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Europe.Table #116 / 02. February 2022

Alternatives to Russian gas + Product liability and AI + Raw material supply

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Professional Briefing
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To the German edition.
  • Gas crisis: the search for import alternatives
  • New EU rules for product liability planned
  • EU countries want to become more independent in raw materials
  • Sustainable Aviation Fuels: EU countries call for more ambitious targets
  • German government allows sale of Siltronic to fail
  • BSI awards first IT security label
  • Profile: Jean-Bernard Lévy
Dear reader,

Decision day: Today, the European Commission plans to present its delegated act to supplement the taxonomy and, in it, classify nuclear energy and natural gas as sustainable transitional solutions under certain conditions. It remains to be seen whether the authority will rework its controversial draft. However, Finance Commissioner Mairead McGuinness had ruled out fundamental changes. Nevertheless, four EU countries insisted on further improvements shortly before the final decision: In a joint letter to the Commission, Austria, Denmark, Sweden, and the Netherlands demanded on Tuesday that natural gas should not be classified as “green”.

Around five months after its completion, the Nord Stream 2 Baltic gas pipeline is still not in operation. The German Federal Network Agency had suspended certification of the billion-euro project until the operating company implements the EU requirements for unbundling network operations and natural gas trading. Nord Stream 2 AG formally fulfilled the requirement last week by establishing a German subsidiary. Nevertheless, further checks are necessary, the BNetzA said.

At the same time, it is becoming increasingly doubtful whether the pipeline, which is supposed to transport Russian gas across the Baltic Sea to Germany, will ever become operational. After all, the infrastructure project is part of possible sanctions imposed by the West against Russia in the Ukraine conflict. During a visit to Kiev yesterday, EU Commission Vice President Valdis Dombrovskis assured Ukraine of support. He said the EU’s review of an operating permit for Nord Stream 2 was on hold and that Brussels would do everything it could to prevent the Kremlin from using the supply of natural gas “as a weapon”.

Nevertheless, a possible total loss of Russian gas supplies in Europe is perceived as a serious threat. The worst-case scenario once again highlights the EU’s energy import dependency. While the Commission is trying to find alternatives, discussions are also starting in Germany: Should we become more independent of Russian gas? The problem: The alternatives are scarce – and have major drawbacks. We asked politicians, industry, and academia.

Does the over 30-year-old Product Liability Directive from 1985 still offer sufficient legal certainty and consumer protection in the age of intelligent and AI-based products and services? Opinions differ on this. While consumer representatives favor revising the legislation, industry rejects the EU Commission’s move. In order to close possible regulatory gaps, the European Commission apparently even wants to adopt a two-pronged approach. The existing product liability directive is to be revised. In addition, a new liability framework for artificial intelligence is being discussed. Eugenie Ankowitsch has analyzed which aspects are particularly controversial.

Your
Timo Landenberger
Image of Timo  Landenberger

Feature

Gas imports: expensive road to independence

The threat of war in Ukraine makes a possible gas supplies halt from Russia seem possible. The EU Commission is looking into possible alternatives, and Germany is now also discussing an accelerated departure from Russian gas. But at what cost?

Above all, natural gas had to be cheap and not too harmful to the climate. The argument of supply security has not carried too much weight so far – at least not in Germany. After all, Russia, by far the most important gas supplier, has always been reliable, so the common argument goes – even during the height of the Cold War.

However, the threat of a hot war in Ukraine has prompted a rethink. The EU Commission is currently trying to find alternatives to Gazprom and Co, also at the urging of the USA. In Brussels and in Washington, the danger that Moscow could respond to Western sanctions by cutting back or even stopping gas supplies to Europe is being taken seriously. On Friday, US President Joe Biden and Commission President Ursula von der Leyen had declared that they would work together to ensure a “continuous, sufficient and timely supply of natural gas to the EU”.

However, the Commission does not have a mandate from the member states to negotiate with potential energy suppliers. But that is not necessary for diplomatic initiatives in an area that is important for the entire EU, explained Commission spokesman Eric Mamer in Brussels. The Commission has been discussing ways to diversify energy supplies with international partners for some time.

  • Climate & Environment
  • Energy policy
  • Energy policy
  • European policy
  • European policy
  • Germany
  • Kadri Simson
  • Climate & Environment
  • LNG
  • Natural gas
  • Nord Stream 2
  • Nord Stream 2
  • Russia
  • Russia

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