Power savings target missed + Travelers from China + Meta fears for advertising revenues

Dear reader,

The recommendation on how to deal with China trips that had been awaited for days was announced last night. After a meeting of the EU Integrated Political Crisis Response (IPCR), it was said that EU member states are “strongly encouraged” to introduce the requirement of a negative Covid test for all travelers before departure. Amelie Richter knows which issues will be important regarding China this year.

Coal and gas-fired power plants had a hard time in 2022, and this year coal-fired power generation in Germany could continue to rise briskly. Lower electricity consumption would therefore not only improve Germany’s climate balance, but also lower prices and save scarce gas. But Germany has so far failed to meet an electricity savings target from an emergency EU regulation that has been in effect since November, as you can read in my Feature.

Some in the EU Parliament would also like to see more resolute climate action. Commission Vice President Frans Timmermans is overburdened with his dual responsibility for the Green Deal and international climate negotiations, they say. Lukas Scheid investigated the question of whether the EU needs a European John Kerry.

Big money is at stake in new details about a decision by European data protection regulators. Tech giant Meta must fear a massive loss of advertising revenue. Falk Steiner wrote down the details in the News.

How the EU holds its own in global competition is one of Johannes Lindner‘s topics. He has been co-director of the Jacques Delors Centre at the Hertie School in Berlin since October 2022. Read in today’s Heads what challenges he sees ahead for the EU.

Your
Manuel Berkel

Germany misses electricity savings target

By

Manuel Berkel

Since November, electricity consumption in the EU states should have fallen by ten percent. In fact, electricity demand in Germany fell by only 7.6 percent in November and 4.4 percent in December. This was calculated by Europe.Table based on data from the Federal Network Agency.

At the end of September, the EU’s energy ministers agreed on two targets for saving electricity in an emergency decree. Firstly, they wanted to voluntarily reduce electricity consumption by ten percent by the end of 2023. The benchmark in each case is the average monthly consumption from the five previous years. The goal is “lower electricity demand and thus lower energy prices,” according to the agreement. In addition, the decision is intended to help reduce the consumption of scarce natural gas in power generation.

Von der Leyen urges security of supply

ENTSO-E, the European network operators’ association, had confirmed in the fall that risks to security of supply and critical gas demand for power plants “could be significantly reduced if a European average of 10 percent of electricity consumption were saved.”

Earlier, Commission President Ursula von der Leyen had also justified the political move on the grounds of security of supply. “If we reduce demand at peak times, supplies will last longer and this will lower prices,” von der Leyen said in her State of the European Union address to the EU Parliament.

Ministry for Economic Affairs silent on savings targets

It is precisely this demand at peak times that is the subject of the second savings target, which, unlike the first, is not indicative but mandatory. From December 2022 to March of this year, the EU member states must reduce electricity consumption by five percent during peak periods. The national governments have room for maneuver, especially when it comes to defining the peak periods. The decisive factor can be demand, but also the electricity price on the day-ahead market.

Europe.Table asked the German Federal Ministry for Economics Affairs and the German Federal Network Agency (BNetzA) whether the peak hours in Germany had already been defined and whether the EU target had been reached in December. Both press offices left Tuesday’s inquiry unanswered until Wednesday evening. Robert Habeck’s office was also silent on the question of whether the German government was planning additional measures to reduce overall electricity consumption by ten percent.

Gas-fired power plants produce more electricity

Instead, the BNetzA circulated a press release on the 2022 electricity market data, with one finding: “Compared to the previous year, generation by natural gas was 1.7 percent higher.” There was no word on the electricity savings targets, which are aimed in particular at gas-fired power plants. However, gas prices are already falling further because of the mild weather. Yesterday, they were quoted at under €65 per megawatt hour for the front month, the lowest level since November 2021.

The Ministry obviously does not give priority to saving electricity. The Federal Ministry for Economics Affairs’ “Energy Switch” campaign does provide tips on LED lamps and energy-saving electrical appliances.

Monitoring weaker than for gas supply

In contrast to the gas supply, however, there is no close-meshed reporting from the Federal Network Agency (BNetzA) for the electricity sector as to whether the politically agreed energy-saving targets are actually being achieved. Shortly before Christmas, DIE ZEIT asked the president of the BNetzA, Klaus Müller, whether he did not have to call on people to save electricity much more or whether several appeals to save at once were overburdening people.

Müller responded, “I’ve always learned to keep it simple. The most important thing we have to manage now is to avoid a gas shortage.” Because of the sharp rise in prices, most people would automatically pay attention to their electricity consumption in 2023. Already over the course of the past year, however, utilities have increased their electricity prices by 31 percent, according to comparison portal Verivox.

Smart grid does not make headway

One reason for the silence could be that the Ministry for Economic Affairs lacks the appropriate tools to reduce peak consumption in particular. A regulation that compensates industrial companies for switching off loads expired in June and was not renewed. Households have been waiting for years for smart meters that automatically run household appliances when demand is low.

The ministry had not announced a draft amendment to the Metering Point Operation Act to accelerate the rollout until early 2023. By the time it is passed, the EU Emergency Ordinance will probably have expired.

Does the EU need a Climate Czar?

By

Lukas Knigge

“We need a European John Kerry,” said Peter Liese, environmental spokesman for the EPP, after the end of COP27. Frans Timmermans is overburdened in his role as climate commissioner because he is responsible for both EU legislation and international climate policy, according to Liese. In Sharm el-Sheikh, he said, the bridges were built by others, meaning US climate envoy John Kerry and his Chinese counterpart Xie Zhenhua. Timmermans had no time for any diplomatic COP preparations because he was busy with EU legislation, the MEP accuses him.

In Sharm el-Sheikh, the EU failed to push through its demands for more climate protection through global emissions reductions. Above all, it lacked backing in the global South. An EU climate czar could build and maintain long-term alliances with island states and smaller developing countries on a full-time basis. Michael Bloss, a Green MEP in the EU Parliament, said such climate partnerships are the solution for higher international climate targets.

Call for European climate foreign policy

This opens the debate on an “EU Climate Czar.” But there are difficult questions of detail:

Where would an EU climate envoy be located? The member states are responsible for foreign policy and, thus, also for external climate policy. The EU representative for foreign affairs is appointed by the Council, so an EU climate envoy would also tend to be based there rather than at the Commission. It would also be conceivable that an EU foreign affairs representative would also be climate chief negotiator. On the other hand, only the Commission has the right of initiative for new laws. So a Council climate envoy would have to go through the Commission for important decisions anyway.
What powers and resources would an EU climate envoy have? EU Climate Envoy Marc Vanheukelen lacks standing and resources. Jennifer Morgan, the German government’s climate envoy and state secretary at the German Foreign Office, could be a role model. She has significantly more resources and personnel at her disposal than Vanheukelen.
A climate envoy also needs access to funding and the ability to decide on cooperative ventures, as is the case in the United States and China. Foreign climate policy would then no longer be national, but European. Only then would a European climate commissioner be effective, says Artur Runge-Metzger, long-time director of the Directorate General for Climate Action (DG Clima).
However, the lack of a common line and coordination among the member states in external climate policy stands in the way. An EU climate envoy would only help if the different ideas of the EU member states were bundled, says Runge-Metzger.

An EU climate czar is not a new demand. After the failed COP in Copenhagen, there had been talks that the first EU High Representative for Foreign Affairs, Catherine Ashton, would also be responsible for foreign climate policy, says Runge-Metzger. But the new Commission structure created the position of EU climate commissioner. The debate flared up briefly under Jean-Claude Juncker but was quickly put to rest, Runge-Metzger says.

Timmermans rejects criticism

The climate commissioner himself sees no need for a new position. He is responsible for implementing EU legislation as well as promoting international climate protection measures, according to his office. Separating the two roles would be counterproductive. Runge-Metzger agrees. In international negotiations, Timmermans would benefit from his practical experience with the Green Deal.

A climate commissioner appointed during this legislative term is considered unrealistic anyway. However, the debate could come up again for the 2024 European elections – especially in the EU Parliament. There, the EPP had already achieved a majority in the Development Committee in September last year for the creation of a budget for an EU climate envoy.

Potential names for the position

In terms of profile, a climate envoy should already have experience in climate negotiations, know the structures of climate conferences and have a certain standing in the scene, says Liese.

Spain’s Socialist Environment Minister Teresa Ribera would be one such candidate. But whether she would give up her office in Madrid for a post in the Commission that is only safe until the next European elections in spring 2024 is questionable.
For Germany, Jochen Flasbarth would be the most obvious candidate. The State Secretary in the Development Ministry previously held the same post for eight years in the Environment Ministry, which was responsible for climate negotiations at the time. He is one of the most renowned climate negotiators in the world. He helped negotiate the Paris Agreement, so he has the necessary network and plenty of experience in international climate diplomacy. His shortcoming: He is German, and Germany is one of the most ambitious countries in the EU in terms of climate policy. Less ambitious countries are likely to have their difficulties with a German as their top climate diplomat. They fear that he might pay less attention to their interests than to those of Germany.
The Czech Jan Dusík would therefore be more suitable. The Czech Republic’s deputy environment minister was the head of the Czech presidency’s delegation in Sharm el-Sheikh and, after Timmermans, Europe’s most important representative at COP27. The eastern European EU states could probably agree on him.
Terhi Lehtonen, state secretary at the Finnish Environment Ministry, would also be a suitable EU climate envoy. She was political advisor for environmental policy in the EU Parliament for 14 years and later responsible for international negotiations in DG Clima. However, Dusík and Lehtonen are with the Greens and, thus, more difficult to get through to conservative forces in Brussels and Strasbourg.
That leaves Dan Jørgensen, Danish minister for climate and development. The former MEP has made a name for himself as vice chairman of the EU Environment Committee. He is considered a progressive climate activist. His English-language podcast on climate issues is a testament to his communication skills. He is also a social democrat.

EU recommends mandatory testing for travelers from China

By

Amelie Richter

Anyone entering the EU from China as of Sunday will have to present a negative Covid test in some member states, even before boarding the plane. This applies to France and Italy, for example. Germany has not yet announced any mandatory testing for passengers from the People’s Republic. After a Wednesday meeting of the EU crisis response team (IPCR) in Brussels regarding the Covid situation, a report was released stating that EU member states are “strongly encouraged” to introduce mandatory pre-boarding Covid testing for all travelers.

A majority of EU states have spoken out in favor of a uniform mandatory testing requirement, an EU Commission spokesman said on Wednesday afternoon before the IPCR meeting. The Chinese Foreign Ministry already announced retaliatory measures should the EU introduce mandatory testing. Whether it will be introduced is now up to the individual EU states. The crisis team also recommended random testing of arriving travelers and wearing FFP2 masks on flights from the People’s Republic.

Much depends on what impact China’s opening up will have on the EU in the coming weeks. If travel resumes smoothly, then EU-China relations will also begin to improve in 2023. However, it is not yet clear what impact China’s rapid change of course will have in practice.

Movement at WTO, BRI – and maybe even the CAI

However, several important outstanding developments and issues, both new and old, will impact the relationship between Brussels and Beijing. An overview:

Change of direction: The Czech Republic will elect a new president in January. Incumbent Miloš Zeman is considered close to China and is not up for re-election. Consequently, there will almost certainly be an even stronger departure from Beijing in Prague than previously (China.Table reported). A withdrawal from the 14+1 cooperation format between Eastern and Central European states and China is not ruled out. There are several candidates to succeed Zeman. One of them: ex-Prime Minister Andrej Babiš, who is rather skeptical of Beijing.

Italy’s decision on the Belt and Road Initiative (BRI) will also be interesting in 2023. The right-wing populist Prime Minister Giorgia Meloni previously indicated that she would not renew the BRI memorandum. Brussels and other EU capitals are also looking closely at Berlin and its new China strategy from the Green Foreign Ministry.

New trade policy tools: Before the summer recess, the European Parliament wants to finalize its positions on the EU Supply Chain Act and the import ban on products made under forced labor, explains the chairman of the Trade Committee, Bernd Lange (SPD), in an interview with China.Table. “There will certainly be some points of conflict with China here.” In both areas, however, the EU Parliament now wants to make quick progress, according to Lange. The new Anti-Coercion Instrument is also expected to be finalized in the near future. At the end of January, negotiations on this will again take place between the EU institutions under the chairmanship of the Swedish EU Council Presidency. “Perhaps this will already be the last trialogue,” Lange says confidently. The European Commission is also considering taking a closer look at investments by European companies in China. In its 2023 work program, the Brussels-based authority announced plans to examine whether additional instruments are needed regarding the supervision of strategic foreign investments.

Renaissance of CAI? Lange does not rule out a revival of the shelved investment agreement between the EU and China. One prerequisite, however, would still be the lifting of sanctions against EU delegates. Last year, the leadership in Beijing signaled its willingness to sign the International Labor Organization (ILO) conventions against forced labor – something the European Parliament demands for further negotiations. “Now we have to enter into a dialogue to see what that means in concrete terms,” Lange stressed. Beijing previously only wanted to lift sanctions on MEPs if the EU lifts its sanctions against Chinese officials and an organization for human rights abuses in Xinjiang. However, the sanctions were renewed in December.

Russia’s war and Beijing’s position: The Russian invasion of Ukraine and China’s silent support will continue to shape relations between Brussels and Beijing in 2023. In the near future, French President Emmanuel Macron plans to travel to China. Macron had expressed his support for China as a possible mediator between Russia and the West after the G20 summit in Bali. The French leader earned scorn for this suggestion. According to media reports, US Secretary of State Antony Blinken will travel to Beijing before the end of January. A resumption of diplomatic meetings with Chinese representatives has given rise to hopes in Brussels that Beijing might yet distance itself from Moscow. However, the latest developments point in a different direction.

Geopolitical infrastructure: Touted as a sustainable alternative to China’s Belt and Road Initiative (BRI), the EU wants to breathe life into its Global Gateway project this year. The first official meeting between EU leaders and EU foreign ministers was held recently. But there are still no concrete projects. In the near future, however, the EU-wide invitation to tender for an advisory body consisting of entrepreneurs and CEOs is to commence, according to sources in the responsible Directorate General. The panel is said to be an important step toward more effectively involving the private sector. A summit meeting between EU and Latin American representatives will also be held in the first half of the year. Latin America will be a focus of Global Gateway.

WTO complaints: WTO disputes: Direct confrontation is on the horizon in late January, when two arbitration tribunals will be opened at the World Trade Organization (WTO) to deal with claims brought by the EU against China. The WTO proceedings concern the de facto trade embargo against Lithuania and patent protection of high-tech products. China opposed the creation of these arbitration tribunals. However, it can only vote them once. The EU announced to resubmit the request. The panel will then be set up automatically at the end of January 2023 and may drag on for up to a year and a half.

Taiwan and Indo-Pacific: The Swedish Council Presidency intends to further advance the EU’s strategy for cooperation in the Indo-Pacific, according to the Swedish program. Shortly before the end of the year, a first summit meeting was held between the EU and ASEAN, where both sides agreed on closer economic cooperation. In the penultimate week of December, an EU delegation from the Trade Committee also visited Taiwan. Further delegation trips to the island are also scheduled for 2023.

Data protection: Meta must fear for advertising revenues

The US company Meta faces a massive loss of advertising revenue in the EU. The reason for this is a decision taken by the European Data Protection Supervisors (EDPB). The Irish data protection supervisory authority has now served this on the company. In it, the EU subsidiaries of Facebook and Meta’s parent company are told that the companies do not have sufficient user consent for behavior-based advertising.

If the EDPB decision becomes legally effective, Facebook and Co. will no longer be allowed to use data collected under it for ad control. Meta would then have to switch to other types of ads – such as contextual advertising, which promises less revenue. In addition, the illegally collected data may not be used further.

Facebook included a passage in its terms of use as a supposed legal basis for data processing when the GDPR came into force in May 2018, with which personalized advertising was seen as an integral part of the product and thus of the user agreements.

In doing so, the company wanted to create a processing ground under Article 6(f) of the GDPR. The Data Protection Commission of Ireland (DPC) followed this view. The majority of the European panel, however, saw it differently.

However, the DPC is bound by the decisions of the EDPB and has now sent Meta the amended decision. This was already taken at the beginning of December by the EDPB, the joint decision-making body of the national supervisory authorities.

DPC criticizes EU colleagues

But it is only now that the Irish data protection regulator DPC has provided further details about the case. For example, the fines for misconduct were increased to 210 million in the case of Facebook and €180 million for Instagram. The proceedings stemmed from a complaint by Austrian data protection activist Max Schrems. Schrems has been massively criticizing the DPC for years – and accuses the authority of Irish data protection commissioner Helen Dixon of cronyism with Meta.

For its part, the DPC criticizes parts of the decision. Among other things, the EU colleagues had ordered the Irish regulator to quickly conduct a comprehensive audit at Meta. In doing so, the EDPB exceeded its competencies, according to the DPC.

Meta intends to appeal

Meta announced yesterday that it would file an appeal. Companies had faced an unclear legal situation on the issue, the group said in a response: “We strongly believe our approach respects GDPR, and we’re therefore disappointed by these decisions and intend to appeal both the substance of the rulings and the fines.”

The decision is expected to be published by the EDPB during the coming week, according to DPC Ireland. Meta and its subsidiaries Facebook and Instagram have been fined more than €1 billion for breaches of data protection laws in recent years under the new decision. fst

France supplies Ukraine with ‘light battle tanks’

France wants to supply Ukraine with “light battle tanks.” This was promised by the French head of state Emmanuel Macron to his Ukrainian colleague Volodymyr Zelenskiy, the Élysée Palace announced on Wednesday after a telephone conversation between the two presidents. The tank is said to be the AMX-10 RC armored reconnaissance vehicle. The wheeled tank with a large gun is used mainly for reconnaissance. It was initially unclear how many tanks France intends to hand over to Ukraine and by when. The Élysée Palace said that these were the first Western-designed battle tanks to be delivered to the Ukrainian armed forces.

“Until victory, until the return of peace in Europe, our support for Ukraine will not diminish,” Macron wrote in the evening. Zelenskiy thanked Macron on Twitter for the decision. He said they also decided to continue working together to strengthen Ukraine’s air defenses, for example. Paris has so far supplied Kyiv with 18 Caesar howitzers and Milan anti-tank missiles, among other things. Ukraine also received Western-designed tanks, but these tended to be troop carriers.

Ukraine is always courting the delivery of Western battle tanks and other weapons systems, and for months it has been demanding Leopard 2 tanks from Germany. However, Chancellor Olaf Scholz (SPD) does not want to supply them on his own and points out that no other country has provided similar weapons systems so far. dpa

German government rejects Polish demands for reparations

The German government sticks to its negative position on Polish demands for reparations for the World War damage caused by Hitler’s Germany. On Wednesday, Foreign Minister Annalena Baerbock said on the sidelines of her visit to Lisbon that during her visit to Warsaw in October, she had “already made it clear that for us on the German side, the issue is legally settled.” The Green politician added that this position had now been reiterated in written communication with Warsaw.

Earlier, the Polish Foreign Ministry had announced that, as expected, the German government had formally rejected Polish demands in a diplomatic note received on Jan. 3. The ministry in Warsaw had said Tuesday evening: “According to the federal government, the issue of reparations and war reparations remains closed, and the federal government does not intend to enter into negotiations on this issue.”

Poland’s national conservative PiS government has been addressing World War reparations for years. On Sept. 1, a commission of the Polish parliament presented a report that put the amount of World War damage at more than €1.3 trillion. On Oct. 3, Warsaw sent a diplomatic note to the German government demanding that sum. dpa

NGO calls for recycling quotas for wind power and PV plants

By introducing recycling quotas, more collection points and stronger ecodesign requirements, the high recycling potential of wind power and photovoltaic plants can be more fully exploited and the high consumption of raw materials in this sector can be reduced. This is stated by the NGO PowerShift in the study “Thinking raw material transition and energy transition together”, which is available to Europe.Table.

As many older solar and wind power plants in Europe reach the end of their service life in the coming years, a sharp increase in waste streams is expected in this sector by 2030. According to the European Environment Agency (EEA), the solar energy industry is expected to produce up to 1.5 million tons of waste annually, composed of glass, metals and silicon. For wind energy, the figure is nearly five million tons of cement, metals and composites per year.

PowerShift wants registration of products

PowerShift derives the following requirements from the study:

more public collection points
take-back of products by manufacturers
decentralized organization of collection and recycling
recycling quotas for wind power and PV systems (along the lines of the EU Battery Regulation)
extension and strengthening of ecodesign requirements
registration of products before they are placed on the market, monitoring of their whereabouts after their end of use
extending life cycles through improved maintenance, more refurbishment instead of scrapping, and cascade use

However, improved recycling is not the only solution; instead, “we need to reduce our material footprint and thus the absolute consumption of raw materials across society as a whole,” the study states. leo

Johannes Lindner – helping to shape Europe’s new era

*Johannes Lindner, co-director of the Jacques Delors Centre in Berlin since October 2022.*

When Johannes Lindner was 25 years old, he shook hands with Jacques Delors – the former President of the European Commission – for the first time. A photo of that moment hangs on the bulletin board in his office at Berlin’s Alexanderplatz. Lindner has been the co-director of the Jacques Delors Centre at the Hertie School in Berlin since October 2022. He heads the think tank and works on economic and financial policy issues.

For the 48-year-old, Olaf Scholz’s turnaround plays an important role when looking at current European politics. “I find the question of what the European dimension of this turning point is fascinating,” says Lindner. In the security sector, he sees the most change at the European level since the start of the war, with other areas still lagging behind. “To accompany that and to formulate a European strategy for the turn of the times, that’s where I see our role.”

A Europe that stands united

The Jacques Delors Centre in Berlin conducts scientific research and develops ideas for a future-oriented European policy. In its think tank work, the center aims to take an independent, non-partisan look at what is happening and what decisions are being made and to develop proposals for a Europe that is fit for the future. “One premise of the Jacques Delors Centre is that we, as Europe, only appear in the world if we act as one. The war in Ukraine also shows that,” says Lindner.

The center’s co-director finds two points particularly interesting. One is how Europe is dealing with the challenges of the climate crisis and energy security. “For a long time, the energy sector was a policy area in which national interests and solutions very much dominated. That’s why it’s extremely difficult right now to reach agreement at the European level.” For Lindner, the other related question is what a single European market could look like in the medium term: “Europe’s strategic autonomy is an exciting topic. Dependence on world trade will not be able to continue in this form without adjustment.”

Research and think tank benefit from each other

Before becoming co-director at the Jacques Delors Centre, Johannes Lindner worked for 19 years at the European Central Bank in Frankfurt. Most recently, he headed the EU Institutions and Forums Division from 2012 to 2022, coordinating the ECB’s relations, particularly with the Council and the European Parliament. “I have a good feeling about what can and cannot work politically. At the ECB over the past ten years, I’ve seen what’s possible when Europe has to act in a crisis and the states all work together.”

In addition to his job as co-director of the Jacques Delors Centre, Lindner is expected to research and teach on EU economic and fiscal policy as part of the newly created Henrik Enderlein Fellowship, funded by the Mercator Foundation.

He sees an important junction between the research and the work in the think tank: “The deep and rather long-term perspective of the research is helpful. We frequently exchange ideas with colleagues.” On the other hand, he says, the research side can also benefit from the work of his think tank. “As a result, there is a relevance check.” He and his team are good at judging which topics are relevant and which are not. Maximilian Senff

EUROPE.TABLE EDITORS

Till
Hoppe

Charlotte
Wirth

Falk
Steiner

Timo
Landenberger

Corinna
Visser

Lukas
Knigge

Eric
Bonse

Sarah
Schaefer

Manuel
Berkel

Lisa-Martina
Klein

Markus
Grabitz

Stephan
Israel

Claire
Stam

Dear reader,

The recommendation on how to deal with China trips that had been awaited for days was announced last night. After a meeting of the EU Integrated Political Crisis Response (IPCR), it was said that EU member states are “strongly encouraged” to introduce the requirement of a negative Covid test for all travelers before departure. Amelie Richter knows which issues will be important regarding China this year.

Coal and gas-fired power plants had a hard time in 2022, and this year coal-fired power generation in Germany could continue to rise briskly. Lower electricity consumption would therefore not only improve Germany’s climate balance, but also lower prices and save scarce gas. But Germany has so far failed to meet an electricity savings target from an emergency EU regulation that has been in effect since November, as you can read in my Feature.

Some in the EU Parliament would also like to see more resolute climate action. Commission Vice President Frans Timmermans is overburdened with his dual responsibility for the Green Deal and international climate negotiations, they say. Lukas Scheid investigated the question of whether the EU needs a European John Kerry.

Big money is at stake in new details about a decision by European data protection regulators. Tech giant Meta must fear a massive loss of advertising revenue. Falk Steiner wrote down the details in the News.

How the EU holds its own in global competition is one of Johannes Lindner‘s topics. He has been co-director of the Jacques Delors Centre at the Hertie School in Berlin since October 2022. Read in today’s Heads what challenges he sees ahead for the EU.

Your
Manuel Berkel

Germany misses electricity savings target

By

Manuel Berkel

Since November, electricity consumption in the EU states should have fallen by ten percent. In fact, electricity demand in Germany fell by only 7.6 percent in November and 4.4 percent in December. This was calculated by Europe.Table based on data from the Federal Network Agency.

At the end of September, the EU’s energy ministers agreed on two targets for saving electricity in an emergency decree. Firstly, they wanted to voluntarily reduce electricity consumption by ten percent by the end of 2023. The benchmark in each case is the average monthly consumption from the five previous years. The goal is “lower electricity demand and thus lower energy prices,” according to the agreement. In addition, the decision is intended to help reduce the consumption of scarce natural gas in power generation.

Von der Leyen urges security of supply

ENTSO-E, the European network operators’ association, had confirmed in the fall that risks to security of supply and critical gas demand for power plants “could be significantly reduced if a European average of 10 percent of electricity consumption were saved.”

Earlier, Commission President Ursula von der Leyen had also justified the political move on the grounds of security of supply. “If we reduce demand at peak times, supplies will last longer and this will lower prices,” von der Leyen said in her State of the European Union address to the EU Parliament.

Ministry for Economic Affairs silent on savings targets

It is precisely this demand at peak times that is the subject of the second savings target, which, unlike the first, is not indicative but mandatory. From December 2022 to March of this year, the EU member states must reduce electricity consumption by five percent during peak periods. The national governments have room for maneuver, especially when it comes to defining the peak periods. The decisive factor can be demand, but also the electricity price on the day-ahead market.

Europe.Table asked the German Federal Ministry for Economics Affairs and the German Federal Network Agency (BNetzA) whether the peak hours in Germany had already been defined and whether the EU target had been reached in December. Both press offices left Tuesday’s inquiry unanswered until Wednesday evening. Robert Habeck’s office was also silent on the question of whether the German government was planning additional measures to reduce overall electricity consumption by ten percent.

Gas-fired power plants produce more electricity

Instead, the BNetzA circulated a press release on the 2022 electricity market data, with one finding: “Compared to the previous year, generation by natural gas was 1.7 percent higher.” There was no word on the electricity savings targets, which are aimed in particular at gas-fired power plants. However, gas prices are already falling further because of the mild weather. Yesterday, they were quoted at under €65 per megawatt hour for the front month, the lowest level since November 2021.

The Ministry obviously does not give priority to saving electricity. The Federal Ministry for Economics Affairs’ “Energy Switch” campaign does provide tips on LED lamps and energy-saving electrical appliances.

Monitoring weaker than for gas supply

In contrast to the gas supply, however, there is no close-meshed reporting from the Federal Network Agency (BNetzA) for the electricity sector as to whether the politically agreed energy-saving targets are actually being achieved. Shortly before Christmas, DIE ZEIT asked the president of the BNetzA, Klaus Müller, whether he did not have to call on people to save electricity much more or whether several appeals to save at once were overburdening people.

Müller responded, “I’ve always learned to keep it simple. The most important thing we have to manage now is to avoid a gas shortage.” Because of the sharp rise in prices, most people would automatically pay attention to their electricity consumption in 2023. Already over the course of the past year, however, utilities have increased their electricity prices by 31 percent, according to comparison portal Verivox.

Smart grid does not make headway

One reason for the silence could be that the Ministry for Economic Affairs lacks the appropriate tools to reduce peak consumption in particular. A regulation that compensates industrial companies for switching off loads expired in June and was not renewed. Households have been waiting for years for smart meters that automatically run household appliances when demand is low.

The ministry had not announced a draft amendment to the Metering Point Operation Act to accelerate the rollout until early 2023. By the time it is passed, the EU Emergency Ordinance will probably have expired.

Does the EU need a Climate Czar?

By

Lukas Knigge

“We need a European John Kerry,” said Peter Liese, environmental spokesman for the EPP, after the end of COP27. Frans Timmermans is overburdened in his role as climate commissioner because he is responsible for both EU legislation and international climate policy, according to Liese. In Sharm el-Sheikh, he said, the bridges were built by others, meaning US climate envoy John Kerry and his Chinese counterpart Xie Zhenhua. Timmermans had no time for any diplomatic COP preparations because he was busy with EU legislation, the MEP accuses him.

In Sharm el-Sheikh, the EU failed to push through its demands for more climate protection through global emissions reductions. Above all, it lacked backing in the global South. An EU climate czar could build and maintain long-term alliances with island states and smaller developing countries on a full-time basis. Michael Bloss, a Green MEP in the EU Parliament, said such climate partnerships are the solution for higher international climate targets.

Call for European climate foreign policy

This opens the debate on an “EU Climate Czar.” But there are difficult questions of detail:

Where would an EU climate envoy be located? The member states are responsible for foreign policy and, thus, also for external climate policy. The EU representative for foreign affairs is appointed by the Council, so an EU climate envoy would also tend to be based there rather than at the Commission. It would also be conceivable that an EU foreign affairs representative would also be climate chief negotiator. On the other hand, only the Commission has the right of initiative for new laws. So a Council climate envoy would have to go through the Commission for important decisions anyway.
What powers and resources would an EU climate envoy have? EU Climate Envoy Marc Vanheukelen lacks standing and resources. Jennifer Morgan, the German government’s climate envoy and state secretary at the German Foreign Office, could be a role model. She has significantly more resources and personnel at her disposal than Vanheukelen.
A climate envoy also needs access to funding and the ability to decide on cooperative ventures, as is the case in the United States and China. Foreign climate policy would then no longer be national, but European. Only then would a European climate commissioner be effective, says Artur Runge-Metzger, long-time director of the Directorate General for Climate Action (DG Clima).
However, the lack of a common line and coordination among the member states in external climate policy stands in the way. An EU climate envoy would only help if the different ideas of the EU member states were bundled, says Runge-Metzger.

An EU climate czar is not a new demand. After the failed COP in Copenhagen, there had been talks that the first EU High Representative for Foreign Affairs, Catherine Ashton, would also be responsible for foreign climate policy, says Runge-Metzger. But the new Commission structure created the position of EU climate commissioner. The debate flared up briefly under Jean-Claude Juncker but was quickly put to rest, Runge-Metzger says.

Timmermans rejects criticism

The climate commissioner himself sees no need for a new position. He is responsible for implementing EU legislation as well as promoting international climate protection measures, according to his office. Separating the two roles would be counterproductive. Runge-Metzger agrees. In international negotiations, Timmermans would benefit from his practical experience with the Green Deal.

A climate commissioner appointed during this legislative term is considered unrealistic anyway. However, the debate could come up again for the 2024 European elections – especially in the EU Parliament. There, the EPP had already achieved a majority in the Development Committee in September last year for the creation of a budget for an EU climate envoy.

Potential names for the position

In terms of profile, a climate envoy should already have experience in climate negotiations, know the structures of climate conferences and have a certain standing in the scene, says Liese.

Spain’s Socialist Environment Minister Teresa Ribera would be one such candidate. But whether she would give up her office in Madrid for a post in the Commission that is only safe until the next European elections in spring 2024 is questionable.
For Germany, Jochen Flasbarth would be the most obvious candidate. The State Secretary in the Development Ministry previously held the same post for eight years in the Environment Ministry, which was responsible for climate negotiations at the time. He is one of the most renowned climate negotiators in the world. He helped negotiate the Paris Agreement, so he has the necessary network and plenty of experience in international climate diplomacy. His shortcoming: He is German, and Germany is one of the most ambitious countries in the EU in terms of climate policy. Less ambitious countries are likely to have their difficulties with a German as their top climate diplomat. They fear that he might pay less attention to their interests than to those of Germany.
The Czech Jan Dusík would therefore be more suitable. The Czech Republic’s deputy environment minister was the head of the Czech presidency’s delegation in Sharm el-Sheikh and, after Timmermans, Europe’s most important representative at COP27. The eastern European EU states could probably agree on him.
Terhi Lehtonen, state secretary at the Finnish Environment Ministry, would also be a suitable EU climate envoy. She was political advisor for environmental policy in the EU Parliament for 14 years and later responsible for international negotiations in DG Clima. However, Dusík and Lehtonen are with the Greens and, thus, more difficult to get through to conservative forces in Brussels and Strasbourg.
That leaves Dan Jørgensen, Danish minister for climate and development. The former MEP has made a name for himself as vice chairman of the EU Environment Committee. He is considered a progressive climate activist. His English-language podcast on climate issues is a testament to his communication skills. He is also a social democrat.

EU recommends mandatory testing for travelers from China

By

Amelie Richter

Anyone entering the EU from China as of Sunday will have to present a negative Covid test in some member states, even before boarding the plane. This applies to France and Italy, for example. Germany has not yet announced any mandatory testing for passengers from the People’s Republic. After a Wednesday meeting of the EU crisis response team (IPCR) in Brussels regarding the Covid situation, a report was released stating that EU member states are “strongly encouraged” to introduce mandatory pre-boarding Covid testing for all travelers.

A majority of EU states have spoken out in favor of a uniform mandatory testing requirement, an EU Commission spokesman said on Wednesday afternoon before the IPCR meeting. The Chinese Foreign Ministry already announced retaliatory measures should the EU introduce mandatory testing. Whether it will be introduced is now up to the individual EU states. The crisis team also recommended random testing of arriving travelers and wearing FFP2 masks on flights from the People’s Republic.

Much depends on what impact China’s opening up will have on the EU in the coming weeks. If travel resumes smoothly, then EU-China relations will also begin to improve in 2023. However, it is not yet clear what impact China’s rapid change of course will have in practice.

Movement at WTO, BRI – and maybe even the CAI

However, several important outstanding developments and issues, both new and old, will impact the relationship between Brussels and Beijing. An overview:

Change of direction: The Czech Republic will elect a new president in January. Incumbent Miloš Zeman is considered close to China and is not up for re-election. Consequently, there will almost certainly be an even stronger departure from Beijing in Prague than previously (China.Table reported). A withdrawal from the 14+1 cooperation format between Eastern and Central European states and China is not ruled out. There are several candidates to succeed Zeman. One of them: ex-Prime Minister Andrej Babiš, who is rather skeptical of Beijing.

Italy’s decision on the Belt and Road Initiative (BRI) will also be interesting in 2023. The right-wing populist Prime Minister Giorgia Meloni previously indicated that she would not renew the BRI memorandum. Brussels and other EU capitals are also looking closely at Berlin and its new China strategy from the Green Foreign Ministry.

New trade policy tools: Before the summer recess, the European Parliament wants to finalize its positions on the EU Supply Chain Act and the import ban on products made under forced labor, explains the chairman of the Trade Committee, Bernd Lange (SPD), in an interview with China.Table. “There will certainly be some points of conflict with China here.” In both areas, however, the EU Parliament now wants to make quick progress, according to Lange. The new Anti-Coercion Instrument is also expected to be finalized in the near future. At the end of January, negotiations on this will again take place between the EU institutions under the chairmanship of the Swedish EU Council Presidency. “Perhaps this will already be the last trialogue,” Lange says confidently. The European Commission is also considering taking a closer look at investments by European companies in China. In its 2023 work program, the Brussels-based authority announced plans to examine whether additional instruments are needed regarding the supervision of strategic foreign investments.

Renaissance of CAI? Lange does not rule out a revival of the shelved investment agreement between the EU and China. One prerequisite, however, would still be the lifting of sanctions against EU delegates. Last year, the leadership in Beijing signaled its willingness to sign the International Labor Organization (ILO) conventions against forced labor – something the European Parliament demands for further negotiations. “Now we have to enter into a dialogue to see what that means in concrete terms,” Lange stressed. Beijing previously only wanted to lift sanctions on MEPs if the EU lifts its sanctions against Chinese officials and an organization for human rights abuses in Xinjiang. However, the sanctions were renewed in December.

Russia’s war and Beijing’s position: The Russian invasion of Ukraine and China’s silent support will continue to shape relations between Brussels and Beijing in 2023. In the near future, French President Emmanuel Macron plans to travel to China. Macron had expressed his support for China as a possible mediator between Russia and the West after the G20 summit in Bali. The French leader earned scorn for this suggestion. According to media reports, US Secretary of State Antony Blinken will travel to Beijing before the end of January. A resumption of diplomatic meetings with Chinese representatives has given rise to hopes in Brussels that Beijing might yet distance itself from Moscow. However, the latest developments point in a different direction.

Geopolitical infrastructure: Touted as a sustainable alternative to China’s Belt and Road Initiative (BRI), the EU wants to breathe life into its Global Gateway project this year. The first official meeting between EU leaders and EU foreign ministers was held recently. But there are still no concrete projects. In the near future, however, the EU-wide invitation to tender for an advisory body consisting of entrepreneurs and CEOs is to commence, according to sources in the responsible Directorate General. The panel is said to be an important step toward more effectively involving the private sector. A summit meeting between EU and Latin American representatives will also be held in the first half of the year. Latin America will be a focus of Global Gateway.

WTO complaints: WTO disputes: Direct confrontation is on the horizon in late January, when two arbitration tribunals will be opened at the World Trade Organization (WTO) to deal with claims brought by the EU against China. The WTO proceedings concern the de facto trade embargo against Lithuania and patent protection of high-tech products. China opposed the creation of these arbitration tribunals. However, it can only vote them once. The EU announced to resubmit the request. The panel will then be set up automatically at the end of January 2023 and may drag on for up to a year and a half.

Taiwan and Indo-Pacific: The Swedish Council Presidency intends to further advance the EU’s strategy for cooperation in the Indo-Pacific, according to the Swedish program. Shortly before the end of the year, a first summit meeting was held between the EU and ASEAN, where both sides agreed on closer economic cooperation. In the penultimate week of December, an EU delegation from the Trade Committee also visited Taiwan. Further delegation trips to the island are also scheduled for 2023.

Data protection: Meta must fear for advertising revenues

The US company Meta faces a massive loss of advertising revenue in the EU. The reason for this is a decision taken by the European Data Protection Supervisors (EDPB). The Irish data protection supervisory authority has now served this on the company. In it, the EU subsidiaries of Facebook and Meta’s parent company are told that the companies do not have sufficient user consent for behavior-based advertising.

If the EDPB decision becomes legally effective, Facebook and Co. will no longer be allowed to use data collected under it for ad control. Meta would then have to switch to other types of ads – such as contextual advertising, which promises less revenue. In addition, the illegally collected data may not be used further.

Facebook included a passage in its terms of use as a supposed legal basis for data processing when the GDPR came into force in May 2018, with which personalized advertising was seen as an integral part of the product and thus of the user agreements.

In doing so, the company wanted to create a processing ground under Article 6(f) of the GDPR. The Data Protection Commission of Ireland (DPC) followed this view. The majority of the European panel, however, saw it differently.

However, the DPC is bound by the decisions of the EDPB and has now sent Meta the amended decision. This was already taken at the beginning of December by the EDPB, the joint decision-making body of the national supervisory authorities.

DPC criticizes EU colleagues

But it is only now that the Irish data protection regulator DPC has provided further details about the case. For example, the fines for misconduct were increased to 210 million in the case of Facebook and €180 million for Instagram. The proceedings stemmed from a complaint by Austrian data protection activist Max Schrems. Schrems has been massively criticizing the DPC for years – and accuses the authority of Irish data protection commissioner Helen Dixon of cronyism with Meta.

For its part, the DPC criticizes parts of the decision. Among other things, the EU colleagues had ordered the Irish regulator to quickly conduct a comprehensive audit at Meta. In doing so, the EDPB exceeded its competencies, according to the DPC.

Meta intends to appeal

Meta announced yesterday that it would file an appeal. Companies had faced an unclear legal situation on the issue, the group said in a response: “We strongly believe our approach respects GDPR, and we’re therefore disappointed by these decisions and intend to appeal both the substance of the rulings and the fines.”

The decision is expected to be published by the EDPB during the coming week, according to DPC Ireland. Meta and its subsidiaries Facebook and Instagram have been fined more than €1 billion for breaches of data protection laws in recent years under the new decision. fst

France supplies Ukraine with ‘light battle tanks’

France wants to supply Ukraine with “light battle tanks.” This was promised by the French head of state Emmanuel Macron to his Ukrainian colleague Volodymyr Zelenskiy, the Élysée Palace announced on Wednesday after a telephone conversation between the two presidents. The tank is said to be the AMX-10 RC armored reconnaissance vehicle. The wheeled tank with a large gun is used mainly for reconnaissance. It was initially unclear how many tanks France intends to hand over to Ukraine and by when. The Élysée Palace said that these were the first Western-designed battle tanks to be delivered to the Ukrainian armed forces.

“Until victory, until the return of peace in Europe, our support for Ukraine will not diminish,” Macron wrote in the evening. Zelenskiy thanked Macron on Twitter for the decision. He said they also decided to continue working together to strengthen Ukraine’s air defenses, for example. Paris has so far supplied Kyiv with 18 Caesar howitzers and Milan anti-tank missiles, among other things. Ukraine also received Western-designed tanks, but these tended to be troop carriers.

Ukraine is always courting the delivery of Western battle tanks and other weapons systems, and for months it has been demanding Leopard 2 tanks from Germany. However, Chancellor Olaf Scholz (SPD) does not want to supply them on his own and points out that no other country has provided similar weapons systems so far. dpa

German government rejects Polish demands for reparations

The German government sticks to its negative position on Polish demands for reparations for the World War damage caused by Hitler’s Germany. On Wednesday, Foreign Minister Annalena Baerbock said on the sidelines of her visit to Lisbon that during her visit to Warsaw in October, she had “already made it clear that for us on the German side, the issue is legally settled.” The Green politician added that this position had now been reiterated in written communication with Warsaw.

Earlier, the Polish Foreign Ministry had announced that, as expected, the German government had formally rejected Polish demands in a diplomatic note received on Jan. 3. The ministry in Warsaw had said Tuesday evening: “According to the federal government, the issue of reparations and war reparations remains closed, and the federal government does not intend to enter into negotiations on this issue.”

Poland’s national conservative PiS government has been addressing World War reparations for years. On Sept. 1, a commission of the Polish parliament presented a report that put the amount of World War damage at more than €1.3 trillion. On Oct. 3, Warsaw sent a diplomatic note to the German government demanding that sum. dpa

NGO calls for recycling quotas for wind power and PV plants

By introducing recycling quotas, more collection points and stronger ecodesign requirements, the high recycling potential of wind power and photovoltaic plants can be more fully exploited and the high consumption of raw materials in this sector can be reduced. This is stated by the NGO PowerShift in the study “Thinking raw material transition and energy transition together”, which is available to Europe.Table.

As many older solar and wind power plants in Europe reach the end of their service life in the coming years, a sharp increase in waste streams is expected in this sector by 2030. According to the European Environment Agency (EEA), the solar energy industry is expected to produce up to 1.5 million tons of waste annually, composed of glass, metals and silicon. For wind energy, the figure is nearly five million tons of cement, metals and composites per year.

PowerShift wants registration of products

PowerShift derives the following requirements from the study:

more public collection points
take-back of products by manufacturers
decentralized organization of collection and recycling
recycling quotas for wind power and PV systems (along the lines of the EU Battery Regulation)
extension and strengthening of ecodesign requirements
registration of products before they are placed on the market, monitoring of their whereabouts after their end of use
extending life cycles through improved maintenance, more refurbishment instead of scrapping, and cascade use

However, improved recycling is not the only solution; instead, “we need to reduce our material footprint and thus the absolute consumption of raw materials across society as a whole,” the study states. leo

Johannes Lindner – helping to shape Europe’s new era

When Johannes Lindner was 25 years old, he shook hands with Jacques Delors – the former President of the European Commission – for the first time. A photo of that moment hangs on the bulletin board in his office at Berlin’s Alexanderplatz. Lindner has been the co-director of the Jacques Delors Centre at the Hertie School in Berlin since October 2022. He heads the think tank and works on economic and financial policy issues.

For the 48-year-old, Olaf Scholz’s turnaround plays an important role when looking at current European politics. “I find the question of what the European dimension of this turning point is fascinating,” says Lindner. In the security sector, he sees the most change at the European level since the start of the war, with other areas still lagging behind. “To accompany that and to formulate a European strategy for the turn of the times, that’s where I see our role.”

A Europe that stands united

The Jacques Delors Centre in Berlin conducts scientific research and develops ideas for a future-oriented European policy. In its think tank work, the center aims to take an independent, non-partisan look at what is happening and what decisions are being made and to develop proposals for a Europe that is fit for the future. “One premise of the Jacques Delors Centre is that we, as Europe, only appear in the world if we act as one. The war in Ukraine also shows that,” says Lindner.

The center’s co-director finds two points particularly interesting. One is how Europe is dealing with the challenges of the climate crisis and energy security. “For a long time, the energy sector was a policy area in which national interests and solutions very much dominated. That’s why it’s extremely difficult right now to reach agreement at the European level.” For Lindner, the other related question is what a single European market could look like in the medium term: “Europe’s strategic autonomy is an exciting topic. Dependence on world trade will not be able to continue in this form without adjustment.”

Research and think tank benefit from each other

Before becoming co-director at the Jacques Delors Centre, Johannes Lindner worked for 19 years at the European Central Bank in Frankfurt. Most recently, he headed the EU Institutions and Forums Division from 2012 to 2022, coordinating the ECB’s relations, particularly with the Council and the European Parliament. “I have a good feeling about what can and cannot work politically. At the ECB over the past ten years, I’ve seen what’s possible when Europe has to act in a crisis and the states all work together.”

In addition to his job as co-director of the Jacques Delors Centre, Lindner is expected to research and teach on EU economic and fiscal policy as part of the newly created Henrik Enderlein Fellowship, funded by the Mercator Foundation.

He sees an important junction between the research and the work in the think tank: “The deep and rather long-term perspective of the research is helpful. We frequently exchange ideas with colleagues.” On the other hand, he says, the research side can also benefit from the work of his think tank. “As a result, there is a relevance check.” He and his team are good at judging which topics are relevant and which are not. Maximilian Senff