval for the agreement.
Quarrel, quarrel and more quarrel: This sums up Serbian-Kosovar relations in recent years. Now, however, there is hope for an end to the ice age. The heads of government of both countries are expected to sign a ten-point plan by March. The EU is increasing the pressure, reports Stephan Israel.
At the energy ministers’ meeting in Stockholm, France wins new supporters for its nuclear initiatives. Germany wants to commit EU members to a higher gas savings target. And Luxembourg and Finland are pioneering the expansion of renewables. Read more in Manuel Berkel‘s Feature.
If you enjoy Europe.Table, please feel free to forward our briefing. If this mail was sent to you: Here you can try our briefing for free.
The reception of Ursula von der Leyen by King Charles once again stirred up the hardliners in London and Belfast on Monday – they sensed an undue politicization of the monarchy. But the excitement no longer prevented the deal between the EU Commission president and British Prime Minister Rishi Sunak, which had been in the offing for some time. In the afternoon, both announced that they had agreed on new rules for trade with Northern Ireland and spoke in unison of a “new chapter” in relations between the two sides.
The provisional political agreement aims to facilitate the import of goods from the UK into Northern Ireland – without opening a gateway into the EU single market. Then-Prime Minister Boris Johnson had agreed to keep Northern Ireland in the EU’s single market as part of the 2019 Brexit deal. This was to avoid a hard land border between the Republic of Ireland and Northern Ireland, which could have led to new outbreaks of violence on the island.
To prevent that, Johnson accepted in the Northern Ireland Protocol that British goods would be inspected at Northern Ireland ports on import. But the customs border within the United Kingdom was a thorn in the flesh of unionists in Northern Ireland and Brexit hardliners among the ruling Tories. Johnson escalated the conflict with the EU last June and introduced a bill in Parliament that would have undermined the current agreement.
His successor Sunak, on the other hand, made efforts after taking office to defuse the dispute in cooperation with the EU Commission, thus ending a political crisis in Northern Ireland at the same time. Von der Leyen praised the “very constructive attitude” right from the start.
However, Sunak must now sell the deal within his party and within the Northern Ireland Democratic Unionist Party. DUP leader Jeffrey Donaldson said “significant progress has been secured across a number of areas” but that there remain important issues. He said his party would now look at the agreement in detail.
To this end, the Northern Ireland Protocol is being absorbed into a new “Windsor Framework.” This allows both sides to highlight their successes. Sunak can argue to the hardliners that he has achieved substantial changes to the unloved protocol: “We have removed any sense of a border in the Irish Sea,” he said. Von der Leyen and her deputy in charge of the negotiations, Maroš Šefčovič, can point out that the Northern Ireland Protocol, as an integral part of the EU withdrawal agreement, will not be unraveled, and the integrity of the single market will be preserved.
This is what the agreement provides for:
The agreement is being greeted with relief in Brussels: “The compromise reached is pragmatic on the whole and offers cause for hope that the latent permanent debate can now finally be settled,” said David McAllister, co-chairman of the European Parliament’s contact group on the United Kingdom.
There is also hope in the industry: Reliable conditions for trade are a “basic prerequisite for both European and British industry to develop economic relations positively even after Brexit,” said Holger Kunze, head of the Brussels office of the mechanical engineering association VDMA. DIHK foreign trade chief Volker Treier said agreement on the protocol was “urgently needed to stop the negative trend in British business for the German economy.”
The topic on which the highest expectations of the energy industry are currently focused in the EU played only a minor role at the informal meeting of energy ministers yesterday. For “mid-March” Commissioner Kadri Simson again announced the legislative proposal for the reform of the electricity market, which, according to Contexte, could be postponed from March 14 to 16.
The only new, albeit somewhat nebulous, announcement by the energy commissioner is that household customers will be allowed to opt voluntarily for “low-risk supply contracts.” This could mean contracts with terms of more than two years, which are currently prohibited for consumer contracts in many EU countries. Eurelectric, for example, has lobbied for this in order to provide both customers and investors with more security over longer periods.
However, Germany again urged caution in the electricity market reform. “No regret” measures include strengthening long-term contracts and easier opportunities for Contracts for Difference to remunerate renewables, he said. Such CfDs, however, should remain voluntary and favor new rather than existing generation facilities, said Economics State Secretary Sven Giegold. The priority for the Green in the reform of the market design is good investment conditions for renewable energies.
France, on the other hand, is setting a completely different priority – and doing so increasingly successfully. For today, France’s Energy Minister Agnès Pannier-Runacher has scheduled a meeting on nuclear energy, which, according to Contexte, will be attended by representatives of twelve other member states (Romania, Bulgaria, Slovenia, Czech Republic, Sweden, Italy, Slovakia, Poland, Hungary, Croatia, Netherlands, Finland). “We need electricity from nuclear energy if we are to achieve our global and European climate goals,” Pannier-Runacher said yesterday before the start of the Council of Ministers.
European countries need to join forces on nuclear safety, supply chains, research and development, and securing expertise, she said. Elsewhere, she also mentioned waste disposal as an issue. New reactors need to be developed and a level playing field created for the decarbonization of the domestic industry as in the USA, Great Britain, China, South Korea, Japan and India.
What was surprising was the broad alliance of countries that rallied behind France. Earlier this month, Pannier-Runacher had already written a letter to the Commission in which she joined her colleagues from eight other EU countries in supporting hydrogen from nuclear energy. New additions at today’s meeting, along with the Swedish presidency, are Finland, Italy and the Netherlands. Only one European state with nuclear energy is missing from the list: Spain, which under the current government, is strongly backing renewable energies.
Open criticism came from Luxembourg’s Energy Minister Claude Turmes. The Green politician called the meeting on nuclear energy a waste of time. Renewables are cheaper and faster to build, he said. In this sense, Turmes was able to announce a success yesterday. Yesterday, Luxembourg and Finland were the first EU states ever to announce a project for the cross-border expansion of renewable energies – a mechanism from the 2018 Governance Regulation on the Energy Union.
Luxembourg is providing €40 million for the procurement of renewable energy for this purpose. In return, Finland will allow a tender for up to 400 megawatts (MW) of photovoltaics in its territory. The tender will be carried out by the European CINEA agency in the coming weeks. By the end of the year, the Commission hopes to have a second round with other EU countries.
The EU member states will have to resolve the question of whether to extend their voluntary 15 percent gas savings target much sooner. It expires at the end of March. The Commission considers a continuation of gas savings as a “no-regret option.” Not until the next regular Energy Council on March 28 will ministers discuss a proposal to extend the scheme, according to Simson.
Yesterday, Germany already exerted pressure. Giegold was clearly in favor of an extension and even a higher target for gas savings, as the EU had actually reduced its consumption of gas by more than 15 percent. However, much of this was due to mild weather and even at the height of the crisis, individual states such as Poland had spoken out against mandatory savings. Giegold promoted a higher savings target, arguing that it would prevent speculation on the gas market and dampen prices.
The pressure is enormous: Serbia’s President Aleksandar Vučić and Kosovo’s Prime Minister Albin Kurti met in Brussels on Monday for a new round of the so-called Belgrade-Pristina dialogue. This time, the two adversaries were expected not just to talk, but to deliver. On the table: a ten-point plan that both sides should sign by March. After years of stalemate, the EU finally wants concrete steps toward normalization between the two countries and self-government for the Serb minority in Kosovo. The US is also pushing hard.
Before leaving for Brussels, Vučić and Kurti received mail. It came in the form of a joint letter from French President Emmanuel Macron, German Chancellor Olaf Scholz and Italian Prime Minister Giorgia Meloni. This is also a first and is probably intended to signal that the unresolved conflict in the Balkans is now a matter for the bosses. For too long, the member states have looked the other way and left the problem to Brussels. The EU’s foreign affairs representative, Josep Borrell, and his special envoy, Miroslav Lajčák, have so far tried to mediate with little success.
Most recently, tensions between Belgrade and Pristina escalated over the Christmas holidays, triggered by an old dispute over the mutual recognition of license plates. In northern Kosovo, members of the Serb minority set up roadblocks and Belgrade threatened to send in troops. This also startled the international community – it demands an end to escalation every few months. “We believe it is now urgent to conclude the agreement and ensure its implementation,” Macron, Scholz and Meloni wrote in the joint letter.
The original Franco-German plan was inspired by the 1972 Basic Treaty on relations between the then-Federal Republic of Germany and the GDR. Serbia would not have to explicitly recognize Kosovo, but both sides would have to commit themselves to good neighborly relations. Specifically, Belgrade would no longer be allowed to obstruct Kosovo’s accession to international organizations such as the UN or the Council of Europe. Both sides would have to accept each other’s national symbols, as well as passports, diplomas, car license plates or customs stamps.
Even this indirect recognition of Kosovo’s state independence is a big step for the Serbian president. Serbia still considers the province, formerly controlled by Belgrade, to be part of its territory until now. A radicalized opposition warns Vučić of a “betrayal,” a “national disaster.”
But the pressure on Albin Kurti is possibly even greater; he, too, would have to take a leap of faith for a deal. The EU and the US are demanding, more or less ultimately, that the head of government allow an association of ten Serb-populated municipalities with extensive self-government. This is precisely what Albin Kurti explicitly rejected in the elections two years ago. Kurti fears a scenario like that in Bosnia, where the Republika Srpska blocks the state as a whole and constantly threatens to secede. Kosovo’s prime minister, however, has recently signaled flexibility and also put Vučić on the spot.
But why this sudden rush, this pressure? Russia’s war against Ukraine plays a role. The Balkans are Europe’s open flank, which Moscow cleverly uses to stoke latent tensions and put additional pressure on the West. Most recently, Russian mercenaries from the so-called Wagner Group were spotted in southern Serbia on the border with Kosovo. The EU and the US want to close this flank. And this can only be done by normalizing relations between Belgrade and Pristina.
Feb. 28, 2023; 12-2:30 p.m., Brussels (Belgium)
FES, Discussion Entry points for developing a hydrogen foreign policy: How to build partnerships and balance climate protection and geopolitical risks?
The Friedrich-Ebert-Stiftung (FES) discusses the paper Building partnerships for an international hydrogen economy: entry points for European policy action. INFO & REGISTRATION
March 2, 2023; 10:30 a.m.-12:30 p.m., Brussels (Belgium)
ERCST, Roundtable 2023 State of the EU ETS Report
The European Roundtable on Climate Change and Sustainable Transition (ERCST) hosts a meeting with a small group of invited stakeholders and policymakers, which will brainstorm on the presentation of the 2023 State of the EU ETS Report, to be released in April. INFORMATION
March 2, 2023; 2-3 p.m., online
Eurogas, Conference Decarbonising buildings in Europe – Which technologies do we need to reach our climate targets?
Eurogas addresses the question which technologies are needed to reach our climate targets. INFO & REGISTRATION
The Netherlands is the first member state to take a clear position following the presentation of the EU’s Gigabit Infrastructure Initiative. The country rejects a cost-sharing (fair share) of the large technology groups in the network expansion costs. Such a move could violate net neutrality rules and lead to price increases for Europeans, Dutch Economy Minister Micky Adriaansens said in an interview with Reuters news agency.
With the Gigabit Infrastructure Initiative, which Internal Market Commissioner Thierry Breton presented last week, the Commission also launched a consultation. Among other things, it deals with the question of whether big tech should pay for the investments in the costly expansion of fiber-optic and broadband mobile networks (fair share). Telecommunications companies such as Deutsche Telekom, Orange and Telefónica have long been calling for a contribution, because according to them, Google, Alphabet, Apple, Meta, Netflix, Amazon and Microsoft account for more than half of Internet data traffic. The companies addressed, on the other hand, say they are already investing billions in network technology themselves.
Dutch Economy Minister Adriaansens said her government has commissioned a study from economic consulting firm Oxera that shows the drawbacks of such cost-sharing. “We should analyze the problem first and what the normal market reaction is to these challenges.”
Breton sees things differently: “We are seeing immense technological transformations that will significantly impact the business models of all economic actors in the digital space,” the Single Market Commissioner said in a speech at the Mobile World Congress in Barcelona. Today’s networks simply cannot keep up with the massive change that is taking place, he said.
The consultation has been described by many as a battle for fair share between Big Telco and Big Tech, Breton continued. However, he said, it was about “achieving the giant leap for connectivity ahead of us.”The time has come, he said, to seriously discuss the potential existing barriers to cross-border consolidation of electronic communications service providers in the EU, as well as the benefits of an integrated market for radio spectrum.
At Mobile World Congress, Breton, who was once CEO of France Télécom, will meet for bilateral talks with Vodafone CEO Margherita Della Valle, Intel CEO Pat Gelsinger, Telekom CEO Tim Höttges, and Telefónica and Orange CEOs José María Álvarez-Pallete and Christel Heydemann, among others. vis
At the informal meeting of EU transport ministers and their representatives in Stockholm, Michael Theurer (FDP), parliamentary state secretary at the German Federal Ministry for Digital and Transport, reiterated the demand that e-fuels should also be used in passenger cars. In order to achieve the climate goals of the transport sector, he said, it is not enough to prioritize the development of a charging infrastructure for EVs. A refueling infrastructure for hydrogen and its derivatives is also needed, Theurer said at the start of the meeting.
E-fuels are synthetic hydrogen-based fuels that can be produced in a CO2-neutral way by using high levels of energy and adding CO2, which can be captured from the atmosphere and are almost identical to conventional fuel.
Theurer expects the Commission to make its own legislative proposal on how cars with internal combustion engines that can run exclusively on e-fuels can continue to be registered. In this regard, he referred to recital 9a of the trilogue agreement on passenger car fleet limits. In this, the lawmakers call on the Commission to make a proposal on how internal combustion vehicles can still be registered after 2035, provided they are operated exclusively with CO2-neutral fuels. This is also still the position of the German government, Theurer emphasized.
However, the Commission is not obliged to comply with this requirement, as it alone has the right of initiative to make new legislative proposals. Climate Commissioner Frans Timmermans has already stated several times that he will not revise the 2035 phase-out of internal combustion vehicles.
In addition, said Recital 9a also states that this proposal would only apply to vehicles not covered by the CO2 fleet target regulations. How this is to be interpreted and whether only certain commercial vehicles are meant or also the existing passenger car fleet is still disputed in both Federal Government and EU circles.
Addressing the new Euro standard for passenger cars and vans, Theurer said in Stockholm on Monday that the German government does not yet have a common position on Euro 7. While Berlin supports ambitious targets for the new standard, technical details still need to be discussed, especially emissions testing in real-world driving and its specifications. This is being worked on, according to Theurer. luk
President Emmanuel Macron unveiled France’s new political and military strategy for Africa on Monday evening. “Africa is our partner,” the French leader said. Macron, who will be on the road in Central Africa from Wednesday, followed up directly on his 2017 Ouagadougou speech with this statement when he said “Françafrique” was a thing of the past. In France, the buzzword “Françafrique” refers to neocolonial interference by the French state in the internal affairs of African states.
However, while Macron in 2017 addressed mainly African youth, his discourse yesterday was a concrete response to the economic and military influence of China and Russia on the continent. While he did not name either country, he criticized the “financial and military rapacity” (prédation) of some states. In return, he said, France is committed to a “partnership of equals.” Macron announced concrete measures:
The French president emphasized surprisingly openly that France pursues its own interests in African states, such as values like democracy and freedom. However, Paris would not impose its values but would rely on dialogue. Again and again, however, Macron used the word “transaction” to describe future relations between France and Africa – quite as if he wanted to bring “dialogue” primarily to an economic level. This also fitted in with his call to French companies to take the continent seriously as a “place of competition.”
On Wednesday, Macron will travel to Gabon, Angola, the Democratic Republic of Congo and Congo-Brazzaville. In Gabon, he will take part in a meeting on the preservation of the forests of the Congo Basin. However, the fight against climate change did not take a central place in Macron’s speech yesterday. cw
The Center for European Policy (CEP) sees consumer rights strengthened in the Commission’s proposal on liability for defective products but warns of legal uncertainty and vagueness in the details. “Particularly with regard to software, the Commission’s proposal strengthens legal certainty, as software is now to be regarded as a product throughout the EU,” says CEP economist Marco Mazzone, who analyzed the draft together with lawyer Lukas Harta (in German). However, core concepts relating to the rules on the duty of disclosure and the burden of proof are not sufficiently precise, which in turn leads to legal uncertainty.
In September 2022, Justice Commissioner Didier Reynders presented the revision of the Product Liability Directive. The background to this is that the existing directive from 1985 is to be adapted to current requirements of digitalization and the circular economy, for example, with regard to software. On March 2, the parliamentarians in the Legal Affairs Committee (JURI) and Internal Market Committee (IMCO) will discuss the Commission’s proposal.
Mazzone considers it appropriate that damage caused by updates, for example, should be subject to liability. The CEP expert also welcomes the fact that the deductible of €500 is to be dropped. However, his colleague Harta does not see core terms defined with sufficient precision in the prerequisites for the disclosure obligation and the reversal of the burden of proof. “Defendants are supposed to present evidence in court. Something like this already exists, but in the proposed form it does not leave the member states enough freedom to find an implementation that fits their legal system perfectly,” criticizes Harta.
Harta also criticizes the proposal that companies should provide updates for software products for up to ten years. The Cyber Resilience Act only provides for five years. “We advocate uniform regulations. Anything else leads to confusion,” says the CEP expert. vis
A few weeks ago, Thorsten Herdan celebrated in Chile. The occasion: the “Haru Oni” industrial plant, which produces climate-neutral fuel, produced its first liters of e-fuels. “It was very impressive,” Herdan says of HIF Global’s plant. To produce it, the plant uses electricity from a wind turbine, along with water and CO2. “These are still homeopathic quantities,” Herdan admits. The 56-year-old is head of HIF EMEA, HIF’s subsidiary for Europe, the Middle East and Africa – based in Berlin. The pilot plant, whose construction was funded by the German Federal Ministry of Economics and Technology, produces about one tanker of e-fuels per month. Herdan believes that this should quickly increase. His job is to make sure that happens.
Another current task: the search for additional customers. The first customer for the “renewable hydrocarbons,” as he calls the climate-neutral fuel, has already been identified: Porsche AG. The carmaker has a stake in the parent company HIF. But Herdan also has other industries in mind, whether shipping, aviation or agriculture: “That’s currently one of the biggest challenges: finding customers and convincing them to give us long-term purchase agreements.” The long-term is important in order to be able to scale the business, he says.
Herdan himself has long been involved with energy and engines. A mechanical engineer by training, he moved from the German Engineering Federation (VDMA) to the German Federal Ministry of Economics in 2014. There, he headed the Energy Policy Department and played a leading role in developing the national hydrogen strategy. Last year, Herdan then became managing director at the e-fuels company HIF EMEA. For him, it’s the perfect job: “I’m driven to build something new.” For Herdan and his eight colleagues, there is a lot to build. Not only is the team soon to double in size, but above all, there are many new plants in the pipeline.
“Stage one includes 300 megawatts. That’s where we’re planning commercial operation for the end of 2026.” Subsequent expansion stages are expected to be much larger. He cannot yet say when or where he will open the first plant in Europe. “I believe we will build the first plants in the Middle East or Africa,” he says. Taking the circuitous route of converting it to hydrocarbons makes sense, he says, especially when there is no electricity or hydrogen pipeline nearby. “That’s where the European market doesn’t offer as much.” He is quick to add that he could envision a lot in the offshore sector in the medium term.
The e-fuels, which will soon be available in somewhat larger quantities, are particularly interesting for sectors in which the switch to electric drives is not yet in sight. The fact that the discussion about e-fuels in recent weeks and months has focused primarily on passenger cars therefore annoys him. “That’s a brutal narrowing of the debate,” Herdan says, “because it suggests that only passenger cars have combustion engines.” He doesn’t see e-cars as adversaries but thinks, “with the climate disaster on the horizon, we have to use all options.” Paul Meerkamp
The EU breathes a sigh of relief. The long-awaited agreement on the Northern Ireland Protocol was reached on Monday. According to the agreement, Great Britain will be able to ship goods to Northern Ireland more easily in the future. A label called “Not for EU” will also help –Till Hoppe reports that the label is intended to prevent goods from being shipped to Ireland without permission. But British Prime Minister Sunak still has to secure approval for the agreement.
Quarrel, quarrel and more quarrel: This sums up Serbian-Kosovar relations in recent years. Now, however, there is hope for an end to the ice age. The heads of government of both countries are expected to sign a ten-point plan by March. The EU is increasing the pressure, reports Stephan Israel.
At the energy ministers’ meeting in Stockholm, France wins new supporters for its nuclear initiatives. Germany wants to commit EU members to a higher gas savings target. And Luxembourg and Finland are pioneering the expansion of renewables. Read more in Manuel Berkel‘s Feature.
If you enjoy Europe.Table, please feel free to forward our briefing. If this mail was sent to you: Here you can try our briefing for free.
The reception of Ursula von der Leyen by King Charles once again stirred up the hardliners in London and Belfast on Monday – they sensed an undue politicization of the monarchy. But the excitement no longer prevented the deal between the EU Commission president and British Prime Minister Rishi Sunak, which had been in the offing for some time. In the afternoon, both announced that they had agreed on new rules for trade with Northern Ireland and spoke in unison of a “new chapter” in relations between the two sides.
The provisional political agreement aims to facilitate the import of goods from the UK into Northern Ireland – without opening a gateway into the EU single market. Then-Prime Minister Boris Johnson had agreed to keep Northern Ireland in the EU’s single market as part of the 2019 Brexit deal. This was to avoid a hard land border between the Republic of Ireland and Northern Ireland, which could have led to new outbreaks of violence on the island.
To prevent that, Johnson accepted in the Northern Ireland Protocol that British goods would be inspected at Northern Ireland ports on import. But the customs border within the United Kingdom was a thorn in the flesh of unionists in Northern Ireland and Brexit hardliners among the ruling Tories. Johnson escalated the conflict with the EU last June and introduced a bill in Parliament that would have undermined the current agreement.
His successor Sunak, on the other hand, made efforts after taking office to defuse the dispute in cooperation with the EU Commission, thus ending a political crisis in Northern Ireland at the same time. Von der Leyen praised the “very constructive attitude” right from the start.
However, Sunak must now sell the deal within his party and within the Northern Ireland Democratic Unionist Party. DUP leader Jeffrey Donaldson said “significant progress has been secured across a number of areas” but that there remain important issues. He said his party would now look at the agreement in detail.
To this end, the Northern Ireland Protocol is being absorbed into a new “Windsor Framework.” This allows both sides to highlight their successes. Sunak can argue to the hardliners that he has achieved substantial changes to the unloved protocol: “We have removed any sense of a border in the Irish Sea,” he said. Von der Leyen and her deputy in charge of the negotiations, Maroš Šefčovič, can point out that the Northern Ireland Protocol, as an integral part of the EU withdrawal agreement, will not be unraveled, and the integrity of the single market will be preserved.
This is what the agreement provides for:
The agreement is being greeted with relief in Brussels: “The compromise reached is pragmatic on the whole and offers cause for hope that the latent permanent debate can now finally be settled,” said David McAllister, co-chairman of the European Parliament’s contact group on the United Kingdom.
There is also hope in the industry: Reliable conditions for trade are a “basic prerequisite for both European and British industry to develop economic relations positively even after Brexit,” said Holger Kunze, head of the Brussels office of the mechanical engineering association VDMA. DIHK foreign trade chief Volker Treier said agreement on the protocol was “urgently needed to stop the negative trend in British business for the German economy.”
The topic on which the highest expectations of the energy industry are currently focused in the EU played only a minor role at the informal meeting of energy ministers yesterday. For “mid-March” Commissioner Kadri Simson again announced the legislative proposal for the reform of the electricity market, which, according to Contexte, could be postponed from March 14 to 16.
The only new, albeit somewhat nebulous, announcement by the energy commissioner is that household customers will be allowed to opt voluntarily for “low-risk supply contracts.” This could mean contracts with terms of more than two years, which are currently prohibited for consumer contracts in many EU countries. Eurelectric, for example, has lobbied for this in order to provide both customers and investors with more security over longer periods.
However, Germany again urged caution in the electricity market reform. “No regret” measures include strengthening long-term contracts and easier opportunities for Contracts for Difference to remunerate renewables, he said. Such CfDs, however, should remain voluntary and favor new rather than existing generation facilities, said Economics State Secretary Sven Giegold. The priority for the Green in the reform of the market design is good investment conditions for renewable energies.
France, on the other hand, is setting a completely different priority – and doing so increasingly successfully. For today, France’s Energy Minister Agnès Pannier-Runacher has scheduled a meeting on nuclear energy, which, according to Contexte, will be attended by representatives of twelve other member states (Romania, Bulgaria, Slovenia, Czech Republic, Sweden, Italy, Slovakia, Poland, Hungary, Croatia, Netherlands, Finland). “We need electricity from nuclear energy if we are to achieve our global and European climate goals,” Pannier-Runacher said yesterday before the start of the Council of Ministers.
European countries need to join forces on nuclear safety, supply chains, research and development, and securing expertise, she said. Elsewhere, she also mentioned waste disposal as an issue. New reactors need to be developed and a level playing field created for the decarbonization of the domestic industry as in the USA, Great Britain, China, South Korea, Japan and India.
What was surprising was the broad alliance of countries that rallied behind France. Earlier this month, Pannier-Runacher had already written a letter to the Commission in which she joined her colleagues from eight other EU countries in supporting hydrogen from nuclear energy. New additions at today’s meeting, along with the Swedish presidency, are Finland, Italy and the Netherlands. Only one European state with nuclear energy is missing from the list: Spain, which under the current government, is strongly backing renewable energies.
Open criticism came from Luxembourg’s Energy Minister Claude Turmes. The Green politician called the meeting on nuclear energy a waste of time. Renewables are cheaper and faster to build, he said. In this sense, Turmes was able to announce a success yesterday. Yesterday, Luxembourg and Finland were the first EU states ever to announce a project for the cross-border expansion of renewable energies – a mechanism from the 2018 Governance Regulation on the Energy Union.
Luxembourg is providing €40 million for the procurement of renewable energy for this purpose. In return, Finland will allow a tender for up to 400 megawatts (MW) of photovoltaics in its territory. The tender will be carried out by the European CINEA agency in the coming weeks. By the end of the year, the Commission hopes to have a second round with other EU countries.
The EU member states will have to resolve the question of whether to extend their voluntary 15 percent gas savings target much sooner. It expires at the end of March. The Commission considers a continuation of gas savings as a “no-regret option.” Not until the next regular Energy Council on March 28 will ministers discuss a proposal to extend the scheme, according to Simson.
Yesterday, Germany already exerted pressure. Giegold was clearly in favor of an extension and even a higher target for gas savings, as the EU had actually reduced its consumption of gas by more than 15 percent. However, much of this was due to mild weather and even at the height of the crisis, individual states such as Poland had spoken out against mandatory savings. Giegold promoted a higher savings target, arguing that it would prevent speculation on the gas market and dampen prices.
The pressure is enormous: Serbia’s President Aleksandar Vučić and Kosovo’s Prime Minister Albin Kurti met in Brussels on Monday for a new round of the so-called Belgrade-Pristina dialogue. This time, the two adversaries were expected not just to talk, but to deliver. On the table: a ten-point plan that both sides should sign by March. After years of stalemate, the EU finally wants concrete steps toward normalization between the two countries and self-government for the Serb minority in Kosovo. The US is also pushing hard.
Before leaving for Brussels, Vučić and Kurti received mail. It came in the form of a joint letter from French President Emmanuel Macron, German Chancellor Olaf Scholz and Italian Prime Minister Giorgia Meloni. This is also a first and is probably intended to signal that the unresolved conflict in the Balkans is now a matter for the bosses. For too long, the member states have looked the other way and left the problem to Brussels. The EU’s foreign affairs representative, Josep Borrell, and his special envoy, Miroslav Lajčák, have so far tried to mediate with little success.
Most recently, tensions between Belgrade and Pristina escalated over the Christmas holidays, triggered by an old dispute over the mutual recognition of license plates. In northern Kosovo, members of the Serb minority set up roadblocks and Belgrade threatened to send in troops. This also startled the international community – it demands an end to escalation every few months. “We believe it is now urgent to conclude the agreement and ensure its implementation,” Macron, Scholz and Meloni wrote in the joint letter.
The original Franco-German plan was inspired by the 1972 Basic Treaty on relations between the then-Federal Republic of Germany and the GDR. Serbia would not have to explicitly recognize Kosovo, but both sides would have to commit themselves to good neighborly relations. Specifically, Belgrade would no longer be allowed to obstruct Kosovo’s accession to international organizations such as the UN or the Council of Europe. Both sides would have to accept each other’s national symbols, as well as passports, diplomas, car license plates or customs stamps.
Even this indirect recognition of Kosovo’s state independence is a big step for the Serbian president. Serbia still considers the province, formerly controlled by Belgrade, to be part of its territory until now. A radicalized opposition warns Vučić of a “betrayal,” a “national disaster.”
But the pressure on Albin Kurti is possibly even greater; he, too, would have to take a leap of faith for a deal. The EU and the US are demanding, more or less ultimately, that the head of government allow an association of ten Serb-populated municipalities with extensive self-government. This is precisely what Albin Kurti explicitly rejected in the elections two years ago. Kurti fears a scenario like that in Bosnia, where the Republika Srpska blocks the state as a whole and constantly threatens to secede. Kosovo’s prime minister, however, has recently signaled flexibility and also put Vučić on the spot.
But why this sudden rush, this pressure? Russia’s war against Ukraine plays a role. The Balkans are Europe’s open flank, which Moscow cleverly uses to stoke latent tensions and put additional pressure on the West. Most recently, Russian mercenaries from the so-called Wagner Group were spotted in southern Serbia on the border with Kosovo. The EU and the US want to close this flank. And this can only be done by normalizing relations between Belgrade and Pristina.
Feb. 28, 2023; 12-2:30 p.m., Brussels (Belgium)
FES, Discussion Entry points for developing a hydrogen foreign policy: How to build partnerships and balance climate protection and geopolitical risks?
The Friedrich-Ebert-Stiftung (FES) discusses the paper Building partnerships for an international hydrogen economy: entry points for European policy action. INFO & REGISTRATION
March 2, 2023; 10:30 a.m.-12:30 p.m., Brussels (Belgium)
ERCST, Roundtable 2023 State of the EU ETS Report
The European Roundtable on Climate Change and Sustainable Transition (ERCST) hosts a meeting with a small group of invited stakeholders and policymakers, which will brainstorm on the presentation of the 2023 State of the EU ETS Report, to be released in April. INFORMATION
March 2, 2023; 2-3 p.m., online
Eurogas, Conference Decarbonising buildings in Europe – Which technologies do we need to reach our climate targets?
Eurogas addresses the question which technologies are needed to reach our climate targets. INFO & REGISTRATION
The Netherlands is the first member state to take a clear position following the presentation of the EU’s Gigabit Infrastructure Initiative. The country rejects a cost-sharing (fair share) of the large technology groups in the network expansion costs. Such a move could violate net neutrality rules and lead to price increases for Europeans, Dutch Economy Minister Micky Adriaansens said in an interview with Reuters news agency.
With the Gigabit Infrastructure Initiative, which Internal Market Commissioner Thierry Breton presented last week, the Commission also launched a consultation. Among other things, it deals with the question of whether big tech should pay for the investments in the costly expansion of fiber-optic and broadband mobile networks (fair share). Telecommunications companies such as Deutsche Telekom, Orange and Telefónica have long been calling for a contribution, because according to them, Google, Alphabet, Apple, Meta, Netflix, Amazon and Microsoft account for more than half of Internet data traffic. The companies addressed, on the other hand, say they are already investing billions in network technology themselves.
Dutch Economy Minister Adriaansens said her government has commissioned a study from economic consulting firm Oxera that shows the drawbacks of such cost-sharing. “We should analyze the problem first and what the normal market reaction is to these challenges.”
Breton sees things differently: “We are seeing immense technological transformations that will significantly impact the business models of all economic actors in the digital space,” the Single Market Commissioner said in a speech at the Mobile World Congress in Barcelona. Today’s networks simply cannot keep up with the massive change that is taking place, he said.
The consultation has been described by many as a battle for fair share between Big Telco and Big Tech, Breton continued. However, he said, it was about “achieving the giant leap for connectivity ahead of us.”The time has come, he said, to seriously discuss the potential existing barriers to cross-border consolidation of electronic communications service providers in the EU, as well as the benefits of an integrated market for radio spectrum.
At Mobile World Congress, Breton, who was once CEO of France Télécom, will meet for bilateral talks with Vodafone CEO Margherita Della Valle, Intel CEO Pat Gelsinger, Telekom CEO Tim Höttges, and Telefónica and Orange CEOs José María Álvarez-Pallete and Christel Heydemann, among others. vis
At the informal meeting of EU transport ministers and their representatives in Stockholm, Michael Theurer (FDP), parliamentary state secretary at the German Federal Ministry for Digital and Transport, reiterated the demand that e-fuels should also be used in passenger cars. In order to achieve the climate goals of the transport sector, he said, it is not enough to prioritize the development of a charging infrastructure for EVs. A refueling infrastructure for hydrogen and its derivatives is also needed, Theurer said at the start of the meeting.
E-fuels are synthetic hydrogen-based fuels that can be produced in a CO2-neutral way by using high levels of energy and adding CO2, which can be captured from the atmosphere and are almost identical to conventional fuel.
Theurer expects the Commission to make its own legislative proposal on how cars with internal combustion engines that can run exclusively on e-fuels can continue to be registered. In this regard, he referred to recital 9a of the trilogue agreement on passenger car fleet limits. In this, the lawmakers call on the Commission to make a proposal on how internal combustion vehicles can still be registered after 2035, provided they are operated exclusively with CO2-neutral fuels. This is also still the position of the German government, Theurer emphasized.
However, the Commission is not obliged to comply with this requirement, as it alone has the right of initiative to make new legislative proposals. Climate Commissioner Frans Timmermans has already stated several times that he will not revise the 2035 phase-out of internal combustion vehicles.
In addition, said Recital 9a also states that this proposal would only apply to vehicles not covered by the CO2 fleet target regulations. How this is to be interpreted and whether only certain commercial vehicles are meant or also the existing passenger car fleet is still disputed in both Federal Government and EU circles.
Addressing the new Euro standard for passenger cars and vans, Theurer said in Stockholm on Monday that the German government does not yet have a common position on Euro 7. While Berlin supports ambitious targets for the new standard, technical details still need to be discussed, especially emissions testing in real-world driving and its specifications. This is being worked on, according to Theurer. luk
President Emmanuel Macron unveiled France’s new political and military strategy for Africa on Monday evening. “Africa is our partner,” the French leader said. Macron, who will be on the road in Central Africa from Wednesday, followed up directly on his 2017 Ouagadougou speech with this statement when he said “Françafrique” was a thing of the past. In France, the buzzword “Françafrique” refers to neocolonial interference by the French state in the internal affairs of African states.
However, while Macron in 2017 addressed mainly African youth, his discourse yesterday was a concrete response to the economic and military influence of China and Russia on the continent. While he did not name either country, he criticized the “financial and military rapacity” (prédation) of some states. In return, he said, France is committed to a “partnership of equals.” Macron announced concrete measures:
The French president emphasized surprisingly openly that France pursues its own interests in African states, such as values like democracy and freedom. However, Paris would not impose its values but would rely on dialogue. Again and again, however, Macron used the word “transaction” to describe future relations between France and Africa – quite as if he wanted to bring “dialogue” primarily to an economic level. This also fitted in with his call to French companies to take the continent seriously as a “place of competition.”
On Wednesday, Macron will travel to Gabon, Angola, the Democratic Republic of Congo and Congo-Brazzaville. In Gabon, he will take part in a meeting on the preservation of the forests of the Congo Basin. However, the fight against climate change did not take a central place in Macron’s speech yesterday. cw
The Center for European Policy (CEP) sees consumer rights strengthened in the Commission’s proposal on liability for defective products but warns of legal uncertainty and vagueness in the details. “Particularly with regard to software, the Commission’s proposal strengthens legal certainty, as software is now to be regarded as a product throughout the EU,” says CEP economist Marco Mazzone, who analyzed the draft together with lawyer Lukas Harta (in German). However, core concepts relating to the rules on the duty of disclosure and the burden of proof are not sufficiently precise, which in turn leads to legal uncertainty.
In September 2022, Justice Commissioner Didier Reynders presented the revision of the Product Liability Directive. The background to this is that the existing directive from 1985 is to be adapted to current requirements of digitalization and the circular economy, for example, with regard to software. On March 2, the parliamentarians in the Legal Affairs Committee (JURI) and Internal Market Committee (IMCO) will discuss the Commission’s proposal.
Mazzone considers it appropriate that damage caused by updates, for example, should be subject to liability. The CEP expert also welcomes the fact that the deductible of €500 is to be dropped. However, his colleague Harta does not see core terms defined with sufficient precision in the prerequisites for the disclosure obligation and the reversal of the burden of proof. “Defendants are supposed to present evidence in court. Something like this already exists, but in the proposed form it does not leave the member states enough freedom to find an implementation that fits their legal system perfectly,” criticizes Harta.
Harta also criticizes the proposal that companies should provide updates for software products for up to ten years. The Cyber Resilience Act only provides for five years. “We advocate uniform regulations. Anything else leads to confusion,” says the CEP expert. vis
A few weeks ago, Thorsten Herdan celebrated in Chile. The occasion: the “Haru Oni” industrial plant, which produces climate-neutral fuel, produced its first liters of e-fuels. “It was very impressive,” Herdan says of HIF Global’s plant. To produce it, the plant uses electricity from a wind turbine, along with water and CO2. “These are still homeopathic quantities,” Herdan admits. The 56-year-old is head of HIF EMEA, HIF’s subsidiary for Europe, the Middle East and Africa – based in Berlin. The pilot plant, whose construction was funded by the German Federal Ministry of Economics and Technology, produces about one tanker of e-fuels per month. Herdan believes that this should quickly increase. His job is to make sure that happens.
Another current task: the search for additional customers. The first customer for the “renewable hydrocarbons,” as he calls the climate-neutral fuel, has already been identified: Porsche AG. The carmaker has a stake in the parent company HIF. But Herdan also has other industries in mind, whether shipping, aviation or agriculture: “That’s currently one of the biggest challenges: finding customers and convincing them to give us long-term purchase agreements.” The long-term is important in order to be able to scale the business, he says.
Herdan himself has long been involved with energy and engines. A mechanical engineer by training, he moved from the German Engineering Federation (VDMA) to the German Federal Ministry of Economics in 2014. There, he headed the Energy Policy Department and played a leading role in developing the national hydrogen strategy. Last year, Herdan then became managing director at the e-fuels company HIF EMEA. For him, it’s the perfect job: “I’m driven to build something new.” For Herdan and his eight colleagues, there is a lot to build. Not only is the team soon to double in size, but above all, there are many new plants in the pipeline.
“Stage one includes 300 megawatts. That’s where we’re planning commercial operation for the end of 2026.” Subsequent expansion stages are expected to be much larger. He cannot yet say when or where he will open the first plant in Europe. “I believe we will build the first plants in the Middle East or Africa,” he says. Taking the circuitous route of converting it to hydrocarbons makes sense, he says, especially when there is no electricity or hydrogen pipeline nearby. “That’s where the European market doesn’t offer as much.” He is quick to add that he could envision a lot in the offshore sector in the medium term.
The e-fuels, which will soon be available in somewhat larger quantities, are particularly interesting for sectors in which the switch to electric drives is not yet in sight. The fact that the discussion about e-fuels in recent weeks and months has focused primarily on passenger cars therefore annoys him. “That’s a brutal narrowing of the debate,” Herdan says, “because it suggests that only passenger cars have combustion engines.” He doesn’t see e-cars as adversaries but thinks, “with the climate disaster on the horizon, we have to use all options.” Paul Meerkamp